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Ukrainian exports to Russia grind to a halt

It's beginning to look a lot like a trade war.

At midnight on August 13-14, commercial traffic leaving Ukraine for Russia ground to a halt. Russian officials began demanding that trucks be completely unloaded, inspected item by item, and then reloaded. They began seizing and questioning the authenticity of documentation.

According to the Ukrainian Employers Union, a trade association that represents many of Ukraine's largest exporters, border officials said Moscow has declared all goods from Ukraine to be "high risk."

The Russian government denies any such decision has been made. Ukrainian officials are urging caution. But politicians and analysts seem confident the move is the latest in a string of measures Moscow has taken in an effort to block Kiev's closer association with the European Union.

Russian Federal Customs Agency spokesman Akhmed Khasyanov was curt in his response to queries from RFE/RL's Ukrainian Service.

"We know what is happening," Khasyanov said. "But the only thing I can tell you is the Federal Customs Agency has no comment on this matter."

But the Ukrainian Employers Union said Ukrainian firms stand to lose more than $2 billion under existing contracts if nothing is done to resolve the matter quickly. The organization appealed to Prime Minister Mikola Azarov to discuss the issue with Moscow.

Azarov on August 15 issued a statement confirming "certain complications" at the border but saying that the media had exaggerated the problems. He confirmed that Ukrainian and Russian officials will meet on August 16 to discuss trade issues.

Ukraine's customs officials said traffic from Russia into Ukraine is proceeding normally; however, there have been some reports of backups on the Russian side of the border as well.

Source: www.rferl.org
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