RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/UKR/62
23 July 1999
(99-3115)
Working Party on the
Accession of UkraineOriginal:  English
ACCESSION OF UKRAINE
Memorandum on Agricultural Trade Policy in Ukraine
The following information concerning the agricultural trade policy in Ukraine has been
received from the Governmental Commission on Ukraine's Accession to WTO.
_______________
Page
1. Brief Characteristic of Agriculture
(a) Production 1
(b) Status of Agrarian Reform 3
2. State Support to Agriculture
(a) Taxation 7(b) Lending System 9
(c) Prices 10
(d) Main Directions of Agricultural Development 10
3. System of Regulation of Foreign Trade in Agricultural Goods in Ukraine
(a) Tariff Regulation 11
(i)  Import Duties 11
(ii)  Export Duties 12
(b) Non-Tariff Regulation 12
(i)  Quotas and Licensing of Ag ricultural Export and Import 12
(ii)  Excise Duty and Value Added Tax 13
List of Ukrainian Legal and Normative Acts 16Annex 19WT/ACC/UKR/62
Page 2
1. Brief Analysis of the Status of Agriculture
(a) Production
Agriculture is one of the main industries of the Ukrainian economy.  Its share in total
volume of the Ukrainian GDP is about 11 per cent.  Approximately 16.3 million people or 32.4
per cent of the total population live in rural areas (8 million of them (49.1 per cent) of working
age.
Ukraine's territory is 60.4 million hectares.  Over 40 million hectares (67 per cent) are
used in agricultural production with 32.2 million hectares (81 per cent) comprised of ploughed
fields.
Regarding types of ownership, land is divided as follows:
Table 1:  Land Allocation as to Ownership Types, million hectares
Ownership Types All Territory % Land in Agricultural
Production%
State-owned 30.7 50.9 14.2 34.1
Collective 26.5 44 24.7 59
Private 3.1 5.1 2.9 6.9
Total 60.3 100 41.8 100
Source: State Land-Survey as of 1 January 1998.
From 1990-1997, the production of goods decreased by 42 per cent.  Within recent years,
the above decrease happened mostly because of the recession in stock-feed production.  At thesame time, dynamics in various sectors of agriculture were completely different.  In the public
sector,
1 production of plant-grown foodstuffs decreased twofold.  Production of stock-feed
decreased 4.3 times.  In the private sector,2 production of stock-feed decreased by only 14.3 per
cent and production of plant-grown foodstuffs increased by 42.5 per cent (see Table 2).
Table 2:  Dynamics of Gross Products as to Ownership Types
(in constant prices, million hryvnias)
Years All products Plant-grown Stock-feed
Public
SectorPrivate
SectorPublic
SectorPrivate
SectorPublic
SectorPrivate
Sector
1990 34342 14287 18315 6031 16027 8257
1996 13016 15627 7869 8518 5147 7110
in per cent
to 199037.9 109.4 43.0 141.2 32.1 86.1
1997 12440 15672 8768 8597 3672 7076
in per cent
to 199036.2 109.7 47.9 142.5 22.9 85.7
Source: based on information provided by the State Committee on Statistics.
                                                     
1 The public sector includes collective, groups of cooperative farms and state-owned enterprises.
The latter include pedigree and seed farms.
2 The public sector includes private household farms, farmers and lessees.  A share of state-owned
enterprises, farmers and lessees in agricultural goods production is insignificant.WT/ACC/UKR/62
Page 3
Dynamics of production of the main types of goods in different agricultural sectors is
presented in Table 1 of the Annex.
As a result of these changes, the specific weight of the private sector increased from 29 to
56 per cent, i.e. private sector production exceeded the public sector.  Increased shares in theprivate sector resulted, not only in the production of traditional crops (vegetables and potatoes),
but also among goods traditionally produced in the public sector, in particular: grain, sugar beet,
milk and eggs (see Table 1 of the Annex).
In 1997, the pace of recession slowed drastically, (1.9 per cent in 1997 compared to
9.5 per cent in 1996) due to an increase in plant-grown foodstuffs by 6 per cent.  Grain yields
represented 35.5 million tons (plus 44 per cent when compared to the previous year); 20.5 milliontons of the above grain was Class 1, one because of an increase in sowing areas by almost 14 per
cent and an increase in the yield by 25 per cent.  The highest yields were as follows: 5.3 million
tons of corn (three times more when compared to 1996), 2.3 million tons of sunflowers,
5.2 million tons of vegetables, and 2.8 million tons of fruit (within the last eight years).
Production of sugar beet decreased by 24 per cent to 17.7 million tons.  This happened mainlybecause of a decrease in sown areas by 23 per cent.  Potato yield was 16.7 million tons (minus
9 per cent).  When compared to 1996, the volume of stock-feed decreased by 12 per cent (if
compare with 1996), including by 29 per cent among public sector farms.  In private farms, the
above volume was almost (99.5 per cent) at the 1996 level.
Notwithstanding this significant production recession, Ukraine exported a larger share of
its agricultural goods in 1997: 1.3 million tons  of grain, 174 thousand tons of meat and meat
products, 53.5 thousand tons of milk and dairy products, 75 million eggs, 704 thousand tons of
sugar, 181 thousand tons of vegetable oil and 1.1 million tons of sunflower seeds.  Nevertheless,
in 1997 agricultural production was unprofitable (minus 23.9 per cent)
3. with 87 per cent of
agricultural enterprises not yielding any profits.  Other enterprises, particularly those outside of
the private sector (which produced 56 per cent of gross agricultural goods, were on the verge of
bankruptcy.
(b) Status of the Agrarian Reform
During Soviet times, Ukrainian agriculture consisted of two sectors of big farms
controlled by central bodies, in particular, collective farms (kolhozes)4 and state farms
{sovhozes).5  Groups of cooperative farms6 and individual household farms, as well as garden
plots allocated to workers from cities were added to the above farms. In 1992, 35.5 million
hectares of the public sector were allocated between kolhozes, sovhozes and groups of cooperative
farms.
On 13 March 1992, the Supreme Rada of Ukraine passed the Land Code of Ukraine [1]
and the Resolution "On Acceleration of Land Reform and Land Privatization" [2].  Those legal
acts commenced the agrarian reform in Ukraine.
The agrarian reform, undertaken in Ukraine according to Laws of Ukraine No. 697-12, of
7 February 1991 [3] (Articles 14 and 19) and No.2073-12, of 30 January 1992 [4] provide for a
complex reformation of agrarian production, multi-structure of agriculture, different types of
ownership of land and means of production, technical and technological re-equipment,
development of cooperation and integration, and the formation of a market infrastructure.
                                                     
3 Annex to the Order of the President of Ukraine, No.566, of 29 April 1998, [30, Article 23].
4 Collective farms where members of these farms and jointly owned the produced goods and all of
the assets.
5 State-owned enterprises where the State owned the resulting production.
6 Association, including several farms.  These farms jointly own the resulting production.WT/ACC/UKR/62
Page 4
Pursuant to the Decree of the Cabinet of Ministers, No.15, of 26 December 1992 [5],
transfer of small land plots into a private ownership of individuals is carried out in Ukraine.
