The unshadowing of the alcoholic beverage market in 2024 brought an additional UAH 1.9 billion to the state budget of Ukraine compared to 2023, Danylo Hetmantsev, Chairman of the Verkhovna Rada Committee on Finance, Taxation and Customs Policy, said in a telegram channel.
He noted that the payment of excise tax on alcoholic beverages produced in the country increased by UAH 1.7 billion, or 24.4%, compared to 2021. Positive dynamics can also be seen in the growth of VAT tax efficiency: it is 6.88%, or 33.3% more than in pre-war 2021, when it was recorded at 5.16%.
At the same time, revenue from alcoholic beverages increased by 25% in November 2024 compared to January.
Hetmantsev noted that the President of Ukraine signed a bill on taxation of the alcohol market based on the capacity of the plants and expressed confidence that this would not allow the black market to be restored.
The head of the parliamentary committee called the increase in the capacity utilization of distilleries to 87% an important indicator of the de-shadowing of the alcoholic beverage market in 2024. This helped to produce 23.7 million dal of alcohol in 10 months of last year, which is 189% more than in peaceful 2021, when the distillery’s capacity utilization was 60%.
“This meant that all the residual capacity was directed to the bottle without excise duty,” Hetmantsev added.
According to him, the law No. 4014 adopted by the parliament is aimed at ensuring the full payment of excise tax by producers of ethyl alcohol and bioethanol.
“The law makes it economically unprofitable to conditionally “not use” the capacities. It is extremely important that the controllers do not turn a blind eye in the process of fulfilling the requirements of the law,” summarized the Chairman of the Parliamentary Financial Committee.
The current gas transit deal between Russia and Ukraine expires at the end of 2024, with Vladimir Putin having already said there was no time left to renew the contract. Will eastern EU members be hit the hardest?
Currently, Russian gas is still flowing through Ukraine’s pipeline network to the European Union (EU), generating revenue for Kremlin leader Vladimir Putin and funding his war against Ukraine. The Russian has claimed without Russian gas the bloc won’t be able to meet its energy needs.
For Ukraine, by contrast, the gas transit deal has always meant first and foremost filling Putin’s war chest, even though some of the revenue Russia gains from its exports via Ukraine stay in Kyiv as transit fees.
Now, as the year 2024 ends, Ukraine will not renew the gas transit agreement with Russia, as announced by President Volodymyr Zelenskyy on December 19 in Brussels. Ukraine will no longer allow Moscow to “earn additional billions” while continuing its aggression against the country.
Russian President Putin also confirmed the contract’s termination, telling reporters in a televised briefing on December 26 that a new contract was “impossible to conclude in 3-4 days.”
Putin laid the blame firmly on Ukraine for refusing to extend the agreement.
The end of the agreement, however, raises questions about gas supply in landlocked eastern EU countries, which cannot import liquefied natural gas (LNG) by sea. Austria, Hungary, and Slovakia still rely on Russian gas via Ukraine which is why the governments there are eager to continue purchasing Russian gas.
Russian gas: Mutually beneficial even during the Cold War
Before the Ukraine war, Russia was the world’s largest exporter of natural and Europe was Moscow’s most important market. European governments prioritized access to cheap energy over concerns about doing business with Putin.
The mutually beneficial relationship began more than 50 years ago, when the former Soviet Union needed funds and equipment to develop its Siberian gas fields. At the time, the western part of then still divided Germany sought affordable energy for its growing economy, and signed the so-called pipes-for-gas deal with Moscow, under which West German manufacturers supplied thousands of kilometers of pipes to transport Russian gas to Western Europe.
This energy relationship persists, as European importers are often locked into long-term contracts that are difficult to exit.
According to the Brussels-based think tank Bruegel
, EU fossil fuel imports from Russia amounted to about $1 billion (€958 million) per month at the end of 2023, down from $16 billion per month in early 2022. In 2023, Russia accounted for 15% of the EU’s total gas imports, trailing Norway (30%) and the US (19%), but ahead of North African countries (14%). Much of this Russian gas flows through pipelines via Ukraine and Turkey.
Major consumers include Austria, Slovakia, and Hungary. Additionally, countries like Spain, France, Belgium, and the Netherlands still import Russian LNG by tanker, some of which mixes with other gas sources in Europe’s pipeline network. As a result, it may even reach Germany, despite its efforts to forgo Russian gas.
