Ukrainian Grain Association calls on Rada to reject 'oil amendments,' govt to develop strategy for development of domestic processing, exports
The Ukrainian Grain Association called on the Verkhovna Rada to reject the "oil amendments" and asked the President of Ukraine, the government and the relevant ministry to make efforts to prevent the introduction of discriminatory duties that violate legislative procedures and contradict agreements with the EU, the association said in the press service.
The Ukrainian Grain Association said that recently, individual market participants and industry associations have been making proposals regarding the possible introduction of export duties or quotas for oilseeds. In particular, the second reading is being prepared for draft law No. 13134 On amendments to the Tax Code of Ukraine on expanding patients' access to medicines subject to procurement by a person authorized to make procurements in the healthcare sector by concluding managed entry agreements dated March 23, 2025, which provides for the introduction of duties on the export of oilseed crops.
"The Ukrainian Grain Association categorically opposes these initiatives, which can deal a devastating blow to the agricultural sector - one of the few sources of stable foreign exchange earnings during the war. In 2023, oilseed crops and their processed products alone provided over $7 billion in export earnings," the appeal reads.
The business association opposed the proposed changes as economically, socially, and reputationally dangerous for the government and its international image.
The Ukrainian Grain Association is convinced that the introduction of duties will lead to discrimination against small and medium-sized producers who are unable to independently export their products and will be forced to sell them on the domestic market at low prices. Experts argue that the more buyers or options for exporting oilseeds, the greater the liquidity of the products and, as a result, demand competition will increase the producer's profits, which will have a positive impact on both the community and state budgets.
In addition, the Ukrainian Grain Association pointed out the risk of reputational losses that will arise due to the violation of already concluded forward contracts, which will cause significant losses not only to Ukrainian producers and exporters, but also to partners in the EU.
"Rapeseed and soybeans are grown in Ukraine under forward export contracts that have already been concluded and cannot be changed. Such export regulation measures cannot be adopted without warning and transitional norms for the implementation of concluded contracts," the business association said.
The Ukrainian Grain Association said that such decisions are a violation of the terms of the Association Agreement with the EU, which directly prohibits the introduction of new permanent export duties. At the same time, the amendments do not contain time limits and actually introduce duties on a permanent basis. This creates a risk of aggravation in negotiations on the renewal of free trade conditions with the EU. In addition, the changes are being adopted at the same time as Ukraine is discussing new terms of the free trade agreement with the EU, and may lead to a breakdown of the negotiations. Accordingly, the private interest of several market operators is given priority over Ukraine's national interest in deepening integration with the EU.
"A possible response from the EU, in particular in the form of import duties on Ukrainian soybean and rapeseed products, is already being discussed by European industry associations," the association said.
The Grain Association said the dubious legislative procedure, in particular the hasty introduction of amendments to a non-core draft law, the lack of a transparent discussion and ignoring the position of the business community, will undermine trust in the Verkhovna Rada and raise suspicions about the personal interests of individual parliamentarians.
The proposed measures not only do not achieve the stated goals, but also distort competition, suppress small producers and reduce the total volume of foreign exchange earnings, the industry association warned.
The Grain Association called on the parliament to reject the amendments on export restrictions as such, which violate the regulations of the Verkhovna Rada and threaten the economic security of the state; the government of Ukraine - to initiate an open dialogue with business before making decisions in the field of foreign trade.
The association is convinced: the government and parliament should officially confirm their intentions not to introduce restrictions on the export of oilseeds, by excluding the relevant amendment from the draft law.
"A positive message for the market will protect its participants from any speculation on this topic," the association said, asking to initiate an open dialogue with business before making any decisions in the field of foreign trade, as well as to develop a balanced strategy for the development of both domestic processing and the export potential of Ukraine.
