An agreement on free trade area extends access of Ukrainian producers to the market of the Commonwealth of Independent States (CIS), Andriy Kliuyev, Secretary of the National Security and Defense Council (NSDC), told reporters on Thursday.

"Through the mechanisms in the agreement, Ukrainian producers will expand their opportunities for entering the CIS market. CIS market is especially important for Ukraine as it is in the CIS countries today the lion's share of Ukrainian products with high added value is delivered - mainly machinery," said Kliuyev.

According to him, the CIS market is the largest platform for Ukrainian goods. In 2011, it accounted for 42% of the foreign trade turnover of Ukraine, or USD 72 billion.

Kliuyev also noted that participation in the FAT treaty within the CIS is already bringing results to Ukraine. He recalled that after the ratification of the treaty, the Russian government has agreed to amend the treaty in terms of the supply of tubular products to the countries of the Customs Union (Russia, Belarus, Kazakhstan). "This will have a positive impact and will bring significant results - 50 thousand people employed in the industry will get a job, and the country will receive at least USD 400 million in foreign exchange earnings," said the NSDC secretary.

He noted that according to experts, the FTA agreement in the CIS can help in the medium term increase industrial production in Ukraine by 3.5-4% and GDP growth by up to an additional 2.5% per year.

The official added that immediately after the agreement on free trade in goods in the CIS takes effect, Ukraine intends to initiate the preparation of an agreement on free trade in services.

Ukrinform