G/STR/N/19/UKR  
 
4 July 2022  
(22-5161) Page: 1/6 
Working Party on State Trading Enterprises  Original: English  
 
STATE TRADING  
NEW AND FULL NOTIFICATION PURSUANT TO ARTICLE XVII:4(A) OF THE  
GATT 1994 AND PARAGRAPH 1 OF THE UNDERSTANDING ON  
THE INTERPRETATION OF ARTICLE XVII  
UKRAINE  
The following communication, dated and received on 1 July 2022, is being circulated at the request 
of the delegation of Ukraine . 
 
_______________  
 
 
Pursuant to the provisions of Article XVII:4(a) of the GATT 1994 and paragraph 1 of the 
Understanding on the  Interpretation of the Article XVII, and in response to the call for notifications 
set forth in document G/STR/N/19 , Ukraine submits herewith its notification, covering the years 
2020-2021, concerning the State Enterprise of liqueur and alcoholic beverage industry "Ukrspyrt" 
(hereinafter – the State Enterprise "Ukrspyrt").  
At the same time, Ukraine  notifies that according to the relevant changes in Ukraine 's 
legislation, the State Enterprise "Ukrspyrt"  from 1 July 2020 was deprived of its exclusive  
or special rights or privileges to export agricultural products  (in particular, undenatured ethyl 
alcohol of an alcoholic strength by volume of 80% vol. or higher – heading 2207). The corresponding 
explanation is given below.   
I. Enumeration of state trad ing enterprises  
A. Identification of state trading enterprises  
The State Enterprise "Ukrspyrt"  
16, Gagarina Street,  
Brovary, 07400 , 
Kyiv Region, Ukraine  
Tel: +38 (044) 393 58 01  
e-mail: office@ukrspirt.com  
web address: www.ukrspirt.com  
B. Description of products affected  
Undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol. or higher; ethyl  alcohol 
and other spirits, denatured, of any strength, – heading 2207 of the UKTZED ( UKTZED is the 
Ukrainian Foreign Economic Activity Commodity Classification, based on Harmonized System 2017 ). 
II. Reason and purpose  
A. Reason or purpose for establishing and/or maintaining state trading enterprise  
The State Enterprise "Ukrspyrt" was established according to the Resolution of the Cabinet of 
Ministers of Ukraine of 28 July 2010 No. 672 "On establishment of the State Enterprise of liqueur G/STR/N/19/UKR  
 
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  and alc oholic beverage industry" to increase the efficiency of the functioning of state enterprises of 
liqueur and alcoholic beverage industry and to improve the management system in the mentioned 
area. 
B.  Summary of legal basis for granting the relevant exclusi ve or special rights or 
privileges, including legal provisions and summary of statutory or constitutional powers  
According to  the previous wording  (valid until 30  June 2020) of paragraph 1 of Article 2 of the Law  of 
Ukraine of 19 December 1995 No. 481/95 -ВР: "On state regulation of production and circulation of 
ethyl, cognac and fruit alcohol, alcoholic beverages, tobacco products, liquids used in electronic 
cigarettes, and fuel ", the production  of ethyl alcohol (including as a medical product), ethyl rectified 
grape alcohol, ethyl rectified fruit alcohol, grain distillate can be performed only by state 
enterprises . The production of bio -ethanol can be carried out by enterprises of all patterns o f 
ownership, which are granted corresponding licenses.  
New wording  of paragraph 1 of Article 2 of the mentioned Law that is applicable from 1  July 2020:  
The production  of ethyl alcohol (including as a medical product), ethyl rectified grape alcohol, ethyl  
rectified fruit alcohol, grain distillate and bio -ethanol can be carried out by business entities of all 
patterns of ownership , which are granted corresponding licenses.  
Paragraph 1 (previous wording  that was valid until 30  June 2020) of Article 14 of the  mentioned Law 
says that import, export  of ethyl alcohol, ethyl rectified grape alcohol and ethyl rectified fruit alcohol 
can be carried out  only by state  enterprises  (or organizations) that are authorized by the 
Cabinet of Ministers of Ukraine  to carry out such activities. The wholesale  of ethyl alcohol, ethyl 
rectified grape alcohol and ethyl rectified fruit alcohol  on the territory of Ukraine  can be carried 
out only by state enterprises  (or organizations) that are authorized by the Cabinet of  
Ministers of  Ukraine  and granted a corresponding license , except the wholesale of ethyl alcohol 
meant for medicine and veterinary medicine that can be carried out by medical institutions, business 
entities (including  business entities  operating through th eir registered permanent representative 
offices)  or veterinary medicine supplying companies, irrespective of patterns of ownership, having 
appropriate license.  
New wording  of paragraph 1 of Article 14 the Law ( applicable from 1  July 2020): 
Export  of ethyl alcohol, ethyl rectified grape alcohol and ethyl rectified fruit alcohol can be carried 
out by business entities,  that are  granted a license to produce such alcohol . Import and the 
wholesale  of ethyl alcohol, ethyl rectified grape alcohol and ethyl rectifi ed fruit alcohol on the 
territory of Ukraine can be carried out with a license  for wholesale of such alcohol. The wholesale 
of ethyl alcohol meant for medicine and veterinary medicine can be carried out by medical 
institutions, business entities (or organi zations) or veterinary medicine supplying companies, 
irrespective of patterns of ownership, having a license  for wholesale of ethyl alcohol.   
According to paragraph 11  (previous wording  that was valid until 30  June 2020) of Article 14 of the 
mentioned Law, the business entities  (including business entities operating through their 
registered permanent representative offices) that produce ethyl alcohol export  it through the 
state enterprises  (or organizations) that are authorized by the Cabinet of Ministers of 
Ukraine . 
New wording  (applicable  from 1  July 2020): 
The business entities  (including business entities operating through their registered permanent 
representative offices) – producers of ethyl alcohol export  it having a license for production  of 
ethyl alcohol.  
Paragraph 12  (previous wording  that was valid until 30  June 2020)  of Article 14 of the mentioned 
Law provides that the business entities  (including business entities operating through their 
registered perma nent representative offices) that produce ethyl alcohol sell it to the national 
consumers through  the state enterprises  (or organizations) that are authorized by the Cabinet 
of Ministers of Ukraine  and granted a corresponding wholesale license.  G/STR/N/19/UKR  
 
