There is a hope for the best despite the current negative – Vladimir Makar
Ukrainian politic situation escalation caused the destabilization of the state economic, as the exchange fluctuations. There will be a discussion about the influence of the political and economic situation with the Head of the Agrarian Association, Vladimir Makar.
- Vladimir, what is your opinion on the current political and economic situation in Ukraine and its influence on the agroindustrial complex?
- The situation is very complicated and with the state budget as well – Ukraine not to manage it without the help of the International Monetary Fund (IMF). The government has already declared about the readiness to accept all Fund provisions to obtain credit. One of the requests of IMF is to refuse from the tax benefits for our agriculture. The decision will provide the Ukrainian agroindustrial complex with unequal conditions compared to the global competitor. Thus, the tax benefit saving should be the major bargaining issue for the Ukrainian government in the dialogue with the IMF.
There is a hope for the best. Thus, in spite of serious economic problems the new government has the opportunity to carry out necessary reforms. This is the public request, and agricultural as well. There are no responses on the questions about the refuse from grain certification, obligatory tech inspection of agricultural equipment, the lease arrangements registration, etc., though the corresponding projected laws have already been developed and registered in the Verkhovna Rada of Ukraine. It is the most proper time to carry them on.
- Will the current economic situation, particularly UAH fluctuation and its depreciation against the USD, influence on the crop culture profitability? A lot of experts stated the depreciation of the UAH against USD to cause the price increase on the import-origin products, particularly the material and technical resources for the agroindustrial complex. How will it impact the spring-field works realization?
- As for currency rate, the light depreciation of the UAH is profitable for corn traders. But in Ukraine there are not only “clean” traders-exporters. The grate share on the export market belongs to the grain producers, purchasing import-origin seed, crop protecting agents and machinery. Thus the government should take a balanced approach to the issue of the currency rate.
It is really hard to calculate the production profitability due to the Ukrainian currency rate becoming free so there is nobody to predict what rate will be at the moment of the products sale in six months and what prices level will be. Thus, the agrarians have to plant and hope for improvements in the current year.
Unfortunately, there are initiations from the previous government – to refuse from VAT recovery in the grain export. It may pressure the prices for agricultural producers.
- Ukraine is one of the TOP global grain exporters. Will the current political and economic situation influence on exports and what Ukraine should do in order to prevent the corn traders activity stopping?
- The global market has already faced reaction by the agricultural products price increase. So it is obvious Ukraine has an impact on the global market. I have no idea how the government can help the traders, except fighting corruption. The market needs the same as Ukraine: peace, calm, governmental control for the situation.
- The currency devaluation was not only in Ukraine, but also in Russia and Kazakhstan. How will the current situation impact the trade-economic relations between the countries?
- If we consider economic rather than political moments, the simultaneous devaluation means the trade not to be changed. But to date the politics rather than economics defines the future trade-economic relations between our countries. In the recent six months we have passed from the Association signing with EU to the almost entering the Customs Union and back. If we stop at the current position, the trade with Russia will face the significant and violent decrease despite the currency exchange.
Interviewed by Alina Stegka
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