Ukrtransgaz asks the Cabinet of Ministers to cancel customs payments when storing gas in the “customs warehouse” mode

Ukrtransgaz appealed to the Cabinet of Ministers of Ukraine with a request to cancel the obligation to pay customs duties when placing natural gas for storage in the “customs warehouse” mode. This was reported by the press service.

It is noted that since November 2019, users of the "customs warehouse" during the upload should provide "financial guarantees" – customs payments in the amount of at least 20% of the customs value of the natural gas. Foreign traders, accordingly, began to look for other opportunities for seasonal gas storage.

“The need to ensure customs payments in the amount of at least 20% of the customs value of the natural gas significantly reduces the economic attractiveness of the service,” the statement said.

The company also noted that additional difficulties arise for non-resident companies, who must find Ukrainian partners who will ensure customs payments for them in Ukraine.

Thus, the number of companies, primarily foreign ones, which store gas in Ukrainian UGS facilities, may decrease significantly, and attracting new customers for gas storage services may become more complicated. This will lead to a reduction in deductions to the state budget and weakening of Ukraine’s position in the European gas market.

The relevant changes were introduced by resolution of the Cabinet of Ministers of Ukraine No.979 dated 27.112019 “On Amending Decisions of the Cabinet of Ministers of Ukraine of May 21, 2012 No.450 and No.461”.

Recall that the “customs warehouse” mode provides for the storage of gas in Ukrainian underground gas storage facilities for up to 1095 days without paying customs duties. As of 01.01.2020, the volume of natural gas in the “customs warehouse” mode, which was stored by 29 counterparties, amounted to 8.2 billion cubic meters (about 30% of the total volume of gas storage), of which natural gas of non-residents is 2 billion cubic meters.

Tags: The Cabinet of Ministers, gas, Naftogaz, contracts, hydrocarbon production, legislation, EU, The Minystry of Energy and Coal Mining, Top management, Ukrtransgaz, UGSF, foreign affairs, taxes, unbundling, Gas market, law, agreement, gas supplies, volumes, modernization, infrastructure, energy sector, technologies, gas extraction, gas supply

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