Mkmt has deferred a decision on the joint complaint of the group “Privat” and “Naftogaz of Ukraine”

The interdepartmental Commission on international trade (mkmt) has deferred a decision on the joint complaint of the group “Privat” and “Naftogaz of Ukraine”, demanding to impose duties in respect of the supply of diesel fuel and liquefied natural gas from Russia.

МКМТ отложила принятие решения по совместной жалобе группы «Приват» и НАК «Нафтогаз Украины»

In the official press release mkmt following the meeting on 22 may, one of the issues which was supposed to be a complaint on the import of Russian diesel fuel and LPG, there is no mention of this investigation.

According to several sources enkorr close to the work of the Interdepartmental Commission, the issue at the last moment was removed from the agenda. It was decided to postpone its consideration until the next meeting, date to be determined.

This decision was taken under pressure from MPs and lobby groups that are considered close to the leader of the group “Privat” Igor Kolomoisky.

The day before the Committee meeting a number of MPs, including Alexander Dubinsky (SN), launched a media campaign against the Deputy Minister of economy trade representative Taras Kachka, who is also the Deputy head of the mkmt and plays a key role in this body. Among other things, the deputies close to group “Privat”, began to accuse T. Pitching in “playing up the country-aggressor”, “the assistance of the Russian import” and “destruction of domestic producers”.

The media campaign involved the mass media, owned by the group “Privat”. The evening of may 22 on air of TV channel “1+1” broadcasted a program entitled “Russia begins a new gas war against Ukraine”, where, with reference to the Minister of economic development Igor Petrashko was argued that a final decision on duties is postponed for two weeks.

Note that a preliminary meeting mkmt for consideration of the joint complaints of “Private” and “Naftogaz of Ukraine” was held in March 2020 the Commission seeing no grounds to investigate, asked the applicants to provide further data and arguments. The final decision on this complaint was submitted on 22 may. The draft decision, excerpts of which were released in the air of “1+1” involved the denial of the beginning of the investigation and imposition of duties.
As reported by enkorr, the complaint about the investigation against imports of diesel and LPG from Russia was filed 21 Feb 2020

PJSC Ukrtatnafta, Ukrnafta and JSC “Ukrgasdobycha” controlled group “Privat” and “Naftogaz of Ukraine”, has requested the immediate imposition of duties of 8.46% with an annual increase of their size by 4.24 percentage points from 8.46% in 2020 to 25.4% from 1 January 2024. These rates would lead to full shutdown of fuel supplies from the Russian Federation.

The reason for the imposition of duties, according to applicants, is the mechanism of reverse the excise duty that applies in Russia to regulate the price of gasoline and diesel fuel on the domestic market.

The essence of this mechanism is that if the international oil prices high, the Federal budget pays the companies the part of the premium that Russian oil companies are losing by not raising prices in the domestic market. In the opposite case, if the price of gasoline on the domestic market above the export, the oil companies themselves transfer money to the budget. This mechanism is not related to export promotion of fuel.

In addition, the statement of the Ukrainian refinery contains a lot of inaccuracies and contradictions. For example, the same “reverse excise” in Russia was introduced only from 1 January 2019, while the claimants argue that the damage he caused the last three years.