WORLD TRADE  
ORGANIZATION  G/STR/N/12/UKR 
20 June 2008 
 (08-2938) 
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 Paragra ph 1 of the Understanding on  
the Interpretation of Article XVII  
 
UKRAINE 
 
 
 The following communication, dated 18 June 2008,  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 "Ukrspyrt".  I. THE STATE CONCERN "UKRSPYRT"  
A. I
DENTIFICATION OF STATE TRADING ENTERPRISES  
1. Grinchenka st. Kyiv, 01001, Ukraine 
 Tel (fax): (044) 228-58-02 
 e-mail: info@ukrspirt.com   
 
B. DESCRIPTION OF PRODUCTS AFFECTED  
 Undenatured ethyl alcohol of an alcoholic st rength by volume of 80% vol. or higher; ethyl 
alcohol and other spirits, denatured, of any strength (2207).  
II. REASONS AND PURPOSE FOR INTRODUCING AND MAINTAINING STATE 
TRADING ENTERPRISES 
A. R
EASON 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 29.06.96. The aim of its founding was to lay down and realize a uniform state policy in production and circulation of ethyl sp irit, vodka and liker-vodka products. 
 G/STR/N/12/UKR 
Page 2  
 
  B. S
UMMARY 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 Article 2 of the Law of Ukraine of 19.12.1995 No 481/95-BP "On state 
regulation of production, and circulation of ethyl,  cognac and fruit alcohol, alcoholic beverages and 
tobacco goods" the production of ethyl alcohol (inc luding the alcohol as medical product), bioethanol, 
rectified grape ethyl alcohol and rectified fruit ethyl alcohol can be performed only by a state 
enterprise which is granted a corresponding license. The list of enterprises that are authorized to 
produce bioethanol is approved by the Cabinet of Ministers of Ukraine.  
 According to the above mentioned Law the productions of cognac alcohol; and fruit alcohol 
can be produced by state enterprises and by ente rprises of other patterns of ownership which are 
granted a corresponding license, have a full produc tion cycle of cognac and alcoholic beverages 
production according to cognac technology. Such enterprises should have special containers for 
alcohol storing and appropriate specialists. These enterprises can produce mentioned alcohol only for 
their own production needs. They are not allowed to sell such alcohol to other producers.   
  Article 14 of the mentioned law says that impor t, export and wholesale trade of ethyl rectified 
gape alcohol and ethyl rectified fruit alcohol can be carried out only by state enterprises 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 and 
veterinary medicine supplying companies i rrespective of patterns of ownership.  
 III. A. D
ESCRIPTION OF THE FUNCTIONING OF THE STATE TRADING ENTERPRISE  
   The structure of the state concern "Ukrspyrt" includes 9 regional state associations of alcohol 
and liker-vodka industry and 85 enterprises with the st ate pattern of ownership. The main functions of 
the state concern "Ukrspyrt" are:   
− production of alcohol, vodka and liker-vodka pr oducts, bioethanol and other products;  
− realization of foreign-economic activity, in cluding export of products manufactured 
by the enterprises of the concern;  
− meeting of the state needs in ethyl alcohol; 
− implementation of a unified technical polic y meant for achievement of a world level 
of production technolog y and product quality;  
− marketing of ethyl alcohol, vodka and li ker-vodka products mark et and development 
of new markets for it products;  
− coordination of associations, enterprises a nd organizations that are involved in 
alcohol, vodka and liker-vodka products manufacturing. 
 
B. S
PECIFICATION OF EXCLUSIVE OR SPECIAL RI GHTS OR PRIVILEGES ENJOYED BY THE STATE 
TRADING ENTERPRISE  
 According to Resolution No 701 of the Cabinet of Ministers of Ukraine of 29.06.1996 "On 
improving the management of alcohol companies and the alcohol industry" the sate concern “Ukrspyrt” is authorized to conduct export of ethyl alcohol (2207).   G/STR/N/12/UKR 
 Page 3 
 
 
  C. TYPE OF ENTITIES OTHER THAN THE STATE TRADING ENTERPRISE THAT ARE ALLOWED TO 
ENGAGE IN IMPORTATION /EXPORTATION AND CONDITIONS FOR PARTICIPATION  
 According to the Article 14 of the Law of Ukraine of 19.12.1995 No 481/95-BP "On state 
regulation of production, and circulation of ethyl,  cognac and fruit alcohol, alcoholic beverages and 
tobacco goods" import, export and wholesale trade of ethyl rectified gape alcohol and ethyl rectified 
fruit alcohol can be carried out only by state en terprises which are authorized by the Cabinet of 
Ministers and granted a corresponding license.  D. H
OW 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. H
OW 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 concern “Ukrspyrt” does not resale imported products. 
  G. W
HETHER LONG -TERM CONTRACTS ARE NEGOTIATED BY  THE STATE TRADING ENTERPRISE .  
WHETHER THE STATE TRADING ENTER PRISE 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 oblig ations entered into by the government.  
  G/STR/N/12/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 Average export price 
(US dollar/decalitre 
on DAF) National production 
(thousand decaliters) 
 
Undenatured ethyl alcohol; 
denatured ethyl 
alcohol (2207) 
  
9163  
3413  
*  
47,3 
  
6,05  
22199 
 
* The state concern “Ukrspyrt” does  not conduct procurements.    
 
 
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