Russia extends ban restricting transit of goods from Ukraine to Kazakhstan, Kyrgyzstan


Russian President Vladimir Putin amended his decree as of January 1, 2016 about transit transportations from Ukraine to Kazakhstan or Kyrgyzstan through the territory of the Russian Federation."

Putin's amendment extends the decree for another six months.

This decree established that international road and rail transportation of goods from the territory of Ukraine to the territory of Kazakhstan through Russian territory is carried out only from the territory of Belarus.

In July 2016, Putin introduced changes to the decree to cover the transportations to Kyrgyzstan.

In September 2016, Ukraine sent a request for consultations with Russia to the WTO on these restrictions. In the complaint, Ukraine said that Russian restrictions led to the reduction of exports of Ukrainian goods to the markets in Central, Middle Asia and the Caucasus in H1 2016 by 35.1%, including in Kazakhstan – by 45.5%.

The consultations that took place in November that year did not lead to a consensus.

The filing of a request for consultations is the first stage of filing a lawsuit, the failure of consultations within 60 days makes it possible to initiate the creation of a panel of arbitrators, which Ukraine did in mid-February 2017. The Russian Federation, however, then blocked the convocation of the panel.

In the case of a repeated application, the decision to convene an arbitration group is accepted automatically.

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