Ukraine reintroduces special duties on fuel imports from Russia

Ukraine's Cabinet of Ministers has reintroduced special duties on liquefied gas, diesel fuel, and coal, except for anthracite and coking coal, supplied from Russia.

The relevant resolution dated August 17 was adopted behind closed doors and published on the government portal on Monday.

Read alsoUkrainian gas stocks may hit record by new heating season – Naftogaz CEOThe Cabinet imposed a 4% duty on heavy distillates (gas oils) imported from Russia via pipelines. Noteworthy, Russian diesel fuel also falls into this category.

Special duties

A special duty of 3% is imposed on certain types of liquefied gases and hydrocarbons.

The government has also imposed a special duty of 65% on coal imports.

What's exempt from duties

According to the resolution, the duties shall not apply to imports of anthracite (regardless of their purpose), as well as bituminous, coking, and other coals (for use in the metallurgical and coke industries).

The exemption also covers bituminous, coking, and other coal (with a yield of volatile substances in terms of dry mineral-free base up to 35%), imported for use in electricity and heat generation.

Read alsoUkraine reduces forex spending on coal imports in seven months"The resolution comes into force from the date of its publication and becomes void on December 31, 2020, or after cancellation by the Russian Federation of discriminatory or unfriendly actions regarding Ukraine," reads the document.

Special duties on Russian goods: background

Resolutions of Ukraine's Cabinet, which imposed similar special duties on Russian diesel fuel, liquefied gas, and thermal coal, have been repealed.

Ukrainian Minister for Development of Economy, Trade and Agriculture Ihor Petrashko at a Cabinet meeting on March 18 said that a special 65% duty on imports of electricity and coal, except for anthracite and coking coal, from Russia would be imposed from April 1, 2020.

However, in early April, the introduction of a special duty was postponed to April 15, according to the government resolution.

On April 15, the introduction was postponed again, to May 1.

The Cabinet on April 27, 2020, issued a resolution to impose a special duty at 65% on Russian coal imports, except for anthracite and coking coal, effective from May 1.