Friday, August 27, 2010

Ukraine Restricts Grain Export

The State Customs of Ukraine recently issued letters changing grain export quality control procedures that in effect suspend wheat export from Ukraine. Under the new rules, the quality control testing must be performed by the Kyiv Forensic Institute. The Minister on Agrarian Policy, Nikolai Prisyazhnyuk, announced last week that in order to ensurer Ukraine's food security, the government intends to restrict grain export by the end of 2010, introducing quotas at the level of 2.5 mln. tonnes. While quotas have not yet been introduced, the new customs rules are viewed as non-tariff trade barriers. The American Chamber of Commerce in Ukraine together with the U.S.-Ukraine Business Council issued a statement addressed to various Ukrainian government officials, including President Viktor Yanukovych, condemning the “nontransparent measures and arbitrary new procedures.” According to the Ukrainian Grain Association, approximately 1.9 mln. tonnes of grain are currently awaiting export in port elevators, ships and railway cars.

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