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President Victor Yushchenko has signed a law on supporting the agroindustrial complex in the conditions of the world financial crisis, according to the presidential press service. President Victor Yushchenko has signed a law on supporting the agroindustrial complex in the conditions of the world financial crisis, according to the presidential press service. The parliament adopted the law on Dec. 22.

The law foresees that all value-added taxes paid to the state budget by food processing enterprises (both privately and publicly-owned) on milk and meat products they sell, should be fully directed towards paying subsidies to agricultural producers for milk and meat in live weight sold to processing enterprises.

The Cabinet of Ministers defines the procedure for the payment and use of these funds.



The law is not restricted in time and is suspended when the law of Ukraine on the national budget for a corresponding year foresees that the sum of VAT paid to the budget by processing enterprises for milk and meat products they sold is directed to the national budget special fund for further paying surcharges on a per-cow basis under a procedure defined by the Cabinet of Ministers.

In addition, the law reads that grain subject to state price regulation or which was used as a collateral on a budget loan received under the procedure of state collateral purchases, is stored exclusively at certified grain storage facilities or elevators.

Fees for storing cannot exceed 2% of the grain price, calculated on the base of the minimum purchase price.

The cabinet defines the regime of regulating the price of such services as veterinary medicine (laboratory research, the issue of veterinary certificates or licenses), bread inspection (inspection, the issue of certificates), and quarantine inspection (the issue of fumigation certificates, cattle identification and registration).