Ukraine has become a leading source of pirate CDs

The Ukrainian Foreign Minister, Anatoly Zlenko, has said that relations with the United States will not be damaged by Washington's decision to impose sanctions on Ukraine over video and compact disc piracy. The United States imposed new duties on a range of Ukrainian goods on Thursday, after the Ukrainian parliament rejected a bill to combat the unauthorised production of compact discs, CD-ROMs and DVDs by introducing a system of licensing for intellectual property. The US estimates that Ukrainian piracy costs American businesses between $75m and $200m per year, and has been urging Kiev to take action for about two years. It is retaliating by imposing punitive tariffs on Ukrainian goods, including metals and footwear. Announcing the new sanctions, US Trade Representative Robert Zoellick, said the US had tried to avoid introducing the punitive tariffs but Ukraine had not fulfilled its commitments "to pass adequate legislation to stop the unlicensed production of optical media products". He said the US had to move "forcefully" to protect its rights.