Export blockade of Ukraine by Russia

Trade export blockade of Ukraine by Russia is trade and economic confrontation that resulted from putting all Ukrainian importers to the "list of risk" by the Federal Customs Service of Russia on 14 August 2013 that resulted the blockade of imports from Ukraine to Russia.[1][2]

Timeline of the events

2013

In the end of July 2013 Russian customs officers began unreasonable total inspection of all vehicles that transported Ukrainian goods. That forced Ukrainian cargoes idle on the border.[3]

On 29 July 2013 Russian sanitary service has introduced a ban on the supply of products of Roshen company to Russia because of pretended violations found after examination.[4][5] However, some countries which import the same sweets of Roshen, after their examinations, said they did not find any violations and they have no complaints about the company's products.[6][7][8][9] According to the Basil Yurchishin, who is a Director of Economic Programs of Razumkov Centre, the ban on supply of Roshen production to Russia is a part of Russian policy against Ukraine.[10] This confrontation got a name "Chocolate War".

In the first half of 2013, the Russian part of Ukrainian exports amounted to 23.7%.[11]

From the end of July 2013 to the beginning of a full blockade about 40 Ukrainian companies were put to the "list of risk" of Russian customs.[12]

On 14 August 2013 the Federal Customs Service of Russia put all Ukrainian importers to the "list of risk".[13] These actions resulted in blockade of imports from Ukraine to Russia. Lines of hundreds of trucks and railcars with Ukrainian goods began to form at the border checkpoints from Ukraine to Russia.[14] For example, on 15 August on one of the control points (Bryansk-Lgovskiy Station) about 1 000 cars with Ukrainian cargoes were suspended.[15] A number of Ukrainian companies, including suppliers of fruits and vegetables, poultry, confectionery, wines and steel products, reported having problems with customs clearance of their goods at the border with Russia. The "Obolon" company suspended all export to Russia.[16]

On 18 August 2013 Adviser to the President Sergey Glazyev said that if Ukraine signs Association Agreement with the European Union customs policy for Ukrainian companies would be made more strict.[17]

On 19 August 2013 Ministry of income and charges of Ukraine and Federal Customs Service of Russia during the negotiations agreed that additional customs control for Ukrainian goods will not be applied any more, products of Ukrainian companies will cross the Russian customs in normal mode.[18]

On 20 August 2013 Ministry of income and charges Ukraine and the Federal Customs Service of Russia announced the end of a trade war.[19]

On 21 August 2013 Prime Minister of Ukraine Mykola Azarov said that the Federal Customs Service of Russia brought their apologizes to companies, that faced the problems with supply of goods from Ukraine to Russia.[20]

Meanwhile, Russian customs continued to work with "additional control procedures".[21][22]

On 20 September 2013 it was reported that the Russian customs let Ukrainian goods pass normally, without additional procedures. It was reported by "Ukrinform" referring to the government commissioner for cooperation with the Russian Federation, members of CIS, EurAsEC and other regional associations Valery Muntiyan.[23]

On 17 October 2013 the Minister of Agrarian Policy and Food of Ukraine Mykola Prysyazhnyuk reported that customs control of Ukrainian confectionery increases again on the border with Russia.[24]

On 31 October 2013 it was reported that the relevant authorities of the Russian Federation launched new measures for the "enforcement of customs regulations for goods imported into the territory of the Customs Union." Because of this, many trucks with Ukrainian goods could not enter the territory of Russia.[25]

On 12 November 2013 Russia introduced new regulations for transporting of goods through the Russia–Ukraine border that forced queues of trucks to form again.[26]

2014

On the night of 28 to 29 January 2014 Russia tightened customs control procedures. This was stated by the Association of International Road Carriers and Federation of Employers of Ukraine. Almost all cargoes going from Ukraine to Russia, now have to be carefully checked. The carrier must unload all products at the border at his own expense. Then they must be weighted, checked for certificates of conformity. The whole procedure of the registration can last up to 15 days.[27]

In the beginning of April 2014, Russia banned imports of Ukrainian sweets, chocolate and cheese, and blocked the transit of Ukrainian sugar to the Central Asia. In response, Ukraine rejected Russian chocolates, cheese and fish.[28]

