Agri monitoring april 06-12 2015 eng

Page 1

Â

Weekly monitoring of the basic legislative and regulatory initiatives in the agrarian sphere (April 6-12, 2015)


Ukrainian Agri Council 01033, Kyiv, 9 Tarasivska str. T:+38 067 471 13 35 E:ir@agrarna-rada.com.ua

The work of the Parliament: laws and

legislative initiatives

During April, 6 to 10 the Parliament was working in plenary regime On the results of the plenary week, the Parliament has taken the following decisions: - on Tuesday, April,7, 2015 – a Draft law of Ukraine "On animal byproducts inconsumable by people" was adopted in second reading and on the whole (No. 0905, the Cabinet of Ministers of Ukraine). The Draft law was adopted by 275 votes. The Draft law warrants the adaptation of national legislation in the sphere of handling with animal products to the requirements of international one, in particular European legislation (Regulations EU No. 1069/2009 and No. 142/2011). The given legislative initiative regulates the issues of handling with animal byproducts (hereinafter referred to as IHAB), inconsumable by people (carcasses or parts of carcasses of slaughtered, perished animals, raw materials and animal products inconsumable or discarded by people, including inedible animal byproducts, pus, and are reliable to processing, utilization or removal). The new system of control over creation, collection, transportation, storage, processing, utilization, import and export from Ukraine, including providing control by the market operator over such procedure, aiming at prevention the negative influence of animal byproducts on veterinary-sanitary and epizootic wellness. Under the project, depending on the degree of risk for health, IHAB are divided into 3 categories: category I – unsafe material, carcasses of sick animals (especially with dangerous diseases), mixtures of such products with the products of other categories; category II – carcasses of sick animals and those containing contaminators, bad products, pus, mixtures of such products with category III; category III – accepted for consumption of the carcasses of animals, poultry, aquatic organisms, their by-effects etc. Under the final provisions, the Law comes into effect in a year as of the day following the date of publication, except clause 3 of this Law (by which the Cabinet of Ministers is ordered to grant sublaws to its implementation), which comes into effect in a year as of the day following the date of publication of this Law. The Draft law is necessary for simplification of access of the Ukrainian animal production to the EU markets. On the other hand there are some provisions in this Law which are perceived by agribusiness as too strict. So some discussions and future revision of the Law is possible. - On Wednesday, April, 8, 2015 – the Parliament adopted in the first reading a basis Draft law “On Introduction of Amendments into Some Legislative Acts of Ukraine” (as to bringing legislation in the sphere of seed farming in line with European and international requirements) (No. 1460-1, people’s deputies of Ukraine I.V. Miroshnichenko - Samopomich, V.Y. Ivchenko - Batkivshchyna, O.B. Bakumenko - Petro Poroshenko Bloc). The Draft law was adopted as a basis by 244 votes. The Draft law offers to reform the seed farming industry and provides amendments to the following Law of Ukraine “On Seeds and Planting Material”; the Law of Ukraine “On the List of Permissive Documents in the Sphere of Economic Activity”; the Law of Ukraine “On the Protection of Rights to Plant Varieties”. The review of the current legislation in this sphere is caused by the necessity to provide effective performance of obligations within the framework of ratified by Ukrainian Parliament the Association Agreement between Ukraine and the European Union on September, 16, 2014. First of all, the urgent is the creation of proper legal framework for the work of domestic manufacturers in the new competitive environment, and also harmonization of Ukrainian legislation with Appendix 38 to the Chapter 17 ”Rural

1


Ukrainian Agri Council 01033, Kyiv, 9 Tarasivska str. T:+38 067 471 13 35 E:ir@agrarna-rada.com.ua

