Ukrainian trade restrictions lead to Russian WTO complaint

The World Trade Organization (WTO) received a complaint filed by the Russian Federation on May 19 regarding Ukrainian trade practices. In a May 22 Dispute Settlement news release, the WTO stated that it was requesting “WTO dispute consultations with Ukraine regarding alleged restrictions, prohibitions, requirements and maintained by Ukraine in respect of trade in goods and services from Russia, as well as transit.”

Interfax-Ukraine reports on May 22 that Ukraine’s Minister of Justice Pavlo Petrenko reiterated Ukraine’s right to introduce restrictions, quipping that, “If Russia is hysterical that their rights have been violated … then probably these sanctions are effective.” Petrenko did make it clear that the WTO issue would be given due attention by both Ukraine and the WTO membership.

James Hydzik: By filing the complaint, a 60-day period begins for the two sides to resolve the dispute. We see resolution as almost impossible. The Russian complaint covers more than Ukraine’s recent blocking of Russian social media sites as well as rail transport of goods to and through Ukraine by specific Russian companies. The scope of the complaint covers three years of procedures, restrictions, and bans on everything from fertilizers to books to second-hand cars. This case will certainly go to a WTO panel for further review.