Negotiations between the EU, Ukraine and the Russian Federation on a free trade area between the EU and Ukraine the last round of which took place on 21 December 2015, did not succeed. The parties failed to reach compromise on a range of trade issues, which resulted in trade restrictions imposed by the Russian Federation against Ukraine and countermeasures imposed by Ukraine against the Russian Federation.

Russian Federation trade restrictions

On 16 December 2015 the President of the Russian Federation adopted the Order "On Suspension by the Russian Federation of the Agreement on Free Trade Area Regarding Ukraine" No. 628 (Order No. 628). According to this Order, starting from 1 January 2016 the Russian Federation suspended in regard of Ukraine the Agreement on Free Trade Area (Agreement) signed in Saint-Petersburg on 18 October 2011. The Law "On Suspension by the Russian Federation of the Agreement on Free Trade Area Regarding Ukraine" No. 410-FZ of 30 December 2015, confirming the Order No. 628, was adopted by the State Duma of the Russian Federation and by the Federation Council.

The Order No. 628 resulted in imposition by the Russian Federation of the most-favoured-nation treatment regarding the goods originating from Ukraine, instead of preferential treatment, which was applied until 31 December 2015, as well as application of the basic custom duties envisaged by the Uniform Customs Tariff of the Eurasian Economic Union (EAEU) to all groups of Ukrainian products instead of zero rates applied earlier.