Violators of Ukrainian grain export rules to Poland, Slovakia, Hungary, Romania, Bulgaria to be fined from Feb 1

MOSCOW. Feb 1 (Interfax) - New rules for export of agricultural products to a number of European Union countries came into effect in Ukraine on February 1, under which exporters will be deprived of the right of verification for breaching them, Ukrainian First Deputy Minister of Agrarian Policy and Food Taras Vysotsky said during a national telethon, as reported by Ukrainian media.

Ukraine introduced an updated procedure for exports of grain, oilseeds and processed products on November 10, 2023 in order to ensure guaranteed exports by transparent and bona fide companies, he said.

"The verification procedure is the inclusion of those who are VAT payers in the list of verified companies. This is a mandatory condition. Those who have successfully exported products and returned their forex proceeds since the beginning of the crisis are recognized as good [exporters]," Vysotsky said.

It is important for companies to be on the list of verified exporters, as it allows exporting grain and oilseed crops and products of their processing without any additional procedures and without obtaining a license, Vysotsky said.

If a company is not on the list of certified enterprises, it must submit a separate package of documents to obtain a license and undergo a more detailed procedure to examine, review and verify its integrity and the right to export, Vysotsky said.

The Ministry of Agrarian Policy and Food has included around 2,500 business entities, which have been verified and have the right to export without restrictions, in the list of verified agricultural exporters since November 10, he said.

Ukraine proposed coordinating with Poland, Slovakia, Hungary, Romania and Bulgaria to license the export of Ukrainian wheat, corn, rapeseed and sunflower in 2023, Vysotsky also said.

"Indeed, you cannot just export there [four crops]. If an enterprise wants to export there and one of these five countries confirms that they have the need and readiness to import this product, then a license for a specific batch is issued. [...] Having received the application, we ask these countries: 'Do you need this product?' If there is confirmation, then a license is issued. If the countries do not confirm [their readiness to accept a shipment of Ukrainian grain], then it is exclusively transited," Vysotsky said.

If the rules for exporting wheat, corn, rapeseed and sunflower to Poland, Slovakia, Hungary, Romania and Bulgaria are breached, the company is excluded from the list of verified exporters and can apply to be added to the list only in six months, he said. Until then, the enterprise will have to prepare a package of documents for each shipment, obtain a license and prove its integrity.

This regulation took effect on February 1, Vysotsky said, urging all exporters not to violate the rules.