Government approves program to reform spirits industry

The government’s representative to the Verkhovna Rada, Vasyl Mokan, posted on Facebook that the program aims to create conditions for improving the state policy on development of the spirits industry and related industries, reforming and privatizing spirits industry enterprises, counteracting the "shadow" market of spirits and alcoholic beverages and creating conditions for a competitive ethyl alcohol market in Ukraine.

As reported, the State Property Fund of Ukraine has declared its readiness to begin the process of privatization of 41 facilities that are part of State-Owned Enterprise “Ukrspyrt”.

On July 1, 2020, a law came into force abolishing the state monopoly on spirits production, in particular for medical and veterinary purposes. According to the law, persons who have purchased the property of SOE “Ukrspyrt” or entered into a public-private partnership agreement on such property are required to retain activities and at least 70% of the production staff, who worked as of 1 January 2020, until 1 July 2021.

Until July 1 next year, spirits will be produced in Ukraine exclusively at state and privatized enterprises. After this date, it will be possible to put private enterprises into operation. The expected revenues to the state budget from the privatization of all distilled spirits plant will reach almost UAH 2.5 billion.

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