This is the first in a series of new Virtual Field Visits focusing on the topic of business and human rights. This video will highlight corporate complicity in the exploitation of natural resources in the Dead Sea area of the Occupied Palestinian Territory.
BERLIN – There is growing discontent in the German Chancellery that leaders of key German concerns are making attempts to influence the government’s policy towards Russia, Der Spiegel weekly said on Sunday.
Chancellor Angela Merkel “is angry over numerous calls by leaders of the DAX companies [Germany’s index] that insist the EU sanctions against Moscow be eased”, the weekly said.
“The meeting between businessmen and Russian Prime Minister Dmitry Medvedev in early week aroused less delight,” Der Spiegel said pointing to the session of the Foreign Investment Advisory Council in Russia.
“The last thing we need is companies’ parallel foreign policy,” the weekly said.
German officials, who took part in the meeting in Moscow, informed the German Chancellery and not the German Foreign Ministry about their trip to Russia as is usually done before such visits, Der Spiegel said.
The USA, EU, Canada and Australia have introduced sanctions against Russia over its involvement in the Ukrainian crisis.
Dr. Eberhard Sasse, President of the Chamber of Commerce and Industry for Munich and Upper Bavaria, said in early October Bavaria’s entrepreneurs want Western sanctions against Russia to be lifted.
“We have about 9,000 members in the Chamber of Commerce and Industry, and we all want the sanctions against Russia to be lifted, enabling business relations between our countries to develop further,” he said.
Sanctions as a foreign policy tool do not always produce the desired effect, Sasse said. “Sanctions create uncertainty in business prospects. This is a political tool and not a business tool,” he added.
The French government has prosecuted a pro-Palestinian activist for disregarding the official ban on anti-Israel rallies during its recent offensive on the Gaza Strip, Press TV reports.
France has put the spokesperson of the New Anti-Capitalist Party on trial for his attempts to organize an “illegal demonstration” against the Israeli regime.
Meanwhile, several demonstrators held a rally on Wednesday to protest against the government’s prosecution of the pro-Palestinian campaigner.
“To incriminate the spokesman of a political party who is also a strong supporter of unions… is totally unjustified and unacceptable. We would like to know why the government singled him out,” said Patrick Picard, a member of the General Confederation of Labor (CGT).
France was heavily criticized by rights groups after it officially banned demonstrations against the Israeli regime’s deadly attacks on the besieged Gaza Strip in summer. Thousands of people defied the French government’s decision, saying it was a glaring breach of their constitutional basic right to demonstrate.
“This government made two decisions this summer: to support the extreme-right regime of Benjamin Netanyahu, which was in the process of massacring people in Gaza and then, … it tried to weaken the Palestinian solidarity movement here in France by claiming it was anti-Semitic and violent which we totally reject,” stated the national secretary of Left Front Party (PG), Eric Coquerel.
The French government has recently intensified the trend of prosecuting social activists who disagree with the unpopular policies of President Francois Hollande.
‘Difficult, full of disagreements’
German Chancellor Angela Merkel said a breakthrough was not reached in Friday morning’s talks on Ukraine, Reuters reports.
“I cannot see a breakthrough here at all so far,” Merkel said after top EU leaders met with Putin and Ukrainian President Petro Poroshenko on the sidelines of an EU-Asia summit.
“We will continue to talk. There was progress on some details, but the main issue is continued violations of the territorial integrity of Ukraine,” she added.
A political solution to the conflict in Ukraine has not yet been found, President of the European Council Herman Van Rompuy commented after the meeting, according to RIA Novosti.
Rompuy said the participants have all agreed on the need to follow through on the peace agreement reached in Minsk, Belarus at the beginning of September.
“What we agreed was the protocol of Minsk on the ceasefire, and the peace plan is of crucial importance,” Rompuy said.
“We have to implement this. This would guarantee again a future for Ukraine. So implementation, implementation, implementation — those are the key words.”