Gas market upheaval triggers price spikes
Following Russia’s invasion of Ukraine in 2022, gas prices surged dramatically — at times by more than 20 times — forcing some European factories to cut production and many small businesses to close. Prices have since dropped but remain above pre-crisis levels, making energy-intensive industries, particularly in Germany, less competitive.
European consumers are also suffering from high energy prices, prompting many to reduce consumption amid a severe cost of living crisis. The additional expenses are a significant burden: Nearly 11% of EU citizens struggled to adequately heat their homes in 2023, according to the EU Commission
The termination of the Ukraine-Russia agreement is already factored into European gas market forecasts, according to an EU Commission analysis reported about by Bloomberg in mid-December.
EU isn’t desperate to keep gas route open
The EU is confident in its ability to secure alternative supplies.
“With more than 500 billion cubic meters of LNG produced each year globally, the replacement of around 14 billion cubic meters of Russian gas transiting via Ukraine should have a marginal impact on EU natural gas prices,” Bloomberg cites from the commission’s document, which is not yet public. “It can be considered that the end of the transit agreement has been internalized in the winter gas prices.”
The EU has long argued that member states still importing Russian gas via the Ukraine route — particularly Austria and Slovakia — could manage without these deliveries. Therefore, the EU commission said it would not enter negotiations to keep the route open.
According to the Commission, member states have been able to reduce their gas consumption by 18% since August 2022 compared to the five-year average. Moreover, the United States is expected to create new LNG capacities over the next two years, and these supplies could help the EU address potential disruptions.
“The most realistic scenario is that no Russian gas will flow through Ukraine anymore,” the EU commission said, adding the bloc was “well-prepared” for this outcome.
Mounting oncerns in Eastern Europe
Despite EU assurances, Hungary and Slovakia remain anxious about their gas supplies and their ongoing close ties to Russia. Hungarian Prime Minister Viktor Orban, for example, is seeking ways to maintain gas deliveries through Ukraine, even though the country’s current imports largely rely on the TurkStream pipeline.
Orban has floated unconventional ideas, such as purchasing Russian gas before it crosses into Ukraine. “We are now trying the trick … that what if the gas, by the time it enters the territory of Ukraine, would no longer be Russian but would be already in the ownership of the buyers,” Orban told a briefing, according to the Reuters news agency. “So the gas that enters Ukraine would no longer be Russian gas but it would be Hungarian gas.”
Slovakia has taken a more confrontational approach, threatening countermeasures against Ukraine. Prime Minister Robert Fico suggested halting emergency electricity supplies to Ukraine after January 1 if no agreement is reached. “If necessary, we will stop the electricity shipments that Ukraine needs during outages,” Fico said in a Facebook video.
In respons to the threat, Ukrainian President Volodymyr Zelenskyy accused Fico of acting under Russian orders, stating on social media platform X that it appears Putin directed him to “open a second energy front against Ukraine.”
Fico remains one of the EU’s strongest opponents of military aid to Ukraine. During a surprise December visit to Moscow, Fico claimed Putin reaffirmed Russia’s willingness to continue supplying gas to Slovakia.
NNEGC Energoatom has received a license from Westinghouse to manufacture fuel rod shanks for nuclear fuel assemblies in Ukraine, the company said on Thursday.
Earlier, NNEGC completed the licensing of the production of heads for fuel cassettes.
“In 2025, we will start supplying both heads and shanks produced at the facilities of Energoatom, a Westinghouse company. That is, some of the elements required for the manufacture of fuel cassettes will be of Ukrainian production,” said NNEGC CEO Petro Kotin in the Energo Live program on the We-Ukraine TV channel.
As reported, cooperation between Energoatom and Westinghouse on the production of nuclear fuel began in the summer of 2018 when the American partner began qualifying one of NNEGC’s separate divisions as a supplier of fuel assemblies for the TVS-WR. In 2019-2020, work was organized to produce them for fuel assemblies of Westinghouse Electric Sweden.
In April 2022, the first batch of head components was manufactured and sent to Westinghouse for qualification.
In the summer of 2023, the Swedish regulator SSM granted an export license as part of the project to qualify NNEGC Energoatom as a supplier of nuclear fuel components manufactured in Ukraine using modern Western technologies.
