Verkhovna Rada Authorizes Imposing Trade Embargo Against Russia

The Verkhovna Rada has authorized the Cabinet to introduce trade embargo against the Russian Federation from Jan. 1, 2016.

The corresponding bill No. 3704 on amendments to the law of Ukraine on foreign economic activity (on empowering the government to apply appropriate economic measures against an aggressor state) was supported by 291 MPs.

As reported by Censor.NET citing 112 Ukraine TV channel, the draft law was introduced by Prime Minister Arsenii Yatseniuk.

According to the explanatory note, the food embargo and Russia's suspension of the agreement on free trade area with Ukraine may harm the interests of "national economic security, the economic interests of Ukraine, and the legitimate interests of foreign economic activity entities, as well as contains indications of discriminatory actions against Ukraine in commercial field."

"The bill is intended for a legislative regulation of Cabinet's powers concerning operational application of appropriate measures in response to the recognized by the Verkhovna Rada aggressor state harming or threatening to harm the interests of the national economic security and the economic interests of Ukraine, or the legitimate interests of foreign trade activity entities," the note reads.

To this end, the Cabinet wants the bill to supplement the law of Ukraine on foreign economic activity in terms of provisions relating to the specific application of measures by Ukraine in response to the actions of an aggressor state and/or an occupying state, that may harm the interests of national economic security.

Introducing the bill before the parliament, the prime minister said that Ukraine would impose a retaliatory trade embargo against Russia on Jan. 1, 2016. "The law we urge the parliament to adopt provides for the following: the Cabinet, should the law be passed, will impose similar restrictive measures against the Russian Federation on Jan. 1 next year. We will protect Ukraine's domestic market," Yatseniuk stated.