Ukraine completely banned the export of goods to the russian federation

The Cabinet of Ministers of Ukraine adopted the resolution “On the prohibition of the export of goods from Ukraine to the customs territory of the Russian Federation.” The Government made the relevant decision at a meeting on September 27.

The resolution provides for banning the export outside the customs territory of Ukraine of goods under foreign economic contracts, the trade or country of destination of which is the Russian Federation. The resolution will be in effect until the day of termination or abolition of martial law and termination of the Russian Federation’s use of unfriendly actions against Ukraine.

“We continue the sanctions pressure against the Russian Federation. This resolution is another of the many tools of economic influence. We understand that sanctions are a means not only of responding to a military threat, but also of preventing aggression in the future. I want to state that since the beginning of the war, the export of goods to the Russian Federation was de facto stopped. Now it is fixed at the legal level,” said First Deputy Prime Minister of Ukraine – Minister of Economy Yuliya Svyridenko.

According to government forecasts, such a decision will not have negative economic consequences. After all, according to statistics, for the period from March to June 2022, the export of Ukrainian goods to the territory of the Russian Federation amounted to only 4.2 million dollars. It was mostly ferrous metal products worth $4.189 million and chemical products worth $57.2 thousand. For comparison: only in January 2022, Ukrainian enterprises exported $250 million worth of goods to the Russian Federation.

In addition, the export embargo will help Ukrainian companies that had contractual obligations to subjects of the Russian Federation to establish legal clarity on the issue of non-fulfillment of contracts. And now they will be able to concentrate their activity on other markets.