18:27 Apr. 18, 2016
Experts claim the main reason is Russia's trade war against Ukraine
Ukrainian export to Central Asia shortened severely because of the trade war with Russia. According to Ukraine's Ministry of Economic Development and Trade, Ukrainian goods made up only 48% of the overall trade volume in the region. The main reason is the multiple trading restrictions Moscow imposed to hinder Ukraine's products transit to the East.
Shortening Ukraine's export, the Ministry of Economic Development and Trade states can affect badly the numerous economic ties among dozens of European and Asian states. Recent Russian transportation rules anticipate additional police convoy of the transit goods, approximately 350 U.S. dollars for one engine. As a result, the cargo transportation costs to Kazakhstan added 30%.
To evade the restrictions, Kyiv and Astana came up with alternative routes. The new trade paths though are 900 km longer, which is why Ukraine is currently unable to sell a range of alimentary products that decay on the way to the consumers.
According to earlier reports, Ukraine complained to the World Trade Organization claiming to make Russia cancel the transit bans. The initiative was supported by the U.S., European Union, Canada, Australia, Japan, Turkey, Switzerland, and South Korea.