The decree was signed “due to exceptional circumstances affecting the interests and economic security of Russia and requiring urgent action.”
“In accordance with para. 4, Art. 37 of the Federal Law of July 15, 1995 №101-FZ” On international treaties of Russia “suspend to January 1, 2016 the agreement on free trade zone, signed in Saint Petersburg 18 in October 2011, with respect to Ukraine “, – noted in the document.
The decision to suspend the agreement on free trade zone between Russia and Ukraine due to the negotiation of an agreement on a free trade area between Ukraine and the European Union (EU). In March 2014, Ukraine signed the political part of the agreement, and in June of the same year – the economic part. September 12, 2014 in Brussels, Russia, Ukraine and the EU agreed to postpone the establishment of a free trade zone between Ukraine and the EU and to maintain free trade in the CIS up to December 31, 2015
During this period, a number of Ukrainian goods to gain duty-free access to the European market, while European exports to Ukraine are still subject to duties. Russia, which along with Ukraine included in the free trade zone of the CIS, has repeatedly stated that in the event of the entry into force of the agreement the Russian authorities will have to protect its domestic market from the duty-free flow through Ukraine to European goods.

For the full entry into force of an agreement with the January 1, 2016 it had to be ratified by all 28 countries – EU members. In October 2015 a document ratified by the parliaments of Cyprus, and in November – the Greek Parliament, reminds TASS. At the same time in the Netherlands 6 April 2016 held a consultative referendum on an association agreement between Ukraine and the EU, despite the fact that this country has also ratified the agreement earlier.
Last week, Russian Prime Minister Dmitry Medvedev said that the chances of an agreement with Ukraine to postpone the application of the agreement on an even longer term there is little, but Russia will continue to try until the end of December. “They need to understand that on January 1 over a period that we deliberately chose to tailor our economies, to join the existing rules on the CIS free trade zone with the EU rules. We specifically agreed that called for three Europeans, Russia and Ukraine” – said the Russian prime minister.

Deputy Minister of Economic Development and Trade – Trade Representative of Ukraine Natalia Mykolskiy, in turn, on Wednesday December 16 noted that Kiev is counting on reaching agreement with Moscow on the issue within the framework of consultations at the ministerial level in the Russia-Ukraine-EU, which will be held on December 21 in Brussels. However, she clarified that there would be “no change in the text of the agreement on the FTA, and it shall enter into force on 1 January”.
“We can look for some kind of reasonable compromise on the sectors of the Russian economy is to, in principle, to establish certain transitional periods or the consultation process between the parties to address concerns” – explained Mykolskiy (quoted by “RIA Novosti”).
Deputy Chairman of the European Commission, Andrus Ansip also reported last week that the EU after talks at the level of the Ministry does not plan to make any changes in the legal agreement on an FTA with Ukraine. “It will come into force from January 1, 2016,” – he stressed