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UAC demands from Ministry of Agrarian Policy to cancel grain export contracts Agrarian Exchange obligatory registration
31.07.2006 09:23 "Agro Perspectiva" (Kyiv) —
Ukrainian Antimonopoly Committee (UAC) has officially recommended Ministry of Agrarian Policy to prevent Agrarian Exchange from monopolizing domestic market (what became possible due to Exchange having been granted exclusive right to register external economic grain purchase/sale contracts), reported UAC press-service. «Establishing of only one registrar means actually abolishing of market competition. Antimonopoly Committee can’t allow that by no means, especially when taken into consideration harvesting campaign is now going on,» reported press-service referring to Oleksiy Kostusiev, UAC Chairman, declaration. «Now corresponding Ministry must cancel anticompetitive Decree within 10 days so as not to make country experience possible negative consequences caused by activity of newly created exchange market monopolist. We will as well urge Justice Ministry not to register this illegal Decree,» declared Kostusiev. As to UAC press-service, by having issued Decree «About Improving of Grain Market Regulation», Ministry of Agrarian Policy has authorized Agrarian Exchange to register grain export purchase/sale contracts, though Decree hadn’t been preliminary agreed with UAC (as it is required by current Ukrainian legislation). As to press-service, Decree deprives other Ukrainian exchanges from opportunity to execute similar activity due to making impossible for them to obtain/prolong accreditation. Press-service admits presently 40 Ukrainian exchanges have right to register export contracts, so that this market segment is quite competitive. As earlier reported, Ministry of Agrarian Policy with its Decree № 366 from Jul 10, 2006 had stipulated all grain export contracts to be obligatory registered on Agrarian Exchange (subordinate to Agrarian Fund). Ministry of Agrarian Policy experts expect 2006/07 MY grain export will reach 13 mn MT; Ministry forecasts 2006 grain crop will total 40–41 mn MT.
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