These land plots are transferred for maintaining ancillary farms, construction of residential
building and household buildings (so-called "personal plots"), gardening, and dacha and garageconstruction; 12.6 million people own these plots of which 9 million of them are privatized.
According to the Decree of the Cabinet of Ministers of Ukraine "On Peculiarities of Property
Privatization in Agro-Industrial Complex" [6], employees of farms received the property of
reformed farms in proportion to their labor contribution.  People have the freedom to choose the
way of using their land and property shares.  An employee may receive his shares if he leaves the
farm, to contribute shares into a newly created company, joint-stock company or agricultural
production cooperative society.  An employee may also sell or rent his shares to other ownersaccording to the Decree of the President of Ukraine No.666, of 10 November 1994 [7].  As of
today, 10.8 thousand or 99 per cent of former kolhozes have been reformed.  Further, collective
agricultural enterprises, farmers’ associations, joint-stock companies, cooperative societies and
other companies were created on the basis of reformed farms.
The activity of state-owned enterprises includes, first of all, implementation of the state
policy in the field of seed-growing and pedigree stock-raising, introduction of advanced
technologies, scientific research and other governmental measures.
As a result of agrarian reform, the rights and powers of agricultural goods producers have
been extended.  Now, enterprises of all organizational and legal forms have the right to determine
production directions, structure and volumes.  Enterprises also have the right to trade on the world
market, as well as allocate their profit (income) independently.
Small farm sectors were created in rural areas.  As of 1 January 1998, 35.9 thousand small
farms operated in the country.  These farms cover 932.2 thousand hectares of agricultural areas
(2.3 per cent of the total area), including 857.4 thous and hectares of ploughed field.  The average
area of a small farm is 26 hectares.  Significant areas were granted to people for maintaining
private household farms and constructing individual residences.  Currently, about 12 million
families own 4.3 million hectares of such land,1.5 times more than in 1991.
According to the Law, No.290, of 10 July 1996 [8], greater shares of enterprises and
organizations in the field of processing agricultural products, trade and services were privatized.
The privatization of state-owned property of agricultural enterprises and organizations of
the Ukrainian agro-industrial complex is carried ou t pursuant to the Law "On Privatization of the
Property of State-Owned Enterprises," No.2163 of 4 March 1992 [9], the Decree of the Cabinet of
Ministers of Ukraine "On Peculiarities of Property Privatization in the Agro-Industrial Complex,"No.51-93 [6], of 17 May 1993 and the Law "On Peculiarities of Property Privatization in the
Agro-Industrial Complex," No.290/96-VR ,of 10 July 1996 [8].
Taking into account the above, one may come to the conclusion that Ukraine developed
the appropriate normative and legal base to carry out the process of reformation of ownershiprelations in the agro-industrial complex.  Currently, 2.2 thousand sovhozes and other agricultural
enterprises or 99 per cent of those subject to privatization have been privatized.  In addition,
ownership reforms of processing enterprises, agricultural services and construction was carried
out along with reforming the owners hip of agricultural enterprises.
As a result, 4.5 thousand of enterprises of the above group (79 per cent of enterprises
subject to privatization) changed their organizational and legal forms completely.  This number
takes into account 5.5 thousand (96 per cent) of enterprises that are in the process or reform.
Pursuant to Decree of the Cabinet of Ministers "On the List of Property Complexes of
State-Owned Enterprises, Organizations and their Structural Units of the Main Production forWT/ACC/UKR/62
Page 5
which Privatization and Transfer into Lease is not Permitted," No.26-92, of 31 December 1992
[10], grain procurement enterprises were not subject to privatization.
As a result, only 15 grain-procurement and grain processing enterprises were privatized
before the end of 1996 out of a total of 557 such enterprises.  Reforming these 15 enterpriseshappened prior to the adoption of the above documents.  Thereafter, the Law "On Peculiarities of
Property Privatization in the Agro-Industrial Complex," of 10 July 1996 [8] provided for the
privatization of grain-procurement enterprises upon agreement with the Cabinet of Ministers.
Resolution of the Supreme Rada "On Changes and Amendments to the List of Objects not
Subject to Privatization Because of their State Importance," No.542/96-VR, of 22 November 1996
[11] excluded enterprises of the grain products industry from the list not subject to privatization.However, paragraph 21 of the Decree of the Cabinet of Ministers of Ukraine No.26-92, of
31 December 1992 [10], prohibiting privatization of the above enterprises, was not cancelled.
Privatization of enterprises of the grain products industry became possible only after the
Supreme Rada adopted the Law "On Changes to the List of Property Complexes of State-OwnedEnterprises, Organizations and their Structural Units of the Main Production for which
Privatization is not Permitted," No.537/-VR, of 23 September 1997 [12], which cancelled
paragraph 21 of the above Decree.
In fact, the Government began the process of privatizing enterprises after the Cabinet of
Ministers adopted the Resolution "On Acceleration of Grain Procurement Enterprises
Privatization", No.1218, of 5 November 1997 [13].  Consequently, the goal of the resolution was
fulfilled;. 100 enterprises were transferred to the State Joint Stock Company "Khlib Ukrainy"
(Bread of Ukraine ).  All 543 grain procurement enterprises named in the above Resolution are in
the process of privatization.
According to the day-to-day informa tion of the State Property Fund, as of
2 February 1999, 282 joint stock companies of the grain products industry were privatized with
property sales amounting to more than 70 per cent.  This information, however, does not include
the results of the 47
th auction for certificates and the 7th specialized auction for cash held in
December 1998.
According to the Law "On the Peculiarities of Property Privatization in the Agro-
Industrial Complex," of 10 July 1996 [8], 51 per cent of the shares of an object subject to
privatization must be transferred free of charge to agricultural goods producers having direct
contractual connections with the object.  Employees of enterprises and individuals with the same
powers have the right to receive a portion of shares.  According to the laws, each employee mayreceive shares for the amount equal to 1.5 times the face value of the privatization certificates.  An
employee pays for two thirds of the price of the share of the privatization certificate and for one
third of the price of the share by cash).  The rest of the shares must be sold on a competitive basis.
Information
Structure of the System of Grain Products Procurement and Processing
Information on the number of grain procurement enterprises (elevators, trading base, grain
base and grain products complexes) - 525
− grain processing enterprises – 32
− repair and mechanical plants – 19
− mechanical plant – 1
− enterprise for logistics support – 6
− construction enterprises, movable mechanical columns – 15
− science and research organizations – 4WT/ACC/UKR/62
Page 6
− macaroni plants – 10
− bakeries and enterprises – 244
− other organizations (educational complexes, resorts, etc.) – 32
− Total – 877
 
 The above enterprises were not subject to privatization under the Decree of the Cabinet of
Ministers, No.26, of 31 December  1992 [10].  As a result, only 15 enterprises of the 557 total of
grain procurement and grain processing ones were privatized before the end of 1997.  Reform of
these 15 enterprises occurred prior to adoption of the above documents.  Thereafter, theResolution of the Cabinet of Ministers, No.10 00, of 22 August 1996 [15], provided that all
enterprises of grain products will be divided into three privatization groups.  After incorporation,
these groups of enterprises had to transfer 100 per cent, 51 per cent or 26 per cent of shares into
the authorized fund of the State Joint Stock Company "Khlib Ukrainy" (hereinafter "Khlib
Ukrainy").  The latter would manage the property  of those enterprises through shares received.
