IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Outflow (subsidised)

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 04 Feb 2014 | Removal date: open ended
Still in force

Trade finance

On 4 February 2014, the Government of the Republic of Belarus and Ukrgasbank (a key commercial bank in Ukraine with Ukrainian state participation of ca. 95 per cent) signed a contract with beneficial conditions for the supplies of Belarusian goods (general purpose machinery, agricultural equipment, automotive and road-building machinery, cars, lifting and transformer equipment, engines, and other equipment) on the Ukrainian market. The purpose of the state-supported financial scheme is to reduce the financing cost and thus increase the attractiveness of the offered machinery to the Ukrainian consumers. Since the state-supported trade finance scheme helps banks lend below the market rate, other banks are also interested in participating (see the second source).
 
The bank loans will be issued in the national currency of Ukraine, hryvna, with a maturity of up to five years. There is no upper limit to the bank loan amount. This bilateral state initiative may have a considerable trade impact because currently Belarus is the fourth largest supplier of Ukraine (USD 3.3 billion for 11 months in 2013 according to the official statistical data of Gosstat).

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

432 Pumps, compressors, hydraulic & pneumatic power engines; parts
8412 Other engines and motors.
841221 Linear acting (cylinders)
841229 Other
841290 Parts
435 Lifting & handling equipment & parts
8428 Other lifting, handling, loading or unloading machinery (for example, lifts, escalators, conveyors, teleferics).
842810 Lifts and skip hoists
842890 Other machinery
441 Agricultural or forestry machinery & parts
8433 Harvesting or threshing machinery, including straw or fodder balers; grass or hay mowers; machines for cleaning, sorting or grading eggs, fruit or other agricultural produce, other than machinery of heading 84.37.
843320 Other mowers, including cutter bars for tractor mounting
843340 Straw or fodder balers, including pickup balers
843351 Combine harvesterthreshers
843352 Other threshing machinery
843353 Root or tuber harvesting machines
843359 Other
843390 Parts
491 Motor vehicles, trailers & semi-trailers; parts
8703 Motor cars and other motor vehicles principally designed for the transport of persons (other than those of heading 87.02), including station wagons and racing cars.
870323 Of a cylinder capacity exceeding 1,500 cc but not exceeding 3,000 cc

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