06.01.2016

New year and new prohibitions. Part I

January 1, 2016 is not only a fest for the whole country, but the onset of action of the food embargo Russia in relation to Ukraine and the suspension of the FTA between Ukraine and Russia.</ p>

At the end of December 2015 the State Duma adopted the law in the sphere of international trade and the President of the Federation signed it. According to the "novelty" № 956299-6 Russia terminate the agreement on free trade zone with Ukraine from 01.01.2016 year. The reason for this - the Agreement on free trade zone between Ukraine and the European Union. All negotiations regarding the settlement of the matter brought to nothing and not giving any result. Cecilia Malmström, the European Commissioner for Trade, commented on the failure of the negotiations as the "lack of flexibility of representatives of the Russian side». </ p>

In addition to the termination of the Agreement on free trade area, Russia also expanded food embargo on Ukraine which is already working against the United States, Canada, Norway, Iceland, Australia, the EU, Liechtenstein, Montenegro and Albania. </ p>

The Resolution No. 1397 dd. December 21, 2015 prohibits the import into the customs territory of the Russia of agricultural products and raw materials from Ukraine: beef, pork, edible offal, fish and shellfish, milk and dairy products, vegetables and fruits, nuts, sausages, etc. The link is represented by complete list of products . At this stage, Ukraine estimates future losses because of the Russian embargo of 500-600 million dollars. (Up to billion dollars a year). </ p>

Counter-sanctions don’t keep waiting. On January 10, 2016 Ukraine's response embargo against Russia takes effect. It will be prohibited to import food (raw materials and ready-made), alcohol, cigarettes, railway equipment, vegetables, bakery products of Russian origin to the territory of Ukraine. Full list of products can be viewed here. </ p>

Ban №3 by Russia in relation to Ukraine is a ban on the import of Ukrainian pork. From January, 1st 2016, Rosselkhoznadzor banned to supply pork of Ukrainian origin because of frequent cases of an outbreak of ASF in Ukraine over the last year. As reported, "... not adequate monitoring studies in wildlife, multiplication of the virus in the wild fauna, the lack of full information on the situation of African swine fever in Ukrainian regions ... "and Rosselkhoznadzor prompted to take action. Limitations include live pigs, their genetic material pork and pork products, the meat of wild boar, hoofed raw , hides and skins, raw intestines, bristles, finished products in stock that has pork, feed and Feed additives for pigs. </ p>

Information sources - www.dw.com, www.glavred.info, www.me.gov.ua </ p>