Secretariat TPR |
WT/TPR/S/334/REV.1 |
S-IV§46 |
Ukraine |
2016 |
Sectors |
Tax concessions |
Fisheries |
Relevant information
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(...) Fishermen and fishing enterprises are treated as single tax payers in the Tax Code and are exempt from income tax (corporate profit tax), VAT (except for VAT by legal entities that have chosen the 6% tax rate); and rental fees for special water use. The VAT accumulation regime applies to fishing activities (breeding, catching, processing and canning of fish and other marine species).
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Secretariat TPR |
WT/TPR/S/334/REV.1 |
S-IV§47 |
Ukraine |
2016 |
Sectors |
General environmental reference |
Fisheries |
Relevant information
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In the past, the Government has supported the fishery stock breeding (in 2014 and 2015 no funds were allocated) and the State continues to play an important role in the restocking of valuable fish species, particularly sturgeon species.
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Secretariat TPR |
WT/TPR/S/334/REV.1 |
S-IV§48 |
Ukraine |
2016 |
Sectors |
General environmental reference |
Energy |
Relevant information
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Ukraine's consumption of primary energy is based largely on coal (36%) and natural gas (34%), followed by nuclear power (19%), oil and petroleum products (8%), and hydropower and renewables (3% of total consumption in 2013). The country is highly dependent on imports of natural gas, crude oil, coal and other fuel, reflecting its low energy efficiency and economic structure with energy-intensive industries such as mining and metallurgy. Ukraine's sources of supply of natural gas have changed significantly since 2012-13 (section 1.3 and Table A4.3). It is a net exporter of electricity (Table 4.4). The Government's long-term energy strategy relies mainly on the development of nuclear power, renewable energy, and hydrocarbon deposits, to reduce energy import dependence.
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Secretariat TPR |
WT/TPR/S/334/REV.1 |
S-IV§52 |
Ukraine |
2016 |
Sectors |
General environmental reference |
Energy |
Relevant information
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The key (central government) authorities involved in policy-making and regulation of the electricity sector are the President, the Cabinet of Ministers, the Ministry of Energy and Coal Industry (MECI), the State Nuclear Regulatory Committee, the State Agency on Energy Efficiency and Energy Savings (SAEE), and the National Energy and Utilities Regulatory Commission (NEURC). The NEURC is the regulator of energy markets and utility services (electricity, gas, oil, heat, water services and waste). The Commission is subordinate to the President, reports to Parliament, and is financed through the state budget. The legal framework comprises the Law "on Electric Power Industry" (Law on Electricity), the Law "on Basic Principles of the Electricity Market Operation" (Electricity Market Law) , and the Law "on natural monopolies".
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Energy
Waste
Conservation
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Secretariat TPR |
WT/TPR/S/334/REV.1 |
S-IV§53 |
Ukraine |
2016 |
Sectors |
General environmental reference |
Energy |
Relevant information
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The basic structure of Ukraine's electricity system is shown in Chart 4.6. There are: 1 state owned hydro-power operator (Ukrhydroenergo); 1 nuclear power operator (Energoatom) [69]; 5 thermal power generating companies; 25 regional distribution companies (oblenergos); 1 transmission system operator (Ukrenergo); 1 wholesale market operator (Energorynok); and importers and exporters ("independent suppliers"). Ukraine's four operational nuclear power plants (Zaporizhzhia, Rivne, Khmelnytskyi, and South Ukraine) are operated by Energoatom. Thermal power generation is dominated by five large companies, all privately owned, except majority state-owned Centrenergo. In late 2014, the Ukrainian energy system faced a crisis with black-outs across the country, due to shortages in coal-fired power plants. New generation capacity is tendered by the MECI. Ukraine has some 0.8 GW electricity generation capacity from (non-hydro) renewable sources (about 1.5% of total capacity), mainly solar and wind power. The largest industrial consumers by far are the metallurgical and mining industries (25% of total consumption in 2014).
[69] In December 2013, the first phase of Dniester Hydroelectric Pumped Storage Power Plant was launched. The hydropower plant, the largest in Europe once completed, is expected to make a significant contribution (2,268 MW) to the Energy Strategy 2030 goals. Viewed at: http://uge.gov.ua/.
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Secretariat TPR |
WT/TPR/S/334/REV.1 |
S-IV§58 |
Ukraine |
2016 |
Sectors |
General environmental reference |
Energy |
Relevant information
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On 1 October 2014, the Cabinet of Ministers adopted a National Renewable Energy Action Plan (up to 2020). In line with EU commitments (Directive 2009/28/EC), the plan sets a target for renewable energy generation equivalent to 11% of gross final energy consumption by 2020 (up from 5.5% in 2009).
