Ukraine has filed a second lawsuit against Russia for blocking transit of goods
Ukraine filed a world trade organization lawsuit against Russia, because it limits its territory traffic in transit of Ukrainian goods to Kazakhstan and Kyrgyzstan.
Submissions to the WTO was filed on February 9, said the press service of the Ministry of economic development and trade.
Recall from 1 January 2016 launched a free trade area between Ukraine and the EU in the framework of the Association Agreement. Russia took offense and decided to take revenge on Ukraine blocking transit of goods by road and rail to Kazakhstan, and from July 1 – in Kyrgyzstan.
“According to experts, about 79% of exports from Ukraine to Kazakhstan and 95% to Kyrgyzstan suffered a negative impact from the restrictions and partial ban by the Russian Federation. In the context of work on counteraction of aggression of the Russian Federation in the sphere of trade and to protect the interests of Ukraine and Ukrainian exporters, the Ministry of economic development last year began the process of dispute settlement in the WTO about the restrictions. As the first stage of the Russian Federation were not ready to resolve the dispute and did not take measures for the abolition of the illegal, discriminatory and unreasonable restrictions in the area of transit, the Ukrainian side continued its consideration of the case in accordance with the established procedure, and to start the next phase of the dispute (the proceedings on the merits) to the WTO has been a requirement on the establishment of the expert group”, – stated in the message of Ministry of economic development.
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“Since the use of restrictive measures that are appealed, the export of goods from Ukraine to the countries of Central/Eastern Asia in 2016 decreased by 38.3% compared to the year 2015. In General, the loss of export of goods to Kazakhstan and Kyrgyzstan are estimated in excess of 0.4 billion dollars. We are deeply convinced that the trading aggression of the Russian Federation, including illegal actions to limit transit (and de facto almost complete ban) from Ukraine to third countries, must receive an objective assessment of experts of the world trade organization and certainly should be abolished. This will contribute to elimination of violations of the rights and interests of Ukrainian producers and exporters from the Russian Federation and will allow our state to regain its transit potential”, – said Deputy Minister of economic development and trade, trade representative of Ukraine Natalia Mykolskiy.
The Ministry claim that “the position of Ukraine for consideration of this case is based on a clear legal arguments and supported by the undisputed evidence that provides support for key foreign partners, among which, first and foremost, the EU and the USA”.
This is the second claim of Ukraine against Russia in the WTO because of the limitations of transit.
“We are collecting materials in preparation for the next claim, which will cover numerous prohibitions and restrictions on the import of Ukrainian goods to Russia”, – said the Agency.
Background:
September 14, 2016 Ukraine sent a demand to the WTO regarding consultations with Russia.
10 Nov 2016 year held consultations with Russia regarding measures to control transit traffic. Moscow has said that to reach an agreed position at the time of consultation is impossible, because the contested action, they say, was applied in order to ensure economic security and national interests of Russia.
9 Feb 2017 Ukraine has sent the requirement for the establishment of the group of experts in “Russian Federation – measures relating to the transit movement.”