Ukraine Says Free Trade Zone With EU Would Be Costly

Stocked shelves in the Ukrainian city of Vinnitsa (file photo)

Ukrainian President Viktor Yanukovych has rejected a free trade agreement with the European Union, saying terms offered by Brussels were not in the country's interest.

Yanukovych told an international conference in the Black Sea resort of Yalta that EU proposals to lift all duties for European goods imported into his country would cost Ukraine about 20 percent in lost income from customs payments.

Ukraine has been in talks with the EU bloc to sign an Association Agreement, of which the free trade zone is the core.

compiled from agency reports