The formation of a free trade zone on the territory of the CIS "has practically been completed", Russia's President Vladimir Putin said the day before at a State Council meeting.
Taking into account Russia's "a little one-sided" raw energy export, a number of its products are of special interest for forming the budget, according to Vladimir Putin.
"We have come to agreements with almost all CIS member-countries that oil and gas are only subject to VAT," Putin said. Bilateral agreements have been signed to the effect with all countries, except Ukraine, the President pointed out.
The lack of this agreement inflicts a $600-650 annual loss of Russia's budget, he stated.
In compliance with the signed agreements, the supplier will not be charged VAT in his country, VAT will be collected by the country receiving oil and gas export, Putin explained. "It is economically substantiated, if the economy is diversified," according to the Russian Head of State. It must lead to mutually increased commodity inflow, he stated.
However, Ukraine's case is different, Putin pointed out. He voiced experts' opinion who believe that there will be no respective increase in the inflow of Ukraine's goods to Russia.
The Russian military have already achieved significant success in the demilitarization of the Armed Forces of Ukraine