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Putin signs decree suspending free trade deal with Kiev from Jan. 1

Xinhua, December 17, 2015 Adjust font size:

Russian President Vladimir Putin on Wednesday signed a decree to suspend Russia's free trade deal with Ukraine from Jan. 1, 2016, the same day when Kiev's free trade regime with the European Union (EU) becomes effective.

The decision, released at Russia's legal information website, was made "immediately in view of extraordinary circumstances affecting the country's interests and economic security," according to the decree.

Under the decree, Ukraine will no longer enjoy the most favored nation principle under the framework of the Commonwealth of Independent States (CIS) free trade deal, as well as a host of preferential policies in areas of migration, customs, quarantine inspection, and investment, Russia's Economic Development Minister Alexei Ulyukayev told reporters.

In 2014, Ukraine and the EU signed an agreement to create a free trade zone between the two sides. Out of concerns from Moscow, the bloc decided to postpone the implementation of the agreement until Jan. 1, 2016.

Arguing that Ukraine could not simultaneously implement two free trade deals under the framework of both CIA and the EU, Moscow has decided to end the preferential trade policies with Kiev from next year.

Trilateral negotiations over the issue among Russia, Ukraine and the EU were held on Dec. 1, but they failed to clinch any agreement, Ulyukayev said.

However, he added that the three parties will try to find a solution to the deadlock when they meet in Brussels next Monday. "The door is not finally shut," he said. Endit