Ukraine preparing for subsidy investigation with possible measures of $181 per t against Belarusian fuel imports, says source
The team of Vice Premier of Ukraine Yuriy Boiko has sent complaint forms to the major part of Ukrainian oil refineries, on the basis of which the interagency commission for international trade could start a subsidy investigation into imports of fuel from Belarus, a source in the government has told Interfax-Ukraine.
"The outcome of the investigation could be the restrictive measures against fuel supplied from Belarus amounted to $180.84 per tonne. The measures will be introduced for five years. However, first two thirds of Ukrainian oil refineries are to sign the complaint – or five refineries," he said.
The source told Interfax-Ukraine that today Kremenchuk, Nadvirna and Drohobych oil refineries signed the document (the Privat Group controls their managers), as well as Shebelynka gas plant (part of state-run enterprise Ukrgazvydobuvannia). Lysychansk oil refinery (belongs to TNK-BP) and Odesa oil refinery (belongs to LUKOIL) have not decided yet.
The complaint authors said that Belarus grants six types of subsidies to its oil refineries worth $180.84 per tonne. This concerns the exemption from paying a 30% duty from currency income ($165 per tonne), compensation of bank credit rates to refineries ($12.30 per tonne) and provision of budget loans ($1.24 per tonne).
The authors of the document also say that bio-diesel fuel from Belarus is exported without paying duties, while the usual duty for fuel in the Customs Union exceeds $200 per tonne. They said that in some periods the share of bio-diesel fuel from Belarus was 50% of the total diesel fuel exports to Ukraine.
The complaint's authors are confident that Ukrainian oil refineries are not operating in equal conditions, while the subsidizing of the Belarusian oil refining sector leads to the constant growth in imports of fuel from the country.
As reported, Ukraine's oil refineries and Shebelynka gas refinery cut gasoline output 42.6% to 1.63 million tonnes in 2012; diesel fuel output by 48.2% to 1.364 million tonnes; and fuel oil - 64.3% to 715,300 tonnes.
In 2012, three out five operating refineries in Ukraine (Lysychansk, Kremenchuk and Nadvirna) and Shebelynka gas plant were refining crude oil.
Lysychansk oil refinery from March 2012 was stopped for repairs, while Nadvirna oil refinery operated only in November.
