Ukraine trade blockade harms possible Western sanctions, diplomat says

A trade blockade intensified by Ukrainian activists a month ago is impeding the introduction of new sanctions by the West against Russian firms that conduct business with enterprises confiscated on the occupied territories, said in a March 12 television interview Kostiantyn Yeliseyev, the Presidential Administration deputy head who handles foreign affairs. He said the Ukrainian government plans to ask the U.S. and EU to impose sanctions on such Russian firms but for that to happen, “something needs to be done with this blockade.”

Recall, the Russian-backed forces in Donbas declared on March 1 they’d assume adminstering those enterprises located on their territory that are officially registered in Ukraine and pay taxes to Ukraine’s budget. They include assets belonging to the DTEK (DTEKUA) and Metinvest (METINV) holding companies, controlled by Rinat Akhmetov.  

Zenon Zawada: Yeliseyev’s arguments are perhaps the most convincing reason yet offered by state officials to end the blockade. Economic arguments — such as the risk posed to the local currency — are not treated seriously by the public, among which support for the blockade remains solid since they don’t like the idea of businessmen profiting while soldiers perish.

Time will tell whether such arguments will convince the public, and the activists, to drop the blockade. It’s not clear whether it has reached its peak. However, it’s worth noting that an attempt to expand the blockade to a railroad station in the Kharkiv region this weekend failed after firm protests of local citizens.