The Ukrainian Grain Association (UGA) and the All-Ukrainian Agrarian Council (AAC) have supported the efforts of the Odesa Regional State Administration under the leadership of Oleh Kiper to combat shadow grain exports, which became possible due to new control mechanisms. These measures are aimed at ensuring the legality of the origin of grain and reducing the volume of the shadow market, UNN reports.
Andrii Dykun, head of the UAC, met with Oleh Kiper, head of the Odesa RSA, to discuss the achievements of the new export control system, which requires confirmation of the legality of grain origin through verification of the chain of custody.
"Farmers support this decision, as the demand for undocumented grain has significantly decreased, and the transparency system has started working. We hope that this will become a practice not only in Odesa region," said Dykun.
The Ukrainian Grain Association also praised the measures taken by the authorities, including the Odesa RMA and legislative initiatives to ensure transparent exports. Over the past year, mechanisms have been put in place to reduce the shadow turnover of grain, and the new law on export security, which came into force in July 2024, introduced a VAT export security regime for the period of martial law for certain types of agricultural products. Resolution No. 944 provides for the establishment of minimum export prices, which will promote transparency.
Agrarians thanked Oleg Kiper for constructive cooperation and support of the agricultural sector, noting that such measures have a positive impact on the development of a transparent grain market in Ukraine.
Recall
Last year, the head of the Odesa RMA, Oleh Kiper, introduced a new mechanism by order that prevented the export of grain of unknown origin. From now on, grain purchased from farmers for cash has virtually zero chances of being exported. The de-shadowing of the market has already yielded significant results: Ukraine's non-return of foreign exchange earnings has decreased from $7 billion to $2 billion, meaning that $5 billion was returned additionally in a year thanks to the innovations. Later, this mechanism was integrated into the law, which began to apply not only to Odesa region but also to other regions.