The attempt at incorporation with partial privatiz ation of "Khlib Ukrainy" was unsuccessful; the
right to manage the property of enterprises was left to local agricultural departments.  Therefore,
no shares have been transferred into the authorized fund "Khlib Ukrainy".  Khlib Ukrainy"
managed no more than 2-3 enterprises, which incorporated and transferred 26 per cent of shares to
"Khlib Ukrainy".  Later, in order to correct the situation, the Cabinet of Ministers adopted
Resolution No.452 of 13 May 1997 [16].  Paragraph 5 therein ordered the former Ministry of
Agriculture and Food along with the State Property Fund of Ukraine (SPF) and "Khlib Ukrainy"to submit their proposals regarding "Khlib Ukrainy’s" demonopolization and acceleration of the
privatization of grain procurement and grain processing enterprises.  At that time, the Cabinet of
Ministers adopted Decision No.14, of 23 May  1997 [16] under pressure from international
organizations, which provide Ukraine with financ ial assistance.  The above decision of the
Cabinet of Ministers stated the urgent need of a privatization plan for the aforementionedenterprises.
 
 In fact, the Government began privatization of enterprises after the Resolution of the
Cabinet of Ministers "On Acceleration of the Privatization of Grain Procurement and Grain
Processing Enterprises," No.1218, of 5 November 1997 [13].  According to this Resolution, theMinistry of the Agro-industrial Complex of Ukraine had two months to transfer all the property of
one hundred enterprises of the grain products system (17 grain bases and 83 grain procurement
and grain processing enterprises which store mobilization stocks and reserves) to the authorized
fund of "Khlib Ukrainy" with further transformation of such enterprises into subsidiaries of "Khlib
Ukrainy.".  Other enterprises had to be privatized.  The SPF, the Ministry of the Agro-industrialComplex of Ukraine and the GAK "Khlib Ukrainy" had to agree and approve privatization plans
of the state-owned property of one hundred enterprises before the end of 1997.  Privatization plans
for an additional 343 enterprises had to be approved within the first half-year of 1998.
Privatization plans for 200 enterprises of the above list had to be approved within the first quarter
of 1998.
 
 At least four groups of grain market operators have made claims to the property of
enterprises subject to privatization, particularly: employees of enterprises, agricultural goods
producers, "Khlib Ukrainy," and traders.  According to the Law "On Peculiarities of Property
Privatization in the Agro-Industrial Complex.," of 10 July 1996 [8], 51 per cent of an object
subject to privatization had to be transferred free of charge to agricultural goods producers.  Also,
employees of enterprises have the right to receive a portion of shares.  According to the laws, eachemployee may receive shares for the amount equal to 1.5 times the face value of privatization
certificates.  An employee pays for two thirds of the share price with privatization certificates and
for one third of the shares by cash.  The rest of the shares must be sold at a commercial auction for
cash.
 According to the Resolution of the Cabinet of Ministers, No.1000, of 22 August 1996
[15], "Khlib Ukrainy" was empowered with the functions of a state buyer of food grain and seeds
for state resources.  "Khlib Ukrainy" was permitted to partake in commercial activities to purchaseWT/ACC/UKR/62
Page 7
grain, processed products therefrom and non-grain raw materials.  Thist Resolution [15] provided
for a structural reformation of the industry’s en terprises, mainly the reformof grain procurement
and grain processing enterprises into open joint stock companies with the transfer of the
corresponding stock of shares into the authorized fund of "Khlib Ukrainy.".
2. State Support for Agriculture
(a) Taxation System
 The Decree of the President of Ukraine "On Measures for State Support of Agricultural
Production," No.215, of 23 March 1998 [18], provided for a number of measures aimed at the
growth of production in the agro-industrial complex, in particular:
− planned decrease in taxes on agricultural enterprises (paragraph 2);
− development of relations connected with the leasing and mortgage of land (paragraph 5);
− debt restructuring of the agro-industrial complex enterprises to the Government and the
partial writing off  of debts (paragraph 7); and,
− introduction of a single (fixed) tax rate, beginning 1999.
Pursuant to paragraph 2 of the above Decree, in 1998 the President issued the Decree "On
the Writing Off and Restructuring of Tax Debts of Agricultural Enterprises and Sugar Plants,
Which are Tax-Payers as of 1 January 1998," No.651, of 18 June 1998 [19].  The Decree provided
for the writing off of: tax debts of agricultural en terprises, including fish farms, fishing collective
farms, farming companies and sugar plants (regardless of the type of ownership), fines, penalties
and financial sanctions to the State Budget, Pension Fund and Social Insurance Fund as of
1 January 1998.  Moreover, tax debts on VAT, income tax and land tax, tax debts on fees to the
State Innovation Fund and Chernobyl Fund, fees for a special use of natural resources, fees for a
mandatory state pension and social insurance, as well as tax debts on income tax for employees ofcollective agricultural enterprises and transport tax were also subject to restructuring.  Payment of
restructured debts was postponed for 60 m onths and will begin from 1 January 2000.
Pursuant to paragraph 2 of the Presidential Decree, No.215 [18], the President issued the
Decree "On the Fixed Agricultural Tax," No.652, of  18 June 1998 [20], beginning in 1999, a fixed
agricultural tax paid by agricultural enterprises of all ownership types in cash, was introduced.
Enterprises could switch to that form of a tax payment voluntarily.  The following enterprises,
however, could not switch to that form of a tax payment:
− those that within the previous reporting period gained the sum from sale of agricultural
produce of their own production and processed goods therefrom in the amount of more
than 50 per cent of their gross income; as well as owners of land shares and lessees of
land plots producing agricultural goods; and,
− those that had in 1997 the sums of tax and payments, substituted for the fixed tax, in
the amount of no more than double the payment amount of the fixed tax.
Currently, agricultural goods producers are not exempted from VAT.  The Law "On
Experimental Introduction of the Single Fixed Agricultural Tax," No.25, of 15 January 1998, [21],
effective from 12 February 1998 to 31 December 2000) determines a mechanism of the single
(fixed) tax collection paid by agricultural goods producers in cash and in-kind.  That experimental
tax was introduced in the Hlobynskiy rayon ( district ) of the Poltava oblast (region), the
Starobeshevskiy rayon of the Donets oblast and the Uzhhorod rayon of the Zakarpattya oblast.
