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# Ukraine lost dispute to Russia

Publication Date: 17.09.2019, 00:00

The method should be chosen correctly.

The appeals body of the World Trade Organization (WTO) confirmed Russia’s victory in a dispute with Ukraine over customs taxation on the import of ammonium nitrate.

In 2014, the Ukrainian authorities levied a duty on the import of ammonium nitrate from Russia using the “energy adjustment” method: it provides that the cost of ammonium nitrate from Russia is calculated taking into account prices in the markets of third world countries and not domestic energy prices.

A year later, Russia initiated proceedings against Ukraine, saying that such a method does not comply with WTO standards. In 2018, the arbitration court recognized the correctness of Russia, however, the Ukrainian government did not agree with its conclusions and appealed against this decision.

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