Ukrainian Minister of Economic Development and Trade Aivaras Abromavicius estimates that Ukrainian exporters' direct losses from Russian trade sanctions introduced as of the beginning of January 2016 will amount to $420-600 million, while losses from the trade embargo alone will be $98 million.
"Direct losses being sustained by Ukrainian producers as lost earnings from the embargo alone will be $98 million. This is a standalone figure. If taken together with an increase in tariffs [and duties], we estimate that Ukrainian producers may fall short of the amount estimated at from $420 million to $600 million," he said at a briefing in Kyiv on Tuesday.
As reported earlier, Russia imposed tough sanctions in trade with Ukraine in response to the launch of a free trade area between Ukraine and the European Union from January 1, 2016. In particular, Russia embargoed Ukrainian food imports as of January 1, 2016, and restricted transit shipments of Ukrainian commodities via Russia as of January 4, 2016.