Volodymyr Zelensky / REUTERS
The presidential bill also introduces the full liberalization of alcohol shipments from Ukraine.
Ukrainian President Volodymyr Zelensky has introduced a bill to the Verkhovna Rada, Ukraine's parliament, on liberalization of alcohol production to abolish the state monopoly in the sector.
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In particular, the draft law to amend the Law of Ukraine on state regulation of the production and turnover of ethyl, cognac and fruit alcohol, alcoholic beverages, tobacco products and fuel abolishes the state monopoly on the production of spirits from January 1, 2020, to bring the alcohol market out of the shadows.
The bill provides an opportunity for licensed business entities of any form of ownership to produce and sell alcohol.
"Wholesale trade in ethyl alcohol in Ukraine is subject to licensing," the president's press service said on October 23.
The draft law also introduces the full liberalization of alcohol shipments from Ukraine. In particular, business entities with relevant production licenses could export ethyl alcohol, rectified ethyl alcohol made from grape, and rectified ethyl alcohol made from fruit.
At the same time, to protect the domestic producers, the bill envisages that only enterprises authorized by Ukraine's Cabinet of Ministers will be able to import alcohol until January 1, 2022.
Over the past decade, the output of legal ethyl alcohol in Ukraine decreased by 75%, the press service said. At the same time, the share of shadow turnover of ethyl alcohol soared from 10% in 2007, to 55% of the total consumption of this type of alcohol in 2019.