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The
government launched the plan to tackle price distortions linked
to the war with Russia, which has seen an increase in domestic
cash purchases of some agricultural products and their
subsequent export at artificially low prices to avoid taxes.
The cabinet has now approved the procedure for setting the
minimum prices, clearing the way for them to be introduced.
Ukrainian officials have said the new scheme could be launched
in August, but it is not yet clear exactly when the new rules
will come into effect.
The new export price 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 revenues.
In line with the new rules, minimum permissible export prices
will be calculated on the basis of the state customs service
data, taking into account the terms of delivery for the previous
month and using a 10% discount.
Traders' union UGA said the minimum export prices would put half
of Ukraine's exports at risk, could destroy the forward contract
system and lead to uncertainty in the market regarding the
fulfillment of exporters' obligations and grain purchases.
It said many enterprises used bank loans that are secured by
forward contracts. The absence of such contracts would prevent
farmers from obtaining loans.
(Reporting by Pavel Polityuk; Editing by Helen Popper)
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