OREANDA-NEWS. Ministry of Industry and Trade of the Russian Federation has asked the Ministry of Economic Development and Trade to cease the compensation investigation concerning imports of passenger cars from Russia, deputy head of Industry and Trade, Viktor Evtukhov.

According to the agency "TASS", Ministry of Industry of the Russian Federation sent a note to the Ukrainian Ministry, "Ministry of Industry and Trade in its comments addressed to the Ministry of Economic Development and Trade of Ukraine to dismiss the appeal and dismiss the investigation", - reported in the department.

In mid-September, Ukraine began anti subsidy investigation regarding the import of cars from Russia. According to Ukrainian officials, Russian producers use subsidies, provided by the state program for the development of the industry. Due to this, the import of cars, produced in Russia, to Ukraine is growing, which hinders the development of its internal market.

Russian Ministry of Industry believes that for the initiation of an investigation of the compensation Ukraine has lacks of the necessary evidence.

"Firstly, cars, produced in Ukraine, are not the same as compared to passenger cars, imported from Russia. Secondly, there is no evidence on the allocation of subsidies at the statement of the Ukrainian manufacturers, give grounds for action. Third, there is insufficient evidence of material damage of Ukrainian industry of passenger cars”, - say the Ministry.

Russian import of passenger cars in Ukraine decreased: in 2013, according to the Trade Ministry, imports were 38.8% compared to 2012 (in 2012 - 96.1% compared to 2011). The share of imports from Russia to Ukraine in 2013 was 13.5%.

"The establishment of the compensation paid in respect of passenger cars, produced by the Russian Federation, will not lead to a significant change in the situation in the car market of Ukraine”, - said Mr.Evtuhov. In his opinion, the cause of the deterioration of the Ukrainian manufacturers is not the import, but the change in the customs tariff in connection with Ukraine's accession to the WTO, as well as the unstable political and economic situation in Ukraine.

According to Ukraine's commitments under the WTO, the tariff rate on cars has dropped from 25 to 10% after the joining in 2008, and Ukraine has committed to reduce the tariff rate by 1 percentage point each year until it reaches the level of 5% in 2013, according to the Ministry of Industry.

"If the Ukrainian side will impose countervailing duties on Russian cars on the basis of the data that were presented in the handling of national industry, it will be difficult to defend the measure in the judicial procedure of the WTO for Ukraine ", - added Mr.Evtuhov.