PM Shmyhal: EU opens ‘solidarity lanes’ for fuel supplies to Ukraine

Every effort must be made to ensure that people have fuel and that there is no abuse in the market.

"The European Union has introduced the so-called ‘Solidarity Lanes’ for Ukraine. A similar tool was operational during a pandemic in Europe, when vaccines and medicines were delivered. The Government is doing everything it takes and stands ready to provide businesses the opportunity to import fuel into the country. Absolute priority is given to road and rail transport with fuel at checkpoints. We are also negotiating other supply routes to expand our logistics capabilities," Prime Minister of Ukraine Denys Shmyhal said at an online meeting with fuel business representatives, the Government portal informs.

He stressed that Ukraine experienced fuel shortages due to the destruction of oil refining infrastructure and oil storage facilities by the russian aggressor. The Government, represented by the Cabinet of Ministers, all central executive bodies, customs and the border services, fully supports and helps businesses to overcome this crisis in the fuel market. In particular, the state has already reduced VAT from 20% to 7% on gasoline, diesel fuel and liquefied gas as well as agreed a zero rate of excise duty on these items.

Moreover, the PM said that he had discussed the liberalization of logistics routes with President of the European Council Charles Michel and President of the European Commission Ursula von der Leyen.

For its part, the representtaives of the State Border Guard Service noted that vehicles with fuel crossed the border from the Ukrainian side without queues. Market participants also stated that there were no delays in crossing the border.

First Deputy Prime Minister Yulia Svyrydenko also emphasized that the number of fuel trucks cleared at the border daily had increased by almost a third compared to early May.

"We will continue activities in the operational headquarters. Together with the Ministry of Energy and the Ministry of Infrastructure, we will discuss the proposals aired today," Svyrydenko said.

Representatives of the fuel business, for their part, pointed out the high level of cooperation with the Government and stressed the importance of joint communication on the current market situation.

"Many countries have never dreamed of how the Government team, the Ukrzaliznytsia SE, various authorities are interacting. Certain things that are done in Ukraine in one day, in others can be done in a week or a month," said Andrii Pyvovarskyy, director of WOG Holding.

As the Prime Minister stressed during the conversation with market participants, the main task is to ensure that people have fuel and there are no abuses in the market. According to Shmyhal, the state will react to such manifestations in accordance with the wartime rules.

On the outcomes of the meeting, the Prime Minister commissioned the Ministry of Economy together with the Ministry of Energy and the relevant association to develop proposals to overcome the crisis in the oil market and eliminate fuel shortages.

The meeting was attended by First Deputy Prime Minister - Minister of Economy Yulia Svyrydenko, Minister of Infrastructure Oleksandr Kubrakov, Minister of Energy German Galushchenko, Deputy Head of the Office of the President Rostyslav Shurma, Chairman of the Board of NJSC Naftogaz of Ukraine Yurii Vitrenko, leadership of the State Border Service and the State Customs Service of Ukraine.

ol