G/STR/N/18/UKR  
 
1 July  2020 
(20-4563) Page: 1/8 
Working Party on State Trading Enterprises  Original: English  
 
STATE TRADING  
NEW AND FULL NOTIFIC ATION PURSUANT TO AR TICLE XVII:4(A) OF T HE  
GATT 1994 AND PARAGR APH 1 OF THE UNDERST ANDING ON  
THE INTERPRETATION  OF ARTICLE XVII  
UKRAINE  
The following communication, dated 26 June 2020, is being circulated at the request of the 
delegation of Ukraine.  
 
_______________  
 
 
Pursuant to the provisions of the Article XVII: 4 (a) of the GATT 1994 and paragraph 1 of the 
Understanding on the Interpretation of the Article XVII, Ukraine submits herewith its u pdated 
notification , covering the years  2018-2019,  concerning the State Enterprise of liqueur and alcoholic 
beverage industry "Ukrspyrt" (hereinafter – the State Enterprise "Ukrspyrt").  
I. Enumeration of State Trading Enterprises  
A. Identification of state  trading enterprises  
The State Enterprise "Ukrspyrt"  
16, Gagarina Street  
Brovary, 07400  
Kyiv Region, Ukraine  
Tel (fax): +38 (044) 284 04 90  
Mailing address:  
Office 600, 30 -V Fizkultury Street ("Fahrenheit" Business Centre)  
Kyiv, 03150, Ukraine  
Tel (fax): (044) 284 -04-90 
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 2012).  
II. Reason and purpose  
A. Reason or purpose for establishing and/or ma intaining state trading enterprise  
The State Enterprise "Ukrspyrt" was established according to the Resolution of the Cabinet of 
Ministers of Ukraine of 28 July 2010 № 672  "On establishment of the State Enterprise of liqueur and 
alcoholic beverage industry " to increase the efficiency of the functioning of state enterprises of G/STR/N/18/UKR  
 
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  liqueur and alcoholic beverage industry and to improve the management system in the mentioned 
area. 
B. Summary of legal basis for granting the relevant exclusive or special rights or p rivileges, 
including legal provisions and summary of statutory or constitutional powers  
According to paragraph 1 of Article 2 of the Law of Ukraine of 19 December 1995 № 481/95 -ВР "On 
state regulation of production and circulation of ethyl, cognac and frui t alcohol, alcoholic beverages, 
tobacco goods 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, which are granted corresponding licenses. The production of bio -ethanol can be carried 
out by enterprises of all patterns of ownership, which are granted corresponding licenses.  
Paragraph 1 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 th e 
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 their registered 
permanent representative offices) or veterinary medic ine supplying companies, irrespective of 
patterns of ownership, having appropriate license.  
Paragraph 12 of Article 14 of the mentioned Law provides that the business entities (including 
business entities operating through their registered permanent repres entative 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.  
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 ownership 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 spirits 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" is the successor of the State Concern of liqueur and spirits industry 
"Ukrspyrt".  
The main activity of the State Enterprise "Ukrspyrt" is the production and sale of high -quality alcohol 
and alcohol -based products in Ukraine and abroad.  
B. Specification of exclusive or special rights or privileges enjoyed by the stat e trading 
enterprise  
The State Enterprise "Ukrspyrt" is 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 and fruit alcohol (falling  under heading 2207 of the UKTZED) according to the Resolution of 
the Cabinet of Ministers of Ukraine of 28 July 2010 № 672 "On establishment of the State Enterprise 
of liqueur and alcoholic beverage industry".  G/STR/N/18/UKR  
 