Economy and the Development of Rural Territories” as provided by the Agreement Section V “Economic and Sectoral Cooperation”. Committee on Agrarian Policy and Land Relations in its Submission supported this Draft law, stating that it provides access to world markets for domestic seeds, and also opportunity to receive status of equivalence of certification of seeds from the European Union, and improve the procedure of registration of plant types. It was also stated that the offered mechanism of avoidance double certification (for seeds and planting material with the certificate of OECP or ICTA) will provide access of domestic producers of seeds and planting material to quality resources of seed farming during their bringing onto the territory of Ukraine, and to lower administrative burden during its registration. Besides, the Draft law offers to simplify economic activity in the sphere of seed farming via the reduction of the number of requirements to documents submitted for registration of varieties, the terms of holding examination of application and production of documents on rights to varieties are reduced, the order of examination of varieties and order of appealing against decisions of respective executive bodies are specified. Harmonization of legislation with corresponding International and European requirements (via passing the Draft law No. 1460-1) will promote the integration of Ukraine in the European seed marketing chain, and the recognition of equivalency by the EU will provide simplified access to European and world markets for Ukrainian exporters. At the same time, it will favor, how one can expect, the raise of purity of a variety and the quality of seeds produced in Ukraine and, correspondingly, the increase of crop capacity. The Parliament also supported the proposal of Committee on Agrarian Policy and Land Relations concerning rejection of the Draft law, to which No. 1460-1 is an alternative one, that is the Draft law of Ukraine “On amendments to the Law of Ukraine “On Seeds and Planting Material” (re harmonization of the legislation of Ukraine to the legislation of the EU and the World Trade Organization (WTO) (No. 1460, people’s deputies of Ukraine M.Y. Holovko, O.I. Osukhovskyi, Y.V. Levchenko, A.Y. Illenko, O.O. Marchenko, Y.V. Bublyk, S.Y. Rudyk (all are unaffiliated), which provides the new version of the Law of Ukraine “On Seeds and Planting Material”). The Draft law was adopted as a basis by only 46 votes. - On Thursday, April, 9, 2015 – the Parliament did not support the Draft law of Ukraine “On Amendments to the Law of Ukraine “On Plant Quarantine” (re reforming the state regulation system in the plant quarantine sector and bringing phytosanitary measures into the line with international standards and obligations) (No. 1875, People’s deputies of Ukraine V.Y. Ivchenko - Batkivshchyna, I.V. Miroshnichenko - Samopomich” T.V. Kutovyi - Petro Poroshenko Bloc, Chair of the Parliamentary Committee On Agrarian Policy and Land Relations), O.I. Kulinich (the Renaissance group). There were three attempts to receive the votes in support of the Draft laws. 212, 211, 198 people’s deputies voted for this Draft law. The Draft law offers the amendments to the Law of Ukraine “On Plant Quarantine” in the part of limiting time period for issuing quarantine and phytosanitary certificates, introducing several lists of controlled plants for import, export and re-export of plant production, reduction of state supervision objects in the sphere of plant quarantine. According to the Committee on Agrarian Policy and Land Relations “specified amendments will promote the decrease of administrative burden on the agricultural manufacturer, on the account of essential limiting of terms of issuing permissive documents in the branch of plant quarantine, and improve the procedure of functioning of the central executive body, which implements the state policy in the sphere of plant quarantine, and also they will promote the enhancement of production efficiency and the circulation of plant products, simultaneously with the sticking to the proper level of the phytosanitary security of Ukraine. Besides, the Draft law gives the opportunity to the subjects of farm management to compensate harm inflicted by the actions or inactivity of officials in the sphere of plant quarantine for the delay in issuing the permissive documents.”

2


Ukrainian Agri Council 01033, Kyiv, 9 Tarasivska str. T:+38 067 471 13 35 E:ir@agrarna-rada.com.ua