For the period of experiment, a single tax for agricultural goods producers will include mandatory
payments established by the Law "On Taxation System" [22] as of 1 September 1997.  VAT isexcluded from mandatory payments in the Starobeshevskiy and Uzhhorod rayons.  The following
was determined:WT/ACC/UKR/62
Page 8
− payers of a single tax;
− taxation basis (ploughed field area);
− rates of the single tax (79.48 hryvnia or 338 kilograms of soft wheat of the third class for
each hectare of ploughed field in the Hlobynskiy rayon of the Poltava oblast; 51.7
hryvnia or 60.1 hryvnia for a hectares of ploughed field in Starobeshevskiy and
Uzhhorod rayons); and,
− terms and the procedure for payment and transfer of a single tax to budgets and state
funds for special purposes.
The Law "On a Fixed Agricultural Tax," No.320-XIV, of 17 December 1998 [14],
established that from 1 January 1999 to 1 January 2004, the rate of the fixed tax for agricultural
goods producers of mountain zones and woodlands will be in the amount of 0.3 per cent of the
cash value of one hectare of ploughed field, haym aking land and pastures and 0.1 per cent of the
cash value of one hectare of perennial planting areas.  Plenary meetings of regional Councils had
to approve the list of farms covered by the above law prior to 15 January 1999.
The Law, No.770, of 29 December 1997 [24] (paragraphs 11 and 21) established that the
VAT amount paid into the budget by processing enterprises for their sold milk and dairy produce
and meat and meat produce will be returned to agricultural goods producers to be sold for raw
products (in particular: milk and animals for slaughtering) by such producers to processingenterprises.  At the same time, these agricultural goods producers will be exempted from the
payment of VAT at the point of sale of the above raw products to processing enterprises by
applying zero VAT rates (Resolution of the Cabinet of Ministers, No.145, of 26 February 1998
[25]).
The Resolution of the Cabinet of Ministers "On the Introduction of Amendments and
Additions to the Resolution of the Cabinet of Ministers, No.145, of 16 February 1998," No.1096,
of 15 July 1998, [26] introduced significant amendments to paragraphs 4, 5, 6, 9 and 16 of the
"Procedure for the Calculation and Payment of S ubsidies to Agricultural Goods Producers for
Milk and Animals for Slaughtering Sold by Such Producers to Processing Enterprises," approvedby the Resolution of the Cabinet of Ministers [25]..  In particular, enterprises engaging in meat,
poultry and milk production  will have some of the VAT that they pay in meat or milk products in
kind transferred to funds aiding the deve lopment of meat and poultry production.
The Resolution of the Cabinet of Ministers "On the Introduction of Amendments and
Additions to the Resolution of the Cabinet of Ministers, No.977, of 3 September 1997[27],"
No.84, of 24 January 1998 [28] introduced amendments to paragraph 2 of the document "On the
Conditions of Providing Agriculture with Mineral Fertilizers for the 1998 Yield."  Pursuant to
these amendments, "Khlib Ukrainy" had to issue and discount (ordinary) bills in the amount of
780 million hryvnias (previously bills of exchange) and the State Treasury had to ensure reservingthe funds received as repayment of the budget loans within 30 per cent of guaranteed bills, in
order to ensure redemption of such bills from suppliers of mineral fertilizers.  Paragraph 3 of the
above Resolution set forth the new wording, which allows for delays in payments to the State
budget within the budget year to be provided, not only to suppliers, but also to businesses which
produce mineral fertilizers.
According to the Resolution of the Cabinet of Ministers "On the Mechanisms of
Providing the Agro-Industrial Production with Oils and Lubricants," No.161, of 27 July 1998 [29],
the Ministry of Finance, the State Tax Administration, the Council of Ministers of the
Autonomous Republic of Crimea and oblast Stat e Administrations were ordered to provide
suppliers of oils and lubricants, and agricultural goods producers with a delay in transferring
corresponding payments to the State budget and the local budget in 1999, if necessary.WT/ACC/UKR/62
Page 9
(b) Lending System
The State has limited budget resources to support the agro-industrial complex (Annex 2).
Therefore, an important role in re solving the issue of structural reforms of the industry is given to
the input of foreign capital.  For example, five foreign credit lines were opened for these industrieswith Government guarantees provided.  In partic ular, the following projects were agreed upon for
loan financing, and submitted to the National Ag ency of Ukraine for Development and European
Integration:
- ten credit projects under the German credit line with a guarantee from the
"Hermes" insurance company for DM65 million;
- two projects under the middle-term credit line of the USA Export and Import
Bank for US$155.9 million;
- a project under the French credit line for F 56.6 million French franks;
- a project under the Spanish credit line for US$6; and,
- a project under the Japanese credit line for ¥910.6 million.
In US Dollars, the total amount for projects approved in 1997 was US$214.7 million,
which includes the amounts to purchase the following:
- agricultural machinery – US$192.2 million (89.5 per cent);
- pesticides and herbicides – US$7.0 million  (3.3 per cent);
- animal protection preparations – US$6.0 million  (2.8 per cent); and,
- the complex implementation of advanced technologies on growing sugar beet –
US$9.5 million  (4.4 per cent).
In general, Ukraine used foreign loans totaling US$379.2 million provided with
governmental guarantees in 1997.  This sum includes financing of the agro-industrial complex inthe amount of US$307.1 million  (81 per cent).
An increase in the financing of agriculture at the expense of foreign loans by US$136.8
million in 1997 if compare with 1997, which resulted in the purchase of combine harvesters from
the US companies "John Deer" (US$70.5 million) and "Case Cor poration" (US$63.3 million).
This year, activity to increase credit lines will continue.
The Cabinet of Ministers adopted the Resolution "On Overcoming the Crisis Situation in
Stock-Raising and Poultry Farming and Stabi lization of Industry Development," No.1474, of
29 December 1997 [30] in order to provide poultry farms and specialized enterprises on porkproduction with mixed fodder.  This Resolution set forth the list of enterprises provided with non-
food grain for mixed fodder production (630 thousand tons).  This grain is provided by state
resources based on commodity loans.
Various international organizations gave about 17 million US Dollars towards the
development of land reform.  In particular, the above funds were directed at the development of a
land registration system, incorporation principles, privatization, and the registration of ownership
rights to land.  Along with the above funds, the World Bank gave a 300 million USD loan for the
structural reform of agriculture, which includes components of land reform.  However, it is
impossible to separate the funds especially directed at land reform from the total amount of theabove loan because the loan is a systemic one (the funds are transferred to the state budget and are
not allocated according to directions on agricultural reform).WT/ACC/UKR/62
Page 10
(c) Prices
Decree of the President of Ukraine "On Measures to Support Prices and Income of
Agricultural Goods Producers," No.614, of 11 Ju ne 1998 [31] established measures only aimed at
support prices and the income of domestic agricultural goods producers.  Moreover, the Cabinet of
Ministers was empowered to develop and submit to the Supreme Rada of Ukraine within two
months a draft law on extending the validity of the Law "On Value Added Tax" [32] for 1999 and
subsequent years regarding returning VAT amounts to agricultural goods producers paid for by
milk and meat enterprises; as well as to approve certain quotas of agricultural products covered by
the above support.  The Law "On the State Budget of Ukraine for 1999" provided for financing
from the state budget to support the production of fl ax, hemp and hops, as well as to finance costs
for planting and nurturing new gardens, vineyards and berry plantations.
