Up to 40% of Ukrainian grain exporters 'work in the shadow' - Odessa region head

MOSCOW. Aug 25 (Interfax) - The implementation of an order on financial discipline amid martial law in Ukraine has revealed that up to 40% of Ukrainian grain export market operators work in the shadow economy, Odessa regional military administration head Oleg Kiper said.

"The implementation of the order On Some Aspects of Financial Discipline Amid Martial Law, which took effect on August 22, has brought about first results. As expected, 30% to 40% of the grain export market operators work in the shadow economy," Ukrainian media quoted Kiper as saying on his social account.

An analysis of the origin of grain from the first 32 exporters checked under the order has revealed that 21 of these companies operate appropriately and pay all taxes, while grain provided by the other 11 is of questionable origin, he said.

"Most of those businesses are not from the Odessa region," he said.

From now on, ships will be loaded only with grain that passed preliminary checks for its legitimate origin, and all customs declarations must be duly registered for exports, Kiper said.

The relevant law enforcement agencies will check grain exporters, he said.

Kiper has called on everyone to join "the white team" and sign a memorandum with the Odessa regional military administration on stepping up cooperation in the agrarian, transport, and food sectors to bring Ukrainian agrifood exports from the shadow and ensure food security. As many as 26 companies have already joined the initiative.

As reported, Kiper on July 13 urged businesses and all those concerned to join a memorandum on transparency of supply chains from the producer to the customer, including the confirmation of origin and quality of Ukrainian agricultural produce supplied to the global market.