Friday, 20 August 2010

Grain Export Restrictions in Ukraine – The Need for Transparent Measures

Here’s an extract from open letter sent yesterday to the Ukraine administration from Jorge Zukoski from the American Chamber of Commerce in Ukraine. I think he agrees with me but I suspect his open letter holds more clout than my open blog.

“Most trading companies in Ukraine are now refusing to undertake any wheat purchases, and it can be assumed that this is the intention behind all these new measures. By threatening companies or even individual persons within the companies, or by introducing nontransparent measures and arbitrary new procedures without proper justification, the wheat exports out of Ukraine have practically stopped.

These actions by government agencies will hurt the Ukrainian State in the form of lost taxes and problems with foreign credits, failures for Ukrainian companies seeking IPOs and foreign partnerships, lost revenues for Ukrainian farmers etc. It should not be forgotten that the growing role of Ukraine as Eurasia’s grain basket is bringing substantial benefits to this country and supporting its international and investment profile. Unjustified and restrictive actions by Government authorities will damage the reputation of Ukraine as a reliable international trading partner and as a country in which to invest. “