Russia threatens to withdraw from WTO due to multibillion dollar EU lawsuit
Russia can withdraw from the World Trade Organization (WTO) in case the EU's claim to recover 1.39 billion euros per year from Russia due to the restriction on pork imports is satisfied. The very fact that the EU sanctions were introduced against Russia completely contradicts the principles of the WTO, the first deputy head of the economic committee of the Council of Federation Sergey Kalashnikov said to RIA Novosti on Sunday.
Earlier, Politico reported that the European Union intends to recover 1.39 billion euros per year from Russia because of its restriction on pork imports. The World Trade Organization (WTO) has already sent the claim to arbitration court.
The demanded compensation amount equals what would have been the total value of pork exports from the EU to Russia in 2013. A proposal has been made to increase the penalty amount by 15% per year.
The First Deputy Head of the Economic Committee of the Council of Federation, Sergey Kalashnikov said to RIA Novosti on Sunday that the very fact that the EU sanctions were introduced against Russia completely contradicts the principles of the WTO. "Sanctions are not at all in accordance with the rules of the World Trade Organization," Kalashnikov said.
He stressed that the EU's introduction of sanctions against Russia and the reciprocal embargo on food supplies from the EU are absolutely outside the logic of the legislation related to the WTO.
"If the EU's suit is satisfied, we probably will have to limit our participation in the World Trade Organization, possibly completely," the senator believes. Kalashnikov also stressed that Europeans were the first to violate the WTO rules, using the sanctions policy against his country.
Since January 30, 2014, Rosselkhoznadzor (The Russian Federal Service for Veterinary and Phytosanitary Supervision) has banned the supply of pork products from EU countries to Russia until security guarantees were obtained from the European Commission.