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  The State Enterprise "Ukrspyrt" produces and sells ethyl alcohol and alcohol -based substances based 
on: 
• License on production of ethyl alcohol (series AE № 297370, reg. number 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 № 297267, reg. number 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 № 000040, 
reg. number 1500000100104), issued by the Ministry of Economic Development and 
Trade of Ukraine, valid from 4 September 2015 to 4 September 2020. From 1 July 2019 
the requirement for a need of an export license for ethyl alcohol, ethyl rectified grape 
alcohol a nd ethyl rectified fruit alcohol was abolished in accordance with the Law of 
Ukraine of 23 November 2018 № 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 rate s of certain taxes and fees".  
C. Type of entities other than the state trading enterprise that are allowed to engage in 
importation/exportation and conditions for participation  
Import, export of ethyl alcohol, ethyl rectified grape alcohol and ethyl rectif ied 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 fru it 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 their registered permanent representative offices) or veterinary medicine 
supplying companies, irrespective of pattern s of ownership, having the appropriate license.  
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 
ownership wit hout 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.  
D. How import/export levels are established by the state trading enterprise  
When establishing export levels, the State Enterprise "Ukrspyrt" considers international prices and 
commercial reasoning. The State Enterprise "Ukrspyrt" does not conduct  imports.  
E. How export prices are determined  
In the process of determining the export prices, the State Enterprise "Ukrspyrt" is guided by the 
price formed in the conditions of a market economy and competition.  
F. How the resale prices of imported goods a re determined  
The State Enterprise "Ukrspyrt" neither conducts imports, nor resells imported products.  
G. Whether long -term contracts are negotiated by the state trading enterprise. Whether 
the state trading enterprise is used to fulfill contractual obliga tions entered into by the 
government  
No long -term contracts are negotiated by the State Enterprise "Ukrspyrt".  
The State Enterprise "Ukrspyrt" is not involved in fulfilling contractual obligations entered into by 
the Government.  G/STR/N/18/UKR  
 
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  H. Short description of the  structure of the market  
Besides the State Enterprise "Ukrspyrt", more than forty companies of liqueur and alcoholic beverage 
industry can produce ethyl alcohol and alcohol -based products. 
  G/STR/N/18/UKR  
 
- 5 - IV. STATISTICAL INFORMATION  
TABLE II  
STATE TRADING: THE STATE ENTERPRISE "UKRSPYRT " 
STATISTICAL INFORMAT ION, EXPORTS, 2018  
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  
(US 
dollar/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) 811.6  782.5  - - 4.73 7,264.1  
Note:  Carryover  stocks of undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol. or higher (UKTZED 2207 10 00) as of 01.01.2018 amounted 
594.3  thousand decalitres.  
* According to the State Statistics Service of Ukraine ( http://www.ukrstat.gov.ua ). 
** According to the State Enterprise "Ukrspyrt".  
*** According to the State Enterprise "Ukrspyrt ". 
**** According to the State Enterprise "Ukrspyrt ". 
   
  G/STR/N/18/UKR  
 
- 6 - TABLE II I 
STATE TRADING: THE S TATE ENTERPRISE "UKRSPYRT " 
STATISTICAL INFORMAT ION, DOMESTIC ACTIVITIES , 2018 
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) - 7,264.1  6,537.49  - 
* According to the State Enterprise "Ukrspyrt ". 
** According to the State Enterprise "Ukrspyrt ". 
   
  G/STR/N/18/UKR  
 
- 7 - TABLE II  
STATE TRADING: THE STATE ENTERPRISE "UKRSPYRT " 
STATISTICAL INFORMAT ION, EXPORTS, 2019  
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  
(US 
dollar/decalitre)*
** National 
prod uction  
(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) 918.5  887.9  - - 4.73 6,329.3  
Note:  Carryover  stocks of undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol. or higher (UKTZED 2207 10 00) as of 01.01. 2019 amounted 
527.6 thousand decalitres.  
* According to the State Statistics Service of Ukraine ( http://www.ukrstat.gov.ua ). 
** According to the State Enterprise "Ukrspyrt".  
*** According to the State Enterprise "Ukrspyrt".  
**** According to the State Enterprise "Ukrspyrt ". 
   
  G/STR/N/18/UKR  
 
- 8 - TABLE II І 
STATE TRADING: THE S TATE ENTERPRISE "UKR SPYRT"  
STATISTICAL INFORMAT ION, DOMESTIC ACTIVI TIES, 2019  
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 decalitre)**  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) - 6,329.3 5,739.6 - 
* According to the State Enterprise "Ukrspyrt ". 
** According to the State Enterprise "Ukrspyrt ". 
 
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