Ukraine has introduced a new system for exporting key agrarian goods, including grains, which implies a ban on shipping consignments of goods at prices below those set by the agriculture ministry.
Ukraine is a major grain and oilseeds grower and exporter and the new system became operational on 1 December.
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.
In line with the new rules, minimum permissible export prices will be calculated on the basis of state customs service data, taking into account the terms of delivery for the previous month and using a 10% discount.
Grain Shipments
Traders did not expect a significant impact on grain shipments from the decision, saying measures to restrict grain exports have been announced in past years but had not had a major impact on shipments.
“The general opinion is that the minimum prices will not disrupt Ukraine’s export flows,” one European trader said.
“The expectation is that the minimum prices are being set so low that traders should be within their comfort zone and happy to continue sales. But we still need to wait to see if the government takes stronger measures.”
The farm ministry has already published the minimum prices at its website and will refresh it on the 10th of each month.
The ministry also said that it has abolished the need for exporters to go through the vetting process and obtain licences to export food products.
The mechanism implied 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.
