Ukraine to Replace Grain Quotas with Export Duties

Ukraine is replacing the export quotas on grain with export duties, which will be reduced in 2012.

"According to the bill, passed by the parliament last week, the quotas will be replaced with duties," Ukrainian President Viktor Yanukovych said in an interview with Bloomberg on May 24, 2011, excerpts of which were posted by the president's press service on May 25, 2011.

Yanukovych said he planned to sign this law.

"We cannot close the grain market in Ukraine, given the global food crisis. We need to be suppliers of surplus grain, and certainly we will do it," Yanukovych said.

As reported, on May 19, the Verkhovna Rada adopted a law introducing wheat export duties (9%, but not less than EUR 17 per tonne), corn export duties (12%, but not less than EUR 20 per tonne) and barley export duties (14%, but not less than EUR 23 per tonne).

Ukraine's grain export was limited with quotas from October through May 2011.