Ukrainian companies demand import duties on Russian gas, diesel fuel

Source : 112 Ukraine

Experts claim it would not result in the deficit or the price increase; instead, it can re-assign the share of the market from Russian suppliers in favor of producers from other countries, and it could facilitate the growth of domestic production
16:34, 21 January 2020

Open source

Ukrnafta, Ukrtatnafta, and Ukrgazvydobuvannya companies filed a joint appeal to the Ministry for Trade, Economic Development and Agriculture of Ukraine. The document states that Russia allows anti-competitive actions when supplying diesel fuel and liquefied gas to Ukraine.

Ukrtatnafta's press office reported that on January 21. The company claimed that the violation of international trading rules - when it comes to supplies of Russian oil products - lies with the fact that Russian producers receive compensations from the budget when they face expenses related to the production and export of oil products. These compensations come as revenues from the budget of excise duties. That is sponsorship, which violates the norms of the World Trade Organization.

Related: Ukraine’s gas storages may interest four European countries

That resulted in an increase of the share of Russian oil products in the overall volume of imported diesel fuel reached 47 percent; in terms of liquefied gas, it made 55 percent. At that, the share of supplies of Belarus, Lithuania and Poland dropped significantly.

Thus, Ukrainian producers insist on 8.46-percent import duties on the fuel imported from Russia in favor of other producer countries, which would be instrumental in the growth of domestic production and lowering the prime cost of Ukrainian oil products.

Related: European Commission head discusses gas transit through Ukraine with Putin

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