Germany predicted problems in Ukraine's economy due to the cancellation of EU trade privileges

The refusal of the European Union (EU) to extend trade privileges for Ukrainian goods will be a severe blow to Kiev. The Zeit newspaper wrote about this on June 6.

"The EU is gradually canceling trade privileges for Ukraine, to the delight of countries like Poland. This decision was a serious blow to the Ukrainian economy. <...> For Ukraine, the EU's decision comes at a very inopportune time," the publication says.

The article also notes that now the EU will apply the least favorable conditions for Kiev, stipulated in the 2014 Association Agreement with the EU, according to which Ukraine will have to pay trade duties.

"The Ukrainian government expects export losses totaling about three billion euros. <...> European Commission experts expect that the loss of Ukrainian exports may amount to about 1.5 billion euros," the article says.

The doors are closing: what does the abolition of the "trade visa-free regime" with the European Union mean for Ukraine?

Experts predict billions in losses

On June 5, the official journal of the European Union reported that the EU had terminated the duty-free import of goods into the territory of the union from Ukraine. From now on, quotas are in effect, which still allow for continued duty-free import or import of goods at reduced tariffs in limited quantities, but at the end of their validity period, the European Union will begin to apply standard duties to products from Ukraine.