Russian embargo on Ukraine 01.01.2016

On January 1, the Russian food embargo against Ukraine starts to operate, suspending the operation of the Agreement on free trade area (FTA) of the CIS with regard to Ukraine. At the same time it entered into force a package of other economic measures, such as the restriction of imports of a number of Ukrainian goods.

In August 2015, the Russian government expanded the list of countries that have a ban on the import to Russia of agricultural products, raw materials and food. Along with United States, EU countries, Canada, Australia and Norway, there were added Albania, Montenegro, Iceland, Liechtenstein and lastly Ukraine, for which these measures apply with special conditions.

The special thing about Ukraine was that the products from the four other states were banned immediately, for Ukraine there has been a so-called deferred action. In any case, the date limits had to be no later than 1 January 2016.

Right after the New Year, Russia would no longer accept Ukrainian cheese, meat, milk, fruits, vegetables and nuts. However, the volume of purchases of these products in Ukraine decreased so much in recent years that Russian consumers are unlikely to notice it, according to the Ministry of Economic Development.

According to the agency, only since the beginning of this year, total imports from Ukraine decreased by more than half, and now their share in the total volume of Russian imports is only about 3%.

"Ukrainian import is extremely low right now. For the last two years, it decreased by 11 times. In 2013, it was really great. This year, the value of food imports from Ukraine is unlikely to exceed $ 200 million. From macroeconomic viewpoint, this is not a significant value. It is relatively easily compensated by diversification of supplies from third countries and also the implementation of the projects of import substitution, which is now being actively implemented in agriculture, "- said the Economic Development Minister, Alexei Ulyukayev.

First of all, the introduction of embargo will affect the volume of trade between Russia and Ukraine, which has recently tends to decrease, said Head of the Department of Economics of the Institute of CIS countries, Aza Mihranyan. According to her, Russia will hardly feel the consequences.