Earlier Vladimir Putin described his meeting with the Ukrainian president on Friday as “positive.” The Russian president’s spokesman however noted some of the meeting participants were reluctant to understand the true situation in eastern Ukraine.
“It was good, it was positive,” a smiling Putin told reporters after the discussions at the margins of a summit of Asian and European leaders in Italy according to Reuters.
Putin’s spokesman, Dmitry Peskov, meanwhile acknowledged the negotiations were “difficult” ones due to a number of differences and misunderstandings among the participants.
“The negotiations are really difficult, full of disagreements, full of misunderstandings,” Peskov said. “Nevertheless they are still taking place. There’s an exchange of opinions.”
“The participants have discussed in detail the implementation of the Minsk agreements effectively enough,” Peskov said.
“Unfortunately, some of the breakfast participants demonstrated their complete reluctance to understand the real situation in the southeast of Ukraine.”
The presidents of Russia and Ukraine met on Friday morning in Milan. They were joined by German Chancellor Angela Merkel, French President Francois Hollande, British Prime Minister David Cameron and European Commission President Jose Manuel Barroso.
The meeting was hosted by the Italian Prime Minister Matteo Renzi, who said that while some progress had been made, “a lot of differences” still remain on the Ukrainian crisis.
There’s a possibility Putin and Poroshenko will hold a bilateral meeting at the summit, Peskov said, adding that Russia would like journalists to participate.
“[Journalist participation] will depend upon our Ukrainian partners. We are open – we hope they are too.”
Putin drew gas figures for Merkel
Russian gas supplies to Ukraine are expected to be one of the most difficult issues on the summit agenda. Kiev is due to pay out $3.1 billion debt to Gazprom until the New Year, according to the latest Russia-Ukraine agreement. There are fears, though, that the crisis-struck country will not be able to make the payment, possibly leading to disruptions of gas supplies, including those to Europe via Ukraine.
The gas issue was among things the Russian president discussed with the German chancellor during their meeting on Thursday.
“Yesterday Putin informed Merkel in detail about the gas issues,” Putin’s spokesman said. “He literally took a pen and drew figures on a piece of paper to explain the situation.”
More gas discussions are to follow, as Russian Energy Minister Aleksandr Novak and head of Gazprom Aleksey Miller are part of the Russian delegation in Italy.
According to Peskov, Thursday’s reports from Poland have shed much light on the gas conflict between Russia and Ukraine.
“Our Polish partners have reacted in such a lively way to news of Ukraine wanting to get Polish coal almost free of charge,” Peskov said. “This is the best illustration of what’s going on in the gas sphere. The Poles were greatly impressed and did not conceal their shock. But still they can fully understand the desire to have gas free of charge.”
Street Demonstrations In 21 European Countries Held To Protest Against TAFTA/TTIP; Another ACTA Revolt Brewing?
Last month, the European Commission refused to accept a request to allow an official EU-wide petition called a European Citizens’ Initiative (ECI) to take place. This was a curiously maladroit move by the Commission: it would have been easy to allow the petition against TAFTA/TTIP and CETA to proceed, thank the organizers once it was completed, file it away somewhere and then ignore it. Instead, by refusing to allow it to take place, the European Commission has highlighted in a dramatic manner the deeply undemocratic way in which so-called trade agreements are conducted.
Moreover, those making the request have simply gone ahead anyway, launching what they call the “Self-organised European Citizens’ initiative Against TTIP and CETA“. Even though this was only launched last week, it has already collected over 600,000 signatures from European citizens at the time of writing, and there is every indication that it will go well past the nominal one million signatures that the ECI would have required. The European Commission’s refusal to allow the official petition was doubly stupid, since it came shortly before a Europe-wide day of action against TAFTA/TTIP that took place last Saturday, and doubtless encouraged people to take to the streets in order to make their views felt:
On October 11, 2014, tens of thousands of people and hundreds of organisations in 21 countries are organising actions to reclaim democracy, and stop the negotiations on three far-reaching trade agreements: the EU-US deal (TTIP), the EU-Canada deal (CETA) and the trade in services deal (TiSA).