According to the previously published agenda on the current plenary week, on April, 9 the Parliament had to consider the Draft law of Ukraine “On Amendments to Some Laws of Ukraine Concerning the Identification and Registration of Animals (No. 1484, people’s deputies of Ukraine I.V. Miroshnichenko Samopomich, V.Y. Ivchenko - Batkivshchyna,), but on April, 9, the specified initiative was not put in the agenda. The Draft law offers the removal of certain collisions and non-conformities in the Law of Ukraine “On Identification and Registration of Animals” appeared after the Law of Ukraine No. 1648-VII “On Amendments to Some Legislative Acts of Ukraine on Identification and Registration of Animals”, dated 14 August 2014 had been passed. The corresponding non-conformities led to the factual shutdown of the process of identification and registration of animals, kept in the farms of private persons. On February, 10, 2015 the Draft law was considered at the meeting of the Committee on Agrarian Policy and Land Relations, and the decision was taken to recommend the Verkhovna Rada of Ukraine (VRU) to use it as a basis and as a whole. The Draft law is supported by the Ministry of Agrarian Policy and Food and the State Veterinary and Phytosanitary Service of Ukraine. The Draft law is on the list of top-priority legislative initiatives, adoption of which is warranted by the Strategy for Agriculture and Rural Development (introduced on March 30, 2014 at the meeting of the National Council of Reforms), because introduction of the proper mechanism of identification and registration of animals is one of the tasks within the framework of the Association Agenda between Ukraine and the EU. The Draft law is expected to create the proper legal platform for effective functioning of system of identification and registration of animals which, in its turn, will provide the proper level of animals’ health security and connected to that people’s health security, and, correspondingly, it will advance the creation of opportunities for the access of the domestic animal production to the markets of the EU.

II. On Tuesday, April, 7 – the Committee of the VRU on Agrarian Policy and Land Relations (hereinafter referred to as - Committee) held a meeting. On the results of the meeting the following decisions were taken: - the Parliament was recommended to adopt in the second reading and on the whole the Draft law “On Amendments to Some Legislative Acts of Ukraine as to Determining the Scope, Contents and the Approval Procedure of Land Tenure Documentation” (the second reading) (No. 0904, the people’s deputy of Ukraine H.M. Kaletnik) (unaffiliated). The Draft law offers to resolve issues of unification of the types of land tenure documentation and their subject matter, determination of corresponding subjects, who approve certain types of documentation of land tenure. And also, an exclusive list of such documentation is being determined. The current version of the Article 25 of the Law of Ukraine “On Land Tenure” does not contain an exclusive list of land tenure documentation and permits to determine other types of such documentation by laws of Ukraine and regulatory acts. As a result, one and the same land tenure documentation has different names and contains different approaches to its approval and validation. The Draft law cures terminological non-conformities of current legislation, concerning land tenure documentation. The Draft law promotes the legal certainty in matters of land tenure documentation, though some matters need dispatch. The effects of passing the Draft law depend on the readiness of the Cabinet of Ministers to adopt bylaws for its execution.

3


Ukrainian Agri Council 01033, Kyiv, 9 Tarasivska str. T:+38 067 471 13 35 E:ir@agrarna-rada.com.ua

- the Parliament was recommended to adopt in the second reading and on the whole the Draft law “On Amendments to Some Legislative Acts of Ukraine re Prohibiting Privatization of Engineering Infrastructure Facilities of Melioration Systems and Land Plots These Facilities are Located on” (second reading) (No. 1128, people’s deputies of Ukraine A.A. Gordeev, I.Y.Vinnyk, O.V. Spivakovskyi, S.V. Khlan (Petro Poroshenko Bloc) The Draft law offers to prohibit the transference of the land plots under the objects of engineering infrastructure facilities of inter-farm and intra-farm melioration systems to private ownership, and also to prohibit the privatization of objects of engineering infrastructure facilities of nationwide inter-farm and intrafarm melioration systems. According to the authors, the Draft law is aimed at: - guaranteeing impossibility of privatization of melioration systems infrastructure and their separate objects, and also land plots under these objects, which will serve the provision of technological coherence of melioration systems and inviolability of their functioning; - promoting renewal and development of melioration systems in Ukraine. The Draft law promotes achievement of positive changes in the sphere of irrigation farming and protection of land plots in Ukraine, and the first and necessary step for providing conditions for development of public private partnership in the direction of modernization of melioration systems. - consideration of the Draft law of Ukraine “On Amendments to Article 20 of the Land Code of Ukraine” (re establishing land use purpose”) was postponed (No. 1226, people’s deputy of Ukraine P. Rizanenko (Petro Poroshenko Bloc). The Draft law offers to make amendments to the Land Code of Ukraine, according to which the citizens, who acquire the ownership right to land plots from state- and communally-owned lands, within the limits of privatization at no charge, as provided by the Land Code of Ukraine, and to prohibit the change of intended purposes of such land plots during 5 years from the day of acquiring the ownership right. The provisions of the Draft law will prevent the practice of abuse of the right on privatization at no charge: when a person gets a land plot at no charge not aiming to use it for its intended purpose, but to change its purpose (otherwise, a land plot would not be at no charge). The concept of the Draft law is right. Though technically, it requires correcting, and also it is possible to spell out the norms as to application or non-application of proposed restriction to already privatized land plots. - the Draft law of Ukraine “On Amendments to Article 7 of the Law of Ukraine “On Land Lease” (re improvement of procedure of devolution of a right to a land lease in case of acquisition of the right of ownership on a house, building or structure that is placed on it”) (No. 1680, people’s deputies of Ukraine I.S. Alekseev, V.V. Lunchenko, D.A. Storoghuk, Y.S. Deydei, I.V. Brychenko) (all from Narodnyi Front) was directed to the subject of legislative initiative for correcting. It is warranted by the current legislation that if a person has acquired ownership of the apartment building that is placed on leased land, he/she automatically gets the right to lease this land. But there exist some problems with the realization of such procedure. This Draft law is directed to solve the above mentioned problem. The Draft law is proposed to establish that in case of termination of the right of ownership on a house, building or structure that is placed on leased land, lease agreements for these land plots shall be terminated on the basis of the application from one of the parties, and guaranteed procedure of concluding agreements between the lessor (owner) of the land plot and the new lessee on the same terms was proposed.

