G/STR/N/17/UKR  
 
22 August  2019 
(19-5407) Page: 1/7 
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 O F ARTICLE  XVII 
Ukraine  
The following communication, dated 18 July  2019, is being circulated at the request of the delegation 
of Ukraine.  
 
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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 submit s herewith its updated 
notification concerning the State Enterprise of liqueur and alcoholic beverage industry "Ukrspyrt " 
(hereinafter – the State Enterprise "Ukrspyrt "). 
I. Enumeration of State Trading Enterprise s 
A. Identification of state trading enterpris es 
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 pu rpose  
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 № 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/17/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 privileges, 
including legal provisions and summary of statutory or consti tutional powers  
According to paragraph 1 of Article 2 of the Law of Ukraine of 19 December 1995 No.  481/95 -BP 
"On state regulation of production, and circulation of ethyl, cognac and fruit alcohol, alcoho lic 
beverages and tobacco goods ", the production of ethyl alcohol (including as a medical product), 
ethyl rectified grape alcohol and ethyl rectified fruit alcohol can be performed only by state 
enterprises. 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 and wholesale trade 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 meant for medicine and veterinary medicine can be 
carried out by medical institutions, business entities and veterina ry medicine supplying companies, 
irrespective of patterns of ownership, which are granted a corresponding license.  
According to paragraph 10 of Article 14 of the mentioned Law, the enterprises  that produce  ethyl 
alcohol export it through the state enterpri ses (or organizations ) that  are authorized by the Cabinet 
of Ministers of Ukraine and granted a corresponding export license.  
Paragraph 11 of Article 14 of the mentioned Law provides that the enterprises th at produce ethyl 
alcohol sell it to the national c onsumers 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 and wholesale trad e of 
alcoholic beverages can be carried out by entities of all patterns of ownership having appropriate 
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 state trading enterprise  
The State Enterprise "Ukrspyrt " is responsible for the export of ethyl alcohol (ethanol) and fruit 
alcohol (falling under heading 2207 of the UKTZED) and wholesale trade in ethyl alcohol and fruit 
alcohol (falling under heading 2207 of the UKTZED) according t o the Resolution of the Cabinet of 
Ministers of Ukraine as of 28 July 2010 № 672 "On establishment of the State Enterpris e of liqueur 
and alcoholic beverage industry ". 
The State Enterprise "Ukrspyrt " produces and sells ethyl alcohol and alcohol -based substance s based 
on: 
• License on production of ethyl alcohol (series  AE № 29737 0, reg.  number  171), issued by 
the State Fiscal Service of Ukraine, valid from 15  October  2015 t o 15 October  2020;  G/STR/N/17/UKR  
 
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  • License for wholesale trade in ethyl alcohol (ser ies AE № 297267, reg.  number  100305), 
issued by the State Fiscal Service of Ukraine, valid from 2  September  2015 t o 
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 t o 4 September  2020.  
C. Type of entities other than the state trading enterprise that are allowed to engage in 
importation/exportation and conditions for participation  
Import, export and wholesale trade of ethyl alcohol and fruit 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 and granted a corresponding  license, except 
for the wholesale of ethyl alcohol meant for medicine and veterinary medicine , which can be carried 
out by medical institutions, business entities and veterinary  medicine supplying companies 
irrespective of patterns of ownership, which are granted a corresponding license.  
Import, export and wholesale trade of alcoholic beverages can be carried out by entities of all 
patterns of ownership having appropriate license s. 
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 import s. 
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 price s of imported goods  are determined  
The State Enterprise "Ukrspyrt " neither conducts import s, nor resells imported products.  
G. Whether long -term contracts are negotiated b y the state trading enterprise. Whether the state 
trading enterprise is used to fulfill contractual obligations  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 e ntered into by the  
Government.  
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/17/UKR  
 
- 4 - IV. STATISTICAL INFORMATION  
TABLE II  
STATE TRADING: THE S TATE ENTERPRISE "UKRSPYRT " 
STATISTICAL INFORMAT ION, EXPORTS, 2016  
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/d ecalitre) Average export 
price  
(US 
dollar/d ecalitre) 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) 319.01  257.26  - - 4,76 10002.1  
*  According to the State Statistics Service of Ukraine ( http://www.ukrstat.gov.ua ). 
** According to the State  Enterprise "Ukrspyrt " operational data (by contracts).  
*** According to the State Statistics Service of Ukraine  (http://www.ukrstat.gov.ua/operativ/operativ2016/pr/vr_rea_ovpp/vr_rea_ovpp_u/arh_vppv_u.html ). 
   
  G/STR/N/17/UKR  
 
- 5 - TABLE II I 
STATE TRADING: THE S TATE ENTERPRISE "UKRSPYRT " 
STATISTICAL INFORMAT ION, DOMESTIC ACTIVITIES , 2016 
Description of product(s)  
(including HS number(s))  Domestic purchases by  
state trading enterprise  
(thousand d ecalitres) National production  
(thousand d ecalitres)* Domestic sales by  
state trading enterprise  
(thousand d ecalitres)** National consumption  
(thousand d ecalitres) 
1 2 3 4 5 
Undenatured ethyl alcohol of an 
alcoholic strength by volume of 
80% vol. or higher (UKTZED 
2207 10 00) - 10002.1  8271.86 - 
* According to the State Statistics Service of Ukraine ( http://www.ukrstat.gov.ua/operativ/operativ2016/pr/vr_rea_ovpp/vr_rea_ovpp_u/arh_vppv_u.html ). 
** According to the State  Enterprise "Ukrspyrt ".  
   
  G/STR/N/17/UKR  
 
- 6 - TABLE II  
STATE TRADING: THE S TATE ENTERPRISE "UKRSPYRT " 
STATISTICAL INFORMAT ION, EXPORTS, 2017  
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/d ecalitres) Average export 
price  
(US dollar/ 
decalitres) 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) 505.04  532.77 - - 4,76 9572.4  
*  According to the State Statistics Service of Ukraine ( http://www.ukrstat.gov.ua ). 
** According to the State  Enterprise "Ukrspyrt " operational data (by contracts).  
*** According to the State Statistics Service of Ukraine ( http://www.ukrstat.gov.ua/operativ/operativ2016/pr/vr_rea_ovpp/vr_rea_ovpp_u/arh_vppv_u.html ). 
   
  G/STR/N/17/UKR  
 
- 7 - TABLE II І 
STATE TRADING: THE S TATE ENTERPRISE "UKRSPYRT " 
STATISTICAL INFORMAT ION, DOMESTIC ACTIVI TIES, 2017  
Description of product(s)  
(including HS number(s))  Domestic purchases by  
state trading enterprise  
(thousand d ecalitres) National production  
(thousand d ecalitres)* Domestic sales by  
state trading enterprise  
(thousand d ecalitres)** National consumption  
(thousand d ecalitres) 
1 2 3 4 5 
Undenatured ethyl alcohol of an 
alcoholic strength by volume of 
80% vol. or higher (UKTZED 
2207 10 00) - 9572.4  7220.42  - 
* According to the State Statistics Service of Ukraine ( http://www.ukrstat.gov.ua/operativ/operativ2016/pr/vr_rea_ovpp/vr_rea_ovpp_u/arh_vppv_u.html ). 
** According to the State  Enterprise "Ukrspyrt ". 
 
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