RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/UKR/115 
23 March 2004 
 
 (04-1294) 
Working Party on the 
Accession of Ukraine Original:   English 
 
 
 
ACCESSION OF UKRAINE 
 
Questionnaires on State-Trading Activity  
 
 
 The Governmental Commission on Ukraine's A ccession to the World Trade Organization has 
submitted the following Questionnaires on State-Tradi ng Activity, with the request that they be 
circulated to members of the Working Party.  
 
_______________ 
 WT/ACC/UKR/115 
Page 2  
 
 Questionnaire 1 On State Trading Activity
 
The State Corporation of Alcohol and Liquor Industry  
("Ukrspirt" corporation)  
I. The list of the state trade enterprises  
The state corporation of the alcohol and liquor industry ("Ukrspirt" corporation).  At present, the 
"Ukrspirt" corporation consists of 91 state enterp rises including 74 alcohol plants and other facilities 
and 2 liquor and vodka factories. 
The basic product exported by the enterprises of the "Ukrspirt" corporation is ethyl alcohol (UKR CN 
FEA classification 2207 – ethyl denaturated alcohol) produced on the basis of the following documents: 
GOST 5961-67 "Rectified ethyl alcohol" 
TU U 18.510-99 "Technical ethyl alcohol" II. The reasons and the purpose of the establishm ent and the management of the state trading 
enterprise  
In order to form and implement a unified customs policy in the production of the ethyl alcohol, vodka 
and liquor products Resolution of the Cabinet of Mi nisters of Ukraine "On the Improvement of the 
Management of the Enterprises of the Alcohol a nd Liquor Industry" No. 70 1, of 29 June 1996 has 
established the State Corporation of the Alcohol and Liquor Industry as a single production facility 
bringing together the state enterprises producing alcohol and liquors. 
In accordance with Law "On the State Regulation of  the Production and Circulation of the Ethyl, 
Cognac and Fruit Alcohol, Alcohol Beverages and Tob acco Products", the export of alcohol is subject 
to license and can only be performed by state enterpri ses or organizations, specially authorized by the 
Cabinet of Ministers of Ukraine. 
At present, the "Ukrspirt" corporation has th e license to engage in the export of alcohol. 
III.  The description of the functioning of the "Ukrspirt" State Corporation  
The charter documents of the "Ukrspirt" corpora tion, as approved by Resolution of the Cabinet of 
Ministers No. 1039, of 4 September 1996, establishes the main tasks of the corporation as follows:  
the provision for the production of the ethyl al cohol, vodka and liquor products, management of 
centralized investment, coordination of the  work of the oblast unions, enterprises and organizations 
participating in the production of alcohol and al cohol products, implementing a set of measures in 
order to improve the quality and competitiveness of  the goods produced by the enterprises of the 
corporation, ensuring the needs of the country in the alcohol, engaging in the marketing for alcohol 
and alcohol products, the exploration of new market s, provision of export, implementing a unified 
technical policy aimed at reaching a world level of production technology and quality of products, creation of new enterprises and liqui dation of the obsolete factories. 
The export of ethyl alcohol is regulated by Law "On the State Regulation of Production and 
Circulation of Ethyl, Cognac and Fruit Alc ohol, Alcohol Beverages and Tobacco Products" 
No. 481/95, of 19 December 1995.  WT/ACC/UKR/115 
 Page 3 
 
 
 In accordance with Article 15 of this law the et hyl alcohol may only be exported by the state 
enterprises or organizations specially authorized  by the Cabinet of Ministers of Ukraine. 
At present the "Ukrspirt" corporation has the ri ght to engage in the export of ethyl alcohol. 
The main criteria in the determination of the export prices for the ethyl alcohol is the value of the raw 
materials, the fuel and energy materials, expend itures for the processing of the raw materials. The 
average export price for the ethyl alcohol in the en terprises of the "Ukrspirt" corporation is US$ 3.9 
for 1 decilitre of alcohol. 
The enterprises included in the "Ukrspirt" do not engage in the import of ethyl alcohol. Foreign economic contracts for the supply of the ethyl alcohol are concluded for one year term. 
Table I
 
