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<p>We are a not opposed to Ukraine having a free trade agreement with the Russian
Federation if it wishes to do so.</p><p> </p><p>An Association Agreement between Ukraine
and the European Union has been signed and ratified by both the Ukrainian and European
parliaments. The Association Agreement establishes a Deep and Comprehensive Free Trade
Area (DCFTA), which is due to come into force from 1<sup>st</sup> January 2016. Under
the terms of the DCFTA, 98.1% of the value Ukrainian exports to the EU will become
tariff-free. Additionally, Ukraine is required to take steps to modernise its trade
relations by undertaking certain economic reforms and aligning a number of its industrial
regulations and standards with those of the European Union.</p><p> </p><p>Ukraine
is also a signatory to the Commonwealth of Independent States Free Trade Area (CISFTA).
Established in October 2011, this is a free trade area between Russia, Belarus, Moldova,
Armenia, Kazakhstan, Kyrgyzstan, Uzbekistan, Tajikistan and Ukraine. The EU-Ukraine
DCFTA does not stop Ukraine from remaining within this free trade area.</p><p> </p><p>Separately
from the CISFTA, Russia has established the Eurasian Economic Union (EEU) with a number
of its neighbours. Belarus, Kazakhstan, Armenia and Russia are currently members.
The EEU unifies its members’ import tariffs, customs regimes and a number of industrial
regulations and standards. Therefore it is not possible for Ukraine to be a party,
simultaneously, to both the EU-Ukraine DCFTA, which eliminates tariffs on most goods
to and from the EU, and the EEU, which would require Ukraine to apply the same tariff
rates as applied by Russia and the other EEU members.</p><p> </p><p>However, this
does not prevent Ukraine from maintaining or entering into free trade agreements with
other countries or blocs, including the EEU; it leaves Ukraine free to determine its
own trade policy.</p><p> </p>
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