Until July 1, 2021, ethyl alcohol will be produced only at state-owned factories / Photo from ukrspirt.com
A license for the production of ethyl alcohol will be issued to enterprises, which have CCTV cameras monitoring the production and distribution of products.
Ukraine cancelled the state monopoly on ethyl alcohol production from July 1, 2020.
Law No. 2300 amending the law on state regulation of the production and turnover of ethyl, cognac and fruit alcohol, alcoholic beverages, tobacco and fuel, which entered into force on December 14, 2019, removed the state monopoly on ethyl alcohol production from July 1, 2020, according to Ukraine's state-run distillery enterprise Ukrspyrt.
Acting Director of Ukrspyrt Serhiy Bleskun said enterprises of any form of ownership could obtain a license for the production of ethyl alcohol.
"However, until July 1, 2021, ethyl alcohol will be produced only at state-owned factories, which will soon be put up for sale. Therefore, it is now important to expedite the bidding process together with the Ministry for Development of Economy, Trade and Agriculture, and the State Property Fund," he said.
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Ukrspyrt reiterated the law on liberalization of the alcohol industry provides that business entities of any form of ownership are allowed to produce ethyl alcohol (in particular, as a pharmaceutical product), rectified grape ethyl alcohol, rectified fruit ethyl alcohol, grain distillate product and bioethanol upon receipt of the relevant licenses.
A license for the production of ethyl alcohol will be issued to enterprises, which have CCTV cameras monitoring the production and distribution of products. Disabling these cameras is the basis for refusing or revoking a license.
The law also introduces liberalization of ethyl alcohol exports from Ukraine, i.e. all business entities will be able to ship produce abroad if they obtain a license for the production of ethyl alcohol.
What is more, the commissioning and issuance of permits for the construction of new ethyl alcohol production facilities is allowed from July 1, 2021.
Manufacturers of ethyl alcohol will be able to sell it to domestic consumers if they have a license for wholesale trade in alcohol.
At the same time, the law provides only state-owned enterprises and organizations specially authorized by the Cabinet of Ministers of Ukraine may import ethyl alcohol until January 1, 2024.
Persons who have acquired Ukrspyrt's property, as well as Ukrspyrt's enterprises, by July 1, 2021, must commit themselves not to change the types of activities and keep no less than 70% of the staff involved in production as of January 1, 2020.
The law prohibits residents of the aggressor state and persons and enterprises acting in the interests of the aggressor from participating in the privatization and leasing of state-owned enterprises involved in the production of ethyl alcohol.
As UNIAN reported earlier, Ukrspyrt increased its net profit by 60% in the first quarter of 2020, to UAH 9.3 million (US$347,404) against UAH 3.7 million (US$138,214) year-over-year.
UNIAN memo. State-owned Ukrspyrt, which was set up on the basis of a consortium with the same name in 2010, is an alcohol monopoly in Ukraine.