Exports of Ukrainian goods to Kazakhstan and Kyrgyzstan declined by more than 40%.
In the interview with ZN.UA, Deputy Minister of Economic Development and Trade, Trade representative of Ukraine Nataliya Mykol’ska said that direct financial losses of Ukraine amounted to about $1billion as a result of Russia’s trade aggression.
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According to her, the biggest losses affected exports to Kyrgyzstan and Kazakhstan.
“The greatest losses are related to exports to Kazakhstan and Kyrgyzstan, where more than 40% of exports is lost. But this affected exports to other countries, too. If we sum it up, we will get a figure of around $1 bln of direct losses. Note that these are just direct losses, i.e. resulted only from the sale of goods. But we also suffer losses in the market of related services, in transportation and logistics sectors. And this comes amid economic decline in Ukraine and decline in exports to the Russian Federation”, – said the Deputy Minister.
According to her, the Russia’ trade aggression pursues several goals.
“The first one is to restrict inflow of foreign currency earnings to Ukraine, making us weaker financially. The second goal is to oust Ukrainian products from the markets of these countries, replacing them with Russian goods. In most cases, these products are really substitutable. The third is to show transnational corporations, which have the production both in Ukraine and in Russia, that they should leave the Ukrainian soil and develop the production in the territory, which can provide them with trouble-free access to the markets”, – Mykol’ska concluded.
On 9 February, Ukraine sent a demand to the World Trade Organization, in which it asked to form an expert group within the case over multiple restrictions of transit through the territory of Russia. It was noted that since Ukraine applied provisions of the Deep and Comprehensive Free Trade Area with the EU on January 1, 2016, the Russian Federation imposed restrictions on transit via transport roads and rails from the territory of Ukraine through Russia to Kazakhstan, and then to Kyrgyzstan from July 1, 2016.
The Ministry of Economic Development added that according to experts, about 79% of exports from Ukraine to Kazakhstan and 95% of exports to Kyrgyzstan suffered from the restrictions and partial ban on the part of the Russian Federation.
It should be reminded that in 2016 Russia canceled the FTA with respect to Ukraine and Ukrainian products. Also, Russia completely prohibited the transit of Ukrainian goods to third countries through its territory. For this reason, Ukraine was forced to search for a new solution of arranging the transit to Asia.