The blockade of trade wtih occupied Donbas was designed to to put an end to smuggling through the contact line / Photo from UNIAN
Ukrainian Prime Minister Volodymyr Groysman has announced Ukraine's Cabinet of Ministers will decide on March 1 on rules for trade in commodities, namely coal, with uncontrolled territory in Donbas.
"We will take a decision tomorrow [March 1] on critically important commodities that are important to the country's economy and its energy independence. These will be the rules that will regulate a small choice of critical, essential commodities," he said at a special meeting with steelmakers on Tuesday, February 28.
Read alsoGroysman: "Coal blockade" can't be used to blackmail, put pressure on UkraineAs UNIAN reported earlier, the need to adopt the rules stems from the blockade of coal supplies from the occupied areas of Donbas. Its initial purpose was to put an end to smuggling through the contact line. However, the blockade completely stopped shipments of coal mined in the uncontrolled territory by the enterprises that are registered in Ukraine and pay taxes to the Ukrainian budget.
According to the Ukrainian steelmakers' association Ukrmetprom, direct losses caused by the blockade may amount to about US$3.5 billion by the end of the year. In addition, the blockade forces Ukrainian enterprises to buy coal abroad for foreign currency. One of the possible importers is Russia, the other is the United States, but the purchase of Russian coal is impossible both for economic and political reasons, as Russia is waging war against Ukraine. Ukrainian metallurgical enterprises have already reported that Russian coke has grown up in price by 37%, which makes pig iron production in Ukraine unprofitable.