Wexler Group, the largest importer of petroleum products in Ukraine will stop importing of diesel fuel from Russia from August 1, due to introduction of duties by official Kiev, the company s announced on Thursday.
"From August 1, Wexler Group is forced to suspend deliveries of diesel fuel originating from Russia by pipeline due to the adoption of a resolution of the Cabinet of Ministers of Ukraine on "Introducing a special duty on certain goods originating from the Russian Federation, imported into the customs territory of Ukraine," which, in particular, implies that an additional special duty of 3.75% is set from August 1 and 4% from October 1 on the import of diesel fuel," the company announced on its Facebook page.
The company stressed that with the introduction of additional special duty "further supply of fuel by pipeline transport makes no economic sense."
Wexler Group said that they are now looking for options to diversify the sources of imports of diesel fuel.
On July 17, the Ukrainian government introduced special duties on imports of diesel fuel and liquefied gas from Russia. The representative of the President of Ukraine in the Cabinet of Ministers, Andrei Gerus explained that this was a joint decision of the head of state and government in response to the expansion of Russian economic sanctions.
The representative of the President said that the special duty on diesel fuel supplied by pipelines will be 3.75% from August 1, 2019 and 4% from October 1, 2019. The special duty on the supply of liquefied gas will be 1.75% from August 1 and 3% from October 1.
On January 1, 2016, due to adoption of the economic part of the Association Agreement between Ukraine and the EU, Russia suspended the agreement on a free trade zone (FTA) with Ukraine to protect the country's economic interests.
Since the beginning of 2016, the food embargo, which had been imposed by the Russian government in response to the sanctions of European countries against Russia, was also applied to Ukraine.
Ukraine, in turn, adopted a resolution banning imports of goods originating from Russia. The document entered into force on January 10, 2016.
In 2016, Ukraine introduced duties and embargo on Russian goods. In particular, the following products came under restrictions: meat, fish, cereals, grain, bakery and confectionery products, dairy products, coffee, tea, vodka, beer, cigarettes, a number of chemicals, mineral fertilizers, railway equipment, animal feed and veterinary medicine as well as cars, buses, tractors, trucks and motorcycles.
On July 5, the government of the country extended the ban on imports of Russian goods until December 21, 2020.