Ukraine introduces minimum export prices for major agricultural goods

KYIV (Reuters) - Ukraine has introduced a new system for exporting key agrarian goods, including grains, which implies a ban on exporting consignments of goods at prices below those set by the agriculture ministry.

Ukraine is a global major grain and oilseeds grower and exporter and the new system became operational on December 1.

The government launched the plan to tackle price distortions linked to Russia's invasion, which has seen an increase in domestic cash purchases of some agricultural products and their subsequent export at artificially low prices to avoid taxes.

In line with the new rules, minimum permissible export prices will be calculated on the basis of state customs service data, taking into account the terms of delivery for the previous month and using a 10% discount.

The farm ministry has already published the minimum prices at its website and will refresh it on the 10th of each month.

The ministry also said that it has abolished the need for exporters to go through the vetting process and obtain licences to export food products.

The mechanism implied mandatory registration of an export company in a special agricultural register and, in the absence of such registration, the need to obtain a licence for each export operation.

(Reporting by Pavel Polityuk; editing by Jason Neely)