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Russia remains Ukraine’s key trade partner despite Kiev’s claims of cutting economic ties

RT | February 20, 2019

Despite years of mutual trade restrictions, Russia remained Ukraine’s biggest trade partner in 2018, according to data published by the State Statistics Service of Ukraine.

Sales of Russian produce to Ukraine saw 12.3-percent year-on-year growth to US$8.1 billion. That makes Russia the biggest Ukrainian supplier, leaving China, Germany, Belarus, and Poland far behind. At the same time, the Russian market remained a major destination for Ukrainian exports. Ukraine sold $3.7 billion worth of goods to Russia, marking a 7.1 percent increase compared to the previous year.

Moscow suspended the free trade zone deal with Kiev shortly after the Ukrainian government signed an association agreement with the EU. Ukraine was automatically included on Russia’s counter-sanctions list against the EU, introduced by Moscow in 2014 in retaliation to European penalties over re-unification with Crimea and Russia’s alleged military involvement in Ukraine’s eastern regions.

In 2015, Ukraine imposed sanctions on a wide range of food imports from Russia, including meat and fish, coffee, dairy products, chocolate and confectionery, grains, cigarettes, beer, and many others. Last year, Kiev added fertilizers to its endless list of restrictions. In December, the Ukrainian authorities extended the measures for another year. The country also introduced sanctions against several individuals and entities.

In response, Russia banned the import of more than 50 Ukrainian goods, worth $510 million. The Kremlin announced that the restrictions can be lifted if Kiev gives up its own restrictions targeting specific Russian goods.

Despite bilateral restrictions, trade turnover between Russia and Ukraine has been increasing in recent years, with Russia enjoying a significant trade surplus.

February 20, 2019 - Posted by | Economics | , ,

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