January 31 2014, 11:10 Source: APK-Inform Views: 1670

Ukraine: draft law authorizing grain exports to agrarians only to cause the collapse of the grain market – lawyer

The draft law (registration number 3882), which authorizes the export of grains to be performed exceptionally by agricultural producers and related entities, and the State agent for provision of grains and its by-products exports and imports, will lead to the collapse of the grain market of Ukraine, declared Andrei Zablotskiy, Lawyer of the law firm Volkov & Partners.

According to him, in the first place, the document actually violates the existing legislation of the grain market, including the Law of Ukraine "On Grains and the Grain Market of Ukraine", the Constitution of Ukraine, the Economic Code of Ukraine, the antimonopoly laws, because the draft law is encouraged to limit business activities of the economic entities, which realize the exports.

In addition, the reporting regulations of the draft law explicitly contradicts to the WTO rules.

According to A.Zablotskiy, possible adoption of the reporting document will make damage to grain traders, who heavily invest to development of the infrastructure of the grain market in Ukraine. Subsequently, the producers themselves will be also significantly affected.

To date, grain trading companies own rather significant share of elevators, and they will not be able to effectively use them, because their business activities are related to purchasing, storage and transportation of grains. Thus, the market will simply become destabilized and paralyzed, summed A.Zablotskiy.


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