Ukraine must settle the issues of certification of grain and elevators, the activities of the Guarantee Fund for the grain warehouse receipts
Kyiv. July 18, 2013
Ukraine taking into account the
feedback from the participants of the grain market in the near future
has to resolve all the issues of certification of grain and its storage
services, as well as the activities of the Guarantee Fund obligations
under warehouse receipts for grain.
This opinion was expressed by the head of the practice of the international trade law of Volkov & Partners Andriy Zablotskiy during a press conference at the Interfax-Ukraine agency on Tuesday.
the fact that, in general, the legislation is moving in the right
direction, we believe that these two issues - the certificate of quality
and Guarantee Fund – are to be adopted in the near future," - he said,
commenting on today existing laws ruling these issues.
A.Zablotskiy, in particular, the bill number 2459 presented by MPs on
amending the law on grain and grain market in relation to deregulation
is the most optimal for today.
In addition, the bill number 2436,
initiated by the president, on the total abolition of grain and its
storage services certification may have a positive impact on the market,
provided it is revised according to the comments of market operators.
the same time, the bill number 2361a, initiated by the government,
comprising the necessity of the examination on GMOs to be reflected in
the certificate of quality "will let the government control exports."
the issue of GMO in Ukraine is governed in a complicated way, no GMO
has been registered. This suggests that if the lawmaker is trying to fix
the necessity of obtaining a certificate for each shipment on the
presence or absence of GMO, they will be able to control exports. We do
not believe it is appropriate at this time because the country lacks
registered GMO ", - he said.
Commenting on the initiative to
establish a guarantee fund obligations under warehouse receipts for
grain, A.Zablotsky said: "In Ukraine, this mechanism is turned on its
"Today, there remain a number of open questions regarding the
activity of grain warehouses that are required to enter the Guarantee
Fund. In our view, they are incorrect, since they create the possibility
of the influence of the fund on the warehouses if the current
legislation is not changed. We would want the comments of the market
participants to be accepted, because, given the potentially large export
forecasts, the activity of the warehouses can pause at one point, "- he
As reported, the Ukrainian Agrarian Association has critically
evaluated the prospects of implementation of the law on the
establishment of the Guarantee Fund commitments on warehouse documents.
In February, they appealed to the Ministry of Agrarian Policy and Food
requesting to amend the law and to create for this a special working
group comprising experts of the market.
The Verkhovna Rada on
December 6, 2012 adopted the Law № 5462-VI, which ammended the
requirements for certification of the warehouse services for the period
of one year and a mandatory certification of grain quality and its
products both in domestic transportation, and in the export-import
Before that, in July 2012, the Cabinet of Ministers
simplified the procedure of certification of the grain warehouses on
compliance of the services for the storage of grain and products
introducing an unlimited duration of the certificate, and also gave the
right to certify the grain warehouses to the persons who use them under
the contract of rent and lease.
By another ruling in September of the
same year, the Cabinet abolished the mandatory registration of the
certificate of quality of grain and its products when moving within the
country, including in the directions of ports (except for the purchase
of grain at the expense of state and local budgets).