May 15, 2019: Earlier today, the Ukrainian Cabinet of Ministers imposed economic sanctions on Russia in the form of import bans on certain products that can be produced domestically, in Ukraine. The embargo applies to Russian cement, plywood, mineral fertilizers, certain types of industrial products, vehicles and some other products, according to Deputy Prime Minister and Economic Minister Stepan Kubiv. Economically sensitive or humanitarian imports from Russia (coal, gasoline, pharmaceuticals, etc.) are excluded from the embargo. The value of the excluded imports was estimated at $.5B/year and is seen by some as a positive step toward encouraging domestic production and related job creation.
“Today we impose mirror sanctions on Russia, an embargo on goods that can be fully produced in Ukraine or can be replaced…,” Ukrainian Prime Minister Volodymyr Groysman said.
This action comes as a response to Moscow’s recent ban on the sale of Ukrainian goods in Russia as well as their transportation through Russian territory to third countries during the past few months. Click the link to see our previous post on the countries’ WTO dispute and a ruling. In addition to this, Ukraine is planning to impose additional import duties on Russian imports (on top of existing duties) and use the funds to stimulate import substitution. This should start August 1.