WORLD TRADE  
ORGANIZATION   
G/STR/N/14/UKR 
30 July 2012 
 (12-4172) 
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 18 July 2012, 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 a nd paragraph 1 of the 
Understanding on the Interpretation of Article XVII, Ukraine subm its herewith its notification 
concerning the State Enterprise of liqueur and alcoho lic beverage industry "Ukrspyrt" (hereinafter - 
State Enterprise "Ukrspyrt").   
 
I. THE STATE ENTERPRISE OF LIQUEUR 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  
http://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 Activity Commodity Classification, based on 
Harmonized System 2007. G/STR/N/14/UKR 
Page 2  
 
  II. REASONS AND PURPOSE FOR INTRODUCING AND MAINTAINING STATE 
TRADING ENTERPRISES 
A. Reason or purpose for establishing and/or maintaining state trading enterprise 
 
 The State Enterprise of liqueur and alcoho lic beverage 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 indus try 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 provisions and summary of  statutory or constitutional powers 
  According to the paragraph one of the Article  2 of the Law of Ukraine of 19 December 1995 
No 481/95-BP (as amended by the Law of Ukraine of 21 May 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 the Article 14 of the mentione d Law (the paragraph one of the 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 grap e 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  medicine supplying companies, irrespective of 
patterns of ownership, which are granted a corres ponding license.  The Cabinet Ministries of Ukraine 
has a register of the mentioned medical institutions, business entities and veterinary medicine 
supplying companies.   
  According to the paragraph nine of the Article  14 of the mentioned Law, the enterprises – the 
producers of ethyl alcohol exports it through the state enterprises (organizations), which are 
authorized by the Cabinet of Ministers and granted a corresponding export license.   
 
 According to the paragraph ten of the 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 Cabinet 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 alcoholic beverage industry "Ukrspyrt" is 
based on the property of the Concern of liqueur an d spirits 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 alcoholic beverage industry under authority of the Ministry 
of Agriculture, by joining to the State Enterprise "U krspyrt" and by separation of the property, which 
is used for production of excisable product, and tr ansferring such property to the State enterprise 
"Ukrspyrt".   G/STR/N/14/UKR 
 Page 3 
 
 
   The State Enterprise "Ukrspyrt" is transferred to the authority of the Ministry of Agrarian 
policy of Ukraine and is the successor of the State Concern of liqueur and spirits industry "Ukrspyrt". 
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) 
(UKTZED 2207) and wholesale trade in ethyl alco hol and fruit alcohol (UKTZED 2207) according to 
the Resolution if the Cabinet of Ministers of Ukraine dated 28 July 2010 No. 672 "On establishment 
of the State Enterprise of liqueur and alcoholic beverage industry". 
 C. Type of entities other than the state trading enterprise that are allowed to engage in 
importation/exportation and c onditions for participation 
 
 Import, export and wholesale trade of ethyl alcohol and fruit alcohol, ethyl rectified grape 
alcohol and ethyl rectified fruit alcohol can be carri ed out only by state enterprises (organizations), 
which are authorized by the Cabinet of Minister s and granted a corresponding license, except for the 
wholesale of ethyl alcohol meant for medicine and ve terinary medicine, which can be carried out by 
medical institutions, business entitie s and veterinary medicine suppl ying 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 En terprise "Ukrspyrt" considers international 
prices and business accounting.   
 
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 imported products are determined. 
 
 The State Enterprise "Ukrspyrt" neither conduc ts import, not resales 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. 
 
 No long-term contracts are negotiated by th e State Enterprise "Ukrspyrt".  The State 
Enterprise is not involved in fulfilling contractual obligations entered into by the Government.   
 
  
  G/STR/N/14/UKR 
Page 4 IV. STATISTICAL INFORMATION 
 
TABLE II 
 
STATE TRADING:  THE STATE ENTERPRISE OF LIQUEUR AND ALCOHOLIC BEVERAGE INDUSTRY "UKRSPYRT" 
 
STATISTICAL INFORMATION, EXPORTS, 2011 
 
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; 
denatured ethyl alcohol 
(2207) 1,349.16 ** *** 142.9 9.66 22,345.00 
  
* 100% alcohol. 
 ** According to the State Customs Service of Ukraine, in 2011 Ukraine exported ethyl alcohol (heading 2207) totaling 1,349.13 t housand dal in terms of pure 
100% matched alcohol. The main exporter of ethyl alcohol (over 99% of total exports) in 2011 was the State Enterprise "Ukrspirt ."  It should be noted, that 
under paragraph 2 of Article 449 of the Customs Code of Ukraine, customs statistics of foreign trade is formed, summarized and analyzed based on data 
contained in customs declarations. 
 According to the State Statistics Service of Ukraine, in 2011 the total exports of ethyl alcohol of heading 22078 was 1,349.16  thousand dal of 100% alcohol. 
 According to the data of SE "Ukrspirt", in 2011 only this enterprise exported 1,527.46 thousand dal of 100% alcohol. 
The difference in the data on export volumes of ethyl alcohol in 2011, provided by the State Statistics Service of Ukraine and SE "Ukrspyrt" is possible due to 
different methodological approaches to the statistics formation and registration. 
 
*** The State Enterprise "Ukrspyrt" does not conduct procurements .  The State Enterprise "Ukrspyr t" has an ethyl alcohol export  license.  Export of ethyl alcohol is 
conducted through the fore ign trade contracts between the Stat e Enterprise "Ukrspyrt" and foreign trade partners, based on the previously concluded 
commission agreements, where the State Enterp rise "Ukrspyrt" is a commission agent an d shipping enterprises are consigners. 
 
**** The State Statistics Service of Ukraine provided the following data on national production of undenatured ethyl alcohol an d denatured ethyl alcohol in 2011. 
In 2011 there were produced 19,640 thousand dal of undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol. or higher and 2,705 thousand dal 
of denatured ethyl alcohol (technical alcohol) and other denatured alcohol of any strength. 
 
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