The government has banned imports of used railcars from the Russian Federation into Ukraine.

This was announced on the Uriadovyi portal, the CFTS portal reports.

The decision to amend the list of banned imports originating from the Russian Federation was made on May 15, 2019.

“The decision was made with the aim of taking retaliatory measures in response to the aggressor state’s discriminatory and unfriendly actions against Ukraine. It was also in response to appeals by associations and enterprises in a number of industries,” the government document states.

As reported earlier, Russia has completely banned exports of crude oil and petroleum products, as well as bitumen and other materials required for road surfaces, to Ukraine. In addition, exports of coal, gasoline, and diesel fuel from Russia to Ukraine require government permission from June 1.

In response, the Cabinet of Ministers banned importation of railcars into Ukraine from March 1, 2020.

In particular, information on the government’s website states that it will not be possible to import railway or tram wagons for transportation of goods, self-unloading wagons, and used wagons from next spring.

In addition, import of boxcars and wagons with sides higher than 60 centimeters from the Russian Federation will be banned.

It was reported in spring 2019 that written-off wagons purchased in the Russian Federation were being imported into Ukraine because they are 30-50% cheaper than similar used wagons in Ukraine.

That notwithstanding, new railway wagons are actively being bought in Ukraine. In particular, several large companies have announced plans to increase their own fleets of grain cars this year. For example, the European Bank for Reconstruction and Development announced in early May that it could provide a loan of up to USD 35 million to Louis Dreyfus Ukraine for purchase of thousands of grain wagons. In the same month, Soufflet announced that it intended to acquire 54 wagons for transportation of grain in Ukraine. Posco International, which recently gained control over 75% of the Orexim group of companies’ grain terminal in the Mykolaiv seaport, announced plans to create its own fleet of grain wagons last month.

Moreover, as the CFTS portal reported earlier, the number of private grain wagons in Ukraine has exceeded the number of Ukrainian Railway’s grain wagons for the first time. The number of private grain wagons was 11,800 in spring 2019. According to Pavel Rudenko, a consultant with CFTS Consulting, the total number of grain wagons in the country was 22,300 in February 2019, of which 11,500 were owned by Ukrainian Railways and 10,800 were privately owned.

Industrial companies have also announced plans to build their own fleets of freight cars. For example, the Ferrexpo group intends to acquire 400 additional gondola cars in by the end of 2019.

In addition to wagons, the list of banned imports will include tractors; motor vehicles for transporting goods; motorcycles (including mopeds) and bicycles with auxiliary engines, with or without sidecars; special-purpose motor vehicles; self-propelled trucks without lifting or loading devices; tractors used on railway platforms and components for them.

The decree banning the import of these products entered into force on July 1, 2019.

As reported earlier, the Russian Federation has allowed export of diesel fuel and liquefied gas but reduced them by 75% and 60%, respectively.