The State Trade:  The State Corporation of the Alcohol and Liquor Industry ("UkrSpirt" corporation)  
Description of 
goods 
(including HS 
codes) The general 
volume of 
exports The volume of 
exports 
exported by 
the state 
trading 
enterprise The average 
purchase price The average 
typical 
internal sale 
price Average 
export price The national 
production 
1 2 3 4 5 6 7 
Ethyl alcohol not 
denaturated; 
Ethyl alcohol, 
denaturated 
2207 5,095.62 
deciliters 5,095.62 
deciliters - 19.34 
UAH/deciliter 3.9 
USD/deciliter 
(DAF) 26,400 
deciliters 
Statistic Information - Export 
* the enterprise is not engaged in purchase.  
Table ІІ 
State Trading:  The State Alcohol and Liquor Enterprise Corporation ("Ukrspirt" corporatin")  
Statistic Information - Domestic Activity  
2001 2002 2003 
Produced Shipped in the 
domestic market Produced Shipped in the 
domestic 
market Produced Shipped in the 
domestic 
market  
(Mln. deciliters) (Mln. deci liters) (Mln. deciliters) 
Alimentary 19.21 14.55 16.82 13.65 5.98 3.11 
Technical 3.85 3.57 7.17 6.21 1.26 0.72 
Total 23.06 18.12 23.99 19.87 7.24 3.83 
 WT/ACC/UKR/115 
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 Questionnaire 2 On State Trading Activity
 
Of the State-owned Enterprise "Energorynok" (Energy Market)  
Enumeration of State Trading Enterprises  
The state-owned enterprise "Energorynok" (Energy Ma rket) was formed with the view of ensuring the 
operation of the wholesale electric energy market in conformity with the Resolution of the Cabinet of 
Ministers of Ukraine of 5 May 2000 No. 755.  The company was founded by the state represented by 
the Cabinet of Ministers of Ukraine.  Identification code of the Company is 21515381. 
Electric energy. (Number as per HS - 2716000000) II. Reason and purpose for establishing and/or maintaining state trading enterprise
 
The enterprise has been set up with the view of  introduction of effective mechanisms of electric 
energy wholesale market organization and creation of conditions for its operation. 
Legal authority: 
− performance of licensed activities involving and related to electric energy sale and 
purchase;  
− performance of foreign economic activity in compliance with the law; 
− implementation of agreements entered into  with business entities licensed to transmit 
electric energy through bus networks and in terstate electric networks regulating the 
electric energy transmission through said networks;  
− organizational, resource and technical support to the electric energy wholesale market 
functioning; and 
− performance of functions of a payments system  manager, as well as of a manager of funds 
of the electric energy wholesale market.  
The Law of Ukraine On Electric Energy Sector, the Resolution of the Cabinet of Ministers of Ukraine 
of 5 May 2000 No. 755 On Foundation of the State Enterprise "Energorynok", Resolution of the Cabinet of Ministers of Ukraine of 5 June 2000 No . 922 On Approval of Articles of Incorporation of 
the State Enterprise "Energorynok", Resolution of  the Cabinet of Ministers of Ukraine of 
5 November 1999 No. 2043 On Approval of Provisi onal Conditions of Operation of Ukraine's 
Electric Energy Wholesale Market, the Agreement among Members of the Electric Energy Wholesale Market of Ukraine of 15 November 1996. 
III.  Description of the functioning of the State Trading Enterprise
 
− the buying of electric energy from producer s whose capacity or sales amounts exceed cap 
limits (save for the electric energy generated at thermal plants incorporated in energy 
suppliers, for the consumption within areas of  performance of licensed activities), as well 
from business entities owning th e electric energy produced from raw materials supplied 
on a tolling basis;  
− the buying of electric energy from participan ts of the Electric Energy Wholesale Market 
(hereinafter referred to as EWM), obtained by them as per agreements on its import;  
− wholesale supply of the electric energy; and 
− entering into agreements on the electric ener gy transmission with a business entity having 
obtained a license authorizing such transmi ssion through bus networ ks and interstate 
electric networks and enforcement of such agreements.  WT/ACC/UKR/115 
 Page 5 
 
