OREANDA-NEWS. November 12, 2013. Prime Minister of Ukraine Mykola Azarov has met with representatives of the Ukrainian industrialists upon their request. During the meeting the sides discussed current issues of economic development in terms of recession in the world markets and reduction in exports to Russia.

"The Government is ready to discuss the problem very seriously, which exist now at our major industrial enterprises. There is a decisive month now: operating plan formation and business acquisition for 2014. The main problem, which in the focus of the Government and the President, is our trade and economic relations with Russia. I’d like to hear the opinion of our industrialists: what should be done in order to minimize the negative effect associated with the reduction of our trade with Russia," Mykola Azarov said.

Prime Minister recalled that since the beginning of this year, trade turnover between Ukraine and Russia fell by almost a quarter. "Both the President and the Government are doing their best to rectify the situation," the Prime Minister said.

Industrialists made suggestions on protection and support domestic producers. In particular, it comes about the strengthening of negotiation process with foreign partners and measures to revive the domestic market. Such as: import substitution incentives, reducing pressure of the regulatory authorities and better promotion of medium and small businesses in increasing production.

Industrialists stressed that 52% of Ukrainian engineering are exported to Russia. And now the situation is very threatening regarding the reduction in output, which can lead to layoffs in jobs and the loss of revenues. It is primarily concerned with transport engineering, automobile manufacturing, chemical industry, metallurgy, pipe manufacturing and food industry and so on.

"The Government should have a clear action plan to minimize mentioned risks. The Government should strengthen the negotiation, diplomatic and legal process on fulfilling of its commitments as with Russia and other signatories of the Agreement on free trade in the CIS," the head of the Union of Industrialists and Entrepreneurs Anatoliy Kinah stressed. He added that in the terms of the recession in foreign markets we should strengthen the internal market at most.

The industrialists stressed that Russia introduces additional customs restrictions on Ukrainian exports that contrary to WTO rules.

"We have to address the WTO. We have no problems with Europe. We have problems today with the Customs Union," Valentyn Landyk said. He also suggested establishing indicative prices to protect domestic producers.

"Work on the use of WTO mechanisms to protect the interests of the Ukrainian economy, the Ukrainian producer should take place continuously. At present, we do not use even by 10% the opportunities offered by the World Trade Organization," Petro Poroshenko said.