On 7 June 2017, the Cabinet of Ministers of Ukraine adopted Resolution №394 «On the amendments to the Annex CMU Resolution №1548 dated 25 December 1996 and cancellation of certain CMU Resolutions» that eliminates state price regulation on certain goods and services.
European Business Association welcomes this step and expresses its sincere gratitude to Volodymyr Groisman, the Prime Minister of Ukraine, Stepan Kubiv, the First Vice Prime Minister – Minister of Economic Development and Trade of Ukraine, and all the expert team who endeavored to eliminate state intervention in the economic processes.
This will help to reduce administrative burden on business, facilitate deregulation and boost competition. The Resolution amongst other things foresees permanent cancellation of:
- maximal price levels of profitability and trade mark-ups for baby food;
- maximal trade mark-ups to wholesale prices for a number of dairy products;
- obligation to declare the wholesale price change in case of its increase by more than 1% within a month.
During the past several years, the issue of cancellation of state price regulation remained among the key priorities on the EBA’s agenda. In this regard, the EBA has persistently appealed to the Government with the relevant proposals as well as provided necessary arguments and explanation of how the price regulation influenced business and society.
Once we welcomed the decision of cancellation of state price regulation on socially significant food products from 1 October 2016 till 1 January 2017 (CMU Resolution №656 dated 22 September 2016).
Now the EBA would like to thank the Government of Ukraine and personally the Prime Minister of Ukraine for the adoption of the Resolution №394 that eliminates state price regulation on certain goods and services. This decision will simplify the price change procedure depending on price fluctuation that will allow producers to react to market changes.
The Resolution will enter into force on 1 July 2017.