G/STR/N/15/UKR  
 
17 July 2014  
(14-4153)  Page: 1/4  
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 2 July 2014, is being circulated at the request of the 
Delegation of Ukraine. 
 
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Pursuant to the provisions of Article XVII:4(a) of the GATT 1994 and paragraph 1 of the Understanding on the Interpretation of Article XVII, Ukraine submits herewith its updated 
notification concerning the State Enterprise of liqueur and alcoholic beverage industry "Ukrspyrt" 
(hereinafter - State Enterprise "Ukrspyrt"). 
 
I. THE STATE ENTERPRISE OF LIQUEU R AND ALCOHOLIC BEVERAGE INDUSTRY 
"UKRSPYRT"  
 A. IDENTIFICATION OF STATE TRADING ENTERPRISES  
16 Gagarina Street; 
Brovary,  07400, Kiev Region 
Tel (fax): (044)278-58-02 
 Mailing  address: 
 
1 Grinchenka st. Kyiv, 01001, Ukraine Tel (fax):  (044) 278-58-02 
e-mail: info@ukrspirt.com  
www.ukrspirt.com 
 
B. DESCRIPTION OF PRODUCTS AFFECTED  
Undenatured ethyl alcohol of an alcoholic strength by volume of 80 per cent vol. or higher; ethyl alcohol and other spirits, denatured, of any strength (UKTZED1 - 2207)  
 
                                               
1 UKTZED - is the Ukrainian Foreign Economic Activi ty Commodity Classificati on, based on Harmonized 
System 2012. G/STR/N/15/UKR  
 
- 2 - 
 
  II. REASONS AND PURPOSE FOR INTRODUC ING AND MAINTAINING STATE TRADING 
ENTERPRISES 
 A. REASON OR PURPOSE FOR ESTABLISHING AND/OR MAINTAINING STATE TRADING 
ENTERPRISE 
 The State Enterprise of liqueur and alcoholic beve rage industry "Ukrspyrt" was founded according 
to the Resolution of the Cabinet of Ministers of Ukraine dated 28 July 2010 No.672 "On 
establishment of the State Enterprise of liqueur and alcoholic beverage industry" to increase the 
efficiency of state enterprises of liqueur and alcoholic beverage industry and to improve the 
management system in the mentioned branch. 
 
B. SUMMARY OF LEGAL BASIS FOR GRANTING THE RELEVANT EXCLUSIVE OR SPECIAL RIGHTS 
OR PRIVILEGES, INCLUDING LEGAL PROVIS IONS AND SUMMARY OF STATUTORY OR 
CONSTITUTIONAL POWERS 
 
According to paragraph one of Article 2 of the Law of Ukraine of 19 December 1995 No. 481/95-BP 
(as amended by the Law of Ukraine of 21 Ma y 2009 No.1391-VI) "On state regulation of 
production, and circulation of ethyl, cognac and fruit alcohol, alcoholic beverages and tobacco goods" the production of ethyl alcohol (including the alcohol as medical product), rectified grape 
ethyl alcohol and rectified fruit ethyl alcohol can be performed only by the state enterprises.  The 
production of bio-ethanol can be carried out by en terprises of all patterns of ownership, which are 
granted corresponding licenses.  
 
Paragraph one of Article 14 of the mentioned Law (paragraph one of Article 14 as amended by the 
Law of Ukraine of 19 April 2011 No.3232-VI) 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 (organizations), which are authorized by the Cabinet of Ministers. The wholesale of ethyl alcohol meant for medicine and veterinary medicine can be carried out by medical institutions, business entities and veterinary me dicine supplying companies, irrespective of 
patterns of ownership, which are granted a corr esponding license. The Cabinet Ministries of 
Ukraine has a register of the mentioned medical institutions, business entities and veterinary 
medicine supplying companies.  
 
