Ukraine Introduces Tit-for-Tat Measures in Response to Russian Sanctions

Cement and plywood are banned immediately, other goods will be subject to additional duties effective August 1, 2019

uatv
15.05.2019

Photo from Ukrinform-UATV

 

The Cabinet of Ministers of Ukraine has banned the import of Russian cement and plywood on May 15, the press service of the Cabinet of Ministers reported. At the same session, ministers decided to approve the proposition by the Ministry of Economic Development on the imposition of special customs duties for all goods coming from the Russian Federation.

The new prohibitions, enacted by the Cabinet of Ministers, are presented as a “response for the aggressive and discriminatory actions from the side of the Russian Federation, regarding the closure of market access for goods coming from Ukraine, as well as the restriction put on the transit of Ukrainian goods going through the territory of the Russian Federation,” the report says.

According to government estimates, the total import value of these types of products from Russia amounted to $26.7 million in 2018.

“We propose preventing the outflow of capital to the aggressor state and raising the production capacities’ workload, boosting revenues to budgets at all levels, increasing the number of workplaces and supporting the existing ones. We estimated the mirror image of these goods from the Russian Federation for 2018, totaling $510 million according to customs statistics,” Ukrinform reported, citing Deputy Prime Minister, Economic Development and Trade Minister of Ukraine Stepan Kubiv.

According to the Cabinet’s report, “Starting from August 1, 2019, when importing goods coming from the Russian Federation, a special duty is introduced as a percentage of the goods’ cost, regardless of other duties.”

The duty payments will be transferred to a special fund of the state budget designed for import substitution measures taken by the Economic Development Ministry. Before the amendments to the budget law regarding the financing of the Ministry come into effect, the customs payments will be transferred to the general fund of the state budget. The expected revenues are estimated in an amount of over ₴3.7 billion.

Source UATV
date 15.05.2019
categories Economics
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