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Ukraine launches WTO consultations on complaint against Russia — ministry

Kiev lodged a complaint related to restrictions imposed on Ukraine’s railroad cars and switches

KIEV, December 4. /TASS/. Ukraine has launched consultations with the World Trade Organization (WTO) on its complaint against Russia regarding railroad cars and turnout switches, the country’s Deputy Minister of Economic Development and Trade and Ukraine’s trade representative Natalya Mikolskaya posted on her Twitter account on Friday.

"We’re launching consultations on the WTO dispute with Russia regarding the ban on railroad cars and turnout switches. The truth is ours," she wrote.

In October, Ukraine lodged a complaint against the Russian Federation to the World Trade Organization (WTO), related to restrictions imposed on Ukraine’s railroad cars and switches.

According to Mikolskaya, Ukraine’s complaint concerns groundless imposition of restrictions on supplies of railroad cars from Kryukov car-building plant, Dnepropetrovsk switch-making plant and other manufacturers. Ukraine’s revenues dropped by 34 times - from $1.7 bln in 2013 to $51 mln in 2015 - due to restrictions imposed by Russia, Deputy Minister said.

On November 26, the Ministry reported it was preparing another complaint to the WTO against Russia regarding imposed restrictions on agricultural goods made in Ukraine.

Starting from January 1, 2016 regulations of the agreement on Ukraine-EU association regarding creation of a free trade zone will come into force.

On October 30, Russian Prime Minister Dmitry Medvedev said Ukraine could not be a member of two free trade zones - with the European Union and with the Commonwealth of Independent States /CIS/ - concurrently. "It may create a threat of re-export of goods from third [European] countries under the disguise of Ukrainian-made ones," he said. Russian PM said certain measures were needed to remove such risks. "The level of customs tariff protection in respect of Ukraine will be enhanced from January 1, 2016," he said. "Ukraine will enjoy the most favoured nation regime instead of zero customs taxes. Our response economic measures will be extended to Ukraine as a country joining the anti-Russian sanctions," he said. "It is done in conformity with the norms of the World Trade Organization /WTO/ and the CIS Free Trade Zone Agreement.".