The American Chamber of Commerce in Ukraine has been continuously advocating for transparent regulation in Ukraine’s alcohol industry. Thus, the business community welcomes adoption of Draft Law #2300 that amends the Law “On the State Regulation of Production and Circulation of Ethyl Alcohol, Cognac and Fruit Alcohols, Alcoholic Beverages and Tobacco Products” introducing new model of alcohol production. In particular, there are some progressive amendments the Chamber was standing for:
- Demonopolization of alcohol market by revocation of Ukrspyrt’s* single authority in decision-making process on any relevant issue.
The concept “demonopolization prior to privatization” would guarantee transparent mechanism of alcohol market demonopolization. According to the preliminary research of the Ministry for Development of Economy, Trade and Agriculture, it would decrease shadow alcohol market share from current 55% down to 5% in 2025.
- Liberalization of alcohol production policy by opening this market to private sector.
The Law allows alcohol production activity as well as import of ethanol to all economic agents who received respective license.
In addition, new Law applies special restrictions, such as prohibition of alcohol import until 2024, obligation of enterprises’ owners to introduce full-time video control & security systems in order to guarantee transparent regulation and fair competition for all market players.
The Chamber will closely monitor the proper enforcement of transparent regulation of alcohol industry.
*State enterprise (monopolist) in alcohol industry, owning 41 enterprises.