MOSCOW, July 21 (RIA Novosti) - Russia is looking at possibilities to introduce protection measures in its trade relations with Ukraine, based on provisions set out by the Vienna Convention on international treaties, a government source told RIA Novosti.
"For Ukraine, which has historically been the major trade partner of Russia, deeply integrated [with Russia] in many fields of economy, the circumstances of the existing at the time of signing CIS, free trade zone agreement fundamentally changed,” the source stated.
According to the government source, the establishment of the Support Group for Ukraine, coordinated by the European Commission is unprecedented. The Support Group aims to help Ukraine implement reforms needed to comply with its EU Association Agreement.
On June, 27 Ukraine signed the economic part of the Ukraine-European Union Association Agreement, which includes provisions for the creation of a free trade zone and the removal of import tariffs. Russia’s government has stated on multiple occasions that if Ukraine becomes part of a free trade zone with the European Union, Russia will need to protect its internal market from the tariff-free flow of European goods from Ukraine.
Russia intends to abolish barrier-free relations with Ukraine based on Article 62 of the Vienna Convention, which allows for the termination or suspension of a contract in the event of a significant change of circumstances.
In reality it will lead to the revival of the “most favored nation” regime that Russia practices with the countries it does not have free trade agreements with. This regime implies establishing an average weighted tariff for goods. For the Customs Union members, it currently stands at 7.8 percent.
This week, Russia’s Economic Development Ministry prepared a draft legislation canceling tariff-free imports of several Moldovan products.
