Business news from Ukraine

Director General of the International Organization of Vine and Wine Industry (IOVI) Pau Roca thanked representatives of the Ukrainian wine industry for the work done to restore Ukraine’s membership in this international structure.

“In this difficult time that Ukraine is going through and in this difficult situation, we focus on the promotion of Ukrainian winemaking in the world. The fact that Ukraine joined our interstate organization is a very important step at this very period. This step will bring results in the near future”, – stressed the Head of IGOV at a press conference in the news agency Interfax Ukraine.

In turn, the Deputy Minister of Agrarian Policy and Food of Ukraine Markiyan Dmytrosevych also noted the importance of Ukraine’s membership in IGOV, as this organization currently unites 85% of the world’s specialists in the field of viticulture and winemaking, as well as represents the interests of 80% of consumers.

“The International Organization of Winegrowing and Winemaking is primarily a platform for the exchange of experiences in the promotion of wine products. Membership in IGOV and work in its committees will give Ukraine the opportunity to be aware of all the changes and directions of development of the industry, which, in turn, is important in the context of European integration of our country, “- said Dmitrasevich.

Speaking about the consequences of war for the sector, the Deputy Minister said that, according to the estimates of the World Bank and experts of the Institute of International Economics, the cost of destroyed, stolen, damaged property in the agricultural sector is $8 billion. With the rest of the indirect losses – lost profits, unfulfilled contracts – the total damage from military action reaches 40 billion UAH.

“If perennial plantations are destroyed, it will take years to recover. After the human losses such losses are the most painful for us and for the industry”, – he stressed.

In addition, M. Dmitrasevich recalled the possibility of attracting state grant program for the establishment of new vineyards.

The head of the public association “Ukrsadvinprom” Volodymyr Pechko noted that in 2021 in Ukraine officially there were about 266 industrial producers of grapes and wine, 125 winegrowing enterprises, 29 small producers of grapes and wine products.

“About the figures, to process each hectare involved 33 employees on a permanent basis, each enterprise employed an average of 250 people. Thus, the employment rate in viticulture and horticulture in Ukraine is one of the highest compared to other industries,” stressed the industry representative.

Pechko also thanked the Ministry of Agrarian Policy for implementing an industry support program and providing grants to winemakers in both 2021 and 2022.

“The state’s support of planting vineyards even in this difficult time will allow not only to preserve the industry in the future, but also to expand vineyard planting areas,” he said.

According to the moderator of the press conference and the deputy head of the public association “Ukrsadvinprom” Maxim Urakin, in the current realities it is extremely important to extend the status of winemaking to all regions of Ukraine.

“Granting the status of winemaking regions to all regions of Ukraine without exception is especially relevant in connection with the displacement of viticulture in the central and western regions of the country, where dozens of winemakers are already working effectively; the status of winemaking region will allow winemakers to claim assistance, technology, benefits,” – said Urakin.

According to the deputy head of “Ukrsadvinprom” on international relations Natalia Burlachenko, the main purpose of the renewal of membership in the IOVV is the popularization of the Ukrainian product.

“First of all, we want to show what heights and quality Ukraine has achieved, despite the realities in which we live. This is an important platform to sound to the world. It is an opportunity not only virtually but also offline to communicate with foreign colleagues and show that Ukrainian wine exists, exists and will become more competitive in the future,” she said.

Ricardo Nuñez, owner of the Vinos de La Luz wine company and investor in Ukrainian winemaking, stressed that Ukraine needs a state program for the development of winemaking to bring the industry to a new level of development after the war.

“In February 2022 the dynamic development of the wine industry in Ukraine came to a halt. Many Ukrainians, including those involved in winemaking, left their homes. But they will return with the knowledge and experience gained outside the country. They must be prepared for new opportunities”, the winemaker said.

Ricardo Nunez presented the novelty of the season – a red dry wine Big Wines Big Art, which was produced from the grapes of Odessa black vintage 2020 grown in the Rhenia district of the Odessa region. The first batch of 1,000 bottles was produced at the facility in the Kyiv region. A well-known artist Ivan Marchuk was involved in the work on the new Ukrainian wine, who provided his painting “Awakening” symbolizing the revival of Ukrainian winemaking after the war, said Ricardo Nuñez.

Speaking about the future recovery of the industry the winemaker reminded that development always begins with the emergence of many small producers who become the basis for the creation of large enterprises.

“I am the first investor in the winegrowing and winemaking industry in Ukraine during the war. I am working on wine production right now. My task is to teach Ukrainians to drink their own wine. Then the country will have a great and great industry,” he said.

Representatives of Ukrsadvinprom handed over the flag of the International Organization of Vine and Wine Making to the Ministry of Agrarian Policy of Ukraine.

The International Organization of Vine and Wine (IOVV) is the successor of the International Bureau of Vine and Wine, which existed from 1924 to 2001 and today unites 49 countries. It is this organization that develops the standards of world winemaking. IOVW consists of four committees – viticulture, enology, economics and law, safety and health. Ukraine will be represented in the international organization by a delegation, which consists of representatives of the Ministry of Agrarian Policy, the Institute of Viticulture and Winemaking named after Tarov. Ukraine will be represented by a delegation consisting of representatives of the Ministry of Agrarian Policy and the Winemaking Institute named after Tairov, members of “Ukrsadvynprom”.

The Vinos de La Luz Group has wineries in Old and New World wine-growing regions, in particular, in Spain, Italy, Argentina and the USA, where it produces wines under the Vinos de La Luz brand.