Breach of trade relations with Russia cost Ukraine $1bn

Russia is not Ukraine’s partner; it is just a country that Ukraine trades with, Nataliya Mykolska, Trade Representative of Ukraine has told eurointegration.com.ua. She noted the trade turnover between the two countries is growing.

This, according to her, proves that Russian limitations are artificial. “The ties were broken artificially; were they not broken, our trade with Russia would have been developing quite dynamically and we would not have lost at least $1bn of our annual exports,” the trade representative said.

She added that in the trade relations with Russia, both exports and imports are growing.

“The trade turnover growth means two things. Russia has goods in its market needed in Ukraine and vice versa. Business will always buy what is more profitable to it and what it can buy at the lowest price with the best supply conditions,” Mykolska said.

As EAD previously reported, since January 1, Russia has imposed customs fees and food embargo like the one that was introduced against it by European countries. Thus, Russia wanted to protect its market from duty-free goods from the EU. Besides, Russia suspended the CIS free-trade area treaty for Ukraine. The Ukrainian economy, meanwhile, failed to get rid of Russia’s dependence.

Recently, Ukrainian business and industry people have been speaking for restoring the relations with Russia that, according to them, is to minimize losses of the two countries.