Ukrainian, Russian premiers discuss free trade, oil export duties
[Presenter] Ukrainian Prime Minister Viktor Yanukovych is in Russia today. Yanukovych and Russian Prime Minister
Mikhail Fradkov are analysing the implication of ratifying the Single Economic Space agreement. Fradkov noted that the
ratification contributed to steady development and boosted trade. A free trade zone will be the next stage. It is not
ruled out that Yanukovych will meet Russian President Vladimir Putin as well. Our correspondent reports from Moscow by
phone.
[Correspondent] Setting up a free trade zone without exclusions is the main subject of the talks between the
Ukrainian and Russian prime ministers, Yanukovych stressed at the beginning of the meeting. Yanukovych and Fradkov
discussed preparations for a meeting of the mixed Ukrainian-Russian cooperation commission which is scheduled for July
this year.
Fradkov believes that bilateral relations are currently on the rise. The almost simultaneous ratification of the
Single Economic Space agreement contributed to this. Fradkov said that the two states should remove barriers that
hampering bilateral trade. One of the long-standing issues is cancelling VAT on Russian oil exports. Russian Industry
and Energy Minister Viktor Khristenko believes that it is possible to cancel VAT if the two governments are willing to
do so. At present, this is being actively discussed. Every year, Russia receives from Ukraine some 300m-400m dollars in
VAT on oil exports.
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