 
 Performance of responsibilities of a manager of the payments and EWM funds system, as well as of 
responsibilities of the EWM Council Secretariat, including among other things the following:  
− the by-the-hour planning of the workload distribution among energy generating sources 
for the next 24-hour cycle for the purposes of determining the hourly prices to the electric 
energy and capacity, production outputs and electric energy wholesale supplies 
optimization. The workload schedules for the ne xt 24-hour cycle are to be agreed with the 
utility performing the centralized dispatcher ma nagement of the energy system, which in 
case of a failure to obtain such agreement,  shall make a final decision concerning the 
workload distribution;  
− the calculation of hourly projected prices fo r the electric energy and capacity based on the 
optimization of modes of operation of nuc lear, thermal and hydraulic power plants, 
external transfusions, submitted price applica tions of generating utilities and the projected 
volumes of the electric energy consumption for the next 24-hour cycle;  
− calculation of actual wholesale prices for the electric energy subject to EWM rules;  
− calculation of payments due for the electric en ergy and of the reported balance sheet of 
the electric energy sale and purchase;  
− ensuring and performing payments for the so ld and purchased electric energy; and 
− maintaining the accounting inventory of transactions involving the electric energy sale 
and purchase and payments for it, and preparation and submission of the accountancy reporting.  
Organizational, technical and material support to the EWM operation including:  
− organization of the EWM participants' general meetings, EW M Council meetings, 
workgroups, as well as of workshops for the EWM participants; and 
− performance of activities as per intrastate agreements – drafting, registration and 
performance monitoring of agreements on tran sactions involving the electric energy in 
EWM; performance of expert review of th e agreements; the software support of the 
agreements database. 
Participation in foreign economic  relations with energy systems of adjacent states, namely:  
− in entering into interstate agreements in re gard of ensuring concurrent operation of the 
united energy system of Ukraine with energy systems of adjacent countries;  
− in planning and coordination of the electric energy interstate transfusion schedules;  
− in calculation of the electric energy inte rstate transfusion amounts with the annual 
signature of respective acts with en ergy systems o adjacent countries;  
− information cooperation with the State Customs Service in regard to the electric energy 
interstate transfusions;  
− development and operation of the softwa re required for the EWM operation;  
− review and submission to the EWM Council,  National Commission of the Electric Energy 
Sector Regulation and Antimonopoly Committee of Ukraine of proposals to the effect of 
amendments and additions to the Agreement among EWM members, to the EWM Rules, 
directives and to other regulatory acts governing the EWM operation;  
−
 participation in the developm ent, improvement, introduction and promotion of the electric 
energy commercial inventory;  
− organization of trade shows, conferences, sy mposia, and other events related to the EWM 
operation;  
− drafting, publication and dissemination of  the printed, awareness building and 
promotional materials pertinent to the EWM operation; and 
− organization and provision of advisory services related to the EWM operation.  WT/ACC/UKR/115 
Page 6  
 
