Auto scrapping levy might be discussed at CIS summit
KYIV. Sept 26 (Interfax) - A draft agreement to settle problems in trade relations between Ukraine and Russia that arose after the latter introduced a scrapping levy on automobiles might be discussed at the summit of CIS leaders that will be held in Yalta on September 28, Russian Deputy Economic Development Minister Andrei Klepach said in a video conference call between Moscow and Kyiv on Thursday.
He said this levy is not a customs protection measure, but an environmental issue, and that it is not aimed against Ukraine, but since the introduction of the levy does have a certain impact on bilateral trade Ukraine and Russia are holding negotiations.
"Since this levy affects trade, negotiations are being held on how to work out a format for mutual resolution of possible disputed issues so that trade does not suffer. A draft of such an agreement is being prepared. In an optimistic scenario, it might even be discussed in Yalta at the CIS summit," Klepach said.
The Russian law on the scrapping levy for certain types of motor vehicles went into effect on September 1, imposing a levy on every vehicle imported into Russia or produced in the country with the aim of protecting the environment. The levy is paid by those importing automobiles into Russia and those who produce automobiles within the country.
The Ukrainian Cabinet, in turn, on September 12 announced a resolution to impose its own scrapping levies on Russian automobiles and buses, the top rates of which are virtually the same as those imposed by Russia on September 1.
