Ukraine to cancel compulsory registration, licences for farm export companies
Ukraine to introduce a mechanism of minimum export prices
13 November 2024
2 minute read
By: Ukraine will end the need for exporters of agricultural products to undergo an onerous procedure of verification and obtaining licences, and instead introduce a mechanism of minimum export prices, Reuters reported, citing the farm ministry.
It said the minimum prices will be set by the ministry on the 10th of each month.
The current mechanism implies mandatory registration of an export company in a special agricultural register and, in the absence of such registration, the need to obtain a licence for each export operation.
The government launched the plan to tackle price distortions linked to Russia's invasion, which has seen an increase in domestic cash purchases of some agricultural products and their subsequent export at artificially low prices to avoid taxes.
Agriculture Minister Vitaliy Koval told Reuters last month that new system of minimum export prices for the country's key grain and oilseed shipments was likely to be operational at the beginning of December.
The scheme was originally intended to be launched in August, but a large number of necessary legislative changes delayed the entry into force of the new regime.
The new mechanism will apply to shipments of wheat, corn, sunflower oil, soybeans, rapeseed and some other agricultural commodities, which remain Ukraine's biggest source of external revenue.
Ukraine is a major grain grower and exporter globally and has shipped abroad 14.1 million metric tons of various grains so far the current 2024/25 July-June season, official data showed.