The Resolution of the Cabinet of Ministers "On Establishing the Interdepartmental
Committee on Issues of Regulation of Food-Stuffs  Market, Prices and Income of Agricultural
Goods Producers," No.1026, of 6 July 1997, [33] approved the Regulations on the aboveInterdepartmental Committee, its personnel with Mr. S. Tyhypko, Deputy Prime Minister of
Ukraine, as its Chairman.  The tasks of the Interdepartmental Committee are to ensure support to
domestic agricultural and food products by entering into inter-industry price agreements and
establishing maximum coefficients of the appropriate levels of prices on end produce and
agricultural raw products, as well as differentiating resources, which supply and sell materials andtechnical resources to goods producers.  The Interdepartmental Committee’s decisions made
within its terms of reference are mandatory for central and local bodies of executive power.
(d) Main Directions of Agriculture Development
The Main Directions of the Ukrainian Agro-Industrial Complex Development were
approved (the Decree of the President of Ukraine, No.389, of 29 April 1998) [34]).  Those
Directions determined the most important measures and tasks in the fields of plant-growing,
stock-raising, and the development of food and processing industries taking into consideration the
agricultural situation in Ukraine.  The decree also addresses private sector development.  Because
87 per cent of the agro-industrial complex enterprises are unprofitable (minus 23.9 per cent), the
following main tasks were raised:
− restructuring debts of agro-industrial enterprises to the state and enterprises’ "sanation"
(new management), as well as creating a lending fund (section 9, paragraph 4);
− introducing mortgage lending and the development of a legal and normative base for
establishing the State Farmers Mortgage Bank (section 3, paragraph 4);
− establishing a state fund to support the prices and income of the agro-industrial
complex; strengthening anti-monopoly control over the prices for material, technical
and power resources provided to agricultural goods producers; and strengthening the
regulation of the prices and tariffs on the services of enterprises that are natural
monopolies (section 4, paragraphs 2, 3 and 4);
− forming an infrastructure for the agricultur al products market, including the adoption
of a program forming the above infrastructure for 1998-2000; establishing wholesale
food markets, trade houses and a network of  trade firms; entering the CIS agrarian
market and international production and trade organizations (section 8, paragraphs 1
and 6);WT/ACC/UKR/62
Page 11
− simplifying the tax system and decreasing taxes.  For this purpose, instructions have
been given to introduce a fixed agricultural tax, beginning 1 January 1999.  The taxrate will be based on land areas used in agricultural production with differentiations
applied to districts and processing and food industry enterprises (section 7,
paragraph 3).
 
 According to the Presidential Decree [34], section 9, paragraph 4, the Cabinet of Ministers
passed the Resolution "On Peculiarities of Carrying out the (Sanation) Restoration of the
Agro-Industrial Enterprises", No.922, of 16 June 1998 [35].  Pursuant to the above Resolution, it
was decided to undertake the restoration of enterprises from 1998-2000.  For this purpose, the
Interdepartmental Committee and regional committees tasked with carrying out the restoration and
restructuring agro-industrial enterprises were established.  Before 16 August 1998, the Ministry of
the Agro-Industrial Complex along with other depart ments had to determine the lists of the state-
owned enterprises and enterprises with mixed owne rship (where a share of the state ownership is
more than 50 per cent) subject to restoration, wh ich will be carried out on a return and non-return
basis.  Both domestic and foreign investors may participate in this process.
 
 3. System of Regulation of Foreign Trade in Agricultural Goods in Ukraine
 
 (a) Tariff regulation
  
The Law "On Foreign Economic Activity," No.959-XII, of 16 April 1991 [36],
determines the Unified Customs Tariff (UCT) as on e of the instruments of the customs regulation
of foreign economic activity in Ukraine (Article 13).  UCT Rates are established for imposing
duties on goods imported into Ukraine and exported from Ukraine, as well as goods transited
through Ukrainian territory.  The above rates are the same for all foreign economic participants,
regardless of types of ownership, organization of business activity and territorial location, except
cases provided for by Ukrainian laws and international agreements.
 
 (i) Import duties
  
The Law "On State Regulation of the Import of Agricultural Products," No.468, of 17 July
1997 [37] determined full import duties for goods in the 1-24 groups and the 1 and 2 groups of,"Commodity Nomenclature of Foreign Economic Activity" (except those subject to excise).  The
above duties are twice the amount of preferential rates of import duties for goods in the 3-24
groups.  Duties for goods subject to excise are established based on the level of preferential rates
(Article 1).  Effective terms for seasonal import duties (Article 2) for agricultural products were
determined (not less than 60 days and no more than 120 consecutive calendar days).  Currently,
the Resolution of the Cabinet of Ministers "On Establishing the Terms of Seasonal Import Duties
for Agricultural Products in 1998," No.754, of 28 May 1998 [38] establishes the above terms.  Therate of seasonal import duties is double the amount of preferential import duties for the produce
given.
 
 The Law "On the Introduction of Changes to the Law ‘On State Regulation of the Import
of Agricultural Products," No.321, of 16 January 1998 [39], introduced further changes andpreferential rates for certain types of agricultural products (Article 6).  Article 7 was added with
paragraph 8.  Pursuant to the said paragraph, a zero rate of import duties was established
temporarily for tomato paste (code 20.02.90.900) up to 1 August 1998.
 
 The Law "On Introduction of Changes to Article 7 of the Law "On State Regulation of the
Import of Agricultural Products," No.198, of 5 March 1998, [40] introduced changes pursuant to
which import duties were paid on goods imported into Ukraine with investment loans provided
with governmental guarantees up to 7 October 1997.  The above duties had to be paid according to
laws effective prior to the entering into force of Law No.468, of 17 July 1997 [37].
 WT/ACC/UKR/62
Page 12
 The Decree of the President "On the Procedure for Importation into Ukraine of Certain
Types of Oil in 1998," No.444, of 8 May 1998 [41] introduced zero import rates for non-refined
sunflower and soybean oil imported into Ukraine within the established tariff quotas.  These
quotas are the following:
 
− non-refined sunflower oil - 100 thousand tons;
− non-refined soybean oil - 10 thousand tons; and,
− palm oil and its derivative products - 15 thousand tons.
VAT payments could be delayed up to thirty days in the course of the importation of
vegetable oil within the established tariff quotas in 1998.  Re-export of the above oil was
prohibited.  At the same time, vegetable oil imported as a raw product for processing at enterprises
determined by the Ministry of the Agro-Industrial Complex of Ukraine was exempted frommandatory certification up to 1 September 1998.
