On 1 July 2016, the President of Russian Federation adopted Decree № 319*, expanding previously established transit restrictions** on shipments from Ukraine moved across Russian territory.

In particular, the Decree introduced a ban on transportation of the following goods to Kazakhstan and Kyrgyz Republic through the territory of Russian Federation:

  • agricultural products banned for import into Russian Federation***,
  • any goods which are subject to customs duty (i.e. customs duty rate which is above 0%) in the Eurasian Economic Union.

Any other goods coming from Ukraine to Kazakhstan and Kyrgyz Republic are allowed for transit through Russian Federation but should enter its territory through designated check points at the Belarus border and accompanied with GLONASS seals.

At the same time the wording of the Decree is vague and there is a risk that the ban will apply to goods, which are shipped from Ukraine and designated for any other third country.

The above restrictions will be into force till 31 December 2017.

As a “mirror” sanction, Ukraine has prolonged the ban on import of some goods originating in Russian Federation till 31 December 2017**** as well.

*http://publication.pravo.gov.ru/Document/View/0001201607030001?index=0&rangeSize=1
**http://publication.pravo.gov.ru/Document/View/0001201601010001?index=0&rangeSize=1
***http://publication.pravo.gov.ru/Document/View/0001201408070021?index=2&rangeSize=1
**** The Decree of the Cabinet of Ministers of Ukraine № 417 of 6 July 2016.

 
Contacts:

Camiel van der Meij, Partner & TLS Leader, camiel.van.der.meij@ua.pwc.com
Slava Vlasov, Partner, Tax and Legal Services, slava.vlasov@ua.pwc.com
Andrey Pronchenko, Partner, Tax and Legal Services, andrey.pronchenko@ua.pwc.com
Denis Shendryk, Senior Manager, Customs and International Trade Leader, Tax and Legal Services, denis.shendryk@ua.pwc.com

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