The Federation Council has canceled FTA with Ukraine / council.gov.ru
The Federation Council, which is the upper house of the Russian parliament, endorsed unanimously the bill "On the suspension by the Russian Federation of the Treaty on the free trade area in respect of Ukraine," according to an UNIAN correspondent in Russia.
As UNIAN reported earlier, December 22, Russian State Duma adopted a law on the suspension from January 1, 2016, of the Agreement on a free trade area (FTA) with Ukraine. The decision was supported by all deputies.
Russian President Vladimir Putin submitted to the State Duma on December 17 the relevant draft law. According to the explanatory memorandum, preferential trade regime with Ukraine shall be suspended in order to prevent threats to the economic security of Russia.
Putin has also signed a decree suspending the Treaty on a free trade area with Ukraine.
Read alsoRussian State Duma endorses abolition of free trade with UkraineThe memo states that in connection with the introduction of Ukraine-EU DCFTA from January 1, 2016, "there has been a fundamental change in circumstances, essential for Russia at the conclusion of the Agreement." "The Ukrainian side has actually abandoned the development of trade and economic cooperation within the CIS and chosen the path of progress toward the comprehensive integration with the European Union," reads the explanatory memorandum. It also says that the tariff liberalization, provided by the integration agreement between Ukraine and the EU "will cause significant damage to the economy of Russia."
The memo also states that the obligations of Ukraine on the association with the EU are not in line with the provisions of the Agreement on a free trade area in terms of tax-free trade.
Read alsoMedvedev signs decree on introducing "counter-sanctions" against UkraineOn December 9, Russian Prime Minister Dmitry Medvedev said that after the entry into force of the economic part of the Association Agreement between the EU and Ukraine, the tariff for the Ukrainian goods entering the Russian market will be at an average of 6% starting January 1, 2016.
In particular, Medvedev said that, if Ukraine chose another free trade area, "they need to understand that the advantages of the FTA with Russia, that is, a zero tariff, have ended [within the CIS FTA]."