The Cabinet of Ministers of Ukraine has banned the export of fuel oil, coal and gas produced in Ukrainian fields, setting zero quotas for these groups of goods, says in the decree of the Ukrainian government.
Kyiv is forced to ban the export of energy resources in order to stock up on energy before the new heating season. This was discussed at a special meeting of the government of Ukraine on June 7.
Prime Minister Denys Shmyhal stressed that for the optimal passage of the next heating season, the country needs to provide energy reserves at the level of 19 billion cubic meters of natural gas and about 3 million tons of coal. “This will ensure the stability of supplies both for the population and for business,” he said.
President of Ukraine Volodymyr Zelensky then said that “it will really be the most difficult winter in all the years of independence.” “We must go through it so that our people feel the normal work of the state. At this time, we will not sell our gas and coal abroad. All domestic production will be directed to the internal needs of citizens,” he added.
Due to Russia’s invasion of Ukraine, the Ministry of Energy of Ukraine in early March banned market participants from exporting natural gas, including gas stored in gas storage facilities.
The World Bank, in a report on the outlook for the global economy, predicts a 45 percent decline in Ukraine’s GDP in 2022. The Russian invasion has undermined the Ukrainian industrial sector, led to the destruction of infrastructure and a sharp decline in the population, the document says.
The World Bank also cut its global economic growth forecast by more than half, to 1.2 percent. “The world is entering a prolonged period of weak economic growth and elevated inflation,” the bank’s experts write. Problems with the export of Ukrainian and Russian grain and vegetable oil, which arose as a result of the Russian invasion of Ukraine, lead to higher prices for these goods and higher inflation.
Ukraine is the fourth largest grain exporter in the world. In 2021, it exported almost 45 million tons of grains and legumes. The Russian army mined the Black Sea and blocked Ukrainian ports, as a result, Ukraine could not export grain. CNN writesthat on the morning of June 13, a ship with 18,000 tons of Ukrainian corn arrived at a port in northwestern Spain. This is the first batch of grain since the beginning of the Russian invasion of Ukraine, which arrived in the EU countries by sea.