MINSK, August 26 (RIA Novosti) – Moscow favors increased economic cooperation with Kiev, but doubts it will be possible if Ukraine continues its association with the European Union, Russian President Vladimir Putin said Tuesday.
“In my opinion, cooperation should not only be preserved, but also increased. However, there are doubts that this is possible if Ukraine starts putting into practice its EU Association Agreement,” Putin said at a meeting with his Customs Union counterparts from Belarus and Kazakhstan in Minsk, also attended by the president of Ukraine and EU officials.
The political provisions of the Association Agreement between Ukraine and the European Union were signed back in March, after ex-President of Ukraine Viktor Yanukovych was ousted and the new interim government came to power.
The economic part of the agreement was signed by current Ukrainian President Petro Poroshenko in June.
According to a statement made by Poroshenko last week, Ukraine plans to submit an edited version of the nation’s agreement with the European Union in September.
Moscow expects Kiev will postpone its decision to ratify its Association Agreement with the European Union, given that the implementation of the rules of the association agreement can carry economic risks for Russian-Ukrainian relations.
Putin also said that Russia may lose about $3 billion if the agreement gets ratified.
“According to most modest estimates, overall damage to the economy of Russia alone may top 100 billion rubles. Whole sectors of our manufacturing industry and agriculture will be hit,” the Russian leader said.
Putin said Belarus and Kazakhstan, which share a common market with Russia, will also suffer losses if Ukraine cancels duties for European goods.
“Less competitive Ukrainian products will be pushed to the Customs Union markets, mostly to the Russian market. We should also keep in mind the possibility of illegal re-export of European goods, disguised as Ukrainian ones, to the common market of the Customs Union,” the Russian president said.
Vladimir Putin stated that the Ukraine-EU Association Agreement will not only hurt the Russian economy, but will also cost Ukraine itself billions of euros.
“The rejection of common technical regulations of the CIS [Commonwealth of Independent States] and the adaptation to EU standards will cost Ukraine billions of euros,” Putin said at a meeting in Minsk.
Earlier, Russian Foreign Minister Segrei Lavrov said that if the ratification of the agreement goes ahead, Russia will be forced to protect its economic interests against an inflow of cheap European goods via Ukraine, which is also a member of its Customs Union.
