Ukraine's Ministry of Finance has proposed to liquidate the Ukrspyrt state enterprise of alcohol industry.

The relevant initiative is contained in the draft resolution of the Cabinet of Ministers "Some issues of the operations of alcohol industry enterprises" posted on the website of the agency.

According to an explanatory note to the draft resolution, state monopoly in the production of ethanol entailed a number of negative consequences in the industry. Since the time when in 2010 the reorganization of Ukrspyrt state concern as a state enterprise, which manages 76 distilleries, was started, the volume of production and export of ethyl spirit has significantly reduced, the cost of spirit more than doubled, to UAH 170 per decaliter, which made it uncompetitive. With an installed capacity of more than 60 million decaliters a year state distilleries are 50% loaded, reads the document.

According to the estimates of the Finance Ministry, these factors resulted in the increased production of illegal alcohol, which led to the reduction of revenues to the national budget.