Ukraine lose 900 million USD from restrictions on trade with Russia

Ukraine loss from restrictions on economic cooperation in Russia will reach 900 million USD in 2016, according to preliminary estimates of the Ministry of Economic Development. In relation to the size of expected losses European Commission has decided to provide Ukraine additional trade preferences worth 150-200 million USD. Although these measures do not cover even a part from losses.

“According to our estimates, this year we will have losses of 900 million USD”, said the Ukrainian Deputy Minister of Economic Development and Trade, Natalia Mikolskaya. “In this context, the European Commission has agreed to offer additional trade preferences to Ukraine. These funds are not enough to cover even the tenth of Ukraine’s losses” as its earnings from trade with the European Union will amount to mere 150-200 million USD”, added she.

“We are somewhat disappointed that we have not been granted access to all major commodities important for our economy. It is important for us to speed up discussion on the regulations as each passing day brings losses for us”, finished Natalia Mikolskaya.

Ukraine received free trade status with EU since January 1, 2016. From the same date, Russia banned imports of agricultural products, raw materials and food from Ukraine. Kiev responded to the ban and imposed sanctions against the import of 43 types of goods from Russia until December 31, 2017.

The results of January-September 2016 exports to the EU increased by 4.0%. The largest growth in exports was observed for food and beverages (27%) and consumer goods (24%). Also, Ukrainian manufacturers actively use trade opportunities within the tariff quota, currently used 26 of the 40 tariff quotas, and is more than during the term of autonomous trade preferences.

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