Ukrainian Prime Minister: Russian embargo will cost Ukraine $600 million
At the Cabinet meeting, the Ukrainian Prime Minister, Arseniy Yatsenyuk, stated that Ukraine has to get ready for Russian embargo .
“We are also getting ready for new import restrictions imposed by Russia to come into effect. Our preliminary estimate for 2016 is that Ukraine will lose $600 millions of export to the Russian Federation" – stated the Prime Minister.
Arseniy Yatsenyuk said that three years ago Ukraine was almost 35% dependent on the Russian market, and now the number has been reduced to 12,5%.
Earlier the Russian Minister of Economic Development, Mr Ulyukaev, stated that the Russian Federation will impose an embargo against Ukraine starting January 1.
Ulyukaev confirmed that Russia was not happy with Ukraine and EU reaching a Free Trade Agreement.
Starting January 1, 2016, the economic part of Ukraine-EU Association Agreement will come into effect.
Russia threatened that in such an event the Free Trade zone established by the former Soviet states will stop its existence.
In retaliation, Russia will suspend imports of most of the Ukrainian goods and will impose increased duties on other Ukrainian products.
In the end of October, German Chancellor, Angela Merkel confirmed the EU intention of establishing the Free Trade Zone with Ukraine.
She also stated that the EU officials will use the remaining time to find common ground with Russia on this issue.