Putin suspends free trade deal with Ukraine from Jan 1, 2016

Russian President Vladimir Putin has signed on Wednesday a decree suspending the agreement on a free trade zone regarding Ukraine effective from January 1, 2016, according to the official legal information online portal.

Earlier today, the European Commission suggested that the latest consultations between Ukraine, Russia and the EC regarding Moscow’s concerns over the introduction of Ukraine-EU Deep and Comprehensive Free Trade Area (DCFTA) on January 1, 2016, will see no results.

The European Union and Ukraine do not intend to delay the introduction of DCFTA, which will come into force on January 1, 2016, or amend the text of the agreement.

DCFTA was initially supposed to come into force in October, 2014. However, after the Brussels consultations between the EC, Ukraine and Russia, the parties agreed on postponement of the introduction of the agreement’s provision until December 31, 2015.

After that, Russia has once again demanded postponement of the introduction of Ukraine-EU DCFTA. The Russian side threatens Ukraine with total embargo on goods in case this agreement comes into force.