Ukraine, new system for grain export - New rules set minimum prices, prevent tax evasion
Ukraine has introduced a new system for the export of key agricultural commodities, including grain, which means banning the export of cargoes of goods at prices below those set by the Ministry of Agriculture.
Ukraine is one of the largest global producers and exporters of cereals and oilseeds. The new system became operational on December 1.
The government launched the plan to tackle price distortions linked to the Russian occupation, which has seen an increase in domestic cash purchases of some agricultural products and their subsequent export at artificially low prices to avoid taxes.
In accordance with the new rules, the minimum allowable export prices will be calculated based on the data of the state customs service, taking into account the delivery conditions for the previous month and using a discount of 10%.
The Ministry has already published the minimum prices on its website and will refresh it on the 10th of every month. Official sources also said they have removed the need for exporters to go through the vetting process and obtain food export licenses.
The mechanism meant the mandatory registration of an exporting company in a special agricultural register and, in the absence of such registration, the need to obtain a license for each export operation.
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