4


Ukrainian Agri Council 01033, Kyiv, 9 Tarasivska str. T:+38 067 471 13 35 E:ir@agrarna-rada.com.ua

Conceptually, the Draft law is right, though there are considerable terminological and technical remarks. The Committee also took decision as to support (the Committee is not the leading one) the Draft law “On Amendments to the Tax Code of Ukraine (as to recognition flax and hemp production to be agricultural products” (No. 2061, people’s deputies of Ukraine V.M. Davydenko, P.V. Yirchyshyn, I.S. Nasalyk, L.P. Kozachenko, O.B. Bakumenko, V.V. Holub, O.P.Mushak) (Petro Poroshenko) The Draft law offers to expand the definition of agricultural products in the Tax Code of Ukraine, and add to its list “flax fibre, unpolished or soaked flax” and “unpolished or unsoaked hemp fibre”. The change of the definition will allow the manufacturers of this production to use the tax benefits, such as payment of a single tax of the fourth group (former fixed agricultural tax) and special regime of VAT payment in the agricultural sector. According to the authors of the Draft law, the proposed amendments will allow flax and hemp enterprises to choose a special taxation regime of the trust realization, which will promote the industry development, first of all in the depressed regions of Polissia of Ukraine. It should be noted that this amendment concerns the development not so much textile manufacture (most of flax is grown in India and China), as the established cultural traditions of Ukraine and the development of industry in certain regions of Ukraine. At present, the production of flax and hemp fibre almost falls into total decay. In Ukraine embroidered shirts are in good demand. That is why, the Draft law is right in the context of support of national identity.

III. During April, 6-10 the following initiatives were registered in the Parliament: - The Draft law of Ukraine “On Amendments to the Tax Code of Ukraine” (re minimum lease payment) (No. 2575, registered on 07.04.2015, people’s deputy of Ukraine M. Fedoruk (Narodnyi Front). The Draft law offers to make amendments to the Tax Code of Ukraine, by which to establish that the annual payment for land lease of state and communal property cannot be less than three-time size of the land tax. The current provision of the Tax Code of Ukraine (sub-clause 288.5.1) specifies that the annual lease payment cannot be less than 3 per cent of the normative monetary evaluation. According to the author of the Draft law, such amendments will provide more fair approach to land payment accounting both for lessors (owners) and for lessees, establishing with the help of the executive bodies and local self-government authorities more flexible procedure of determination the minimum lease payment depending on the size of the land tax. - The Draft law of Ukraine “On Amendments to the Tax Code of Ukraine” (re taxation in the agroindustrial complex) (No. 2585, registered on 07.04.2015, people’s deputy of Ukraine O.B. Bakumenko (Petro Poroshenko Bloc/PPB), R.M. Nasirov ) (PPB, the Head of the Verkhovna Rada Committee for tax and customs policy), M.I. Kucher (PPB), P.B.Yirchyshyn (PPB), O.P. Prodan (PPB), V.V. Halasiuk (Radical Party), S.P. Labaziuk (The Freedom to people Group), V.Y. Ivchenko (Batkivshchyna), O.I. Kulinich (The Vidrodghennia Group), V.V. Holub (PPB). The Draft law offers the chain of changes to the Tax Code, which will allow to rectify defects, collisions and non-conformities in the taxation of agricultural activity and, correspondingly, to improve administration and to decrease tax burden on the industry. Besides, the general provisions of the Draft law offer:

