Winegrowers and winemakers of Ukraine initiating privatization of distilleries

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Sept. 11, 2012, 7:16 p.m. | Business — by Interfax-Ukraine

The Association of Winegrowers and Winemakers of Ukraine sees only one way to overcome the existing problems - to privatize the distilleries.

The Association of Winegrowers and Winemakers of Ukraine has asked the country's leadership to facilitate the privatization of distilleries.

"The Association of Winegrowers and Winemakers of Ukraine sees only one way to overcome the existing problems - to privatize the distilleries," reads an association appeal to the president and prime minister.

According to the association, the abolition of a ban on the privatization of alcohol producers will have only positive results. In particular, this will help attract private investment in the industry, increase revenues to the national budget, and significantly improve the situation in the alcohol industry.

The association saod one of the key problems for Ukrainian alcohol producers is provision with spirit and its overrated price. Domestic enterprises have to pay UAH 142 per decaliter (dal) of spirit, which is actually the highest price in Europe. The association believes that Ukraine can produce spirit at a price not exceeding UAH 80 per dal.

"In addition, alcohol companies are constantly facing a lack of spirit, which threatens the whole production process," reads the statement.

As reported, alcohol companies have several times raised the issues of canceling the state monopoly on spirit production, and of the privatization of distilleries.

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