Russia plans to suspend the 1994 agreement on free trade with Georgia which signed an association agreement with the European Union.

Association agreements were signed at the end of July with Georgia and Moldova, and the economic part of the association agreement with Ukraine. Documents point to harmonization of the three countries' laws to align with European legislation and establishment of a free trade zone with the European Union.

Russian Prime Minister Dmitry Medvedev said with this in view Russia could take measures to protect its economy as Georgia, Ukraine and Moldova are also in a zone of free trade with Russia.

Earlier reports on Wednesday said the Ministry of Economic Development had drafted a government instruction to impose import duties on goods from Ukraine.

Import duties are to be paid, on 130 items, in particular on beef, pork, cheeses, farmer cheese and chocolate, as well as pipes, clothes, cosmetics, construction materials, cars and other goods.

The Russian Ministry of Economic Development has also drafted a government resolution that can unilaterally introduce import duties for Moldovan products.

The measure may apply to such products as meat, fruit and vegetables, grain, sugar, beer, wine, and furniture -- 19 in all.

As in the case with Ukraine, the duties will be identical to those used for countries which enjoy the most favored nation status in trade with Russia.

At present, Moldovan products are imported to Russia duty free as both countries have signed a free trade agreement.

Russia can adopt non-zero rates according to Annex 6 to the CIS free trade agreement. If imports from a country that is party to the treaty grow so that to harm the Russian market, Moscow may abolish preferences and impose a basic customs tariff.


 

World Grain