KIEV, July 10 – Prime Minister Mykola Azarov will travel to Sochi on Friday to meet his Russian counterpart Dmitri Medvedev amid worsening rhetoric over import duties that may escalate into a trade war.

The trip comes days after Russia has indicated it would soon slap additional duties that would target imports of Ukrainian chocolate, coal and glass.

Moscow said its move is in response to Kiev introducing duties on imports of cars earlier this year apparently targeting Russia’s $328 million worth exports of vehicles to Ukraine.

The looming trade war comes a month after Ukraine has agreed to join Russia-led trade bloc, known as the Customs Union, as an observer to mend trade relations with Moscow. The bloc also includes Belarus and Kazakhstan.

On the trip to Sochi Azarov will be joined by Economy and Trade Minister Ihor Prasolov, Energy and Coal Industry Minister Eduard Stavytskiy and Deputy Prime Minister Yuriy Boyko.

The presence of Boyko and Stavytskiy suggest the talks will include discussions over natural gas imports and perhaps the creation of a joint venture to operate Ukraine’s natural gas transportation system.

Valeriy Muntian, a government-appointed aide supervising trade issues with Russia and the Customs Union, said Ukraine would defend itself if the trade dispute escalates.

“If the duties are approved, Ukraine through discussions and consultations will be ready to protect its companies,” Muntian said in remarks released by the government. “The issue of anti-dumping duties, compensatory and special measures always involves negotiations, consolations and discussions.”

Muntian said Russia has only indicated its intentions to raise the duties, but had not yet spoken directly with Ukraine over the planned measures. That buys Ukraine some time to prepare to address the issue.

“Today we started to look into these issues and will get in contact with the Eurasian Economic Commission [Customs Union’s governing body] in order to prevent these measures,” Muntian said. “The same work will be done through the WTO.”

Russia, Kazakhstan and Belarus agreed on May 29 to grant Ukraine an observer status at the Customs Union. The status should allow Ukraine to join policy discussions and make suggestions within the trade bloc, but the country will not have any voting rights.

Azarov said the status would help Ukraine to “have information about upcoming decisions” and to “express its views before they are introduced.”

The developments come as Ukraine has been also seeking to sign a political association and free trade agreement with the European Union at a summit in Vilnius in November.

European politicians said Ukraine needs to implement several reforms, including the upgrade of the election and judicial systems, to be able to sign the agreement.

Russia has repeatedly threatened to impose trade restrictions on Ukraine unless the country cancels its plans to sign the EU agreements.

The Customs Union is supposed to be renamed the Eurasian Economic Union by 2015, a bloc with high level of integration that Moscow hopes would be modeled after the European Union. (tl/ez)