Ukraine responds to Russia with recycling fee on cars
KYIV, Sept 12 |
KYIV, Sept 12 (Reuters) – Ukraine has introduced a recycling
fee on cars imported from Russia, a decree published on
Wednesday showed, escalating a conflict after Moscow took a
similar step this month.
Trade disputes between Russia and the former Soviet republic
include differences over natural gas as Kyiv seeks to revise a
2009 deal on Russian supplies and a clash over dairy imports
which erupted earlier this year.
Ukraine’s government published a decree on its website
introducing the fee, which starts at about $900 and goes up
according to engine capacity.
Russia, traditionally protective of its car industry but
forced to cut import duties after joining the World Trade
Organisation, introduced similar fees this month to keep the
price of imported cars effectively unchanged.
Ukraine and Russia have separate agreements on duty-free car
trade and the new measure has made Ukrainian vehicles more
expensive for Russians, adding $600 to $20,000 to the price per
unit.
Russia, which bought $344 million worth of Ukrainian cars,
buses and trucks last year, accounts for 90 percent of Ukrainian
car exports and 40 percent of its total output.
Ukraine, in turn, bought Russian-produced vehicles worth a
total of $453 million last year.
The two neighbours fought a “cheese war” this year when
Russia banned imports of cheese made by a number of Ukrainian
producers, accusing them of using cheap ingredients such as palm
oil in place of milk fats.
Ukraine then responded by halting dairy imports from
Belarus, Russia’s ally and a member of a Moscow-led customs
union which also includes Kazakhstan.
Russia has long urged Ukraine to join the same customs
union, offering perks such as cheaper energy supplies and
improved market access, but Kyiv has so far refused to do so.
Analysts say the latest conflict is likely to be resolved
soon, however.
“I think that Russia and Ukraine will soon sign a document
eliminating these fees,” said Oleh Nazarenko, head of the
Ukrainian car importers and dealers’ association.
(Reporting by Olzhas Auyezov; editing by Jason Neely)