Peat Producers Seek Protection from Belarusian Dumping
02 Mar 2021

Peat Producers Seek Protection from Belarusian Dumping

The Ukrainian Peat Society Association is asked to initiate measures to address unfair competition and growing imports of peat products to Ukraine. Dmytro Babakov, Director of RivneEnergoAlliance LLC, addressed the Company. publishes a copy of the appeal.

“In Belarus, the presidential decree regulates the prices of oil, gas, electricity, construction materials and other components of the cost of peat briquettes. In addition, Belarusian plants receive state support. In Ukraine, the government has abandoned the policy of price regulation and peat briquette plants operate without state support in a market economy. In view of the above, the Belarusian peat briquetting plants, dumping, supply the peat briquettes to the Ukrainian market at prices lower than Ukrainian peat briquetting plants can afford, ”the appeal reads.

For reference: RivneEnergoAlliance LLC has a valid special permit №5456 for peat extraction at the Viliya field (Rivne region). The main activities of the company: extraction of milling peat, production of peat briquettes, packaging of peat briquettes. The plant is located next to its own raw material base. Own fleet of equipment makes it possible to extract 60 thousand tons of milled peat per year. Production of peat briquettes lasts all year round. The production capacity of the plant is 27 thousand tons. peat briquettes per year. Finished products are shipped by road and rail.
"As the market for peat briquettes in Ukraine is not growing, the number of imported peat briquettes reduces the production of national peat briquettes, which causes downtime of factories, staff reductions, reduced tax payments," - sums up Dmitry Babakov.

According to the State Fiscal Service of Ukraine (see screenshots), in 2017, imports of peat to Ukraine exceeded $ 2.2 million. USA. The largest suppliers of peat were Lithuania (37%), Latvia (21.7%) and Estonia (17.3%).

In 2018, peat worth almost $ 2.9 million was imported to Ukraine. USA. The largest suppliers of peat were Lithuania (35.6%), Latvia (25%) and Estonia (17.4%).

In 2019, imports have already reached $ 3.5 million. USA. And in the first place came Belarus with a share of 33.1% or $ 1.16 million. USA (Lithuania - 27.2%, Latvia - 17.4%).

According to Andriy Ozerchuk, Chairman of the Board of the Ukrainian Peat Society, General Director of the Ukrtorf State Concern, imports of peat briquettes are also growing: if in 2019 they imported about 20,000 tons (estimated value of about 0.7 million US dollars), in 2020 - 25 thousand tons (over 0.8 million US dollars).

At the same time, peat exports from Ukraine are constantly declining: in 2017 - about 1.6 million dollars. USA, 2018 - 1.27 million dollars. USA, 2019 - 0.54 million dollars. USA.
It will be recalled that in an interview with Andriy Ozerchuk stated: “Belarusian briquettes are sold on the territory of Ukraine at a price of UAH 100-150. cheaper than the price of our peat enterprises. On March 18, 2020, the Cabinet of Ministers of Ukraine постано 261 increased the duty on coal imports from the Russian Federation (with exceptions) by 65%, SC “Ukrtorf” addressed the Cabinet of Ministers of Ukraine with a proposal to amend this resolution “in terms of increasing the import duty peat products from the Republic of Belarus up to 65% ”, which would allow to protect domestic state peat enterprises from unfair competition. "We are still waiting for answers."

For reference: The Ukrainian Peat Society was established in 1996. Since 2019, the Ukrainian National IPS Committee, part of the Ukrainian Peat Society, is a member of the International Peat Society (IPS). Today the company has 16 participants: Lopatinsky Peat Plant LLC, Fuel Energy Company LLC, Van Commerce LLC, National University of Water Management and Nature Management, Kyivtorf State Enterprise, Ukrainian Inspectorate for Quality Control of Peat Products and Fuel Briquettes Ukrinspalivo, SE Sumytorf, SE Zhytomyrtorf, SC Ukrtorf, LLC SPE Techno, OJSC Ivano-Frankivsktorf, LLC Stoyanivsky Peat Plant, Korostyshiv Plant Remmashtorf, SE Chernihivtorf SE "Rivnetorf", SE "Volyntorf".