(VOVworld) - On Wednesday, Russian President Vladimir Putin signed an act suspending the free trade agreement with Ukraine as of January 1st, 2016.

Russian President Vladimir Putin has ordered the suspension of a free trade agreement with Ukraine (Photo: AFP)

Russia will temporarily suspend preferential trade relations with Ukraine to prevent threats to its economic security, allegedly stemming from a trade agreement between Ukraine and the European Union (EU). The Russian act said Ukraine has practically abandoned the development of trade and economic cooperation within the Commonwealth of Independent States and chosen comprehensive integration with the EU, which is contradictory to the FTA with Russia.

On the same day, Prime Minister Arseny Yasenyuk announced that the Ukraine government will approve 2 resolutions in retaliation against Russia including an import embargo and raising tariffs on Russian goods. Mr. Yasenyuk said that for each move from Russia, Ukraine will have a counter-response. The resolutions will take effect immediately after Russia imposes restrictions on Ukraine’s goods.