This decentralised European Day of Action — consisting of over 300 actions, marches, meetings and flash mobs — is being organised by an unprecedented alliance of civil society groups and individuals, social movements, trade unions, rights defenders, farmers and grassroots activist groups.
Reporting on the event, Euractiv.com wrote:
Some 400 activist groups marched all over Europe on Saturday (11 October) in protest against the Transatlantic Trade and Investment Partnership (TTIP), as the EU-US trade deal crystallises opposition to a wide variety of issues — from shale gas to corporate finance.
That last point is important. Euractiv.com goes on to explain:
The opposition to TTIP has many faces however, and seems to embody a wide variety of concerns. In France, many small demonstrations focused on opposition to shale gas, especially in the South of France, while in Berlin protesters were worried that TTIP would weaken the powers of the German regions, or Länders.
Potentially, that could make the European opposition to TAFTA/TTIP even broader-based than it was to ACTA, where people were largely concerned about a single issue — digital rights. And just as the ACTA demonstrations started off small scale, but grew to hundreds of thousands of people before ACTA was rejected by the European Parliament, so the anti-TTIP movement in Europe could easily swell larger still. Especially if the European Commission continues to conduct the negotiations in secret and without any input from its citizens.
Lost among the talk of Ukraine’s Civil War and the ISIL threat is the coming Russia vs. West clash in Moldova.
The country is sandwiched between Romania and Ukraine, and the region of Transnistria has been de-facto independent for about two decades already.
As Moldova leaps towards the EU (it signed the Association Agreement at the end of June), it is also running towards NATO, and the US has pondered whether or not to grant it major non-NATO ally status via the tentative ‘Russian Aggression Prevention Act of 2014’ floating around Congress.
The problem is that Transnistria does not want to go along with Moldova’s vision of the future.
Instead, it has expressed its desire to politically and economically integrate with Russia, and over 1000 Russian peacekeepers are currently stationed there.
Its Russian-speaking and Russian-friendly population fears cultural and ethnic cleansing if Moldova moves closer to the West, since nationalists have been agitating for supposed ‘reunification’ with cultural cousin Romania.
After observing events in the run-up to and during Ukraine’s Civil War, Transnistria’s population surely has reason to worry about its fate. Unlike the people of Donbass, however, they will have no friendly, neighborly state to seek refuge in.
Worse still, tensions are already beginning to heat up. The Russian Foreign Ministry has accused Moldova and Ukraine of organizing a de-facto blockade over Transnistria, thereby placing its citizens in an uncomfortable economic position.
Also, Deputy Prime Minister Dmitry Rogozin’s plane was forced to turn around in May after visiting the region when Ukraine denied it air transit rights, in a previously unheard of application of diplomatic aggression that would be unthinkable if Rogozin was American.
As it stands, Transnistria is now surrounded by NATO-member Romania and vehemently pro-NATO Moldova and Ukraine, and each of these neighbors is conspiring against it to their own (and Washington’s) advantage.
Placed under such circumstances, the future looks dim for Transnistria, but Russian peacekeepers (and Moscow’s track record in protecting them) present a tangible guarantee for its security.
Russia’s President Putin is reported to have said in a conversation a while back that he could be in Kiev in two weeks. In our press, this was reported as yet more evidence of aggressive intentions, but, given even a moment’s thought, that is a patently false interpretation. It is also further evidence, as if more were needed, of the level of desperation American propaganda around events in Ukraine has reached. It is almost as though America’s intelligence/news media alliance started mimicking the almost forgotten Soviet apparatchiks of decades ago.
Yes, undoubtedly, the Russian military could be in Kiev in a couple of weeks. The very fact that they are not only shows what nonsense we hear from America and the coup-installed government in Ukraine. Clearly, Putin’s words were to the effect, “I wouldn’t have to tolerate the mess on our borders in Ukraine if I truly had aggressive intentions. For goodness sakes, use your brains, I could be in Kiev in two weeks.”
