Ukraine’s spending on the development and procurement of weapons and military hardware in 2022 has been increased by UAH 67.57 billion with UK loans totaling 1.7 billion and aimed at bolstering capacities of the Ukrainian Navy.
The Ukrainian Verkhovna Rada adopted the respective bill by 342 votes on Tuesday.
The bill enlarges this year’s budget expenditures from UAH 1,525.930 trillion to UAH 1,593.5 trillion with the special fund’s growth to UAH 221.11 billion.
Meanwhile, the budget deficit ceiling was raised from UAH 188.8 billion to UAH 256.36 billion, including UAH 96.1 billion for the special fund.
In addition, the budget no longer has restrictions at the amount of 3% of the planned revenue for the provision of state guarantees, as well as restrictions at the amount of UAH 10 billion and UAH 20 billion, respectively, for the provision of portfolio guarantees and loan guarantees, in order to increase the national defense capacity.
The bill limits road fund expenditures. “The money will be primarily spent on repaying the state debt, defense, and the development and maintenance of roads,” the Servant of the People faction said in comment on the bill.
An explanatory note says that Ukraine will be implementing state investment projects to purchase two minesweepers from British suppliers, to deliver and service these minesweepers, to ensure the joint construction of eight missile craft, and to deliver and install weapons on the available ships. It is also planned to jointly build a frigate and to receive advisory and technical support for the construction of naval infrastructure, including the delivery of equipment.
At the end of January, the Verkhovna Rada ratified a framework intergovernmental agreement on loan funding of the development of the Ukrainian Navy. The agreement was signed in London on November 12, 2021, to envisage allocations for the construction of eight missile craft, the procurement of two minesweepers from the UK, and the opening of two naval bases in Ukraine.
The UK denies Russia and Belarus access to Most Favored Nation tariff for hundreds of their exports, imposes a 35% import duty on a number of Russian goods, including vodka, and, same as the European Union, bans exports of luxury goods to Russia, the British government said in a statement on Tuesday.
“The UK denies Russia and Belarus access to Most Favored Nation tariff for hundreds of their exports, depriving both nations key benefits of WTO membership,” the statement said.
Same as the EU, London bans “exports of luxury goods to Russia alongside its G7 allies,” the statement said. The ban applies to vehicles, clothes and art.
The British government also “published an initial list of goods worth GBP 900 million – including vodka – which will now face an additional 35 percent tariff, on top of current tariffs,” the statement said.
BANS, EXPORT, LUXURY GOODS, RUSSIA, UK
The UK has sent humanitarian aid to Moldova for Ukrainian citizens who are fleeing the country due to the Russian invasion, British Foreign Secretary Liz Truss said.
“We are providing vital humanitarian aid to those fleeing Russia’s horrific attack on Ukraine. This shipment of hygiene kits and blankets to Moldova will ensure that those most affected by the conflict receive the crucial help they need,” the minister said on Twitter.
The UK will gradually stop importing Russian oil by the end of 2022 in response to Vladimir Putin’s illegal invasion of Ukraine, the British government said in a statement on Tuesday.
“The UK is working closely with the US, the EU and other partners to end our dependence on Russian hydrocarbons in response to Russian aggression in Ukraine, recognising the different circumstances and transition timelines. This significant move will increase the growing pressure on Russia’s economy by choking off a valuable source of income,” the document says.
According to it, the refusal of imports will not be immediate: the UK, which covers 8% of its oil demand from Russia, will have more than enough time to adjust supply chains, support industry and consumers. The government will work with companies through a specially created Taskforce on Oil to help them use this period to find alternative sources.
London notes that oil accounts for 44% of Russian exports, which provides 17% of federal budget revenues.
According to the British government, in a competitive global market for oil and petroleum products, demand can be met by alternative suppliers. The UK has various reliable suppliers outside of Russia, including the Netherlands, Saudi Arabia and the United States.
“In another economic blow to the Putin regime following their illegal invasion of Ukraine, the UK will move away from dependence on Russian oil throughout this year, building on our severe package of international economic sanctions,” UK Prime Minister Boris Johnson said.
According to London, Russian oil is already being ostracised by the market, with nearly 70% of Russian oil currently struggling to find a buyer, and in a competitive global market demand will quickly be met by alternative suppliers. On March 1, Russian ships were banned from UK ports and authorities were granted new powers to detain Russian vessels.
The statement notes that the UK is not dependent on Russian natural gas, making up less than 4% of our supply. Ministers are also exploring options to reduce this further.
The Prime Minister confirmed that the government will set out an energy strategy to set out the UK’s long term plans for greater energy security, including both renewable and domestic oil and gas supplies.
As reported earlier on Tuesday, the United States announced a complete renunciation of Russian oil imports.
IMPORT, RUSSIAN OIL, STOP, UK
Ukrainian President Volodymyr Zelensky will visit the UK at the end of October, and a strategic dialogue meeting is planned during the visit, Ukrainian Ambassador to UK Vadym Prystaiko has said.
“In the near future, we expect a delegation led by the president (Volodymyr Zelensky). At the end of this month,” Prystaiko said in an interview with Dom TV channel.
He noted that a meeting is planned during the visit, at which a strategic dialogue will take place.
Ferrexpo Plc (the U.K.), managing Poltava Mining and Yeristovo Mining in Ukraine, has started cooperation with specialists Ricardo Plc (the U.K.), as part of decarbonization plans by 2050. “The Group undertakes a commitment to achieve net zero carbon emissions from its operations by the year 2050,” the company said in a press release on Monday. In addition, the group undertakes an initial commitment to achieve a minimum of a 30% reduction in combined Scope 1 and 2 emissions by 2030.
According to the press release, Ricardo to also help enhance the group’s existing climate change scenario reporting and review the role of Ferrexpo’s iron ore pellets within the circular economy. Results of Ricardo’s analysis expected to enhance the group’s carbon reduction targets and to further develop climate change reporting in 2022.
Jim North, Interim Group Chief Executive Officer, said that whilst iron ore pellets offer our customers the opportunity to significantly reduce carbon emissions already, it is important to signal a clear intention to decarbonise our own operations.
“It is on this basis that we have adopted the targets announced today, to demonstrate both our focus on climate change and our understanding of the importance of decarbonisation,” North said.
He said that Ferrexpo jointly with Ricardo intends to be a workstream that develops science-based reduction targets and a timeline for the stages of decarbonisation in each aspect of the Ferrexpo business.
“In the 18 months to June 2021, the group has already recorded a carbon reduction in excess of 20%2, which is a demonstration of our commitment to the environment,” North said.
Tim Curtis, Energy & Environment Managing Director at Ricardo Plc, said that Ricardo’s experts have been helping organisations around the world to develop robust and science-based pathways to achieving net zero carbon emissions and they will support Ferrexpo with the development of its decarbonisation targets and providing objective expertise to help realise this ambition.
Ricardo Plc is a world-class environmental, engineering and strategic consulting company.
Ferrexpo is an iron ore company with assets in Ukraine.
