National bank of Ukraine’s official rates as of 05/05/22
Source: National Bank of Ukraine
The proposal of the European Commission regarding the sixth package of sanctions with an oil embargo on Russia because of the war it unleashed against Ukraine will be supported by all member states of the European Union, European Council President Charles Michel has said with confidence.
“I can assure you that I’m working very hard with my team and with my colleagues in order to make sure that we will be able in very short term to take united position on the proposal putted on the table by the Commission,” he said in an exclusive interview with the Interfax-Ukraine.
Michel recalled that “systematically in the past there were some concerns that we would not be able to be united.” “We were systematically able to adopt united position. And, of course, it required some negotiations, talks, decision. We need the support of the 27 governments. A few weeks ago I said publicly in the European Parliament that sooner or later oil and gas would be part of the sanctions. This is an important step… This is Commission which makes a proposal but these are the governments, this is Council which takes a decision,” the President of the European Council said.
Ukraine and the UK have legally secured the abolition of import duties and tariff quotas in bilateral trade by signing a relevant agreement, the Ministry of Economy of Ukraine reported on Wednesday.
“The agreement will be valid for 12 months, but can be extended by agreement between the parties for a new period,” the release states.
According to it, now Ukrainian producers can export more products to the British market. First of all, we are talking about flour, grain, dairy products, poultry meat and semi-finished products, tomato paste, honey, corn, wheat, juices, mushrooms, and sugar – these are the goods Ukraine traditionally exports to the UK.
The Ministry of Economy noted that in 2021, the trade turnover between Ukraine and the UK increased by almost 57%, to $2.2 billion, with exports especially intensified (up by 62%), exceeding $1 billion.
The ministry recalled that the European Union also recently announced its intention to cancel the collection of all import duties on Ukrainian goods for a year.
Structure of export of services in 2021 (graphically)
SSC of Ukraine
President of the European Council Charles Michel speaks out in support of the idea of transferring 10% of Special Drawing Rights (SDR) to Ukraine.
“I think in deed this option is an interesting option, and we must look at that in order to see if it’s possible and for which member states it will be possible to take such a decision,” Michel said in an exclusive interview with Interfax- Ukraine.
According to him, he discussed this topic directly with the president (Volodymyr Zelensky) and mentioned support for this idea. “We are in closed contact with the IMF and also with different countries across the world and also across the EU.”
Speaking about a possible legal solution to this issue, the President of the European Council recalled that it is within the competence of the member states. “It is a decision of the member states on the national level, but in my capacity as Chair of the European Council, and Ukrainian friends know that they can count on me in order to support this. Is it immediately 10% or we will start with 5% and will try to raise more – the exact modality, we should see what is possible, what is realistic, of course. But you understand I’m supporter of this idea,” Michel said.
The shortage of fuel resulting from the destruction of the Kremenchuk Oil Refinery and a number of tank farms by the aggressor can be mitigated by the arrival of additional volumes on the market, First Deputy Prime Minister, Minister of Economy of Ukraine Yulia Svyrydenko said on Wednesday at a meeting of the Congress of Local and Regional Authorities.
“We have passed a number of government decisions that allow us to send the volumes available in the country to the market. This is 70,000 tonnes of gasoline and about 40,000 tonnes of diesel and it should reduce the deficit,” she said, adding that operators also contracted certain volumes in Europe.
Svyrydenko said that market operators now have 22,500 tonnes of gasoline and 41,400 tonnes of diesel fuel in their balances.
She also said that there is excess demand on the oil products market, which may be caused by panic among the population due to a temporary shortage of fuel.
The press service of the Office of the President said that the government is constantly cooperating with market operators to understand the needs and find ways to eliminate the shortage.
As reported, the shortage of fuel in Ukraine arose due to the cessation of its supplies from the traditional markets of Belarus and the Russian Federation and the blocking of sea supplies, massive attacks by the Russian aggressor on the market infrastructure, in particular, the destruction of the Kremenchuk oil refinery, as well as due to the government-imposed marginal prices for gasoline and diesel fuel.
