November 8, 2010

EBRD calls on Ukraine to draft grain sector's enhancement strategy

The European Bank for Reconstruction and Development (EBRD) has called on Ukraine and other countries in the bank's region of operation to draft strategies for the development of their grain industries.

The European Bank for Reconstruction and Development made this call at the end of a workshop it held-with the support of the UN's Food and Agriculture Organization-with senior representatives from the largest global and local companies in the grains and oilseeds industry.

"Governments need to consult the private sector actors and set out strategies for the near and medium term development of their grain sectors" the EBRD said.

According to the EBRD, governments should limit their intervention on grain markets to ensuring an emergency reserve.

In addition, the EBRD noted that Russia, Ukraine, Kazakhstan, and other countries in the EBRD region should refrain from enacting informal restrictions to selectively accommodate interests of corporations with political connections under the pretext of pursuing social aims.

The EBRD stressed that that the governments of these countries should act in a predictable and transparent manner, which will enable the people participating at the roundtable to increase their long-term investments in the EBRD region.

In its recommendations, the EBRD said that governments, especially in Romania and Ukraine, needed to improve their VAT regimes.

Earlier, the European Commission has called on Ukraine to promptly organise a transparent process for selling quotas for export of grain. The parliament intends to allow the Cabinet of Ministers to introduce a mechanism for selling quotas for export of grain at auctions.

The Economy Ministry is accepting applications for licenses to export grain under the export quota that has not yet been distributed from November 4 to 18.