The Customs Union of Russia, Belarus and Kazakhstan has a weak attraction for Ukrainian business, since Ukrainian foreign trade is increasingly oriented toward the CIS and the European Union and other countries. Over 18 years, the share of CIS countries reduced from 56% to 36%. At the same time, the share of the EU and other countries grew.

Director of the Institute of Strategic Estimations at the Leonid Kuchma's Presidential Foundation Ukraine, Academician of the National Science Academy, Doctor of Economic Sciences, Professor Pavlo Haidutsky writes about this with reference to the studies, held by the Institute.

"This is a normal diversification of foreign trade, carried out even in the European Union or other trade unions... These processes cannot be resisted by any sanctions or, moreover, by the state stimuli. Business interest is stronger against any priorities artificially contrived at state establishments," Haidutsky believes.

The geographic structure of high-technological import to Ukraine, the specialist notes, testifies to the fact that only 24% falls on the Customs Union, and its main share (40%) - on the EU and 36% - on other countries. In total, the share of high-technological import of Ukraine to the Customs Union is almost twofold less against total import. At the same time, as concerns the EU and other countries, on the contrary, the share of high-tech import exceeds the share of total import.

"Moreover, the Customs Union countries also are not main consumers of Ukrainian high-tech import, almost two thirds go to other states, including 37% - to the EU. Consequently, integration attractiveness for Ukrainian business also does not tend to the Customs Union, but to the EU," the Director of the Institute of Strategic Estimates said.

Haidutsky noted that the Customs Union membership actually is not compatible with Ukraine's commitments to the WTO, as well as with creation of the deep and comprehensive free trade area with the EU, since the Customs Union has its body (Customs Union Commission), entitled to carry out own integration and foreign trade policy of the Customs Union.

"The Customs Union tariff policy is 92% formed on the basis of the Russian system of customs tariffs. Therefore, today, there are serious disproportions between this system and Ukrainian, adapted to the WTO five years back," the specialist explains.

Taking into consideration that the EU is the largest supplier of investment goods and durable goods, more expensive import from the EU (as a result of raising tariffs to the Customs Union level) will lead to the slowdown of modernization and will hamper long-term economic development," Haidutsky stressed.

The economist also noted that over a short period of the Customs Union functioning, many problems have emerged in it. Even the first experience of its work shows that the situation is unfavorable for Belarus and Kazakhstan as compared with Russia.

Thus, in 2012, export within the Customs Union frames grew by 9.9%, but from Russia to Belarus and Kazakhstan - by 13.9%, whereas export from Kazakhstan to Russia and Belarus, on the contrary, reduced by 9.8%. A drop of export to the Customs Union countries by 4.6% was also observed in Ukraine.

Import within the frames of the Customs Union reduced by 5% over a year, but mainly at the expense of considerable reduction of imports to Russia from Belarus and Kazakhstan - by 36%. At the same time, Russian import continued to grow to Belarus and Kazakhstan: by 18.2 and 6.9% respectively. Import from the Customs Union to Ukraine reduced by 3.2%.

"If Ukraine was the Customs Union member in 2012, it would have the same negative dynamics," the author of the article notes.

Ukrinform