Rosatom has offered to remove duties on Ukrainian goods

“Rosatom”, the initiative has developed a draft presidential decree on partial resumption by Russia of the Treaty on free trade zone with Ukraine. The Corporation expects that Moscow will agree to release from customs duties the products that are used to manufacture equipment for nuclear power plants. A draft decree published on the Federal portal of projects of normative legal acts.

In the explanatory Memorandum, the Corporation warns that if the agreement is partially not to renew, “the increase in costs of production of equipment for nuclear power plants at this stage will amount to an average of more than 130 million rubles for each”.

Rosatom proposes to Supplement the list of goods subject to preferential duty, separate products, which, according to the unified Commodity nomenclature of foreign economic activity of the Eurasian economic Union, included in the group “ferrous metals”. They are necessary for the manufacture of such equipment as steam generators, reactors, etc.

“The absence of customs duties will remain at current levels the cost of manufacture of NPP equipment, consequently, the cost of NPP construction on the territory of Russia and abroad, ensuring the competitiveness of the state Corporation “Rosatom” as one of the leading players in the global nuclear market”, – stated in the explanatory note.

Otherwise, the Corporation’s costs will increase, which may lead to failure of terms of delivery of the equipment in the case of the search for replacement suppliers,” the document says. This in turn will affect the full cycle of nuclear power plant construction and commissioning. In the “Rosatom” emphasized that the adoption of the decree will not require additional allocations from the Federal budget.

Russian President Vladimir Putin signed a decree suspending the Treaty on the free trade zone against Ukraine from the beginning of 2016 in mid-December. This measure was due to “exceptional circumstances affecting the interests and economic safety of Russia”.

Prior to that, Moscow warned that if Ukraine and the EU will sign the economic part of the Association agreement, the free trade regime with Kiev in the framework of the CIS will be downgraded to the most favored. This deprives Ukrainian goods zero customs duties when imported into Russia. As explained by Russian authorities, Kiev may not participate in the free trade zones with Russia and the EU, as in this case there is a threat of re-export of European goods under the guise of Ukrainian.