Economy 2022-09-15T06:26:39+03:00
Ukrainian news
Cabinet Imposes Special Import Duties Of 1.75-4% On Diesel Fuel And Liquefied Natural Gas From Russia From Aug

Cabinet Imposes Special Import Duties Of 1.75-4% On Diesel Fuel And Liquefied Natural Gas From Russia From August And October - Herus

Russia, Cabinet of Ministers, sanctions, diesel fuel, special import duties, liquefied natural gas

The Cabinet of Ministers has imposed special import duties of 1.75-4% on diesel fuel transported via pipelines from Russia and liquefied natural gas from August and October.

President Volodymyr Zelenskyy’s representative in the Cabinet of Ministers Andrii Herus announced this on Facebook, the Ukrainian News Agency reports.

“Yesterday, the Cabinet of Ministers adopted a resolution imposing special import duties on diesel fuel (transported via pipelines) and liquefied gas from the Russian Federation. This joint decision of the president and the government was made in response to the expansion of Russian economic sanctions,” Herus wrote.

According to the relevant decision, the special import duty on diesel fuel will be 3.75% from August 1 and 4% from October 1 while the special import duty on liquefied natural gas will be 1.75% from August 1 and - 3% from October 1.

"The corresponding duty will remove importers' extremely high margin that arose due to logistics (diesel pipeline) and other factors. If the typical market margin in large wholesale is USD 10-12 per ton, then it was USD 35-40 per ton for deliveries via pipeline," Herus wrote.

He also stressed that the decision would not affect retail prices at gasoline filling stations.

In addition, according to Herus, about UAH 2 billion will thus be generated into Ukraine’s state budget per year.

As Ukrainian News Agency earlier reported, the National Security and Defense Council’s Secretary Oleksandr Danyliuk has said that it is necessary to look for solutions to the restrictions that were imposed on exports of petroleum products from Russia to Ukraine on June 1.

Russia imposed restrictions on exports of crude oil and petroleum products to Ukraine in April 2019.

Ukraine imported petroleum products worth USD 459.91 million from Russia in the period of January-March 2019 (41.45% of total imports).