MOSCOW will cut Ukraine's access to vital Russian markets if Kiev moves to implement a trade agreement with the European Union, President Vladimir Putin has warned.
In a letter to Ukrainian President Petro Poroshenko, Putin, seen by Reuters, warned that even changing national legislation to prepare for the EU-Ukraine trade deal, would trigger Russian reaction.
"We still believe that only systemic adjustments of the Association Agreement, which take into account the full range of risks to Russian-Ukranian economic ties and to the whole Russian economy, will allow to retain existing trade and economic cooperation between the Russian Federation and Ukraine," President Putin wrote.
Raising Russian tariffs could mean EUR3 billion (US$3.8 billion) a year in lost business for Ukraine, which exports steel, coal, chemicals and grain to Russia.
The EU-Ukraine deal is at the heart of a dispute that has grown from a tug-of-war between Brussels and the Kremlin over Kiev to economic sanctions, the annexation of Crimea by Russia, armed conflict in eastern Ukraine, and concern about a renewed Cold War.
WORLD SHIPPING
30 September 2014 - 22:16
Putin threatens Ukraine's exports if it even moves to sign EU trade deal
MOSCOW will cut Ukraine's access to vital Russian markets if Kiev moves to implement a trade agreement with the European Union, President Vladimir Putin has warned.
WORLD SHIPPING
30 September 2014 - 22:16
Putin threatens Ukraine's exports if it even moves to sign EU trade deal
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