You're reading: Prices of medicine in Ukraine ten times higher due to intermediaries, says media report

A total of 74% of the medicine imported from Belarus is sold in Ukraine by intermediaries registered in New Zealand, the United States and Israel and a similar scheme is in effect for supplies of medicine from Russia, according to an investigation by the State Customs Service, details of which were obtained by the Dzerkalo Tyzhnia Ukraine online publication.

The prices of medicine in Ukrainian drugstores differ from the production price by several times due to intermediaries, the investigation found.

For example, Cereginum, a medicine for ischemic stroke treatment, costs Hr 10.88 per package in Belarusian drugstores, while in Ukraine it is supplied through offshore companies at Hr 111, which is ten times higher.

In 2010, the Health Ministry bought 601,800 vaccine doses for tuberculosis prevention at prices from Hr 14.63 to Hr 16.15 per dose through Cypriot company Isatella Limited, while in 2009 Ganza Company supplied this vaccine to the ministry, using a direct contract with the producer, at the price of Hr 1.53 per package.

Hr 8.4 million extra in budget funds was spent due to the increase of the price by ten times.

Dzerkalo Tyzhnia Ukraine said that the customs service has submitted information to the law-enforcement bodies, although no official has yet been detained.

Several days ago, the cabinet canceled resolution No. 785, which proposed to introduce value added tax on some medical goods.