VAR calls for a review of new export prices for Ukrainian agricultural products

The All-Ukrainian Agrarian Council (VAR) has addressed Prime Minister Denys Shmyhal with an official letter urging an urgent review of the new rules for setting minimum export prices. The document refers to the Cabinet of Ministers’ resolution No. 331 dated March 21, 2025, “On Amendments to the Procedure for Approving Minimum Acceptable Export Prices for Certain Types of Goods.”

This is reported by AgroReview

The newly approved mechanism, which has not undergone proper public discussion, effectively makes it impossible to export certain types of agricultural products. In particular, the provision that the minimum acceptable export price cannot be lower than the minimum price of the previous month raises concerns.

Lack of Clear Definitions

In its appeal, VAR emphasizes that none of the existing regulatory documents contain a clear definition of what should be considered a “minimum price,” nor is there a description of how to calculate it. This calls into question the practical application of this provision.

“Moreover, if we assume that minimum prices refer to the minimum acceptable export price of the previous month, then this provision essentially disregards the economic mechanisms of price formation, including price fluctuations downward. After all, from this provision, it follows that the minimum acceptable export price may rise but cannot fall even in the event of actual price declines, which are characteristic of certain periods in the global agricultural market, known for its high volatility. In turn, exceeding the minimum acceptable export prices over global market prices will lead to the blockage of exports of the respective types of agricultural products, which will be equivalent to the blockage of Ukrainian seaports at the beginning of the full-scale invasion,” the appeal states.

Violation of Legislative Norms

VAR experts are convinced that the problem arose due to the Cabinet of Ministers violating a legislative norm, specifically the requirements of Article 9 of the Law of Ukraine “On the Principles of State Regulatory Policy in the Sphere of Economic Activity.”

“The draft resolution of the Cabinet of Ministers “On Amendments to the Procedure for Approving Minimum Acceptable Export Prices for Certain Types of Goods” was not made public during its development, nor were consultations held with representatives of business associations to work out the relevant provisions, which led to the approval of the aforementioned erroneous provision along with useful and necessary changes supported by the vast majority of market participants,” the appeal explains.

VAR calls on the government to urgently amend the Cabinet of Ministers’ resolution of August 20, 2024, No. 944, and remove the provision regarding the establishment of the minimum acceptable price at a level not lower than the minimum price of the previous month.

The situation in the grain and oil markets of Ukraine and the Black Sea region will be discussed at the 23rd International Conference BLACK SEA GRAIN.KYIV, which will take place on April 24 in Kyiv. Participation in the event will provide an opportunity to engage in strategic discussions and networking with industry leaders!