MOSCOW(Sputnik) — Economic relations between Russia and Ukraine are expected to deteriorate next year, Russian President Vladimir Putin said Thursday.
The president signed a decree earlier in the week suspending Russia's implementation of the Commonwealth of Independent States free trade deal in regard to Ukraine starting January 1, 2016, amid concerns that Kiev's free trade agreement with the European Union, coming into effect on January 1, could lead to an uncontrolled flow of European goods into the Russian market.
"From January 1, unfortunately for us, we expect a deterioration in our economic relations [with Ukraine], because we decided not to work with Ukraine as a member of the CIS free trade zone," Putin told reporters at his annual press conference.
The president pointed out that European leaders asked Russia not to strip Ukraine of trade preferences and to keep in place the free trade zone.
Putin added that Russia had tried maintaining its economic relations with Ukraine.
"We strove to maintain our economic relations with Ukraine. Ukraine is a member of the CIS free trade zone, there are mutual preferences, zero tariffs… Ukraine is unilateral exiting this system and joining all European rules," Putin told reporters.
The Russian president pointed out that though suspending its free trade zone with Ukraine, Russia would not introduce any sanctions against the neighboring country.
"We are not intending to introduce any kind of sanctions against Ukraine. I want this to be heard," Putin told reporters.
"Ukraine cannot be granted worse conditions than any of our other outside partners, but of course Ukraine will no longer have any privileges or preferences in its trade with Russia from January 1, 2016," he added.
Trilateral talks between the European Union, Ukraine and Russia were last held on December 1. The sides failed to come to an agreement, according to Russia's Economic Development Minister Alexei Ulyukayev.
