2018-03-14T16:27:00+02:00 Economy 2024-09-15T11:45:25+03:00

Ukrainian news

Cabinet Introduces Restrictions On Imports Of Mineral Fertilizers From Russia

Cabinet Introduces Restrictions On Imports Of Mineral Fertilizers From Russia

The Cabinet of Ministers of Ukraine has introduced temporary restrictions on imports of mineral fertilizers originating in the Russian Federation.

The Cabinet of Ministers endorsed the decision at its sitting on Wednesday, Ukrainian News Agency reports.

'Regarding the temporary restrictions I suggest adopting a decision now on introduction of the temporary restrictions and instructing the Ministry of Economic Development and Trade and the Justice Ministry and other ministries to formalize the decision in line with the rules," Prime Minister of Ukraine Volodymyr Groysman said during the cabinet sitting.

Interior Minister Arsen Avakov moved forward with the same initiative.

"In my opinion it is necessary to suspend imports until a decision is made. Let us make a decision on suspension," said Minister Avakov.

First Vice Prime Minister / Minister of Economic Development and Trade Stepan Kubiv said it was decided in 2017 after a meeting with Ukrainian producers of mineral fertilizers and grain associations to bring to the Verkhovna Rada two bills - No.6422 (reducing import duties on mineral fertilizers from 6.5% to 0%) and 6422-1 (reducing import duties on mineral fertilizers from 6.5% to 0% within several years). The Verkhovna Rada has not adopted the bills.

Kubiv also said it was decided on March 13 that the tax and customs committee of the Verkhovna Rada would consider the two bills on March 14.

According to Kubiv, following a meeting of a governmental committee of March 13 it has been decided to send a draft decision to the Interagency Committee on International Trade of Ukraine to raise the import duties introduced for Russian mineral fertilizers.

"We can introduce a two-week embargo before a decision of the Interagency Committee on International Trade," he said.

As Ukrainian News Agency earlier reported, the Interagency Committee on International Trade of Ukraine stands for higher antidumping duties on nitrogen fertilizers.

In May 2017, the Cabinet of Ministers of Ukraine endorsed a bill introducing zero import duty on nitrogen fertilizers.

Agrarian Policy and Food Minister Taras Kutovyi said the zero import duty on nitrogen fertilizers would protect farmers from seasonal price hikes and would make nitrogen fertilizers less expensive for them.

At present the import duty on nitrogen fertilizers is 2-6.5%.

In December 2016, the Interagency Committee on International Trade of Ukraine introduced 4.19%-31.84% antidumping duties on urea and urea-ammoniac compound (CAC) originating in the Russian Federation for five years from March 2017, till March 2022,

In June 2014, Ukraine raised the antidumping duties on the importation of ammonium nitrate from Russia from 9.76-11.91% to 20.51-36.03%.

In May 2015, Russia laid an action to the World Trade Organization concerning Ukraine's import duties on ammonium nitrate.

In spring 2017, the Association of Chemists of Ukraine said the duties of 20.51-30.03% were not high enough to curtail imports of urea and urea-ammoniac compound (CAC) originating in the Russian Federation.