Russia restarts trade sanctions against Ukraine

As of Jan. 28, Russia’s customs service started treating Ukrainian goods as high risk, and demand additional checks and documents that delay shipments, Ukrainian associations said.

“We can confirm this information,” said Gennadiy Chizhikov, head of the Ukrainian Chamber of Commerce and Industry. He said a delegation from his association was planning to depart to Moscow urgently to conduct consultations with the Russian counterparts. “We’re really bothered by this situation,” he said.

Another association, the Federation of Employers of Ukraine, said that they have already got an envoy in Moscow “to negotiate the renewal of the usual regime of export of the Ukrainian goods to Russia,” the organization said in a statement.

Ruslan Illichov, general director of the association, said that Ukrainian cargo gets detailed examinations. This particularly effects food, machine building, metals and trade equipment.

“During the customs clearance, goods are unloaded from trucks and railway cars, weighed and their certificates are checked. The customs organs of Russia demand from owners of cargo to pay additional contingent customs duties of 5 to 40 percent of the cost of goods. These measures lead to delays of terms of delivery to Russian clients,” the Federation of Employers said.

The Russian Federal Customs could not be reached for comment.

Introduction of the new measures coincided with resignation on Jan. 28 of Minister Mykola Azarov, a staunchly pro-Russian prime minister, whose government remains in place in caretaker capacity.

President Vladimir Putin said on Jan. 28 that Russia will watch closely the new government’s policies, but intends to honor its commitments. “We intend to honor our commitments, regardless of who leads the government of Ukraine, Putin said. However, a day later, Putin said Russia will wait to release billions of dollars in additional loans to Ukraine until a new government is formed. “Let’s take our time until there is a new government,” he said during a meeting with Prime Minister Dmitry Medvedev.

Russia has so far disbursed $3 billion of its $15 billion aid package promised to Kyiv in December. It als promised cheaper gas and restoration of trade after the trade war that started in August, which hurt many exporters.

Russia only invested $3 billion into Ukraine’s Eurobonds in December, and Ukraine’s government said this week that $2 more billion is coming this month. But Igor Shuvalov, Russia’s deputy prime minister, said on Jan. 29 that Russia and Ukraine have yet to agree on terms of the second tranche of the loan.

Serhiy Svistel, deputy head of the Ukrainian Chamber of Commerce and Industry, said his organization had unofficial information that the Russian customs received an order to apply the same tactics to Ukrainian exports as during the summer. But the Chamber was still waiting for official confirmation.

Dmytro Firtash, the Ukrainian billionaire and head the Federation of Employers of Ukraine, appealed to the Russian side to reverse the measures. “Complication of customs procedures are felt by both the Ukrainian and the Russian business. Because of introduction of of risk profiles, Rissian enterprises will receive goods contracted in Ukraine with big delays. Thats why a quick restoration of the usual regime of export of the Ukrainian goods to Russia is within the interest of businesses of both countries,” Firtash said in a statement.

Kyiv Post deputy chief editor Katya Gorchinskaya can be reached at [email protected]