Estonia and Russia's bilateral customs cooperation agreement will be terminated, the government agreed at its sitting on Thursday.
Minister of Foreign Affairs Urmas Reinsalu (Isamaa) said this is an important step in reducing the two countries' relations to a minimum.
The agreement will remain in place for six months after its cancelation.
According to the its rules, either party can terminate the arrangement with written notice.
The EU and Russia's customs cooperation agreement, which was signed in 1997, remains valid in Estonia.
Editor: Helen Wright