Rada fails to pass the Kigali Amendment — trade with the EU and industrial costs at risk

MPs failed to secure the 226 votes needed for an amendment, without which, starting in 2028, the EU could restrict trade with non‑participating countries. We explain what this means for businesses, exporters and every citizen.

102
Share:
Фото: depositphotos.com

What happened

On March 12 the Verkhovna Rada failed to ratify the Kigali Amendment to the Montreal Protocol: only 215 deputies voted for the document, short of the required 226. Because of this the plenary session was closed early; the speaker announced a recess until Friday.

"For every vote in the Verkhovna Rada you have to negotiate separately."

— LIGA.net (report on the parliamentary majority)

Why the Kigali Amendment is needed

The amendment, adopted by 197 countries and the EU in October 2016 and in force since January 1, 2019, provides for a phased reduction in the use of hydrofluorocarbons (HFCs) — powerful greenhouse gases used in air conditioners and refrigeration equipment. It is part of a global policy to reduce emissions and modernize the refrigerant market.

Why this matters for Ukraine and its economy

There is a political and economic dimension. If Ukraine ratifies the amendment now, the reduction in HFC use will be about 40% from the baseline level with a gradual transition period. If ratification is delayed, in 2029 it will be necessary to cut by 70% immediately without a transition period — this would be a significant blow to industry and the utilities sector.

In addition, the EU has imposed a schedule of restrictions: from 1 January 2028 trade with countries that are not parties to the amendment will be limited, and from 1 January 2033 the import and export of these substances will be effectively prohibited worldwide. For exporters and importers this is not abstract — it concerns markets, supply of components and the cost of modernizing equipment.

"Delaying the ratification process may lead to the need for a sharp reduction in HFC use, which will have serious economic consequences."

— Cabinet of Ministers of Ukraine (information on the official website)

Political context

This is not an isolated case: on February 26 the Rada also failed to ratify an agreement with the European Investment Bank that would have unlocked €134 million for road repairs. Analysts noted that the majority in the "Servant of the People" faction has effectively become nominal — every vote requires new agreements and negotiations.

What next and options for Ukraine

Practical steps are obvious: the government and parliamentary factions need to promptly agree on subsidies for critical infrastructure, modernization plans for industrial enterprises and a support package for small and medium-sized businesses that use refrigeration equipment. Communication with partners in the EU is also important — it is unlikely deadlines can be postponed, so a risk-minimization plan is needed.

Conclusion

This is a matter of economic security as well as ecology: decisions in the council chamber now have a direct financial and competitive effect on Ukrainian companies. Whether politicians can turn declarations into a consolidated position is the key question for the coming weeks.

World news