WORLD TRADE  
ORGANIZATION  G/STR/N/13/UKR 
8 July 2010 
 (10-3761) 
Working Party on 
State Trading Enterprises Original:   English 
 
 
 
STATE TRADING 
 
Notification Pursuant to Article XVII: 4(a) of the GATT 1994 and Paragraph 1  
of the Understanding on the In terpretation of Article XVII  
 
UKRAINE 
   The following communication, dated 6 July 2010,  is being circulated at the request of the 
Delegation of Ukraine. 
 
_______________ 
 
  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 Concern of liqueur and spirits  industry "Ukrspyrt" (further the state concern 
"Ukrspyrt").     I. THE STATE CONCERN OF LIQUEUR AND SPIRITS INDUSTRY  "UKRSPYRT"
  
 A. Identification of state trading enterprises  
 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 stre ngth by volume of 80 per cent vol. or higher;  
ethyl alcohol and other spirits, denatured, of any strength (2207).   
 
II. Reasons and purpose for introducing a nd maintaining state trading enterprises
 
 
A. Reason or purpose for establishing and/or maintaining state trading enterprise  
 The state concern "Ukrspyrt" has been founded in 1996 by the Resolution No 701 of the Cabinet of Ministers of Ukraine "On improving th e management of spirit companies and the alcohol 
industry" of 29 June 96.  The aim of its founding w as to lay down and realize a uniform state policy in 
production and circulation of ethyl spir it, vodka and liker-vodka products.   G/STR/N/13/UKR 
Page 2  
 
  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 20 April 2000 No.1685-III and by the Law 3502-IV of 
23 February 2006) says that import, export and wholesale trade of ethyl 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 Ministers and granted a corresponding license.  The wholesale 
of ethyl alcohol meant for medicine and veteri nary medicine 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.  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 te n of the Article 14 of the same 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  
 
 In 2009 the structure of the state con cern "Ukrspyrt" included 92 enterprises and 
organizations with the state pattern of ownership.     On a voluntary basis the state concern "Ukrspyr t" may also join associations, enterprises and 
organizations of any pattern of ownership, that have common economic and social interests.  The 
activity of the state concern "Ukrspyrt" is controlled by the Ministry of agricultural policy of Ukraine.   
  The main functions of the state concern "Ukrspyrt" are:    - production of ethyl alcohol, vod ka and liker-vodka products;  
- allocation of centralized capital investments; 
- coordination of associations, enterprises and orga nizations that are involved in alcohol, vodka 
and liker-vodka products manufacturing; - conduction of the activity meant for upgrading qu ality and raising competitive capacity of the 
products, which are produced by the enterprises of concern; 
- marketing of ethyl alcohol, vodka and liker- vodka products market and development of new 
markets for it products;  - meeting of the state needs in ethyl alcohol; - export of ethyl alcohol, vo dka and liker-vodka products;   G/STR/N/13/UKR 
 Page 3 
 
 
  - implementation of a unified technical policy meant for achievement of a world level of 
production technology and product quality;  - make for creation of new industries and liquidation of the old ones; - optimization of the sectoral and cross-sectoral  cooperation in the field of ethyl alcohol, vodka 
and liker-vodka production. 
 
B. Specification of exclusive or special right s or privileges enjoyed by the state trading 
enterprise 
 
 According to Resolution No 701 of the Cabinet of Ministers of Ukraine of 29 June 1996 "On improving the management of alcohol companies and the alcohol industry" the sate concern 
"Ukrspyrt" is authorized to conduct export of ethyl alcohol (2207).   
 
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 Ministers and granted a corresponding license.     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.  
D. How import/export levels are established by the state trading enterprise 
  For establishing import/export levels the state concern "Ukrspyrt" c onsiders 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 concern "Ukrspyrt" neither conduc t import, not resale 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 the state concern "Ukrspyrt".  The state concern is 
not involved in fulfilling contractual obliga tions entered into by the government.   
 
 
  
  G/STR/N/13/UKR 
Page 4 IV. STATISTICAL INFORMATION  
 
 
 
TABLE II 
 
STATE TRADING:  NAME OF STATE TRADING ENTERPRISE 
 
STATISTICAL INFORMATION, EXPORTS 
 
 
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 decaliters) 
Undenatured ethyl 
alcohol; 
denatured ethyl 
alcohol 
(2207) 4 867,6 3 603,9 * 56,87 6,58 26712 (data on 
undenatured ethyl 
alcohol of an alcoholic 
strength by volume of 
80% vol. or higher) 
Data on denatured ethyl 
alcohol is not available 
  
* The state concern "Ukrspyrt" does not conduct procurements.  The state concern "Ukrspyrt" has an ethyl alcohol export license .  Export of ethyl alcohol is conducted 
through the foreign trade contracts between the state concern "Ukrspyrt" and foreign trade partners, based on the previously co ncluded commission agreement, where the state 
concern "Ukrspyrt" is a commission agent and shipping enterprises are consigners.   
 
  
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