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Secretariat TPR |
WT/TPR/S/334/REV.1 |
S-IV§59 |
Ukraine |
2016 |
Sectors |
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Energy |
Relevant information
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The Law "on the Alternative Energy Sources" was amended in 2014 to eliminate unnecessary administrative barriers by reducing the number of permits for production, transmission and distribution of electricity, heat and mechanical energy from alternative sources; production of geothermal energy; installation of solar, wind or hydro-power equipment; construction or reconstruction of hydro-electric power facilities that use the energy of small rivers; and establishment of transportation networks for energy produced from alternative sources.
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Secretariat TPR |
WT/TPR/S/334/REV.1 |
S-IV§60 |
Ukraine |
2016 |
Sectors |
Income or price support, Tax concessions |
Energy, Manufacturing |
Relevant information
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Generally, incentives included a subsidized feed-in tariff, certain corporate tax preferences, and exemption from VAT and customs duties for imported technology for power generation from renewable energy sources (Article 282 of the Customs Code). VAT and customs duty incentives were provided if the goods in question were used by the taxpayer for its own production and no identical goods of equivalent quality were produced in Ukraine. The Cabinet of Ministers' Resolution No. 719 of 29 December 2014 cancelled the Decree with the list of eligible equipment, and therefore the incentive is no longer applied. The corporate income tax exemption for sales of electricity from renewable energy sources was also cancelled , as were provisions for a partial corporate income tax exemption for manufacturing of renewable energy equipment, and a preferential land tax.
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Secretariat TPR |
WT/TPR/S/334/REV.1 |
S-IV§61 |
Ukraine |
2016 |
Sectors |
Income or price support |
Energy |
Relevant information
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Ukraine has had a feed-in ("green") tariff regime since 2008 for various types of alternative energy installations (wind, solar, biomass, biogas, small hydropower, and geothermal power). Feed-in tariffs are determined by the NEURC for each facility [79], and are guaranteed by law until 1 January 2030. [80] The wholesale market operator Energorynok is required to purchase the electricity generated from alternative/renewable sources at the green tariff established for the renewable energy producer (Chart 4.6). The cost of grid connection was split 50/50 between producer and the grid operator, but this incentive has been cancelled. [82] Since 2014, renewable electricity generators have the option to sell under direct power purchase agreements. The Electricity Market Law envisages the establishment of a Cost Imbalance Allocation Fund to compensate Energorynok for losses related to renewable energy purchases at feed-in tariffs, but this matter is still under discussion in the context of the elaboration of a new draft Electricity Market Law, aimed at aligning the legislation with the Third Energy Package of the Energy Community.
[79] NECR Regulation No. 1421 of 2 November 2012 "on the Procedure of Establishment, Reconsideration and Termination of Green Tariffs for Subjects of Commercial Activity".
[80] Article 22, Electricity Market Law; see also Law on Electricity, with relevant amendments (Law No. 5485-VI of 20 November 2012 "on Amendments to the Law of Ukraine No. 575/97-ВР on Electricity in terms of Stimulating Production of Electric Energy from Alternative Energy Sources").
[82] Law No. 514-VIII of 16 July 2015 "on Amendments to Several Laws on Ensuring Competitive Conditions for Electricity Production from Alternative Energy ".
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Keywords
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Energy
Bio
Renewable
Green
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Secretariat TPR |
WT/TPR/S/334/REV.1 |
S-IV§62 |
Ukraine |
2016 |
Sectors |
Income or price support |
Energy |
Relevant information
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The benefit of the green tariff was tied to local content requirements (section 3.4.4). The local content requirement was first linked to the value of a construction project, and then from April 2013 as fixed proportions of local component elements for each type of facility producing renewable energy. [83] Law No. 514-VIII of 16 July 2015 "on Amendments to Several Laws on Ensuring Competitive conditions for electricity production from Alternative Energy Sources" cancelled the mandatory local content requirement and replaced it with a premium payment (in addition to the green tariff) for the use of equipment of Ukrainian origin. [84] The premium is set at 5% of the green tariff for a local content level of at least 30% or 10% for at least 50% local content. Services and works provided by Ukrainian companies in the construction of facilities that generate electricity from renewable energy sources are excluded. Premiums are not available to household projects. The new scheme applies to facilities commissioned from 1 July 2015 to 31 December 2024 that produce electricity from alternative energy sources (except blast furnace and coking gases, and small and micro hydro-power projects). The NEURC will determine the level of locally-produced equipment based on certificates from the Chamber of Commerce and other confirming documents. The regulator is expected to approve an order concerning the implementation of the new scheme. The procedure for local content determination of 27 June 2013 remains applicable, until a new regulation is approved by the NEURC.
[83] Law No. 5485-VI of 20 November 2012 "on Amendments to the Law of Ukraine No. 575/97-ВР on Electricity in terms of Stimulating Production of Electric Energy from Alternative Energy Sources".
[84] The law also provides for a rebalancing (decrease) of tariffs for solar power, amongst other changes.
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