5


Ukrainian Agri Council 01033, Kyiv, 9 Tarasivska str. T:+38 067 471 13 35 E:ir@agrarna-rada.com.ua

• to exclude the real estate tax on kindergartens, schools, village clubs and other objects of village infrastructure from the objects of taxation, and also to grant a remission of taxation on non-residential property of a building and structure for agricultural use, regardless of the subject of ownership; • to allow producers of electricity, received from cogeneration plants and alternative sources, to pay the single tax of the fourth group with certain restrictions; • strictly foresee that advance instalment for the profit tax in case of payment of dividends is not paid by persons who are not profit taxpayers (including single tax payers of the fourth category), or released from the obligation of charging, payment and profit tax reports of enterprises. • to exclude the requirement as to registration the titles for taxation (for getting the right to use the fourth category of the single tax); • to introduce clarity concerning the list of agricultural production for taxation, including ancillary plant and animal products. • temporarily, for 2015, to cancel fees for violation of the order of evaluation and accuracy of completing a non-residential property tax return (due to their inexpedience and cancellation); • to grant the single taxpayers of the fourth group a remission of non-residential property tax; • to change the approach to determination of VAT base, in case of realization of goods/services less than cost price or prime cost (especially it is actual for seasonal and time-sensitive products) and to take into account, while determination of the VAT base, that part of products/services cost on the account of which the credit was formed for the tax payer; • to renew the provisions concerning granting agricultural manufacturers – single taxpayers of the fourth group a remission of payment the actual expenditures, and the delivery of pensions to workers retired before reaching the age limit. - the Draft Resolution of the Verkhovna Rada of Ukraine “On Direction the Cabinet of Ministers of Ukraine as to Renegotiating the Conditions of Getting Credit Means from International Monetary Fund” (No. 2578, registered on 07.04.2015, people’s deputies of Ukraine A. Shypko and others (Vidrodghennia). The draft Resolution offers to direct the Cabinet of Ministers of Ukraine to renegotiate in affiliation with the mission of the International Monetary Fund the conditions of getting credit means, in particular, as to prevention of cancellation the tax benefits, and increase of sizes of taxes and charges. A Memorandum of Understanding between the International Monetary Fund and Ukraine as of 27 February 2015 specifies the necessity of agricultural manufacturers to switch from January 1, 2016 to a general mode of VAT taxation. - the Draft law of Ukraine “On Amendments to the Land Code of Ukraine as to Provision of Effective Usage of Field-protective Belts and Other Protective Stands” (No. 2605, registered on 08.04.2015, people’s deputies of Ukraine A. Gordeev, S. Khlan (PPB)). The aim of the Draft law is to provide the effective use of field-protective belts and other protective stands: The Draft law warrants the following: - excluding field-protective belts and other protective stands from the non-agricultural lands of agricultural for agricultural purpose: - establishing that land plots under field-protective belts and other protective stands are transferred for use to the land owners and other land users, who use adjacent property for conducting commercial agriculture and keep specialized subdivision for forest management; it is prohibited to restrict the citizens in general use of field-protective belts and other protective, in particular, the prohibition to stay free, without issuing special permissions, to pick up for one’s own consumption wild plants, flowers, berries, nuts,

6


Ukrainian Agri Council 01033, Kyiv, 9 Tarasivska str. T:+38 067 471 13 35 E:ir@agrarna-rada.com.ua

mushrooms etc., except the cases stipulated in the Forest Code of Ukraine and other legislative acts of Ukraine. - adding to the list of objects, which can be given in use without an obligatory conduction of ground tenders – land plots with field-protective belts and other protective stands (the new paragraph of the second part of the Article 134 of the Land Code of Ukraine).