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  New wording  (applicable from 1  July 2020): 
The business entities  that produce ethyl alcohol sell it to the national consumers having a license 
for wholesale of ethyl alcohol.  
Paragraph 1 of Article 15 of the mentioned Law states that import, export of alcoholic beverages can 
be carried out by business entities (including business entities operating through their registered 
permanent representative offices) of all patterns of ow nership without having a license. The 
wholesale of alcoholic beverages can be carried out by business entities (including business entities 
operating through their registered permanent representative offices) of all patterns of ownership 
having appropriate  wholesale licenses.  
III. Description of the functioning of the state trading enterprise  
A. Short description of the State Enterprise "Ukrspyrt " 
The State Enterprise "Ukrspyrt" was established through merging assets of the State Concern of 
liqueur and spi rits industry "Ukrspyrt", state enterprises and associations of alcohol and alcoholic 
beverage industry under the authority of the Ministry of Agrarian Policy and Food of Ukraine.  
The State Enterprise "Ukrspyrt" was the successor of the State Concern of li queur and spirits industry 
"Ukrspyrt".  
The State Enterprise "Ukrspyr t" had exclusive rights ( until 30 June 2020) to produce, export and 
wholesale of ethyl alcohol, ethyl rectified grape alcohol and ethyl rectified fruit alcohol (falling under 
heading 2207 of the UKTZED). From 1 July 2020, the State Enterprise "Ukrspyrt" was deprived of 
its above mentioned exclusive rights.  
B. Specification of exclusive or special rights or privileges enjoyed by the state trading 
enterprise  
In 2020 ( 1 January  2020 - 30 June 2020), the State Enterprise "Ukrspyrt" was authorized to export 
ethyl alcohol, ethyl rectified grape alcohol and ethyl rectified fruit alcohol (falling under heading 2207 
of the UKTZED) and wholesale of ethyl alcohol , ethyl rectified grape alcohol an d ethyl rectified fruit 
alcohol (falling under heading 2207 of the UKTZED) according to the Resolution of the Cabinet of 
Ministers of Ukraine of 28 July 2010 No. 672 "On establishment of the State Enterprise of liqueur 
and alcoholic beverage industry".  
In 2020 ( 1 January  2020 - 30 June 2020), the State Enterprise "Ukrspyrt" produced and sold ethyl 
alcohol and alcohol -based substances based on:  
• License on production of ethyl alcohol (series AE No. 297370, reg. No. 171), issued by the 
State Fiscal Service of Ukraine, valid from 15 October 2015 to 15 October 2020;  
• License for wholesale trade in ethyl alcohol (series AE No. 297267, reg. No. 100305), issued 
by the State Fiscal Service of Ukraine, valid from 2 September 2015 to 2 September  2020;  
• License for ethyl alcohol, cognac and fruit alcohol export (series EC No. 000040, 
reg. No. 1500000100104), issued by the Ministry of Economic Developme nt and Trade of 
Ukraine, valid from 4 September 2015 to 4 September 2020.  From 1 July 2019 the 
requirement for an export license for ethyl alcohol, ethyl rectified grape alcohol and ethyl 
rectified fruit alcohol was abolished in accordance with the Law of Ukraine of 
23 November  2018 No. 2628-VIII "On Amendments to the Tax Code of Ukraine and some 
other legislative acts of Ukraine to improve the administration and revision of the rates of 
certain taxes and fees".  
C. Type of entities other than the state trad ing enterprise that are allowed to engage in 
importation/exportation and conditions for participation  
Until 30  June 2020, import, export of ethyl alcohol, ethyl rectified grape alcohol and ethyl rectified 
fruit alcohol could be carried out only by state en terprises (or organizations) that were authorized 
by the Cabinet of Ministers of Ukraine to carry out such activities. The wholesale of ethyl alcohol, G/STR/N/19/UKR  
 
