Business news from Ukraine

Sugar is included in list of goods, export of which is subject to licensing

The Cabinet of Ministers of Ukraine included sugar (trade item according to UKTVED 1701) to the list of goods, export of which is subject to licensing for the period from June 5 to September 15, 2023.
According to the representative of the Cabinet of Ministers in the Verkhovna Rada Taras Melnychuk in Telegram, the relevant decision was taken at a government meeting on Tuesday.
“Amended Annexes 1 and 5 to the resolution of the Cabinet of Ministers of 27.12.2022 N 1466 “On approval of the lists of goods, exports and imports of which are subject to licensing and quotas for 2023”. Sugar has been included in Appendix 1 “Quotas for the goods subject to export licensing” of the decree ¹ 1466 with a volume of quota of 0 tons and a licensing period from June 5 to September 15, 2023,” he wrote.
At the same time, sugar is excluded from Annex 5 of the same decree “The list of goods, the export of which is subject to licensing.

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Ukraine cancels export licensing for many food products

Ukraine has abolished the need to obtain licenses for the export of live cattle, chicken, frozen beef as well as meat and edible meat by-products and flour from them.
Corresponding changes to the list of goods, export and import of which in 2023 are subject to licensing, made by the decision of the Cabinet of Ministers № 472 of May 12, published on its website.
In addition, the liberalization affected the export of eggs, rye, oats and millet.
At the same time, exports of buckwheat, sugar and mineral fertilizers are still subject to licensing.

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Woodworkers of Ukraine are asked not to introduce licensing for export of firewood

The Association of Woodworking Enterprises of Ukraine public union asks the government not to impose licensing and quotas on the export of fuel wood from Ukraine, as this may upset the balance in the industry and lead to attempts to manually control the work of enterprises.

The negative impact on wood processing of the possible introduction of licensing or export quotas was reported on the association’s website on Friday.

It is clarified that the organization asks the Cabinet of Ministers not to adopt the relevant changes to Decree No. 1424 of December 29, 2021 regarding exported fuel wood in the form of logs, logs, brushwood, branches, knots, wood chips or cod, sawdust, cod, shavings, debris and wood waste and scrap, agglomerated or non-agglomerated, fuel briquettes and pellets.

“While the Ukrainian economy needs to be supported like never before, the Cabinet of Ministers may adopt changes to the legislation that will actually lead to an increase in the number of corruption schemes, pressure on woodworking enterprises and a decrease in the investment attractiveness of Ukraine,” the association emphasizes.

In addition, it is noted that the adoption of this document may lead to the fact that, under the guise of providing the domestic market with fuel lumber, the process of manual control over enterprises engaged in the corresponding production will begin to be set up.

Reportedly, the activities of the industry are already controlled by authorities, including when commissioning the necessary equipment, hiring workers, obtaining environmental permits, etc. The introduction of wood processing licensing will allow these departments to openly demand funds from exporting enterprises.

“We ask the Cabinet of Ministers of Ukraine not to accept this document, to hold additional discussions on this issue with representatives of business and the public in order to make effective decisions for the industry and the country’s economy as a whole,” the association quotes its head Pavel Vasiliev.

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UKRAINE CANCELED LICENSING OF EXPORTS OF WHEAT AND FERTILIZERS

Wheat and its mixture with rye (meslin) are excluded from the list of goods whose export is subject to licensing, the Cabinet of Ministers made the corresponding decision at a meeting on Friday, Taras Melnychuk, a government representative in parliament, said.

“The commodity items “Oats” and “Mineral or chemical, nitrogen fertilizers” have been excluded from the volume of quotas of goods whose export is subject to licensing. These items are included in the List of goods whose export is subject to licensing,” he added in his telegram message.

As reported, on March 7, the Government of Ukraine expanded the list of goods the Ministry of Economy will issue export permits for: wheat, corn, poultry meat, chicken eggs and sunflower oil were included in the list of licensed exports.

Already in March, corn and sunflower oil were excluded from this list, but wheat remained, despite the requests of market participants.

As for oats, on March 5, a ban was introduced on its export in the form of a zero quota.

Nitrogen fertilizers were also banned for export at first, but at the end of March the government allowed their export within the quarterly quota of 210,000 tons, or 70,000 tons per month.

In June this year, Ukraine managed to increase grain exports by 23% by May – up to 1.4 million tons. In terms of crops, corn accounted for 86%, wheat – 10%, barley – 3%.

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CANCELLATION OF LICENSING OF WHEAT EXPORT FROM UKRAINE TO INCREASE PURCHASE PRICES FOR NEW CROP – GRAINTRADE

Licensing of wheat exports from Ukraine, introduced on March 6 amid Russian aggression, has created additional pressure on domestic wheat purchase prices, and the abolition of this state regulation will revive exports and stabilize prices for this exchange commodity.

This is how experts of the electronic grain exchange GrainTrade commented on the statement made recently by First Deputy Minister of Agrarian Policy Taras Vysotsky about the abolition of licensing for wheat exports in July, according to the website of the grain trading platform on Monday.

“Amid blocked ports, the purchase prices for grain in Ukraine fell sharply, but the introduction of licenses for the export of wheat further increased pressure on prices, which dropped to UAH 5,500-6,500/tonne with delivery to the mill… In anticipation of the harvesting of the new crop, agricultural producers have to vacate warehouse space, therefore, they are activating wheat sales, which increase pressure on prices. Therefore, the cancellation of licenses will revive exports and stabilize wheat prices,” GrainTrade said in a statement.

According to it, licensing complicates the export of wheat bran for processing enterprises, which are forced to spend additional funds on their storage or disposal, which also pushes down the price of wheat in Ukraine.

As reported, last week, Deputy Minister Vysotsky, at a meeting with representatives of the European Business Association, said that Ukraine planned to cancel the licensing of wheat exports in July and recalled active cooperation with Baltic and Polish partners to create alternative routes for the export of Ukrainian agricultural products.

The Ministry of Agrarian Policy is also working to continue the abolition of quotas and duties for the entire period of Ukraine’s candidacy for the EU, as well as the harmonization of legislation with the European one.

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UKRAINE ABANDONS BAN ON EXPORT OF LIVE CATTLE AND BEEF AND REPLACES IT WITH LICENSING

Ukraine has abandoned the March 5 ban on the export of live cattle (UKTVED code 0102), frozen cattle meat (code 0202) and meat and edible meat by-products, salted or in brine, dried or smoked; edible flour from meat or meat by-products: cattle meat (code 021020).
According to the resolution of the Cabinet of Ministers No. 422 of April 9, published on its website on Sunday night, licensing of the export of these goods was introduced instead of zero quotas.

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