According to the Resolution of the Cabinet of Ministers "On Introduction of Changes to
the Rates of Import Duties for Certain Types of Agricultural Machinery and Equipment,"
No.1215, of 3 August 1998 [42] and Annex to the said Resolution, preferential rates of import
duties for turning ploughs (code 84.3210900, CMU Resolution No.139), universal equipment for
soil cultivation (code 84.3229900, CMU Resolution No.531) and combine harvesters (code84.3351000, CMU Resolution No.306) were decreased to 0.2 per cent.  Earlier, preferential rates
of import duties for the above machinery were 20 per cent, 2 per cent and 10 per cent respectively.
Moreover, the preferential and full rate of import duties were established in the amount of
0.2 per cent and 4 per cent for tractors for agricultural works and wheeled tractors for forestryindustry enterprises (earlier such type of tractors was not present).
(ii)  Export DutiesSeasonal export duties may be established for certain goods and other commodities
(Article 2 of the Law [37]).  For example, seasonal duties for alive animals and leather raw
materials are currently in effect according to the Law "On Export Duties for Alive Animals and
Leather Raw Materials" No.180, of 7 May 1996 [43].
(b) Non-Tariff Regulation
(i) Quotas and Licensing of Ag ricultural Export and Import
A possibility of establishing annual quotas for import of goods included into the first and
second group of Commodity Nomenclature of Foreign Economic Activity (the following codes:
01.02, except 01.02.10.000; 01.03, except 01.03.10.000; 01.05, except 01.05.11.000; 01.06.00;
02.01; 02.02; 02.03; 02.04; 02.05.00.000; 02.06; 02.07, except 02.07.39.130, 02.07.39.230,02.07.41.510, 02.07.39.130, 02.07.39.230, 02.07.41.510; 02.08; 02.09.00, 02.10) is provided
according to the Law [37].  The above goods are taxed with import duties on preferential rates
equal to or exceeding 30 per cent.
In the current year, quotas will be in effect up to the day of auction on their sale for the
next year.  In this situation, however, products subject to quotas are not exempted from taxation
with import duties.  The quota volumes of certai n goods at entry cannot exceed 10 per cent of the
production volume of similar products in Ukraine within a year preceding the current year.  The
Cabinet of Ministers establishes the concrete volume of quotas within or above 10 per cent,
proceeding from actual volumes of domestic production and consumption of such produce(including import one) in a preceding year.  The La w [37] provides that within sixty (60) days the
Ministry of the Agro-Industrial Complex sells quotas on imports at auctions.  An importer will
pay quotas plus a fee for participation in the auction.  An importer will pay the state a fee in theWT/ACC/UKR/62
Page 13
amount provided by legislation.  These funds ar e transferred to the state budget of Ukraine.
Unsold quotas will be canceled.  Information ab out the auction is published no later than thirty
days before the auction's date.
Any person may participate in the auction.  Such a person, however, must submit an
application according to the established form, pay a registration fee and provide collateral that is
subsequently included into the price of quotas or returned if the said person does not buy
anything.  Quotas are considered realized only after the complete payment of their price.  The
resale of quotas is not permitted.  Only a person who wins the auction bidding can be the
consignee of imported products subject to quotas.  However, as of today the Ministry of the Agro-
Industrial Complex does not use this possibility to establish and sell quotas at auctions.
Quantitative restrictions of Ukraine’s foreig n trade with sugar and confectionery applied
from 1993 to 1994.  Quotas and licensing of the said products did not apply in 1995, 1996 and
1997.  In 1998, quantitative restrictions affected the export of white sugar and the import of cane
sugar.  The Russian Federation dictated the above restrictions to Ukraine.  Pursuant to the
Resolution of the Cabinet of Ministers "On Quotas and Licensing of Export of White SugarSupplied to the Russian Federation in 1998 Without Import Duties," No.443 [44], the regime of
licensing the export of sugar (code 17.01.99.100) from Ukraine to Russia without taxation with
quotas was introduced within 600 thousand ton quotas.  The Ministry of Foreign Economic
Relations and Trade had to issue licenses for the export of sugar with the terms of no more that
ninety (90) calendar days and establish indicative prices for sugar within the quotas.
On 16 June 1998, the Cabinet of Ministers adopted Resolution No.892 [45].  Pursuant to
the said resolution, the regime of licensing the import of cane sugar (code 17.017.1) was
introduced for 1998 in the amount of 300 thousand t ons at a 15 per cent rate of import duty, but no
less than 0.05 ECU per 1 kilogram.  The Ministry of Foreign Economic Relations and Trade wasauthorized to issue licenses for the export of cane sugar with the term valid until 1 August 1998.
Enterprises importing and processing the said sugar are exempted from the payment of import
duties and VAT up to the moment of sale of the product made from the sugar.  In this situation,
however, the term cannot exceed 90 calendar days.
Quantitative restrictions of Ukraine’s foreign trade with grain crops and flour applied
from 1993 to 1995.  Since 1996, quotas and licensing of the said products have not been applied.
Wine-making industry: to buy wine-making materials abroad, an importer had to purchase
a license for five years in the amount of 170 thousand hryvnias (the Law "On State Regulation of
the Production and Trade in Ethyl Alcohol, Cognac and Fruit Spirits, Alcoholic Beverages and
Tobacco Products," No.481, of 19 December 1995 [46]).   The restriction particularly affectedsmall enterprises.  Consequently, the Supreme Rada adopted a law [47] that temporarily
permitted, free of charge, (until 1 January 2000) the above procedure for Ukrainian goods
producers.
The Resolution of the Cabinet of Ministers "O n Temporary Limits of Exports of Leather
Raw Materials Used In Foreign Give-and-Ta ke Raw Materials Transactions," No.353, of
23 March  1998 [48] according to paragraph 5, Article 5 of the Law "On Foreign Give-and-Take
Raw Materials Transactions," No.327, of 15 Sept ember 1995 [49] suspended (until the special
instruction of the Cabinet of Ministers of Ukraine) export of leather raw materials used in foreign
give-and-take raw materials transactions (code of Commodity Nomenclature of Foreign EconomicActivity 41.01 - 41.03) from the territory of Ukraine.
(ii) Excise Duty and Value Added TaxThe Supreme Rada establishes rates of excise duties for goods subject to excise.  These
rates are unified throughout Ukraine.WT/ACC/UKR/62
Page 14
The following agro-industrial produce is subject to excise:
- alcoholic drinks (the Resolution of the Cabinet of Ministers "On Introduction of
Changes to the Resolution of the Cabinet of Ministers, No.1200, of3 August 1998," No.1552, of 29 September 1998 [50] decreased twofold the rates
of excise duty for spirits and alcoholic drinks, in particular: from 7 to 3,5 ECU per
one liter of a hundred per cent spirit.  Rates of excise duty for beer and wine did
not change, but remained at 0.11 and 0.4 ECU per one liter respectively (the
Resolution of the Cabinet of Ministers "On Rates of Excise Duty for Certain
Goods and Produce," No.1200, of 3 August 1998 [51]);
- tobacco products (pursuant to the Resolution of the Cabinet of Ministers "On
Rates of Excise Duty for Certain Goods and Produce," No.1200, of
3 August 1998 [51], rates for tobacco products were increased, in particular: rates
of excise duty for cigarettes without filters were increased from 2 ECU per one
thousand (1000) cigarettes up to 2.3 ECU and for cigarettes with filters - from 2ECU up to 3 ECU per one thousand cigarettes);
- poultry parts (the Law "On Rates of Excise Duty and Import Duties for Certain
Goods (Produce)," No.313, of 11 July 1996, [52].  The said Law established rates
of excise duty in the amount of 0.03 ECU per one kilogram).