The average annual temperature in Kyiv in 2024 was +11.4°C, which is 2.4°C higher than the climate norm, and 2024 was the warmest year in the capital since the observations were made, with 52 temperature records recorded, the Borys Sreznevsky Central Geophysical Laboratory reported.
“In 2024, the air temperature exceeded the long-term average in all its months. February and September were particularly notable, with the largest positive deviations – 5.2°C and 5.7°C, respectively,” the Sreznevsky Central Geophysical Laboratory said in a statement on its website on Thursday.
It is noted that the coldest day was January 9 – minus 15.8°C, the hottest – July 16, when the temperature in the shade reached plus 36.0°C.
In total, 52 temperature records were recorded in Kyiv in 2024, with the highest number of records in April – 13 and July – 14.
Precipitation amounted to 642 mm, which corresponds to 104% of the climate norm. However, they were distributed very unevenly over time – almost two monthly norms in April and June and only 23% and 36% of the long-term average in May and September.
According to the observations of the meteorological station of the Borys Sreznevsky Central Geophysical Observatory, the average monthly air temperature in Kyiv in December was 0.0°C, which is 1.8°C higher than the climatic norm. The coldest day in the capital was December 14, when the minimum temperature dropped to -9.8°C in the morning, and the warmest was December 19, when the maximum temperature reached +8.0°C in the afternoon.
In 2024, Ukraine managed to reduce the volume of the shadow tobacco market to 12.6% from 25.7%, Danylo Hetmantsev, Chairman of the Verkhovna Rada Committee on Finance, Taxation and Customs Policy, said on Telegram.
“Thanks to joint work with law enforcement and tax authorities, we managed to reduce the volume of the shadow tobacco market from 25.7% to 12.6%,” he wrote.
Hetmantsev added that in June-December 2024, importers and manufacturers of tobacco products paid UAH 16.1 billion more in excise tax to the budget (+33.7%) than in the same period in 2023.
In June-October, manufacturers produced 2 billion more cigarettes than in the same period of 2023.
In addition, the development of the e-liquids market resulted in a 30-fold increase in the volume of ordered excise stamps in the third quarter compared to the first quarter of 2024.
As reported, in December 2024, the Verkhovna Rada adopted Bill No. 11090 on the revision of excise tax rates on tobacco products. The document provides for an equivalent increase in specific excise tax rates on cigarettes for tobacco, industrial tobacco substitutes and a reduction in their amount for tobacco-containing products for electric heating, as well as clarification of certain provisions of the administration of excise tax on tobacco products.
MP Yaroslav Zheleznyak (Holos faction) said that the adopted document was not signed by the President of Ukraine and was not published on the parliament’s website, which calls into question the revision of tobacco prices from January 1, 2025.
On January 1, the Law “On Agricultural Notes” came into force in Ukraine, which provides for the establishment of a separate Register of Agricultural Notes.
It is expected that the register will contain information on the issuance, content and change of details of agrarian notes, termination and encumbrance of agrarian notes, and the commencement of enforcement of obligations under agrarian notes on the basis of a special extract from the register.
The Registry, in turn, will ensure transparency, efficiency and convenience of operations with agricultural notes by automating the processes of forming the details of agricultural notes, making changes, issuing and terminating them. Automated work will simplify the interaction between agricultural producers, creditors, and investors.
In addition, the digitalization of processes in the Registry will reduce transaction costs associated with the issuance and termination of agricultural notes, making the instrument cheap and easy to use.
Oleksiy Yudin, Chairman of the Board of the National Depository of Ukraine (NDU), previously expressed confidence that the project would be an important step in building the digital infrastructure of the agricultural sector, help attract additional investment and ensure sustainable economic growth.
“This project is an important step for the digitalization of the capital market and the agricultural sector in Ukraine. The development of the Agricultural Notes Register will not only help strengthen our country’s position in the global agricultural market, but also create new opportunities for investors,” said Ruslan Magomedov, Chairman of the National Securities and Stock Market Commission.
The NSSM added that this decision is an important infrastructure element and a central component of the entire ecosystem of agricultural notes, without which the full implementation of the new instrument in the market is impossible.
As reported, in October 2024, the International Finance Corporation (IFC, a member of the World Bank Group) and the National Depository of Ukraine signed a grant agreement under which NDU will receive up to $300 thousand to create and implement an innovative Register of Agricultural Notes.
