22:56 GMT +320 July 2019
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    Kiev, Ukraine

    Western Anti-Russian Sanctions Ruining Ukraine’s Economy

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    The West’s anti-Russian sanctions as well as Russia’s responsive measures have badly damaged the Ukrainian economy, RBK reported, citing the memorandum on Ukraine’s debt restructuring.

    According to the document, "Ukraine is currently a country at war." The industrial base in Donbass is in ruins, the country’s GDP is expected to drop by nine percent this year, and Russia is no longer Ukraine’s biggest trade partner.

    The West slapped Russia with sanctions over its alleged involvement in the Donbass conflict, but the sanctions struck back at the Ukrainian economy.

    "Even in times of peace a downturn in Russia’s economy would damage Ukraine’s economy," the memorandum read.

    Russia’s counter-sanctions, imposed last year against a number of Western countries, have also affected the economy of Ukraine. Russia’s food embargo on dairy, meat and pastry products from Ukraine resulted in a 45 percent drop in bilateral trade. Any further sanctions will aggravate the situation, the document warned.

    In addition, Russia plans to impose a food embargo against Ukraine beginning January 1, 2016, if Moscow is unable to minimize risks of the free-trade zone between the EU and Ukraine.

    According to the Ukrainian statistics agency, in January-July 2015, Ukrainian exports to Russia declined by 59 percent against the previous year, to $2.76 billion, and imports from Russia dropped by 62 percent, to $3.47 billion.

    What is more, the sanctions have affected military and civil cooperation between Russia and Ukraine.

    "Cooperation on the manufacturing of Antonov aircraft is a good example of that. Before sanctions were imposed Russia produced parts for the An-140 and An-148. Russian companies accounted for 60 percent in production of the aircraft," Vladimir Salamatov, director of the Moscow Center of International Trade, told RBK.

    "According to statistics, mutual supplies of manufactured products between Russia and Ukraine significantly declined in the first half of 2015," he added.

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    Tags:
    economy, trade, food ban, sanctions, European Union, Russia, Ukraine
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