- ethyl alcohol used by domestic goods producers to produce medicinal
preparations was introduced in the amount of 0.2 ECU per one liter of a hundred
spirit (the Decree of the President "On Rates of Excise Duty for Ethyl Alcohol
Used by Domestic Goods Producers to Produce Medicinal Preparation," No.1616,of 12 October 1998 [53]).
Value Added Tax (VAT)
Pursuant to paragraph 115 of the Law "On Value Added Tax," No.168, of 3 April 1997
[32] (with changes and additions), importation of goods of critical imports for domestic
production at the moment of crossing the customs border until 1 January 1999 was carried outwithout VAT payment.
On 28 July 1998, the Cabinet of Ministers adopted the Resolution "On the List of Goods
of Critical Imports," No.1145 [54].  Prior to the said Resolution, there was no precise list of goods
of critical imports (the Resolution of the Cabine t of Ministers "On the List of Goods of Critical
Imports Importation Without the Value Added Tax Payment," No.1106, of 10 October 1997 [55]
recognized goods of critical imports as those imported goods in the customs territory of Ukraine,
which were governed by the Decree of the Pr esident "On Value Added Tax for Import Goods,"
No.499, of 30 June 1995 [56]).  This only contained a list which addressed preferences on
exemption from VAT payment was not applied, while importing goods to Ukraine (the Resolutionof the Cabinet of Ministers, No.602, of 30 May 1996 [57]).
Live pedigree animals were exempted from VAT payment in the course of import by
business agents for production and own use prior to 1 January 1999.  All other live animals, as
well as meat and unfinished food products were not exempted from VAT payment.
Similarly, rye (except its seed), barley, rice and certain sub-entries of wheat, in particular:
10.0110100, 10.0190100, 10.0190910 and 10.0190990 were exempted from VAT payment.  All
other grain crops and produce of flour-gr inding industry are subject to the VAT.WT/ACC/UKR/62
Page 15
As to sugar products, cane sugar for refining and white sugar, medical and food glucose,
boiled candies, caramels and other confections produced from sugar under code 17.04 90900 were
exempted from VAT payment prior to 1 January 1999.  Other kinds of sugar and sugar
confections were subject to VAT.
The Law "On Introduction of Changes to Certain Laws of Ukraine on Taxation Issues,"
No.794, of 30 December  1997 [58] set forth paragr aph 3, Article 7 of the Law "On Foreign Give-
and-Take Raw Materials Transactions" No.327, of 15 September 1995 [59] in the new wording
that prior to 1 January 1999, that finished products of goods  from groups 1-24 of the Harmonized
System were exempted from VAT and import duties, and was not subject to licensing and quotas
(earlier, there were no instructions regarding VAT, import duties and quotas, and a licensing
regime).WT/ACC/UKR/62
Page 16
The List of Legal and Normative Acts of Ukraine
1. Land Code in the wording of the Law "On Introduction of Changes and Additions to Land
Code of Ukraine," No.2196-XII, of 13 March 1992.
2. Resolution of the Supreme Rada of Ukraine "On Acceleration of Land Reform and Land
Privatization," No.2200-XII, of 13 March 1992.
3. Law "On Ownership," No.697-12, of 7 February 1991.
4. Law "On Types of Ownership of  Land," No.2073-12, of 30 January 1992.
5. Decree of the Cabinet of Ministers of Ukraine "On Privatization of Land Plots," No.15, of
26 December 1992.
6. Decree of the Cabinet of Ministers of Ukraine "On Peculiarities of Property Privatization
in the Agro-Industrial Complex," N o.51-93, of 17 May 1993 (WT/ACC/UKR/26).
7. Decree of the President of Ukraine "On Urgent Measures on Acceleration of Land Reform
in the Field of Agricultural Pr oduction," No.666, of 10 November 1994.
8. Law "On Peculiarities of Property Privatization in the Agro-Industrial Complex," No.290-
96, of 10 July 1996.
9. Law "On State Property Privatization," No.2163, of 4 March 1992.
10. Decree of the Cabinet of Ministers of Uk raine "On the List of Property Complexes of
State-Owned Enterprises, Organizations and their Structural Units of the Main Production
for which Privatization and Transfer into Lease is not Permitted," No26-92, of 31
December 1992.
11. Resolution of the Supreme Rada of Ukraine "On Changes and Amendments to the List of
Objects not Subject to Privatization because of their All-State Importance," No.542/96 –
VR, of 22 November 1996.
12. Law "On Changes to the List of Property Complexes of State-Owned Enterprises,
Organizations and their Structural Units of the Main Production for which Privatization is
not Permitted," No.537/97-VR, of 23 September 1997.
13. Resolution of the Cabinet of Ministers of Ukraine "On Acceleration of Grain Procurement
Enterprises Privatization," No.1218, of 5 November 1997.
14. Law "On the Fixed Agricultural Ta x," No.320-XIV, of 17 December 1998.
15. Resolution of the Cabinet of Ministers of Ukraine "On Establishing the State Joint Stock
Company "Khlib Ukrainy," No.1000, of 22 August 1996.
16. Resolution of the Cabinet of Ministers of Ukraine, No.452, of 13 May 1997.
17. Protocol decision of the Cabinet of Ministers of Ukraine No.14, of 23 May 1997.
18. Decree of the President of Ukraine "On Measures for State Support of Agricultural
Production,",No.215 of 23 March 1998.
19. Decree of the President of Ukraine "On Wr iting Off and Restructuring of Tax Debts of
Agricultural Enterprises and Sugar Plants (Complexes) which are Tax-Payers as of
January 1, 1998," No.651, of 18 June 1998.
20. Decree of the President of Ukraine "On th e Fixed Agricultural Tax," No.652, of 18 June
1998.
21. Law "On the Experimental Introduction of th e Single Fixed Agricultural Tax," No.25, of
15 January 1998.
22. Law "On the Taxation System," No.1251-XII, of 25 June 1991.
23. Decree of the President of Ukraine "On Me asures of Support to Agricultural Goods
Producers of Mountain Zones and Woodlands," No.870, of 10 August 1998.
24. Law No.770, of 29 December 1997.
25. Resolution of the Cabinet of Ministers of Ukraine "Procedure for Calculation and
Payment of Subsides to Agricultural Goods Producers for Milk and Animals forSlaughtering Sold by such Producers to Processing Enterprises," No.145, of 26 February
1998.
