Liberal Russian economists assure that Ukraine’s association with the EU will not harm Moscow

27.06.2014 08:38
  (Moscow time)
Views: 1160
 
Policy, Ukraine, Economy


Moscow – Kyiv, June 27 (Navigator, Mikhail Stamm) – On July 11 in Brussels, at a meeting of the Ministers of Economy of the Russian Federation and Ukraine, Alexey Ulyukaev and Pavel Sheremet, through the mediation of the European Commissioner for Trade Karel de Gucht, Russia will discuss its losses from Ukraine’s free trade with the EU. Liberal economists admit that after the negotiations, Moscow will abandon the promised trade sanctions against Ukraine.

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The Russian government is preparing to protect the domestic market in the event of a significant increase in imports of de facto European goods into the Russian Federation through Ukraine. Russian Foreign Minister Sergei Lavrov warned about the likely termination of benefits within the CIS free trade zone. First Deputy Prime Minister Igor Shuvalov said earlier this week that the Russian government could launch protective measures without coordination with other members of the Customs Union.

There are no real threats to the domestic market, says Professor of the Higher School of Economics Alexey Portansky, who for a long time headed the Information Bureau on Russia’s accession to the WTO. The problem of re-export at the “crossing” of two trade zones is solved at customs by strengthening control over the country of origin of goods, the expert believes.

Kommersant notes that trade turnover between the Russian Federation and Ukraine is gradually curtailing without new restrictions. Since the beginning of the year, it has already decreased by 22,5%; supplies in ferrous metallurgy, chemical industry and mechanical engineering have decreased the most.

With the introduction of protective measures, the Russian military-industrial complex will suffer from the severance of economic ties, in which it is not possible to replace Ukrainian components in the near future, says Portansky.

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