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  ethyl rectified grape alcohol and ethyl rectified fruit alcohol  on the territory of Ukraine  could be 
carried out only by state enterprises (or organizations) that were authorized by the Cabinet of 
Ministers of Ukraine and granted a corresponding license, except the wholesale of ethyl alcohol 
meant for medicine and veterinary medicine that could b e carried out by medical institutions, 
business entities (including  business entities  operating through their registered permanent 
representative offices)  or veterinary medicine supplying companies, irrespective of patterns of 
ownership, having appropriate  license.  
From 1  July 2020, export of ethyl alcohol, ethyl rectified grape alcohol and ethyl rectified fruit alcohol 
can be carried out by business entities, that are granted a license to produce such alcohol. Import 
and the wholesale of ethyl alcohol, eth yl rectified grape alcohol and ethyl rectified fruit alcohol on 
the territory of Ukraine can be carried out with a license for wholesale of such alcohol. The wholesale 
of ethyl alcohol meant for medicine and veterinary medicine can be carried out by medica l 
institutions, business entities (or organizations) or veterinary medicine supplying companies, 
irrespective of patterns of ownership, having a license  for wholesale of ethyl alcohol.   
Until 30  June 2020, import, export of alcoholic beverages could be car ried out by business entities 
(including business entities operating through their registered permanent representative offices) of 
all patterns of ownership without having a license. The wholesale of alcoholic beverages could be 
carried out by business ent ities (including business entities operating through their registered 
permanent representative offices) of all patterns of ownership having appropriate wholesale licenses.  
D. How import/export levels are established by the state trading enterprise  
In 2020 (1 January  2020 - 30 June 2020), when establishing export levels, the State Enterprise 
"Ukrspyrt" considered international prices and commercial reasoning. The State Enterprise 
"Ukrspyrt" did not conduct imports.  
E.  How export prices are determined  
In 2020 (1  January  2020 - 30 June 2020), i n the process of determining the export prices, the 
State  Enterprise "Ukrspyrt" was  guided by the price formed in the conditions of a market economy 
and competition.  
F. How the resale prices of imported goods are determined  
In 2020 ( 11 January  2020 - 30 June 2020), the State Enterprise "Ukrspyrt " neither conducted 
imports, nor resold imported products.  
G. Whether long -term contracts are negotiated by the state trading enterprise.  Whether 
the state trading enterprise is used to fulfill contractual obligations entered into by the 
government  
In 2020 (1  January  2020 - 30 June 2020), no long -term contracts were negotiated by the 
State  Enterprise "Ukrspyrt".  
In 2020 (1  January  2020 - 30 June 2020), the State Enterprise "Ukrspyrt" was not involved in 
fulfilling contractual obligations entered into by the Government.  
H. Short description of the structure of the market  
In 2020 (1  January  2020 - 30 June 2020), besides the State Enterprise " Ukrspyrt", more than 
forty companies of liqueur and alcoholic beverage industry could produce ethyl alcohol and 
alcohol -based products.  
  
  G/STR/N/19/UKR  
 
- 5 - IV. STATISTICAL INFORMATION  
TABLE II  
STATE TRADING: THE STATE ENTERPRISE "UKRSPYRT " 
STATISTICAL INFORMATION, EXPORTS, 2020  
 
Description of product(s)  
(including HS number(s))  Total quantity 
exported  
(thousand 
decalitres)* Quantity 
exported by  
state trading 
enterprise 
(thousand 
decalitres)** Average 
procurement 
price  Average 
representative 
domestic sales 
price  
(UAH/decalitre)  Average export 
price  
(USD/decalitre)*
** National 
production 
(thousand 
decalitres)**** 
1 2 3 4 5 6 7 
Undenatured ethyl alcohol of an 
alcoholic strength by volume of 
80% vol. or higher 
(UKTZED  2207 10 00) 395.9 304.3 - - 4.8 9,422.1  
* According to the State Statistics Service of Ukraine,  for the period 1 January - 30 June 2020  (http://www.ukrstat.gov.ua ). 
** According to the State Enterprise "Ukrspyrt ", for the period 1 January - 30 June 2020 . 
*** According to the State Enterprise "Ukrspyrt ", for the period 1 January - 30 June 2020 . 
**** According to the State Statistics Service of Ukraine ( http://www.ukrstat.gov.ua ). 
   
  G/STR/N/19/UKR  
 
- 6 - TABLE III  
STATE TRADING: THE STATE ENTERPRISE "UKRSPYRT " 
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES, 20 20 
Description of product(s)  
(including HS number(s))  Domestic purchases by  
state trading enterprise  
(thousand decalitres)  National production  
(thousand 
decalitres)* Domestic sales by  
state trading enterprise  
(thousand decalitres)** National consumption  
(thousand decalitres)  
1 2 3 4 5 
Undenatured ethyl alcohol of 
an alcoholic strength by 
volume of 80% vol. or 
higher (UKTZED 2207  10 00) - 9,422.1  6,420  - 
* According to the State Statistics Service of Ukraine ( http://www.ukrstat.gov.ua ). 
** According to the State Enterprise "Ukrspyrt ". 
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