UPDATE: Kiev's possible ban on Russian agricultural products no threat

(Adds details in last three paragraphs)

MOSCOW/KIEV, Dec 30 (PRIME) -- If Kiev bans all agricultural imports from Russia, it will not incur significant losses to producers, First Deputy Economic Development Minister Alexei Likhachyov said in an interview with Rossiya 24 TV channel on Wednesday.

“If Ukraine fully stops Russian exports of agricultural products, in my point of view, it will have no fundamental consequences for Russian agricultural producers,” he said.

Earlier Russian Prime Minister Dmitry Medvedev said that Russia introduces customs duties on Ukrainian products and an agricultural ban on import from the country from January 1, while Kiev supports anti-Russian sanctions.

The Russian ban on Ukrainian agricultural imports is unlikely to speed up inflation significantly, Lukhachyov also said, adding that the share of Ukrainian imports on the Russian market for agricultural products is very small.

On December 16, President Vladimir Putin signed a decree to suspend a free trade agreement between the Commonwealth of Independent States (CIS) and Ukraine from January 1, 2016.

The CIS comprises Armenia, Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan and Uzbekistan.

UKRAINIAN TRANSIT FEARS

Ukraine’s Economic Development and Trade Ministry said in a statement the country expects Russia to restrict transit to the third countries from 2016.

“As part of changes in the trade and economic relations between Ukraine and the Russian Federation expected to come in force from January 1, 2016, we inform about a threat that the Russian Federation may limit transit of Ukraine-originated products through its territory to third countries (Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, Uzbekistan, China and other countries),” it said.

The authority also expects that Moscow will strengthen control over transit of Ukrainian goods, import of which is prohibited in Russia.

End