Victor Yushchenko has met with Cargill Europe Executive
Director Dave Rogers, who is also a member of Ukraine’s Foreign Investment
Consultative Council.
They spoke about the country’s agricultural market, especially
grain exports, prices and VAT rebates, as well as how to improve the investment
climate and develop ties between government and business.
“Ukraine must become one of the leading players on the
global agricultural market, particularly the grain market,” he said.
The President said the government must find alternative tools
to regulate agricultural prices so that producers and traders should be able to
sell their products abroad, where prices are considerably higher. He described
administrative measures as ineffective, adding that the government did not see
“the complex picture of how to manage the grain market” and so failed to
liberalize prices.
Mr. Rogers said Cargill Europe, as well as many other companies
operating in Ukraine, was worried about government interference. Grain export
quotas imposed by the cabinet have a negative impact on producers, processors
and traders, he complained.
“We would like to know the rules of the game and be informed of
agricultural policies the government is going to carry out,” he said, adding
that his company had sent proposals to the cabinet. He said Ukraine had enough
grain to satisfy domestic demand.
The President promised to discuss the issue with Prime Minister
Viktor Yanukovych and expressed hopes the problem would be resolved.
He then asked Tax Administration Head Anatoly Brezvin to pay
back USD 18 mln to Cargill and resolve the VAT rebates issue. He said the
problem disrupted our efforts to build effective cooperation with business and
attract foreign investment.
Mr. Rogers said his company planned to develop the local food
processing industry.
First Deputy Secretariat Chief of Staff Arseniy Yatsenyuk and
Deputy President of the Grain Association Ivan Miroshnichenko attended the
meeting.
Cargill, Incorporated is a privately held,
multinational corporation, and is based in the state of Minnesota in the United
States. It was founded in 1865, and has grown into the world's second largest
privately held corporation. Its business activities include purchasing,
processing, and distributing grain and other agricultural commodities, and the
manufacture and sale of livestock feed and ingredients for processed foods and
pharmaceuticals. It also operates a large financial services arm, which manages
financial risks in the commodity markets for the company.
