Russia has introduced a number of restrictions on trade preferences for Ukraine on the back of concerns over free trade between Ukraine and the EU that could affect the Russian economy.
The EU’s attempts to allay fears of Russian officials were fruitless. As a result, Kiev will see tougher trading conditions with Russia.
The implementation of EU-Ukraine trade agreement has been delayed amid Russia’s concerns that a flood of European goods would flow through the Russian border and would reduce the competitiveness of Russian exports.
European Trade Commissioner Cecilia Malmström does not share Moscow’s concerns. She believes that the fears are unfounded and should not be given much weight. However, negotiations were trapped in a deadlock and no agreement followed, Russia’s Economic Development Minister Alexei Ulyukayev said. He added that Russia will cancel trade preferences for Ukraine in 2016 when the trade agreement between Kiev and the European Union will come into force.
