The Ukrainian Employers' Federation (FEU) has indicated that all Ukrainian imports, including but not limited to steel products, destined for Russia are being held up at Russian customs without explanation, while it has added that Russia has declared all goods from Ukraine to be "high risk" products. According to the FEU, Ukraine may lose $2-2.5 billion in the second half of the current year alone if Russia's restrictions on Ukrainian imports persist.
Some news reports say that the reason behind Russia's action is to increase the pressure on Ukraine to join a customs union with Russia instead of developing relations with the European Union.
Russia has formed a customs union with Belarus and Kazakhstan with benefits such as cheaper natural gas and higher trade and it also wants Ukraine to join. However, Ukraine is seeking to sign a free trade agreement with the EU in November.
Meanwhile, the Russian government has denied the rumors of a trade war between the countries due to political reasons, while acknowledging that stricter regulations are being implemented for Ukrainian goods at customs.