Early December 2014 500 trucks with Russian coal were barred from entering Ukraine for several days although Ukrainian officials stated they "fulfilled our payment liabilities in full".[29][30]

Reactions

Public reaction

Action of movement "Vidsich" near the Presidential Administration of Ukraine with demand to give appropriate response to the trade blockade of Ukraine by Russia, 22 August 2013

On 14 August 2013, short after the beginning of the blockade, civic movement "Vidsich" called in Social Networks for a boycott of Russian goods to respond the blockade of Ukrainian goods.[31] This message had massively spread in social networks. On 22 August near the Presidential Administration of Ukraine activists held an action during which announced the launch of campaign of boycott of Russian goods. Activists launched a massive campaign on the Internet to attract volunteers and activists to work. From 24 August they massively distributed leaflets calling for a boycott in dozens of cities in Ukraine. Since November activists also begun to distribute leaflets calling for not buying goods in Russian stores and not being served in Russian banks. Activists distributing leaflets often faced resistance and attacks from unknown persons, private security or police officers. Since the beginning of Euromaidan in November 2013 campaign lost its scope. However, activists announced the restoration of campaign in March 2014 after the beginning of "Crimean crisis".

International response

On 28 August 2013 the European Parliament Committee on Foreign Affairs held an emergency meeting on the situation in Egypt and Ukraine. The initiator of the extraordinary session was chairman of the committee Elmar Brok.[32] Committee supported Ukraine in trade conflict with Russia. It was decided to raise that issue on the G20 summit in Saint Petersburg and pass a resolution about the support of Ukraine.[33]

Government of Germany, commenting the trade blockade, called on Russia to respect the right of Ukraine for the close relationship with European Union.[34]

On 12 September 2013 The European Parliament have adopted the resolution on Russia's pressure on the countries of Eastern Partnership and called on the European Union leadership to protect Ukraine, Moldova and Armenia. The European Parliament called on the European Commission and the European External Action Service to consider Russia's actions being beyond the economy and being in a political dimension.[35][36]

On 25 September 2013 the European Parliament supported the introduction of restrictions against the import of Russian goods in response to the same actions against countries of Eastern Partnership. If Russia introduces visa restrictions for citizens of these countries it will get "mirrored" measures for their citizens. In addition, the European Parliament Committee on Foreign Affairs asked to ensure compliance with the European laws by Russian companies.[37]

On 23 November 2013, after the announcement by Cabinet of Ukraine about suspension of the process of signing of association agreement with the EU and after the beginning of Euromaidan, Chancellor of Germany Angela Merkel said she wants to talk to the president Vladimir Putin about stopping the pressure on Ukraine.[38]

Causes

According to the investigation of "Zerkalo Nedeli" newspaper, the reason for the blockade of Ukrainian production is pressure on the Ukrainian government to disrupt the signing of association agreement with the EU. The newspaper describes the events as opening of the first front of "economic war" against Ukraine. This is indicated in the investigation that Russia wants to maintain its influence over Ukraine.[39]

Opinions of experts and politicians

“ Reason for such actions of Russia is Ukraine's intent to sign Association Agreement and Free Trade Area Agreement with the European Union. That is European integration to EU. Thats why Russia if not to disrupt then to complicate process of signing of Association Agreement between Ukraine and EU at the Vilnius Summit of Eastern Partnership in November of 2013 starts total economic blockade of Ukraine instead of local temporary trade conflicts. ”
“ I do not think this story has a political background. The actions of our customs on the Russian-Ukrainian border show that they decided to discover where we have the most significant shortfall in imports, and plug these holes. ”

Effects

According to the Federation of Employers of Ukraine in the beginning of the blockade the loss for Ukraine from the Russia's actions can reach $2–2,5 billion in the second half of 2013.[47]

According to Ukrainian experts as for 22 August 2013 the 10-days blockade on the Russian border can hit some manufacturers, but the scale of losses in whole Ukraine is only 500 million hryvnias. Experts also believe that the unpredictable behaviour of Russia will force Ukrainian businessmen to seek new markets for their products, as well as make supporters of joining the "Customs Union" change their mind.[48]