This deliberate misinterpretation of a casual statement stands out for me as one of the most pathetic of many pathetic things coming from Western politicians and media. And it is deliberate, for if it were the truth that the intelligence service of a superpower could only interpret statements with such feeble understanding, the world would have entered a new era of extreme danger, with idiots advising the commander who has his finger on the launch button. But I know there’s no genuine danger of that. The interpretation is intended only to shape American public opinion, never very well informed at the best of times. It’s a sound bite not intended to provide real information, just a momentary association of something very negative with the name of Russia’s president, indeed one of a stream of sound bites broadcast recently as though they meant something, as though they were news.
It is a classic method of propaganda, closely related to the technique in advertising of repeating a phrase or slogan or jingle over and over, no matter how silly its actual content is on analysis, and like all the best propaganda, it starts with a truth no matter how insignificant, incompletely reported, and removed from context. But there are two deeply concerning aspects to what otherwise would just be garbage. First, it flows from the writers and editors of what is supposed to be a free and open press, not advertising agencies trying to sell personal hygiene products, and thus demonstrates once more how meaningless is the term, “free and open press.” When the American government has a point to make, even a point that is dishonest or silly, in supporting some ill-conceived and dangerous policy, the entire press instantly enlists to echo it across the land, offering saturation access to the public that could not be bought for millions of dollars. At least in matters of foreign affairs, American journalism does not exist outside the childish fantasies of young journalism students thinking they are going to dig for the truth and serve the right to know once they graduate. You know, the bilge about the press being the fourth branch of government, the tribune of the people, and keeping citizens informed.
But more worrying is why the government or the press in America wishes now to cast aspersions on one of the world’s most important leaders? It has been more than three decades since Russia and the United States were commonly understood as enemies, each capable of obliterating the other. Why would anyone want to look backward to that? And why would anyone deliberately attack a man who has proved himself a sophisticated statesman, one whose words and behaviors show more consistency than those of any of our Western leaders, and especially president Obama who has not spent a day of his time in the White House without killing someone somewhere and surely has matched George Bush for lack of character.
Such cheap propaganda is symptomatic of aggressive intent. I believe the United States’ establishment is starting to feel a new sense of its relative decline in the world, and it is desperate to shore things up by hurting new competitors. The so-called pivot towards China is one of its tactics, and the expansion of NATO right against the face of Russia is another. Both are provocative and risky. And I only wish the world could understand that the United States is not that far from being a de facto bankrupt. It has no money for anything except by the unsound and unethical practice of printing more of it, knowing its special position as a world reserve currency allows it to cheat holders of dollars around the entire planet with their devaluation. And devalue it will, sooner or later, effectively leaving most of the bill for its stupid wars to be paid by others.
Geography and many other factors, such as the distribution of energy and other natural resources, say that Russia and Europe are over the long term destined to be strong, natural economic partners. But the United States has been Europe’s partner – indeed, a good deal more than a mere partner since WWII – and it does not like the prospect of Russia in any way displacing it. It is utterly backward thinking, but we are discussing brains driven by hormones here, not by logic or good will. I recall at an energy conference I attended during the Reagan era meeting a representative from the American State Department whose main message was that we had to stop Russian gas pipelines into Europe. As a believer in people freely buying what they need from others freely selling what they have, I didn’t agree with him and said so, and the people of Europe clearly weren’t convinced because many pipelines exist and many billions of cubic feet of gas flow.
