Ukraine`s embargo on Russian goods to remain through 2017

Monday, July 11, 2016 - 17:43 (EEST) Section: Latest news

Ukraine`s decision to prolong an embargo on Russian products, in response to new limitations introduced by Russia, came into force on July 11, 2016.
A Cabinet resolution about the embargo was posted on the Ukrainian government`s website.
”The resolution is to become effective as of the day of its publication,” the document said.
As UNIAN reported, Ukraine`s Cabinet prolonged the retaliatory embargo on Russian commodities until December 31, 2017, in connection with new restrictions imposed by the Russians. Initially, the embargo was introduced for a six-month period on December 30, 2015.
On July 1, Russia imposed additional restrictions on the movement of Ukrainian goods through its territory. The restrictions earlier imposed on Ukrainian goods heading to Kazakhstan are now also applicable to transit shipments to Kyrgyzstan. The legislative changes also provide for a complete ban on the transit of embargoed goods or the use of respective customs duties.
On July 4, Ukraine`s government announced plans to immediately introduce retaliatory measures, in response to Russia`s actions.
Russia`s moves were largely predictable, the ministry noted. On June 24, the Ministry of Investment and Development of the Republic of Kazakhstan issued recommendations to those Ukrainian carriers arranging for the transportation of goods to Kazakhstan to develop alternative routes bypassing Russia beginning July 1, 2016. In particular, Kazakhstan proposed to use routes through Georgia, Azerbaijan and via the Caspian Sea to the port of Aktau in Kazakhstan, as well as through Turkey, Iran, Turkmenistan, and Uzbekistan.
Ukraine and Russia introduced reciprocal trade restrictions in January 2016. According to various estimates, Ukrainian producers sustained losses exceeding $1 billion due to the Russian-imposed restrictions.