- The Draft law of Ukraine on the introduction of amendments into Chapter “Transitional provisions” of the Tax Code of Ukraine (re tax liability peculiarities of the import operation of woodworking equipment to the customs territory of Ukraine and implementation woodworking equipment on the customs territory of Ukraine for industrial production recovery) (No. 2617, registered on April 9, 2015, people's deputies of Ukraine O. Liashko (Radical Party), V. Galasiuk, M. Tomenko (BPP) and others). The Draft law is aimed at promoting the development of woodworking complex of Ukraine, capital formation, exports of products of high added value, provision employment. The Draft law provides temporary added value tax liability for import operation of woodworking equipment to the customs territory of Ukraine and implementation woodworking equipment on the customs territory of Ukraine. - Draft Resolution of the Verkhovna Rada of Ukraine on the main directions of the budgetary policy for 2016 (No. 2623, registered on April 9, 2015, Cabinet of Ministry of Ukraine) Draft Resolution provides approval of the Main directions of the budgetary policy for 2016. The Cabinet of Ministers of Ukraine is to prepare and submit to the Verkhovna Rada of Ukraine the Draft law on the State budget of Ukraine for 2016, taking into account the Main directions of the budgetary policy for 2016. In particular, the main directions provide: Duration of the implementation of the system reforms in the sphere of agro-industrial complex in order to assure comprehensive approach to development of different forms of business activity, development of the infrastructure of agrarian market, promotion of capital formation from international institutions for realization of capital spending and innovational projects in the sphere of agro-industrial complex and simplification of licensing procedures and promotion of domestic agricultural products producers and foodstuffs to foreign market outlet through: maintenance of the development of agrarian market and strengthening its role and influence on agricultural products prices and state food security, that is implementation of agricultural receipts, futures and forward contracts at agricultural products market and cooperation between state operators at the agrarian market (Public Companies “State Food Grain Corporation of Ukraine” and “Agrarian Fund”, budgetary institution “Agrarian Fund”) in connection with state food security and realization of unitary price policy; preparation of the normative legal base as for providing from 2016 state financial aid to small and medium agricultural products producers through low-interest credit and insurance payments, that is procedures of state financial aid in crediting and insurance, insurance products expertise, capital formation into livestock farming branch, determining of optimum size of the State budget expenditures to the specified purpose; completion of harmonization of legislation as for food products security with the European Union legislation and duration of deregulation of entrepreneurship in agrarian sector of economic activity.

7


Ukrainian Agri Council 01033, Kyiv, 9 Tarasivska str. T:+38 067 471 13 35 E:ir@agrarna-rada.com.ua

Government and Ministry of Agrarian Policy and Food of Ukraine activities Normative acts and other relevant initiatives

1. Main public events On Wednesday, April 9, Minister of Agrarian Policy and Food of Ukraine O. Pavlenko stated that the Ministry would announce a new contest in selecting director of the State Enterprise “Ukrspyrt”. On January 28 Ministry of Agrarian Policy and Food of Ukraine announced a contest in selecting a candidate for the position of director of the State Enterprise of distilling and alcoholic beverage industry “Ukrspyrt”. The members of the Contest Commission selecting the candidate were auditing company “Deloitte”, leading recruiting company, specializing on selection of upper managers "Pedersen & Partners", well-known professional school of management HRM, managerial consulting company “Jansen Capital Management”, consulting company “HaRizMa”. 0n March 30 the Contest Commission selected two candidates for the position of director of the State Enterprise “Ukrspyrt”: Nina Harkava and Anatoliy Dalibozhyk. On April 8, 2015 at the Government meeting Prime Minister of Ukraine Arseniy Yatsenyuk charged the Ministry of Agrarian Policy and Food of Ukraine to organize a new contest in selecting a candidate for the position of director of the SE “Ukrspirt” as the candidates selected due to the contest were the subjects of criminal examinations.

