Donetsk People’s Republic intends to leave Ukraine's jurisdiction and integrate with Customs Union
Self-proclaimed Donetsk People's Republic intends to leave Ukraine's jurisdiction and integrate with Customs Union to avoid economic fallout from Ukraine's association agreement with the EU, Donetsk Republic's deputy prime minister Andrei Purgin said, according to The Voice of Russia.
"By making this decision Ukraine in fact cuts itself off from the Russian market. It is 99 percent machine manufacturing, metals industry, partially agriculture, etc... Possibly, from the side of the Customs Union and the Eurasian Economic Community [reaction] will not be head on, but more pin-pointed. In any case, losses in trade with Customs Unions will be upwards from 50 percent," Purgin said.
"We need to resolve the issue of exiting Ukraine's jurisdiction and integration with the Customs Union, as our industries are the most vulnerable in case we lose these markets," Purgin stated.
According to him, machine manufacturing in Donetsk region employs a large number of people and feeds the whole region.
"If it stops, the republic's budget will be hit hard," Purgin said.
On June 27 Ukraine signed the economic part of the association agreement with the European Union, which includes creation of a free trade zone. Russian government has repeatedly stated that in case of negative influence of Ukraine's association agreement on Russian market it will have to respond with protective measures.