Russia and Ukraine implement further trade sanctions against each other

BOFIT Viikkokatsaus / BOFIT Weekly Review 2016/02

With the entry into force of the free-trade agreement between Ukraine and the EU at the start of this year, Russia set its free-trade agreement with Ukraine to expire at the same time. Russia also took steps to expand earlier food import bans against the EU to include Ukraine, while significantly curtailing transhipment of Ukrainian goods via Russia. In response, Ukraine banned the import of various products from Russia, including certain foods, chemical products and locomotives. The value of such exports from Russia to Ukraine was about $200 million last year.

Russia has also clarified its new Turkey sanctions. From the start of this year, Turkish citizens and firms owned by Turkish citizens are prohibited from engaging in business in Russia in the following sectors: construction, architecture and engineering services, travel bureau services, hotels, wood processing and public procurements. The ban does not affect existing contracts, such as those for construction projects granted to Turkish firms involving the 2018 FIFA World Cup in Russia.

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