’’Privat’’ Group yet again lobbies restrictions on imports of petroleum products

Thursday, 1 Mar 2018

During the ninth annual Ukrainian energy forum of the Adam Smith Institute, Oleg Gez, the head of the Downstream direction of Ukrnafta, made a number of proposals to normalize the situation with regard to the existing pricing chain.

Among others — the introduction of minimum customs duties on fuel imports from Russia and Belarus. As informs Enkorr, in industry circles it is believed that Privat may return to the idea of ​​lobbying restrictive measures against imports due to the problematic nature of marketing the increased volume of oil products produced by the controlled group of the Kremenchug refinery.

Suspicion supports the consideration by the Cabinet of Ministers of Ukraine at a meeting on February 28, 2018 of a package of changes in the legislation concerning the trade protection of the domestic commodity producer.

According to experts, six agenda items on this subject were announced by the Ministry of Economic Development and Trade, and the explanatory note to all draft amendments has the same content:

“The draft Law is designed to improve the mechanism for carrying out protective investigations, as well as the mechanism for applying protective measures based on the results of these investigations, taking into account the challenges of our time, since the policy of Ukraine’s” openness “in the trade sphere has both advantages from open trade and open market, and its own limitations. So, in particular, in the context of the reduction of trade barriers, growing imports can harm industries in the domestic industry. In this context, defense investigations are one of several tools that domestic commodity producers can resort to to protect against growing imports. ”

The vice-premier initiates amendments to the laws “On protection against underbidding imports”, “On protection from subsidized imports”, “On protective measures”, as well as changes to the Economic and Customs Codes of Ukraine.

In particular, the draft amendment to the Law of Ukraine “On Amending Certain Legislative Acts in the Sphere of Trade Protection” introduces the notion of a protective tariff quota that can be applied depending on the volume of imports of a particular product. Also, the application of a special license is being expanded, which will be applied to goods that are objects of a protective tariff quota.

Also, the concept of special investigations changes to the concept of protective investigations, special measures to protective measures, and special duties to protective duties.

President of the Oil and Gas Association of Ukraine, Dmitry Kulik commented:

“The history of Ukraine knows the periods of differentiated taxes on petroleum products imported, and domestic production. In favor of the latter. We have experience in introduction of protective duties against imports, etc. How did it end? Have manufacturers invested in production? Manufacturers have provided increased customer requirements for fuel quality? Restrictions lowered prices for the consumer? No. The owners of the refinery removed the cream from the increased margin and buried the oil refining industry of Ukraine. The competition and openness of the market ensured a balanced price and a high level of fuel and service quality for the consumer. ”

It is worth noting that in 2011-2012. Privat together with TNK-BP initiated a special investigation against the import of petroleum products from Belarus with the goal of introducing a tax of 132 euros / ton, but the commission of the Ministry of Economy refused.

According to experts of the oil and gas market, at the moment, systematic work is being done to close the market, which will entail not only a violation of fair competition, but also risks of fuel shortage.

In our opinion, the state needs to pay attention to the effectiveness of management in the largest branch enterprises with state ownership, Ukrnafta and Ukrtatnafta. The problems in the management of these companies are especially visible against the backdrop of the progress and success of the state Ukrgazdobycha, which is the locomotive in the development of civilized competition.

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