The introduction of a grain export assurance mechanism by the Cabinet of Ministers will aid in further reducing the shadow market, believes the Ukrainian Grain Association (UGA).
"UGA acknowledges the efforts of the government, the Ministry of Agrarian Policy, and the Odessa Regional Military Administration aimed at implementing effective control mechanisms and fostering dialogue with businesses. Additionally, UGA fully supports the enactment of the export assurance law, which is intended to deregulate export administration by replacing several mechanisms with a single effective tool that will simultaneously reduce the circulation of 'shadow' grain and its export while simplifying procedures for legal grain exports," the association stated on its website.
The business association reminded that during 2023-2024, a series of mechanisms were developed to diminish the shadow grain turnover. Among these is the law adopted by the Verkhovna Rada in June 2024 (No. 3706-IX), which tasked the Cabinet of Ministers with temporarily introducing a VAT export assurance regime for the export of certain types of goods (agricultural products) during the martial law period. The law took effect on July 1, 2024.
"UGA is convinced that the implementation of the grain export assurance mechanism will contribute to further market transparency and will satisfy both the state and businesses that operate openly and transparently," the statement emphasizes.