The United States has taken every effort to get some return for its costly investment in a half-failed scheme to destabilize Ukraine, and with each deft move of Russia, it has played the old “look out for the commies” theme, just tarted up a bit so it doesn’t seem laughably out of date. The combination of the expansion of NATO plus scare-mongering about Russia buys some time against what I believe is inevitable. And minds driven only by the hormonal impulse of being dominant – full-spectrum dominance is the grotesque Washington insider expression – are incapable of clearly analyzing a situation, regardless of their intelligence and technology and information resources. And they are certainly not capable of acting on behalf of the great basic principles of rights and freedoms with which they sloppily wallpaper their every public statement. They are blind to the chances they take, to the risks they expose all of us to, and to the damage they create for the happiness and prosperity of millions of people.
America’s elaborate dirty tricks in Ukraine were intended to make Russia considerably less secure. You can almost imagine the buzz-cut thugs at Langley having a good laugh over expense-account steaks and martinis when they first thought they had succeeded, the laughter one expects from sociopathic American frat-boys who’ve just played a very dirty joke on someone, as by drugging some poor girl’s drink at a party and raping her. Perhaps the intentions included a plan ultimately to base missiles in Ukraine near Russia’s border, which would be a tremendously provocative act. Certainly it was hoped that gradually Ukraine would become more western-oriented, although the prospect for a poor country like Ukraine, one with shaky democratic credentials and not a good record in human rights, becoming in our lifetime full members of Europe is simply not in the cards. After all, the U.S. keeps pushing for Israel to become part of major European organizations, but that is too much even for some of America’s yes-men in Europe to accept.
Accusing Russia of looking out for what’s happening on her borders isn’t an accusation, it’s what all states do everywhere. Goodness knows the case of Cuba should provide perspective and food for thought. The United States has needlessly hurt that country for half a century with its embargo, many of the chief traditional products of Cuba having been things to satisfy the American markets, such as sugar and tobacco. But an embargo alone was never enough to secure the desired dominance. The United States invaded Cuba with a proxy army of Cuban refugees it trained, supplied, and paid. It tried to assassinate Cuba’s leader, many, many times, and it periodically sent terrorist forces to blow or shoot up things in Cuba. Ships in ports were shot up, hotels were attacked, and an airliner full of people was bombed. When Cuba asked for the return of America’s base at Guantanamo, a base only leased from Cuba originally under duress, the United States simply refused and still illegally occupies the land half a century later.
Of course, America was quite ready to hurl the world into nuclear war when it discovered that the Soviet Union had placed missiles in Cuba as a way both of protecting its ally against new invasions and as increased leverage in dealing with an often inflexible and aggressive United States. The missiles were provocative, but most thinking people felt they were not adequate cause for nuclear war. Fortunately, President Kennedy was able to stand up against the terrible pressures of the military-intelligence establishment and reach a negotiated settlement with Premier Khrushchev, an act which many believe, including this author, later cost him his life in Dallas. Well, all that gives you just some idea of how America responds to what it considers trouble or meddling, even a hundred miles from its border.
We hear the accusation that Russia arms the rebels in Ukraine, as well as the Assad government in Syria. My answer is that America, which spends as much on its military as all others on the planet combined, is also the world’s largest arms dealer as well as a ready covert supplier to groups anywhere it deems as serving its interests, whether extremist groups, including ISIS, set up to destroy Syria or the Nazi-like groups affiliated with Ukraine’s new government and employed in its coup. America runs a virtual conveyor belt of death machines and munitions to Israel to keep it well supplied in upsetting peace throughout the Mideast and suppressing millions of people it took prisoner half a century ago, a situation which has ranked in my view as the world’s most dangerous until now. A great deal of the aggression and repression of Israel have to do with the fact that their best minds recognize the unfavorable situation into which they are locked: no population growth versus high population growth for Arabs, the most highly subsidized national economy in the world affording poorer prospects for most residents than their native places would, an interminable series of wars and repressions and acts which the world sees as atrocities, early dreams all soured by a sense of no way out, and perhaps a sense of having committed a colossal blunder in starting it all.
So in a very real sense, both America and Israel, unwilling or unable to deal with their tremendous problems in a statesmanlike, realistic, and enduring way, dance a hideous danse macabre, with the entire world forced to watch in fear and horror.
