Despite a flurry of criticism, the discussion order No. 19 of the head of the Odesa regional administration, Oleh Kiper, increased the inflow of foreign exchange earnings to the country's budget to UAH 50 billion. He cited these figures in an interview with UNN.
Details
The order was signed in August 2023 and since then has blocked the export of agricultural products purchased from farmers for cash through the ports of Odesa region. Many market players were critical of the innovation, but in the end, both business and the state benefited from it.
"Before signing this 'revolutionary' order, as you said, we gathered all businesses, we gathered all associations, we gathered law enforcement, port authorities, and we discussed a lot about how to strengthen legal business. When this decree was signed, there was no corridor at all, neither grain nor other, because in July last year, the Russians unilaterally withdrew from the grain deal and there was a logistics problem.
We signed the order when our President ordered the military to ensure that vessels could enter and exit the ports of Greater Odesa in order to create conditions for the operation of our enterprises, our business, and our economy. The order was just signed to resolve grain issues, and we signed this order with the military command. Initially, there were questions and misunderstandings. Large companies asked: "Why is this? We have been working openly and honestly before." I communicated and explained personally that this was not a question for them, but for the "black" grain producers. What were the consequences? Non-return of revenue, taxes, personal income tax, and so on. This caused the state considerable losses. We wanted to resolve this issue, and today I can state that we have succeeded.
If we look at the increase in the return of foreign currency earnings to Ukraine, since the beginning of the order, it has been 15 billion, and now we have already reached the figure of 50 billion hryvnias. These figures, in particular, are keeping the country's exchange rate stable," he said.
Kiper also clarified how the regional state administration "filters" companies.
"A bona fide and law-abiding company should at least have a workforce at the enterprise as evidence that these facilities are working. A company cannot have only one director or accountant registered, and yet export millions of tons. Someone has to grow it somewhere. There must be a large number of ancillary facilities to harvest this grain, store it somewhere, protect it, and deliver it.
When the order came into effect, foreign currency earnings returned. Many companies have moved away from the so-called "Form 2", where everything was done in cash, and have abandoned it.
The figures I have given you show that, although the order is revolutionary, it is effective and necessary in these difficult times for the country," he summarized.