The Ukrainian parliament has canceled a requirement obliging that cognac makers use of a certain share of their own cognac spirit, or spirit bought in Ukraine from wine materials made from Ukrainian raw materials, in production of cognacs for 2014.

The requirement is stipulated in draft law No. 37-57 on amendments to the Tax Code of Ukraine on some taxes and tax benefits passed by the parliament on December 19.

The document foresees that the 5% obligatory use of own raw materials from January 1, 2015 instead of the 20% share set in the law on the state regulation of production and turnover of ethyl, cognac and fruit spirits, alcohol and tobacco (from January 1, 2014 it was planned to obligatorily use at least 15% of own spirits). In 2016 and 2017, the requirements are retained: at least 25% and 30% of cognac spirit of own production/Ukrainian production equivalent to absolute alcohol.

The Ukrainian parliament from April 2014 increases the excise duty on alcohol made from wine or grape squeezing from UAH 32 per liter of 100% spirit to UAH 56.42 per liter. The UAH 32 rate will be in effect from January to March 31, 2014.