Ukraine imposes a fee on Russian DT and ZVG

The Cabinet of Ministers has determined the final amount of special duties on Russian diesel and liquefied gas, which will come into force on August 1.

On the import of ZN from August 1, a special duty of 3.75% of the customs value of the goods will be applied. The duty is introduced only for pipeline deliveries (90% of the total import of DT from the Russian Federation is on the pipeline).

For liquefied gas, the duty will be set at 1.75% from August.

Starting from October 1, duty rates will be increased to 4% for DT and 3% for liquefied gas.

At the same time, the government refused to introduce quotas on volumes of supplies. In the initial project, an annual QT quota of 2500000 tons was planned (at current annual imports of 2,700,000 tons).

The introduction of duties only on pipeline deliveries to ZN, he explained the “super-market walrus of the trader of the importer”, which carries out import of fuel from the petrochemical pipeline “PrykarpatZapadtrans”.

“The corresponding duties will remove the marginal import trader margin, which arose due to logistics (diesel fuel) and other factors. If a typical walrus in a large opt is $ 10-12 / t, then for the supply of pipeline transport, such a walrus was $ 35-40 / t, “the source reports.

After the introduction of duties on the DT, the wagon suppliers of ZN by pipeline “will be brought to normal market levels, and this will not affect retail prices.”

An additional budget revenue from the introduction of duties, a representative of the president in the government Andrei Gerus, estimated at 2 billion USD per year.

_____

Let’s remind, the Cabinet of Ministers announced the introduction of a fee for the Russian DT on May 15, but to date, this ruling has not been made public.

The draft resolution, which was considered at the meeting on May 15, provided for the introduction of a 2% duty on imports of diesel fuel in the annual volume of up to 2500000 tons and 25% on deliveries beyond this volume. There were no fees for LPG in this project.

The decision to impose restrictions on imports of Russian goods, including a week ago, was adopted in response to unfriendly actions by the Russian Federation, a month before that, on April 18, 2019, imposed sanctions against Ukraine.

Deliveries of ZN from Russia in 2018 provided 40% of the Ukrainian diesel market – 2597000 tons. In the first half of 2019 deliveries grew by 23.2%, to 1380000 tons, compared to the same indicator in 2018, and the share in the balance of the market to 44 %

The import of liquefied hydrocarbon gas from Russia in 2018 amounted to 503 thousand tons. T. Or 29% of the market volume. In the first half of 2019, it grew by 44% to 317.6 thousand. T, and the share in the balance increased to 37%.

Source: enkorr

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