On 24 August 2013 on Radio "Liberty" MP of European Parliament Pawel Kowal published an article in which he suggested that the situation of tension in relations between Ukraine and Russia is just the beginning of the pressure that will continue and increase.[49]

Sociologist, Director of "Democratic initiatives" Irina Bekeshkina said that Ukraine at the end of August 2013 is winning information war with Russia. However, according to experts, Russia will enhance the information and economic impact on Ukraine.[50] Senior Advisor to the Russian Embassy in Ukraine Igor Sevastiyanov indirectly confirmed this statement, saying this blockade is "training".

Also, according to Radio "Liberty" with reference to the heads of the companies in the end of August 2013 it was reported that some Ukrainian companies through the trade confrontation between Ukraine and Russia are shifting to other markets. Some companies do not feel any problems with exports.[51]

Representatives of EU said they are ready to introduce additional steps to support Ukraine - from simplification of visa for Ukraine to financial help. Also, EU thinks about complication of access to European market for Russian goods.[52]

Look also

References

  1. ↑ The Russia-Ukraine trade spat. EU Institute for Security Studies. (August 2013).
  2. ↑ Russia accused of trade war against Ukraine. The Big Story. (15 August 2013).
  3. ↑ Україна поскаржиться у Євразійську комісію на «торговельну блокаду» Росії. Дзеркало тижня. (15.08.2013). (Ukrainian)
  4. ↑ Chocolate Factory, Trade War Victim. New York Times. (29 October 2013).
  5. ↑ Onishchenko: Russia bans imports of output of major Ukrainian confectionery producer. Kyiv Post. (29 July 2013).
  6. ↑ Kazakhstan did not find benzopyrene in the Roshen products. Ukrainian National News. (5 August 2013).
  7. ↑ Kyrgyzstan not found any violations in the Roshen products. Yellow Page. (15 August 2013).
  8. ↑ Belarus not to ban Roshen candies. euroradio.fm. (6 August 2013).
  9. ↑ Moldova will check Roshen products at European laboratory. Black Sea News. (7 August 2013).
  10. ↑ Експерти: влада Росії оцінює якість українських товарів власними геополітичними інтересами. Український тиждень. (03.08.2013). (Ukrainian)
  11. ↑ The Kremlin’s Bluff. The Ukrainian Week. (23 August 2013).
  12. ↑ Росія «без оголошення війни» посилила тиск на українських імпортерів. Дзеркало тижня (12.08.2013) (Ukrainian)
  13. ↑ Russian customs stopped the whole Ukrainian import. Yellow Page.
  14. 1 2 3 Росія оголосила Україні торговельну війну. Гром TV. (15.08.2013). (Ukrainian)
  15. ↑ На российско-украинской таможне скопилось около тысячи грузовых вагонов. Подробности. (15.08.2013). (Russian)
  16. ↑ Через блокаду на митниці Росія залишиться без київського пива (відео). 1+1, ТСН. (15.08.2013). (Ukrainian)
  17. ↑ Ukraine and Russia on path to trade war over EU pact. EU Observer. (19 August 2013).
  18. ↑ ФМС Росії повідомила про повернення до штатного розмитнення українських товарів — Міндоходів. Інтерфакс-Україна. (20.08.2013). (Ukrainian)
  19. ↑ Азаров заспокоїв країни МС: Ризики від асоціації України можна звести до нуля. Zik. (30.08.2013). (Ukrainian)
  20. 1 2 Азаров звинувачує українські компанії в блокаді на російській митниці. Українська правда. (21.08.2013). (Ukrainian)
  21. ↑ На українському кордоні митниця Росії продовжує працювати з «додатковими процедурами контролю». - Український тиждень (21.08.2013) (Ukrainian)
  22. ↑ На украинской границе в Белгородской области таможня РФ продолжает работать с применением дополнительного контроля. ИТАР-ТАСС. (21.08.2013). (Russian)