26. Resolution of the Cabinet of Ministers of Ukraine "On the Introduction of Amendments
and Additions to the Resolution of the Cabinet of Ministers of Ukraine No.145, of
16 February 1998," No.1096, of 15 July 1998.WT/ACC/UKR/62
Page 17
27. Resolution of the Cabinet of Ministers of Ukraine "On the Conditions of Supply of
Agricultural Enterprises with Mineral Resources in 1998," No.977, of 3 September 1997
28. Resolution of the Cabinet of Ministers of Ukraine "On the Introduction of Amendments
and Additions to the Resolution of the Cabinet of Ministers of Ukraine, No.977, of
3 September 1997," No.84, of 24 January 1998.
29. Resolution of the Cabinet of Ministers of Ukraine "On the Mechanism of Providing the
Agro-Industrial Production with Oils and Lubricants," No.161, of 27 July 1998.
30. Resolution of the Cabinet of Ministers of Ukraine "On Overcoming the Crisis Situation in
Stock-Raising and Poultry Farming and Stab ilization of the Industry Development,"
No.1474, of 29 December 1997.
31. Decree of the President of Ukraine "On Measures to Support Prices and Income of
Agricultural Goods Producers," No.614, of 11 June 1998.
32. Law "On Value Added Tax," No.168, of 3 April 1997.
33. Resolution of the Cabinet of Ministers of Ukraine "On Establishing the Interdepartmental
Committee on Issues of Regulation of Food-Stuffs Market, Prices and Income of
Agricultural Goods Producers," No.1026, of 6 July 1997.
34. Decree of the President of Ukraine "The Main Directions of the Ukrainian Agro-Industrial
Complex Development," No.389, of 29 April 1998.
35. Resolution of the Cabinet of Ministers of Ukraine "On Peculiarities of Carrying out
Restoration {Sanation) of the Agro-Industrial Complex Enterprises," No.922, of 16 June
1998.
36. Law "On Foreign Economic Activity," No.959-XII, of 16 April 1991.
37. Law "On State Regulation of Import of Agricultural Produce," No.468, of 17 July 1997
(WT/ACC/UKR/44/Add.1).
38. Resolution of the Cabinet of Ministers of Ukraine "On Establishing the Terms of Seasonal
Import Duties for Agricultural Produce in 1998," No.754, of 28 May 1998.
39. Law "On Introduction of Changes to the Law "On State Regulation of Import of
Agricultural Produce," No.321, of 16 January 1998.
40. Law "On Introduction of Changes to Article 7 of the Law "On State Regulation of Import
of Agricultural Produce," No.198, of 5 March 1998.
41. Decree of the President of Ukraine "On the Procedure of Importation into Ukraine of
Certain Types of Oil in 1998," No.444, of 8 May 1998.
42. Resolution of the Cabinet of Ministers of Ukraine "On Introduction of Changes to the
Rates of Import Duties for Certain Types of Agricultural Machinery and Equipmentthereto," No.1215, of 3 August 1998.
43. Law "On Export Duties for Alive Animals and Leather Raw Materials," No.180, of
7 May 1996.
44. Resolution of the Cabinet of Ministers of Ukraine "On Quotas and Licensing of Export of
White Sugar that will be Supplied to the Russian Federation in 1998 without Taxationwith Import Duties," No.443, of 6 April 1998.
45. Resolution of the Cabinet of Ministers of Ukraine "On the Mechanism of Regulation of
Cane Sugar Supplies in 1998," No.892, of 16 June 1998.
46. Law "On State Regulation of the Production and Trade in Ethyl Alcohol, Cognac and
Fruit Spirits, Alcoholic Beverages and Tobacco Products," No.481, of 19 December 1995.
47. Resolution of the Supreme Rada of Ukraine "On the Procedure for the Enactment of the
Law "On State Regulation of Production and Trade in Ethyl Alcohol, Cognac and Fruit
Spirits, Alcoholic Beverages and Tobacco Products," No.482/95, of 19 December 1995.
48. Resolution of the Cabinet of Ministers of Ukraine "On Temporary Limitation of Export of
Leather Raw Materials Used In Foreign Give-and-Take Raw Materials Transactions,"No.353, of 23 March 1998.
49. Law "On Foreign Give-and-Take Raw Materials Transactions," No.327, of
15 September 1995.
50. 
Resolution of the Cabinet of Ministers of Ukraine "On Introduction of Changes to the
Resolution of Cabinet of Ministers of Ukraine, No.1200, of 3 August 1998," No1552, of29 September 1998.WT/ACC/UKR/62
Page 18
51. Resolution of the Cabinet of Ministers of Ukraine "On Rates of Excise Duty for Certain
Goods and Produce," No.1200, of 3 August 1998.
52. Law "On Rates of Excise Duty and Import Duties for Certain Goods (Produce)," No.313,
of 11 July 1996.
53. Decree of the President of Ukraine "On Rate s of Excise Duty for Ethyl Alcohol Used by
Domestic Goods Producers to Produce Medicinal Preparation," No.1616, of 12 October
1998.
54. Resolution of the Cabinet of Ministers of Ukraine "On the List of Goods of Critical
Imports," No1145, of 28 July 1998.
55. Resolution of the Cabinet of Ministers of Ukraine "On the List of Goods of Critical
Imports Importation of which is Carried out without Value Added Tax Payment,"
No.1106, of 10 October 1997.
56. Decree of the President of Ukraine "On Value Added Tax from Import Goods," No.499,
of 30 June 1995 (WT/ACC/UKR/39).
57. Resolution of the Cabinet of Ministers of Ukraine No.602, of 30 May 1996.
58. Law "On Introduction of Changes to Certain Laws of Ukraine on Taxation Issues,"
No.794 of 30 December 1997.
59. Law "On Foreign Give-and-Take Raw Materials Transactions," No.327, of
15 September 1995.WT/ACC/UKR/62
Page 19ANNEX
Table 1.  Dynamics and Structure of the Production of the Main Ty pes of Produce in Public and Private Sectors of Agriculture of  Ukraine (thousand
tons, per cent)
Year Grain Crops Sugar Beet Potatoes Vegetables Meat
(Slaughtering
Weight)Milk Eggs
public
sectorprivate
sectorpublic
sectorprivate
sectorpublic
sectorPrivate
sectorPublic
sectorprivate
sectorpublic
sectorprivate
sectorpublic
sectorprivate
sectorpublic
sectorprivate
sector
1993 42428 3195 33161 556.0 3036 17973 2604 3451 1672 1143 11696 6681 6101 5693
1996 21721 2850 21410 1599.0 830 17580 915 4155 880 1233 7614 8207 3662 5102
In % to
199351.2 89.2 64.6 287.6 27.3 97.8 35.1 120.4 52.6 107.9 65.1 122.8 60.0 89.6
1997 31419 4053 16494 1169 472 16229 894 4274 653 1222 5379 8389 3070 5173
In % to
199374.1 129.9 49.7 210.3 15.6 90.3 34.3 132.5 39.1 106.9 46.0 125.6 50.3 90.9
Specific Weight of the Sector (%)
1993 93 7 98 2 14 86 43 57 59 41 64 36 52 48
1997 88.6 11.4 93 7 3 97 17 83 35 65 39 61 37 63
1 – See note to page 3.
__________