Ukrainian Parliament Abolishes Taxes on Energy Equipment Imports

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The Ukrainian Parliament has passed a significant measure to abolish import duties and VAT on energy equipment, including generators, solar panels, and electricity storage systems. This decision, aimed at enhancing the country’s energy resilience, was announced by People’s Deputy Yaroslav Zheleznyak.

“The Council adopted bills №11258 and №11259, which eliminate tax and customs duties for the production and repair of mechanized demining machines. Additionally, there are amendments to exempt customs duties and VAT on the importation of energy equipment into Ukraine, including electric generator equipment, wind and solar generation equipment, and batteries, excluding low-capacity ones,” Zhelezniak stated.

Under this new legislation, the following energy-related goods imported into Ukraine’s customs territory, including those sent via international postal and express shipments, are exempt from taxation until the end of martial law:

Electric generator installations with a piston engine (excluding those for civil aviation)

Gas turbines

Electric engines and generators with a capacity of more than 750 kVA

Inverters (excluding inverter welding machines)

Lithium-ion batteries

Solar electric panels

Consoles and switchboards for electric current control or distribution

Parts for wind power generators

This move comes as private companies are poised to undertake projects to build new electricity generation facilities in Ukraine, with a projected capacity of 1 GW.

In a recent conference on the country’s restoration, President Volodymyr Zelenskyy emphasized the urgency of restoring energy facilities swiftly and economically within the next three to four months. He noted the severe impact of Russian missile and drone strikes, which destroyed 9 GW of power infrastructure, while the peak consumption last winter reached 18 GW.

This legislative action reflects Ukraine’s commitment to rebuilding and strengthening its energy infrastructure amidst ongoing challenges.

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