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plants), other large power producers are controlled by the state. As of Dec. 1, 13 of 14 thermal power plants in Ukraine (including 7 owned by DTEK, 1 owned by Donbasenergo and 3 owned by state-controlled Centrenergo) have coal stockpiles below the normative level, meaning if such law worked now, they might fall under a temporary administration.
Even though this legal initiative falls under the recent trend, namely the increase of pressure on Akhmetov-related assets, we see the likelihood of its approval as low. Primarily, this is because the law is discriminating against private companies (e.g. if a state company fails to prove market security, nothing will change in it). Moreover, a theoretical introduction of state administration over a private company is unlikely to improve its activity (state companies and state managers are much less efficient in the sector). Still, there is some chance for its approval – in which case it will force DTEK and Donbasenergo to significantly increase its coal stockpiles in order to avoid the risk of state administration.
2.4 Parliament passes ‘anti-Akhmetov’ tax law that raises iron ore rents, triples carbon tax
Ukraine’s Rada voted the bill through in its second reading. The bill had been labelled as “anti-Akhmetov,” as two of its key provisions will hurt the steelmaking and energy business interests of Rinat Akhmetov, Ukraine’s richest man.
The provisions in question are a new calculation system for iron ore mining rents based on global market prices, and a tripling of the industrial carbon dioxide emission tax from $0.37 to $1.11 per ton. The bill contains several other tax changes, such as the implementation of an 18% levy on agricultural produce sales above $2,800 a year.
Finance Minister Serhiy Marchenko told parliament in September that the new law could raise between $920 million and $1.3 billion of extra tax revenue annually.
The law’s passing comes at a time of great tension between Akhmetov and the President’s Office, with President Volodymyr Zelensky alleging in his Nov. 26 press conference that Ukraine’s intelligence services had obtained evidence that Akhmetov was being pulled, possibly without his knowledge, into a Russian-backed coup attempt due to take place on Dec. 1. Akhmetov denied the accusations.
2.5 Politics - misc
The countries of the "Associated Trio" in the framework of the Eastern Partnership. For the first time, Ukraine, Moldova, and Georgia agreed to cooperate on the path to EU membership. The document signed was by the three countries' leaders, on Wednesday in Brussels. Furthermore, the three countries agreed on the need to strengthen coordination on issues of common interest, including the recognition by the European Union on the perspective of the Associated Trio.
Ex-President Poroshenko was charged with high treason on December
9 UKRAINE Country Report January 2022 www.intellinews.com