When you compare Europe today to, say, Europe of fifty years ago, something more than a little disturbing becomes apparent. Then, despite the height of the Cold War presumably giving reason for greater solidarity with America, there were many independent voices in Europe. France had a consistently strong and decisive voice, and it was determined not to be subservient to NATO. Britain, today perhaps the worst example of subservience to America in all things, also showed independence at critical points, as when it refused to send troops to the holocaust of Vietnam despite great pressure from President Johnson. Today, there are no independent voices, and despite the clear, long-term interests of Europeans in having good relations with Russia, we see country after country acquiesce to America’s demands for destructive sanctions. Even Holland, a country we think of as fair and tough-minded, issued an interim report on the destruction of Malaysian Airlines’ MH17 which told us nothing we already didn’t know. That was clearly at the insistence of the United States, unwilling to see its proxy government in Ukraine revealed for the violent and incompetent operation that it is. NATO, an obsolete organization by any measure, has been expanded, serving primarily the interest of continued American hegemony in Europe, and America pushes the idea of every member spending more on its military. The United States also has Europeans committing to plainly idiotic purchases, as in buying the F-35, a plane one great American fighter jet designer called the worst ever conceived. The plane cannot ever do what it was supposed to do because it was foolishly commissioned to do a bit of almost everything, and the Pentagon wants as many others chipping in to subsidize the immense cost of salvaging something from the wreck. Perhaps the F-35 is emblematic of a conquered Europe, throwing away money on junk because America expects them to do so.
Produced by Rinaldo Francesca.
For a full transcript with links please visit:
Music by Kevin McLeod, available at http://incompetech.com/
President Vladimir Putin has said that sanctions against Russia directly violate World Trade Organization (WTO) principles, and that Russia will continue to defend its economy with protective measures.
The sanctions violate the main principles of equal access for all WTO members to economic activity and access to goods and services in the market, Putin said at a meeting with advisers in the Kremlin on Thursday.
“The limitations introduced against our country are nothing but a violation by some of our partners of the basic principles of the WTO,” the President said, adding that sanctions “undermine free enterprise competition.”
On September 12, the US and EU expanded sanctions against Russia aimed at hurting Russia’s main industry – oil. The US and EU have led sanctions against Russia, along with Japan, Australia, Switzerland, and others over Moscow’s alleged meddling in the Ukraine conflict.
The best way for Russia to counter these unfair advantages is to develop its domestic market, the President said.
“In response, we took protective measures, and I would like to stress that they are protective; they are not the result of our desire to punish any of our partners or influence their decision in any way.”
Russia introduced protective measures over food supplies on August 7 in response to Western sanctions. The Kremlin and White House sanctions tit-for-tat has been escalating since March, when Crimea voted to rejoin Russia.
The food ban is due to only last a year, but at today’s meeting the President said that Russia needs to focus on increasing its market competitiveness over the next eighteen months to two years.
One of Russia’s main competitive advantages is its huge domestic market, and it should be filled with more Russian-made products, Putin said.
The President said that Russia’s decision to join the WTO in 2012 was a difficult transition for the country, but that it raised economic standards.
At the meeting President Putin laid out a list of economic priorities for the Russian state. At the top are developing the infrastructure, boosting lending, continuing to develop the agricultural and technology sectors, and increasing overall competition.
Russia joined the WTO in 2012 after nearly two decades of back and forth negotiations on the conditions for entry.
A top European court has struck down restrictions imposed by the European Union against the Central Bank of Iran (CBI) on an alleged charge of circumventing US-led sanctions against the Islamic Republic.
In a judgment on Thursday, the Luxembourg-based EU’s Court of Justice said it “annuls… the EU March 23, 2012 [ruling] concerning restrictive measures against Iran in so far as it listed Central Bank of Iran.”