 No other state enterprises similar to the type of ope ration of the state enterprise "Energorynok" exist 
in Ukraine.  
The volumes of the electric energy imports are de fined in accordance with the requirements of the 
United Energy System of Ukraine in the coverage of  insufficient workloads, subject to an agreement 
of the Cabinet of Ministers of Ukraine and the Ministry of Fuel and Energy of Ukraine.  The pricing 
policy governing the electric energy sale and purchase within EWM is defined by the National 
Commission of the Electric Energy Sector Regulation.  
No export sales of the electric energy were performed  by the state enterprise "Energorynok" over the 
reporting period. 
The imported electric energy is distributed within EWM subject to the Rules of the Electric Energy 
Wholesale Market being an integral component of the Agreement among Members of the Electric 
Energy Wholesale Market of Ukraine. 
The State Enterprise "Energorynok" engages in negot iations to the end of entering into contracts upon 
the approval of special decisions by the Cabinet of Ministers of Ukraine and the Ministry of Fuel and 
Energy of Ukraine. 
In pursuance of Instruction No. 2274/35 of 14 Febr uary 2001 issued by the First Vice Prime Minister 
of Ukraine O.V. Dubyna, "Energorynok" entered in to a contract with the Russian Joint Stock 
Company "Yedinyie Energosistemy Rossiyi – R AO "EES" Rossiyi" (United Energy Systems of 
Russia) dated 23 February 2001 No. 804/4-2001/321/01 providing for the supply of the electric energy to coal mines of Lugansk region in the am ount of 5 million kW per month.  The contract was 
being implemented in the conditions of separate ope ration of energy systems of Ukraine and of the 
Russian Federation. 
With the view of ensuring the concurrent opera tion of Ukraine's and Russi an Federation's energy 
systems as envisaged by the Protocol of Negotiations  between the Ministry of Fuel and Energy of 
Ukraine, the State Enterprise "Energorynok" and RAO "EES ROSSIYI" date d 26 January 2001, and 
the Memorandum On Cooperation in the Electric Energy Sector between the Ministry of Fuel and 
Energy of Ukraine and RAO "EES ROSSIYI", long-term contracts dated 9 February 2001 
No. 804/2-2001/375/01 and No. 804/3-2001/376/01 were entered into the State Enterprise 
"Energorynok" and RAO "EES ROSSIYI" providing for the sale and purchase of the balance transfusions of the electric energy from the United Energy Systems of Russia to the United Energy 
Systems of Ukraine and from the United Energy Syst ems of Ukraine to the Un ited Energy Systems of 
Russia. In pursuance of the Resolution of the Ca binet of Ministers of Ukraine dated 4 April 2001 
No. 320 On Transition of the United Energy Systems of Ukraine to Parallel Operation with the United 
Energy System of the Russian Federation, th e above contracts entered into effect as at 
20 August 2001. 
No sales of the electric energy under contract No. 804/3-2001/376/01 were performed.   WT/ACC/UKR/115 
 Page 7 
 
 
 Table I  
State Trading:  State Trading Enterprise "Energorynok"  
Statistical Information - Imports  
Good(s) 
description 
(including HS 
number(s) Total imported 
amount 
(kW/h) Quantity 
imported by 
the State 
Enterprise 
(kW/h) Average 
import price, 
(USD/kW/h) Average 
standard sale 
price 
(USD/kW/h) Markup 2 
(USD per 
kW/h) Domestic Product 
(kW/h) 
1 2 3 4 5* 6* 7 
2001 
Electric 
energy 
2,716,000,000 185,026,223 185,026,223 142.69 14, 779 0.51 144,604,404,383 
2002 
Electric 
energy 
2,716,000,000 231,128,773 231,128,773 123,2 13. 05 0.73 146,246,951,386 
2003 (01/01 – 30/06) 
Electric 
energy 
2,716,000,000 137,657,030 137,657,030 12,836 13, 678 0.82 78,071,353,266 
*/- average US$ exchange rate as set by the NBU   2001 – 537,121.51 UAH for US$ 100 
2002 – 532,662.012 UAH for US$ 100 - 2003 – 533,355.318 UAH for US$ 100 WT/ACC/UKR/115 
Page 8  
 
 Table III *
 
State Trading:  State Enterprise "Energorynok"  
Statistical Information:  Operations within the Country  
Good(s) description 
(including HS 
number(s) Purchases in 
Domestic Market by 
the State Trading 
Enterprise (kW/h) Domestic Product Sales in Domestic 
Market by the State 
Trading Enterprise 
(kW/h) National 
Consumption 
1 2 3 4 5 
2001 
Electric energy 2,716,000,000 144,604,404,383 144,604,404,383 140,256,579,587 122,515,800,000 
2002 
Electric energy 
2,716,000,000 146,246,951,386 146,246,951,386 142,025,300,278 123,445,300,000 
January – June 2003 
Electric energy 
2,716,000,000 78,071,353,266 78,071,353,266 75,844,497,208 64,981,500,000 
 
 
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