FTZ with CIS to raise GDP 2.5% - Cabinet source
2012-01-16 15:55:58
A free trade zone with the Commonwealth of Independent States will give Ukraine GDP growth at 2.5%, or by 37.5 billion UAH (1 USD - 7.99 UAH) in the 2012 prices. Valeriy Muntiyan, government's commissioner for cooperation with the Russian Federation, the member countries of CIS, Eurasian Economic Community and other regional associations, said this on Radio Era, according to the press service of the Ministry of Economic Development and Trade.
"A free trade zone, if the agreement is ratified by other countries and if they fulfill all the commitments that it provides, gives in the first place an increase of GDP by 2.5% or 37.5 billion UAH in the 2012 prices, in the second an increase in the annual revenue of the state budget by 9.4 billion UAH, and in the third an increased output in 37 main branches of the real sector of economy. In general this is a 4.19% increase in GDP. It is about 185 billion UAH," Muntiyan said.
FTZ with the CIS countries, according to the Cabinet commissioner, will also force Russia to transport Turkmen gas for Ukraine.
"As regards oil and gas, precisely this agreement makes it possible to remove these restrictions... There is an article, No 3 as it seems to me, which provides for so-called transit of goods through pipelines. Russia did not agree to this. It has been almost 12 rounds of negotiations. Ukraine has formed and submitted a separate rule, finally achieving its goal. Within six months after ratification of the agreement, decisions will be made on transit by pipelines. That is, this makes it possible to deliver, for example, Turkmen gas to Ukraine at prices bargained with Turkmenistan, and the Russian side will be forced to let this gas through its gas transportation system," he said.
The government is working to protect the national interests and will do everything it can for this exchange to be equivalent, "and in no event there may be a situation where Ukraine would pay," said Muntiyan.
Earlier, Prime Minister Mykola Azarov said the agreement on a free trade zone with the CIS is not ideal, but "extremely positive" for Ukraine.
He explained that the shortcomings of the agreement are due to the CIS Customs Union of Russia, Kazakhstan and Belarus.