On Thursday, April 9, a Memorandum of understanding and cooperation between the Ministry of Agrarian Policy and Food of Ukraine and Georgia Innovation Fund was signed. The cooperation focuses on two main directions – fight against corruption and privatization. According to the previous calculations of the Ministry of Agrarian Policy and Food of Ukraine, more than 120 tsnd ha of land plots will come under privatization. 10 tsnd workers of state agricultural enterprises will be able to use the constitutional right in getting property and land shares. In 2015 the Ministry of Agrarian Policy and Food of Ukraine proposes to privatize 101 state-owned enterprises. The process of privatization of some enterprises is performed according to the requirements of the Law "On Peculiarities of Property Privatization in Agro-Industrial Complex" on the basis of the Government decision through transforming them into joint-stock companies. The Ministry of Agrarian Policy and Food take measures as to excluding stateowned enterprises from of the ministry from the list of the objects, which are not liable for taxation. Te ways of their functioning are being defined – privatization, liquidation, reorganization etc. The amount of such enterprises in the Ministry of Agrarian Policy and Food is 461, 48 of which are on the territory of the Autonomous Republic of Crimea. In the process of corporatization, the Ministry of Agrarian Policy and Food will transfer the State Property Fund of Ukraine the enterprises, privatization of which does not require taking certain decisions of the Cabinet of Ministers of Ukraine. 68 state-owned enterprises, which are at disposal of the Ministry of Agrarian Policy and Food, are at the stage of liquidation.

8


Ukrainian Agri Council 01033, Kyiv, 9 Tarasivska str. T:+38 067 471 13 35 E:ir@agrarna-rada.com.ua

2. Official subordinate normative legal acts, drafts regulatory acts 2.1. On April 9, 2015 Ministry of Agrarian Policy and Food of Ukraine issued Order No. 124 “On Creation of Working Group” of April 3, 2015. The Order provides creation of the working group on improving mechanisms for the implementation and functioning of agricultural receipts, which will have the task of the organization of work on the development of normative legal acts and other documents concerning the improvement of the mechanisms for the implementation and functioning of agricultural receipts. 2.2. On April 9, 2015 Ministry of Agrarian Policy and Food of Ukraine issued draft Order “On invalidation of the Order of the Ministry of Agriculture and Food, Ministry of Industry of Ukraine, Ministry of economy of Ukraine, Ministry of Finance of Ukraine of June 25, 1996 No. 200/126/134/84”. By this document it is proposed to invalidate the order “On the Procedure of Providing Agricultural Commodity Producers with Mineral Fertilizers and Plant Protection Products” where through its provisions are fairly “not used and in no way affect supplying agricultural commodity producers with mineral fertilizers and plant protection products”. 2.3. On April 9, 2015 official web-site of the Ministry of Agrarian Policy and Food of Ukraine issued draft Resolution of the Cabinet of Ministry of Ukraine “On Introduction of Amendments to the Procedure for the Use of Funds Provided by the State Budget for Partial Recovery of Development and Reconstruction Costs of the Livestock farms and Complexes and Provender Milling Enterprises to Subjects of Business Activity”. Corresponding draft is aimed at adjustment of the current Procedure for the use of funds provided by the State budget for partial recovery of development and reconstruction costs of the livestock farms and complexes and provender milling enterprises to subjects of business activity, adopted by CMU resolution of October 4, 2010 No. 900, in accordance with the current legislation that is the law of Ukraine of January 13, 2015 No. 87-VIII “On Introduction of Amendments into Article 17-2 of the Law of Ukraine “On State Support of Agriculture of Ukraine”. Draft Resolution contemplates state support either large or medium and small farming commodity producers through deregulation of capacity of the livestock farms and complexes, which can pretend to partial recovery of development and reconstruction costs. With that, to the list of the objects, costs of which can be partially recovered, milking-rooms and packing houses with mutual form of ownership are cumulated.

9


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.