Page 45 - UKRRptApr24

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European Commission proposes tariffs on Russian, Belarusian grain. The measure would impose a 95 euro ($103) per ton on corn and wheat, as opposed to zero tariffs imposed today, Business Insider reported. Other products, namely oilseeds, would be subject to an "ad valorem duty" of 50%.
Ukraine plans to increase the excise duty on cigarettes, alcohol, and fuel to harmonize with EU norms. A schedule of annual rate increases until 2028 has been established for all excise goods. In particular, the excise tax on tobacco products will be equated to the euro, the tax rate will gradually increase to €90 for 1,000 cigarettes. As well, the excise tax on gasoline will rise from €215.5 per 1,000 liters to €359; on diesel fuel, it will rise from €139.5 to €330; and on liquefied gas from €52 to €70. It is also expected that excise duties will be increased on intermediate alcoholic products from ₴8.42 to ₴12.23 per liter. The government expects that tying excise taxes on tobacco products to the euro will provide additional revenue for the state budget: ₴612M in 2025, ₴5.001B in 2026, ₴9.379B in 2027, and ₴9.379B in 2028. The new rules will allow the collection of an additional ₴1.6B monthly from the sale of fuel and ₴4.5M from the sale of intermediate alcoholic products.
Due to export issues with the EU, Ukraine is reorienting its sugar exports: 20% was purchased by three African countries. Since the beginning of March, Ukrainian sugar producers began actively selling their products on the African continent. This alternative direction appeared following active lobbying to ban the sale of Ukrainian sugar in Poland and other European countries. Three African countries are currently the leaders in purchasing Ukrainian sugar - Cameroon, Libya, and Guinea. This is 20% (almost 8,000 tons) of the total volume of Ukraine’s exported sugar. It is noted that the sugar produced in 2023 and at the beginning of 2024 should be enough for the domestic market. Also, sugar reserves are sufficient to meet the needs of residents of other countries. According to the Ministry of Agrarian Policy calculations, the wholesale price of a kilogram of sugar is, on average, ₴23- ₴24. Ukraine needs up to a million tons of sugar for its annual domestic needs.
The EU plans to ban the import of Russian agricultural products. The EC is currently assessing the possibility and impact of blocking the import of farm products from the Russian Federation, the executive vice-president of the EC, Valdis Dombrovskis, said. He added that the sanctions on "food" from the Russian Federation were not introduced in 2022 because of disruptions in the food supply to the EU. In 2024, the situation in the world changed, and the Russian Federation became more aggressive in EU markets and started exporting massive amounts of goods. The EU member states began to react to the situation," he explained and added that the EU is now looking for the best way to limit the presence of food products from the Russian Federation in the markets of Europe. He also noted that some countries, such as Latvia and Poland, are also taking steps in this matter.
Czechia to propose EU-wide grain import ban on Russia, Belarus. Czechia is planning to propose a ban on grain imports from Russia and Belarus into European Union countries at next week's European Council meeting, Czech Agriculture Minister Marek Vyborny said on March 17.
Ukraine plans to reach the pre-war agricultural product export indicators; the main trade route is the Black Sea. In February, Ukraine exported more than five million tons of agricultural products via the Black Sea, Deputy Chairman of the All-Ukrainian Agrarian Council Denys Marchuk said. He clarified that, before the war, Ukraine exported about 60-65 million tons yearly and plans to export about 60 million tons this year. However, if Ukrainian farmers could continue to work within their internationally recognized territory,
45 UKRAINE Country Report April 2024 www.intellinews.com