IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 15 Aug 2012 | Removal date: open ended
Still in force

In-kind grant

In August 2012, the Ukrainian government introduced a new financial assistance to agricultural producers.
 
On August 15, 2012, the Cabinet of Ministers of the Republic of Ukraine approved Resolution No. 813 on state support to agricultural commodity producers (in particular cereal and grain producers) in the form of a compensation of up to 50% of insurance payments. This partial compensation of insurance payments will be activated in the event of crop loss. Insurance of crop with state support can be applied for all cultivation periods.
The compensation adversely affects commerical interests of foreign competitors who do not receive such support and thus provides a competitive advantage to Ukrainian producers of cereals and grains.
Furthermore, this state measure reinvigorates the Ukrainian agricultural insurance market, which according to Oleksiy O. Demyanenko, is rigid and underdeveloped. Local compared to foreign insurance companies may thus be able to provide better conditions to their customers and as a consequence foreign providers are likely to face difficulties to enter the Ukrainian market.
The measure is a first implementation of the 'On Peculiarities of Agricultural Products Insurance with State Support Act' of Ukraine (adopted on February 19, 2012 by the Ukrainian Parliament). The act introduces the general framework for state support for Ukraine's agricultural producers on insurance-related matters (natural disasters, losses, or damages, provoked by humane activity).
 

AFFECTED COUNTRIES

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AFFECTED SECTORS AND PRODUCTS

011 Cereals
1003 Barley.
100390 Other
1005 Maize (corn).
231 Grain mill products
1006 Rice.
100630 Semimilled or wholly milled rice, whether or not polished or glazed
100640 Broken rice

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