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Ukraine loses third dispute with Russia in WTO

The dispute was over the transit restrictions, which hinder Ukrainian export to Middle Asia
18:59, 5 April 2019

Open source

Ukraine lost the dispute with Russia in WTO concerning the traffic in transit. The WTO press service posted the decision on its website.

The dispute was concerning the ban transit, which broke the shortest way of supplies of Ukrainian production to Middle Asia. Examining the arguments of both parties, the World Trade Organization decided that the political situation in Ukraine in 2014-2015 could threaten the national security of the Russian Federation indeed. That is why the set restrictions are not violations.

Related: US not to exit WTO

It should be noted that this is the first case, where WTO investigated the claim on the situation, where the restrictions touch upon the national security matters. Except for Russia, the USA was against the recognizing of the claim, which actively uses the article XXI GATT, which allows the implementation of protective measures in case of a security threat, for conducting ‘trade wars’.

Earlier, Ukraine appealed against the decision of the World Trade Organization in a dispute over duties on ammonium nitrate.

It is expected that for several days on the WTO website will appear a document with detailed information on the appeal filed by Ukraine. After that, the parties - Ukraine and Russia - will have to wait another three months while the WTO will consider the complaint.

Russia had submitted lawsuits to Ukraine and the European Union to the WTO. Claims are related to duties on ammonium nitrate and welded pipes of Russian origin. On July 20, the arbitration of the World Trade Organization decided in favor of Russia in the case of ammonium nitrate.

Related: Russia can leave WTO in case of satisfaction of EU claim

 

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