UPDATE 2: Kiev mulls hitting back after goods transit restrictions by Russia

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KIEV, Jul 4 (PRIME) -- Ukraine can impose similar measures in retaliation to new trade restrictions limiting goods transit imposed by Russia, First Deputy Prime Minister Stepan Kubiv said at a meeting of Verkhovna Rada, the parliament, on Monday.

He said that this was the proposal by a committee including the Economy and the Infrastructure ministries and it must be considered by the government. “Firstly, we will submit (for government’s consideration) mirror sanctions against Russia’s actions concerning goods of Ukrainian origin and concerning the transit to other countries,” Kubiv said.

Kiev is considering raising the import duties on Russian goods in order to cover the losses from Russia’s transit restrictions. “We are against a trade war; we mean the losses which will be calculated today, literally till the end of the day.”

The Moscow’s steps could cause “multibillion losses” to the Ukrainian economy and business, Kubiv added.

The Ukrainian government said in a statement that it will ask the World Trade Organization (WTO) to qualify the new Russian trade restrictions.

Ukraine’s Deputy Trade Minister Natalya Mikolskaya said at the ministry’s briefing that Kiev plans to submit a request to the World Trade Organization (WTO) very soon to initiate a dispute regarding Russian restrictions.

“We are now including amendments into the draft request for initiation of a dispute within the WTO regarding the transit due to the new circumstances, and we will file the request shortly,” she said.

Russia prolonged the authorization of transit of Ukrainian goods to Kazakhstan until December 31, 2017 on July 3. The amended presidential decree also extended the rules to transit to Kyrgyzstan.

The decree bars from transit the goods with non-zero import duties set by the Eurasian Economic Union, and also a wide range of agricultural products. The rest of goods can be shipped after authorization of the route by Russian authorities and under supervision.

Ukraine’s Infrastructure Minister Vladimir Omelyan said that the implementation of the new Russian restrictions in real trade practices remains unclear and the retaliation will be made “the next day after… these actions are implemented.”

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