24 August 2016, 18:47
The Parliament Took the First Step towards Deregulation in Agribusiness of Ukraine

On November 24, the Verkhovna Rada of Ukraine passed in principle Bill 2558a in its first reading on Amendments to Certain Legislative Acts of Ukraine as to Deregulation in Agribusiness. The authors of the Bill were the People’s Deputies of Ukraine, namely O. Mushak, O. Bakumenko, M. Kucher, O. Kulinich, S. Labaziuk, I. Miroshnichenko, V. Ivchenko, V. Kryvenko, O. Opanasenko, L. Kozachenko, S. Khlan. The Ukrainian Agrarian Association also took part in its development.

It is significant that the people’s representatives could take a correct view of the relevance and importance of this Bill for agrarians in light of the beginning of a new sowing season and took a decision to review it in a shortened procedure.

May we remind you that the main provisions of the Bill stipulate the following:

  • Cancel and/or restrict the effect of 22 licensing procedures and requirements for economic activities, which will significantly facilitate entrance to the market of new economic entities, increase production profitability and reduce retail prices for food products;
  • Limit the authority of certain state agencies on performing functions of state control which along with the first paragraph will considerably reduce administrative costs for agrarians;
  • Simplify procedures for registration of certain fertilizers which will significantly reduce their price in Ukraine and, as a result, increase the profitability of crop growing and decrease prices for domestically produced food products;
  • Mitigate corruption risks related to licensing procedures;
  • Improve economic attractiveness of agribusiness of Ukraine and Ukraine's standing in international rankings of economic freedom.

As previously reported, the Bill takes into account standpoints of civic organizations, business representatives, experts and government bodies who have expressed their will to participate in its development. The development process was carried out in the first half of 2015. During that time, legal framework and the practice of issuance and use of 110 permits as well as a range of other agribusiness policies were analyzed.

We would like to express special gratitude to the Ministry for Agrarian Policy and Food of Ukraine and the European Union Delegation to Ukraine for their assistance in carrying out this hard work and for creating conditions to consider the input of all stakeholders to maximum effect.

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