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5-7-9% preferential lending program and grants.
6.1.2 Budget dynamics - specific issues...
Ukraine introduced a duty on natural gas, oil, and oil products. The government decided to enact customs payments for goods moving through pipelines.
As the Ministry of Finance explained, according to the Customs Code, such goods are not subject to customs duty, but the government has the right to set other standards. Therefore, the government has decided that the following categories will be subject to security for the payment of customs payments: excise goods, natural gas (if a larger quantity of goods is declared than was registered during the previous year, and the enterprise has debts for the payment of customs payments), and oil or crude petroleum products obtained from bituminous rocks during internal transit. The new rules do not apply to oil or oil products in transit through the territory of Ukraine.
6.1.3 Budget dynamics - funding
German Chancellor Olaf Scholz and European Commission President Ursula von der Leyen have proposed launching a new Marshall Plan for the post-war reconstruction of Ukraine, reported Frankfurter Allgemeine. High-ranking EU officials believe that neither Ukraine nor its partners can cope with the losses on their own since, according to preliminary estimates alone, the amount needed for recovery reaches at least €350B. With this in mind, Scholz and von der Leyen have proposed launching an inclusive donor platform, which will provide a more transparent allocation of funds used to reconstruct Ukraine. At the 5th German-Ukrainian economic conference, the Recovery of Ukraine dossier will also be presented, which used the Marshall Plan for West Germany’s reconstruction after the Second World War, with assistance from the US, as a model.
Upcoming US midterm elections cause uncertainty over future fundingto Ukraine. Despite U.S. House Minority Leader Kevin McCarthy hint earlier that he would reduce aid to Ukraine, U.S. President Joe Biden's aides privately believe McCarthy, if he becomes speaker of a Republican-led house of representatives, will keep funding to Ukraine flowing, Politico reported.
Ukraine has already received $19.8bn in external financing this year and more than $11bn is expected by the end of the year, Deputy Governor of the National Bank of Ukraine (NBU) Yuriy Heletiy has said.
Prime Minister Denys Shmyhal said that Ukraine expects “a new major program” from the International Monetary Fund in 2023, as well as funding from the USA, the EU, and other G7 countries. He said that the IMF will provide Ukraine with an additional $1.3bn, which will be used to support defense capability, pensions, and social payments, and to strengthen the stability of Ukraine’s economy.
The US works to allocate $4.5B to Ukraine. The US government is working at an accelerated pace to give $4.5B in economic aid to Ukraine, which was approved by lawmakers at the end of September, stated Treasury Secretary
32 UKRAINE Country Report November 2022 www.intellinews.com