Assured private market players the government will not put limitations on grain exports
U.S.-Ukraine Business Council (USUBC)
Kyiv, Ukraine, Tuesday, August 3, 2010

VPM TIHIPKO SAYS UKRAINIAN GOVERNMENT SUPPORTS OPEN EXPORT MARKETS

Assured private market players government will not put limitations on grain exports

U.S.-Ukraine Business Council (USUBC), Kyiv, Ukraine, Tue, August 3, 2010

KYIV - Ukrainian Vice Prime Minister Serhiy Tihipko told a meeting of private grain exporters, agricultural and industry trade associations and government officials on Monday in Kyiv that the new government supports private business and a free market economy.

The VPM said clearly several serious attempts, during the past ten days, by several agencies in the Ukrainian government to issue various official and unofficial degrees and letters that in reality slow down or block the export of grain from Ukraine were not acceptable and must be withdrawn immediately.

He stated aggressively that steps would be taken immediately to unblock the important work of grain traders to provide agricultural producers with top prices for their grain and thus provide Ukraine with badly needed income and funds for the state budget. The VPM said recent very high-level discussions in the government reaffirmed the Ukraine's support for open export markets.

SPECIAL EMERGENCY MEETING
VPM Tihipko called the special emergency meeting at the Cabinet of Ministers as a result of information provided by several grain exporters in a two-hour workshop Tihipko held with the large corporate members of the U.S.-Ukraine Business Council (USUBC) last week in Kyiv.

Agricultural exporters at the meeting informed the VPM about several decrees that suddenly and unexpectedly appeared that put restrictions/limitation on the grain market export flow, according to Morgan Williams, Director, Government Affairs, Washington, D.C., office, SigmaBleyzer private equity investment group, who serves as president of USUBC, who attended all of the meetings with Tigipko.

During the discussion yesterday "VPM Tigipko assured market players, that the government sees only one type of markets and that is the FREE market approach. He said there is no big concern about the crop size and food safety of Ukraine. the grain crop is estimated at the level of 41 mln mt and thus there is no reason to put limitations on the grain export,” Williams said.

Private grain traders, members of the U.S.-Ukraine Business Council (USUBC), pointed out to the VPM that new customs regulations last week required new grain analysis by various state Institutes which are not needed and are designed to block the flow of grain to the ports.

They also pointed out that Ukrzaliznitza (the state railroad) had put unofficial bans on loading grain hoppers and moving them to the ports resulting in huge losses and slowing down or stopping the loading of export vessels which could only result in lower prices for grain in the future.

OFFICIALS WORKING TO RUIN PRIVATE GRAIN MARKETS AND TRADERS WHO BRING MONEY TO THE BUDGET
VPM Tigipko told customs officials at the meeting the new letters were considered illegal and told Ukrzaliznitza to ensure normal transportation of grain to the ports. He expressed his serious concern and indignation about what government officials were doing to ruin grain markets and traders who bring money to the budget and indicated he would ask the Prosecutor General's office to open criminal investigations as their work was against Ukraine and the Ukrainian people.

Tigipko told the private business community to work together and continue to closely monitor the situation and to inform him and Leonid Kozachenko, head of the Ukrainain Agrarian Confederation, immediately about any future attempts to block the movement of grain to market. He also suggested private business hold news conferences to inform that public and the government about such attempts.