Russia may review the import of meat products from Ukraine should the latter proceed with plans to sign an association agreement with the EU, according to the Russian agricultural watchdog, Rosselkhoznadzor.

"We will have to review practically all the terms of access to the Russian market for Ukrainian meat production due to the impending signing of an association agreement between Ukraine and the EU," said Sergei Dankvert, chief of Rosselkhoznadzor.

After the agreement with the EU is signed, the terms for access to the Ukrainian market for European product will change, with an increase in access. This could lead to the necessity of reviewing the terms for importing Ukrainian product into Russia, Dankvert warned, pointing to the lack of proper controls over the quality of exports in the EU.

Russia is concerned that the agreement would open Ukraine to a flood of low-priced meat from EU countries which are currently banned from exportation to Russia, among other potential political concerns.

Currently, there are 15 Ukrainian companies with the right to export meat product to Russia, together with sixteen dairy enterprises. A member of the Meat Union of Ukraine states that Ukraine currently exports up to 40% of its meat products in certain categories to Russia.

According to the Russian Federal Statistics Service, any blocking of agricultural imports from Ukraine by Russia could result in losses for Ukraine of up to US$5.5 million daily.

Meanwhile, Ukrainian Prime Minister, Mykola Azarov, is optimistic about the development. "We have great potential, and combining it with Europe will greatly enhance it. Not only do we need Europe, but we are needed by the European Union," he said.