The US Government last week announced that it is placing economic sanctions on Ukrainian exports because of the failure of the Ukrainian Parliament to enact legislation cracking down on sound recording and optical media piracy.

The sanctions, which will require the payment of 100% duties on imports of Ukrainian metals, footwear and other products, are intended to offset US government estimates of the amount of annual damages to the US economy caused by the piracy of CDs, CD-ROMs and DVDs.

US Trade Representative Robert Zoellick said:

"the Ukrainian government pledged that by the end of 2001 it would pass adequate legislation to stop the unlicensed production of optical media products. It has not met this deadline, which is why the United States is taking this action."

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