According to paragraph nine of Article 14 of the mentioned Law, the enterprises – the producers of ethyl alcohol, export it through the state enterpri ses (organizations), which are authorized by the 
Cabinet of Ministers and granted a corresponding export license.  
 According to paragraph ten of Article 14 of the mentioned Law, it is foreseen that the enterprises – the producers of ethyl alcohol sell it to the national consumers through the state enterprises 
(organizations), which are authorized by the Ca binet of Ministers and granted a corresponding 
wholesale license.  
III. A. DESCRIPTION OF THE FUNCTIONING OF THE STATE TRADING ENTERPRISE 
 Formation of the State Enterprise of liqueur and al coholic beverage industry "Ukrspyrt" is based on 
the property of the Concern of liqueur and spir its industry "Ukrspyrt", state enterprises and 
associations of alcohol and alcoholic beverage industry and in the result of restructuring of state enterprises and associations of alcohol and alco holic beverage industry under authority of the 
Ministry of Agriculture, by joining to the State Enterprise "Ukrspyrt" and by separation of the 
property, which is used  for production of excisabl e product, and transferring such property to the 
State enterprise "Ukrspyrt".  
The State Enterprise "Ukrspyrt" is transferred to the authority of the Ministry of Agrarian policy of 
Ukraine and is the successor of the State Concer n of liqueur and spirits industry "Ukrspyrt". 
 
B. SPECIFICATION OF EXCLUSIVE OR SPECIA L RIGHTS OR PRIVILEGES ENJOYED BY THE 
STATE TRADING ENTERPRISE 
 The State Enterprise "Ukrspyrt" is responsible for the export of ethyl alcohol (ethanol) (UKTZED 
2207) and wholesale trade in ethyl alcohol and fruit alcohol (UKTZED 2207) according to the G/STR/N/15/UKR 
 
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  Resolution of the Cabinet of Ministers of Ukra ine dated 28 July 2010 No. 672 "On establishment of 
the State Enterprise of liqueur and alcoholic beverage industry".  The State Enterprise "Ukrspirt" sells ethyl alcohol on the basis of: 
 
- License (series AG № 152864) of 02.09.2010 issued by the Department of controls over 
production and circulation of alcohol, alcoholic beverages and tobacco of the State Tax 
Administration of Ukraine, authorizing the wholesale of ethanol;  
 - License (series EC number 000026) of 14.02.2 011 issued by the Ministry of Economy of 
Ukraine, providing authority to export of ethyl, cognac and fruit spirits. 
 
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 alcoho l and fruit alcohol, ethyl rectified grape alcohol 
and ethyl rectified fruit alcohol can be carried out only by state enterprises (organizations), which 
are authorized by the Cabinet of Ministers 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. 
 
D. HOW IMPORT/EXPORT LEVELS ARE ESTABLISHED BY THE STATE TRADING ENTERPRISE  
For establishing import/export levels the State Enterprise "Ukrspyrt" considers international prices 
and commercial reasoning.   
 E. HOW EXPORT PRICES ARE DETERMINED.  
The export prices are established on the basis of the demand and supply analysis.   
 F. HOW THE RESALE PRICES OF IMPO RTED PRODUCTS ARE DETERMINED. 
 
The State Enterprise "Ukrspyrt" neither conduc ts import, nor resales imported products.   
 G. WHETHER LONG-TERM CO NTRACTS ARE NEGOTIATED BY THE STATE TRADING 
ENTERPRISE.  WHETHER THE STATE TRADIN G 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 is 
not involved in fulfilling contractual obligations entered into by the Government.     
 
   
   G/STR/N/15/UKR  
 
- 4 - IV. STATISTICAL INFORMATION 
TABLE II 
STATE TRADING: THE STATE ENTERPRISE OF LIQUEUR AND ALCOHOLIC BEVERAGE INDUSTRY "UKRSPYRT" 
STATISTICAL INFORMATION, EXPORTS, 2013 
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/on DAF) National production 
(thousand decalitres) 
1 2 3 4 5 6 7 
Undenatured  ethyl alcohol;  201,69 0,95 
 ** 154,044 12,0 
 18180,82 
Denatured ethyl 
alcohol (2207)  200,74 8,3 
 
* 100% alcohol 
** The State Enterprise "Ukrspyrt" does not conduct procurements. The State Enterprise "Ukrspyrt" has an ethyl alcohol export lic ense. Export of ethyl alcohol is 
conducted through the foreign trade contracts between the State En terprise "Ukrspyrt" and foreign trade partners, based on the previously concluded 
commission agreements, where the State Enterprise "Ukrspyrt" is  a commission agent and other producing enterprises are consigne rs. 
 
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