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Government extends duty on Russian fuel imports

by Dylan Carter December 29, 2021 6:45 PM 1 min read
Prime Minister Denys Shmyhal attends the government meeting on Dec. 29, 2021. (kmu.gov.ua)
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The Cabinet of Ministers has extended duties on Russian energy imports until Dec. 31, 2022, according to news outlet Ekonomichna Pravda.

The Dec. 29 decision will renew existing duties which were set to expire on Dec. 31. This includes a 4% duty on diesel fuel, 3% on liquid petroleum gas (LPG), and 65% on certain types of coal.

The decision does not extend to electricity or thermal and coking coal imports.

The import of electricity from Russia and Belarus imposed in May expired on Nov. 1, after which Ukraine restarted imports from Belarus, but not Russia.

The Cabinet of Ministers announcement does not rule out renewed electricity imports from Russia. There is yet to be any new ruling on limiting electricity imports from Belarus or Russia.

On Dec. 28, the parliamentary committee on energy, housing, and communal services proposed an alternative flat 4-5% duty on diesel, LPG, thermal coal, and electricity to replace the duties that were set to expire in December.

Until recently, Ukraine was reliant on Russia for most of its energy needs. In 2020, 70% of Ukraine’s coal imports came from Russia, according to data from the U.S. Energy Information Administration.

Coal deliveries were halted by Russia in early November as part of its energy blackmail of Ukraine. Russia also blocked trains carrying coal from Kazakhstan.

Coal generates 30% of Ukraine’s electricity, and is used alongside natural gas as fuel during the winter heating season.

Many critics believe that reliance on imported Russian energy poses a threat to national security.

In 2014, Russia occupied Ukrainian Crimea and invaded the country’s eastern Donbas region. Over the seven years of Russia’s war, more than 13,000 people have been killed.

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