UKRAINE: GRAIN TRADERS FORCED TO REDUCE PRICES DUE TO VAT DEBTS

Grain traders in Ukraine have to reduce purchase prices UAH 200-250 (USD 1/UAH 7.925) due to the huge VAT debts owed them by the government of Ukraine for months, Leonid Kozachenko, president of the Ukrainian Agricultural Confederation (UAC) stated on Monday.

"Agriculture's share of Ukraine's exports has reached 25% and at the same time 56% of total VAT debts have not been returned to us in cash by the government. No single business sector should receive payment for debts in the form of commodities - by grain, spare parts, garments, metallurgists and chemists have no such possibility. It is distortion of a process of the debt return," Kozachenko noted.

Kozachenko said that due to the huge VAT debts, exporters have to pay less for raw materials, UAH 200-250 lower than the market price. The price for the purchase of sunflower seeds has fallen by UAH 150-200. As a result, Kozachenko believes the total losses to Ukrainian grain producers will reach UAH 4 billion, sunflower seeds - UAH 650 million.

USUBC FOOTNOTE: Leonid Kozachenko, Kyiv, serves as a senior advisor to the U.S.-Ukraine Business Council (USUBC)

Source: USUBC with reference to UkrInform