Ukraine's Rada abolishes government monopoly in alcohol industry

The law will become effective from July 1, 2020.

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The Verkhovna Rada, Ukraine's parliament, has passed a bill to liberalize alcohol production and abolish a government monopoly in the alcohol industry.

The document, which was considered in the second reading and as a whole, was backed by 284 MPs while at least 226 votes are required, an UNIAN correspondent reported on December 3.

Read alsoZelensky proposes abolition of state monopoly on alcohol production

Head of the Committee on Economic Development Dmytro Natalukha said all amendments had been taken into account before the second reading.

"We have made some extremely important amendments that ensure the transparent [procedure for] alcohol production, which refers to the round-the-clock video surveillance and protection of domestic producers, that is, restrictions on imports," he said.

The draft law proposes the abolition of a government monopoly on the production of spirits from January 1, 2020, to bring the alcohol market out of the shadows, according to the explanatory note to the bill.

In particular, licensed businesses of any form of ownership will have an opportunity to produce and sell alcohol, including for exports. The installation of CCTV cameras for round-the-clock video surveillance at production facilities is a condition for obtaining a license.

At the same time, the bill imposes restrictions on alcohol imports until January 1, 2024. Only state enterprises authorized by the Cabinet of Ministers will be able to import the product. Such imports, which shall not exceed 10% of alcohol production at an enterprise, will be carried out under a license.

In addition, it will be possible to produce alcoholic beverages for sale in Ukraine until January 1, 2024, from alcohol of Ukrainian origin in line with the Customs Code of Ukraine.

The bill also introduces an obligation to maintain jobs (70% of the staff) until July 1, 2021, at enterprises that are planned to be offered for privatization.

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