The Ukrainian interior minister also suggested that the government cut off power supplies to the annexed peninsula which declared a state of emergency at the weekend after its main electricity lines from Ukraine were blown up.
The new spike in tensions with Moscow comes as Kiev expects a free trade agreement between Ukraine and the European Union to enter into force from January 1, 2016.
"The Ukrainian government temporarily suspends the movement of goods between Ukraine and Crimea at the initiative of Prime Minister Arseniy Yatsenyuk," Ukraine's government said in a statement.
Ukraine's Western-backed leader requested the government "immediately establish a working group" to halt "deliveries of goods and all trade" with Crimea, which depends on Ukraine for its water and electricity supplies.
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Russia last week reiterated a threat to introduce a blanket ban on food supplies from Ukraine from January 1, saying Kiev's landmark agreement with the EU at the heart of the Ukraine crisis will damage Moscow's economic interests.
Yatsenyuk, for his part, said that Ukraine would respond to any ban from Russia with a retaliatory measure.
Yesterday, Crimea declared a state of emergency after its main electricity lines from Ukraine were blown up by unknown attackers, leaving the Russian-annexed peninsula in darkness after the second such attack in as many days.
The Black Sea peninsula still depends on Ukraine for its electricity even after its annexation by Russia in March last year, a move which paved the way for the uprising in eastern Ukraine that has now killed more than 8,000 people.