“The reasons relied on are so vague and lacking in detail that the only possible response was in the form of a general denial,” the court ruled on Thursday, adding that “those reasons therefore do not comply with the requirements of the case-law.”
It said the charge leveled against the CBI is “insufficient in the sense that it does not enable either the applicant or the Court to understand the circumstances which led the [European] Council to consider…to adopt the contested act.”
The court also ordered the 28-nation European bloc to “bear one half of its own costs and to pay one half of the costs of Central Bank of Iran.”
At the beginning of 2012, the US and EU imposed sanctions on Iran’s oil and financial sectors with the goal of preventing other countries from purchasing Iranian oil and conducting transactions with the Central Bank of Iran.
On October 15, 2012, the EU foreign ministers reached an agreement on another round of sanctions against Iran.
Iran and the five permanent members of the UN Security Council plus Germany reached an interim deal in the Swiss city of Geneva last November, according to which the six countries accepted to ease sanctions against Iran in return for the Islamic Republic limiting certain aspects of its nuclear activities. The deal came into effect on January 20 and expired on July 20. The two sides then agreed to extend the duration of the agreement until November 24.
The two sides are scheduled to resume talks on Friday to discuss removal of sanctions against Tehran.
Ukraine and the EU parliaments simultaneously ratified the economic and political parts of the Association Agreement that will strengthen ties between Kiev and Brussels. Economic integration is postponed until the end of 2015.
The document was approved at 1:00pm in Kiev and there was a synchronous signing session in the European Parliament in Strasbourg.
Ukraine’s Rada voted 355 votes in favor out of 381 total, and the European Parliament supported the ratification with 535 ‘yes’ votes and 127 against, with 26 abstaining.
“From tomorrow I task the government with approving the implementation of the agreement and immediately implementing it into the force of law,” President Petro Poroshenko said at the ratification in Kiev. Poroshenko said he hopes the agreement will help Ukraine reform its economy and fight corruption, and that someday Ukraine hopes to apply for EU membership.
Ukraine “has embarked on the European path and nobody will are to shut the door to the EU membership for Ukraine,” the President said, as quoted by ITAR-ITASS.
Free trade with Europe’s $13 trillion economy will be postponed until January 2016, due to the weak state of Ukraine’s economy which would make it vulnerable to a sudden influx of European goods. Ukraine will continue duty-free trade with Russia and other CIS states until December 31, 2015, and on January 1, 2016 will begin economic integration with the EU.
Ukraine will still have the benefit of sending exports to Europe under a preferential trade code, but duty- free trade will not come into effect until 2016, protecting both Kiev and Moscow from economic risk.
In 2013, Ukraine exported goods worth $16 billion to Russia, nearly 25 percent of all total exports. In comparison, Ukraine exported $17 billion to Europe in the same 12-month period.
Since the political tension has intensified between the two, both have been cutting back on imports. In the first seven months of 2014, Russia reduced Ukrainian imports by 23.7 percent down to $6.7 billion, according to Russia’s Statistics Bureau. At the same time, Ukraine has been decreasing goods bought from Russia, which have fallen 20.7 percent to $9 billion. The lack of cooperative trade between the two has left a negative balance of trade of $2.3 billion.
Russian President Vladimir Putin has estimated that nixing duty-free trade with Russia and switching over to the European system will cost Ukraine €165 billion over the next 10 years.
During trilateral talks in Brussels on Friday, Ukraine, Russia, and the EU agreed Ukraine’s integration into Europe’s trade orbit will begin on January 1, 2016.
Ukrainian President Petro Poroshenko signed the economic (the Deep and Comprehensive Free Trade Area, or DCFTA) part of the Association Agreement with the EU along with ex-Soviet nations Georgia and Moldova on June 27.
Ukraine signed the political part of the agreement on March 21, shortly after Crimea rejoined Russia.
The Association Agreement and Deep and Comprehensive Free Trade Area (DCFTA) will replace the current Partnership and Cooperation Agreement Ukraine signed with the EU in 1998.