  23. ↑ Постачання українських товарів до Росії нормалізувалися - Мунтіян. Укрінформ. (20.09.2013). (Ukrainian)
  24. ↑ Росія заблокувала українські солодощі на кордоні. ТСН. (17.10.2013). (Ukrainian)
  25. ↑ На кордоні з Росією черги з фур через нові норми МС. Українська правда. (31.10.2013). (Ukrainian)
  26. ↑ Нові черги на кордоні з РФ. 5 канал. (13.11.2013). (Ukrainian)
  27. ↑ Зачем Россия возобновляет торговую войну. liga.net. (29.01.2013). (Russian)
  28. ↑ Війна з Росією іде на п'яти фронтах - ЗМІ. BBC Україна. (10.04.2014). (Ukrainian)
  29. ↑ Russia continues to block 500 trucks holding already bound for Ukraine with coal, Interfax-Ukraine (5 December 2014)
  30. ↑ 50,000 tons of Russian coal enter Ukraine. Russia Today TV. (December 06, 2014)
  31. ↑ У соцмережах українців закликають бойкотувати російські товари. tyzhden.ua. (15 August 2013). (Ukrainian)
  32. ↑ Європа стурбована, що Росія погрожує Україні. Українська правда. (19.08.2013). (Ukrainian)
  33. ↑ В Європарламенті домовились, як захистити Україну від Росії. BBC (28.08.2013). (Ukrainian)
  34. ↑ Германия прямо объяснила Путину и его оркам, что нечего закатывать Украине сцены ревности. Сегодня. (21.08.2013). (Russian)
  35. ↑ The Resolution about the pressure exercised by Russia on countries of the Eastern Partnership in the context of the upcoming summit in Vilnius. Public register of documents of The council of European Union (11 September 2013).
  36. ↑ European Parliament resolution on the pressure exerted by Russia on Eastern Partnership countries (in the context of the upcoming Eastern Partnership Summit in Vilnius). European Parliament website (12 September 2013).
  37. ↑ ЄС закликає блокувати російський імпорт Archived 8 November 2014 at the Wayback Machine.. ТВі. (25.09.2013). (Ukrainian)
  38. ↑ Меркель хоче дізнатися, коли Кремль припинить тиск на Україну. Українська правда. (23.11.2013). (Ukrainian)
  39. ↑ Set of Measures, Aimed at Involving Ukraine into EurAsian Integration Process. Jacek Saryusz-Wolski. (26 August 2013).
  40. ↑ Росія не зможе зірвати інтеграцію України в ЄС економічними важелями — В.Карасьов. UNN. (15.08.2013). (Ukrainian)
  41. ↑ Ukraine exports "blocked by Russia", trade tension mounts. Global Post. (15 August 2013).
  42. ↑ Swedish Foreign Minister suspects Russia of attempting to thwart Ukraine’s cooperation with EU. European Centre for a Modern Ukraine. (16 August 2013).
  43. ↑ Європа стала на захист України в економічній війні з Росією. Радіо Свобода. (21.08.2013). (Ukrainian)
  44. ↑ In Russia confirmed that export problems are related to Customs Union. Trade Key News.
  45. ↑ Соратник Януковича: Действия РФ - это не война, а паника проигравшей стороны. Re:public. (03.09.2013). (Russian)
  46. ↑ Ющенко каже, що Кремль перетворив цукерки на знаряддя війни. Уніан. (15.08.2013). (Ukrainian)
  47. ↑ Trade War With Russia Could Devastate Ukraine’s Budget. The Interpreter. (16 August 2013).
  48. ↑ Акція ГР «Відсіч» під Адміністрацією Президента (відео). ATR. (22.08.2013). (Ukrainian)
  49. ↑ Час здорових нервів. Радіо Свобода. (24.08.2013). (Ukrainian)
  50. ↑ Київ поки що виграє інформаційну війну з Москвою - Бекешкіна. iPres.ua. (Серпень 2013). (Ukrainian)
  51. ↑ Українські виробники пристосовуються до експортних перешкод Росії. Радіо Свобода. (28.08.2013). (Ukrainian)
  52. ↑ Поки Москва лякає Україну наслідками євроінтеграції, ЄС готовий скасувати майже всі мита (відео). 1+1, ТСН. (27.09.2013). (Ukrainian)
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