The result of Igor Shuvalov’s order could be Russia’s withdrawal from free trading.
Photo: Alexander Miridonov
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Russia to Close Markets for Neighboring WTO Member
Ukraine is a new target of Russia’s war with the WTO. First Vice Premier Igor Shuvalov committed the ministries yesterday to protect Russia’s economy against the goods supplied by Ukraine, the member of WTO. The sources say the conditions for free trading with Ukraine will be either abolished or toughened, and the sugar market of Russia won’t open for it January 1, 2009.
Russia’s news services reported yesterday about the order that First Vice Premier Igor Shuvalov gave to the Economic Development Ministry, Industry and Trade Ministry, Foreign Ministry, Agriculture Ministry and Finance Ministry. Shuvalov committed all these ministries “to elaborate proposals within a week defending Russia’s market with regard to Ukrainian entry into the WTO and under the free trading conditions with Russia.”
Sources with the government said Shuvalov inked the order August 29, and a source with the Economic Development Ministry specified that the government will have proposals in a week and one of them will provide for withdrawal from the Free Trading Agreement that Russia and Ukraine inked in 1993.
Ukraine’s membership in the WTO was declared May 19, 2008. Under the Free Trading Agreement, almost all goods of Ukraine, but for sugar and alcohol, enjoy the duty-free export to Russia. Ukraine also undertook to observe the restrictions on export of seamless pipe deliveries.
Past week, First Vice Premier Viktor Zubkov ordered to bring momentum to the efforts aimed at extending restrictions on Ukrainian sugar and alcohol until 2013. But Shuvalov’s order is even of greater effect. The result of its implementation could be Russia’s withdrawal from free trading with Ukraine.
In Ukraine, they are sure that the toughest scenario will prevail. “Actions of Igor Shuvalov are the political decision. Russia wants to punish Ukraine for participation in Georgian-Ossetian conflict,” said Mikhail Salnikov from Socrates Capital Company.
www.kommersant.com
All the Article in Russian as of Sep. 02, 2008
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