Ukraine's president instructs Cabinet to start preparing Ukrspyrt for sale

Law enforcers, the government, and the President's Office must step up the fight against the Illicit trade in alcohol.

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Ukrainian President Volodymyr Zelensky has instructed the Cabinet of Ministers to approve within two months all necessary bylaws and start preparing for sale the state-run Ukrspyrt, a monopoly on the Ukrainian market of alcoholic beverages.

The president announced the move at a meeting with Cabinet and Parliament officials on the fulfillment of tasks set before the government, and short-term plans, the president's press service said on January 4.

Moreover, law enforcement agencies, the government, and the President's Office must step up their fight against the illicit trade in alcohol, the head of state said.

As UNIAN reported earlier, in December 2019, the Verkhovna Rada passed a draft law to abolish a government monopoly on the production of spirits from January 1, 2020, and to bring the alcohol market out of the shadows. The law also provides for the sale of existing distilleries.

Read alsoUkraine's economy ministry revises downward forecast for revenue from Ukrspyrt sale

State-run Ukrspyrt, a monopoly on the Ukrainian market of alcoholic beverages, was created on the basis of the concern in 2010. Ukraine's Cabinet of Ministers has consistently advocated the sale of Ukrspyrt, guided by the recommendations of the International Monetary Fund (IMF), Ukraine's key lender.

The Economic Development, Trade and Agriculture Ministry estimates revenue from the sale of Ukrspyrt at UAH 2 billion-UAH 3 billion (US$80.5 million – UAH$1250.7 million), planning to complete the procedure before July 1, 2021.

In December 2019, the ministry audited the enterprise having found out that only 29 Ukrspyrt plants out of 83 were in operation there.

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