Export of goods from Ukraine to Kyrgyzstan and Kazakhstan becomes more expensive

Export of goods from Ukraine to Kyrgyzstan and Kazakhstan became more expensive because of the ban of Russia on transit, the Russian media reported.

It is noted that the loss of Ukraine for this reason in 2016 amounted to $400 million. Such data are given by the Ministry of Economic Development of the country.

Additional losses account for 0.3 percent of GDP. The proposed alternative routes via Iran and Azerbaijan make transit more expensive by 25–30 percent.

In the near future, the volume of trade between Ukraine and Kazakhstan, Kyrgyzstan and Uzbekistan will continue to decline.

Since January 1, 2016, Russia has banned the Ukrainian goods transit through its territory. The reason for this was an agreement between Ukraine and the European Union on establishment of a free trade zone. This means that goods from the EU will come to the Ukrainian market at zero customs duties. Kyrgyzstan has refused to take such measures.