16:28 10.09.2015

State Grain Corporation bans trade with offshores, tightens controls over grain purchases

1 min read
State Grain Corporation bans trade with offshores, tightens controls over grain purchases

PJSC State Food and Grain Corporation of Ukraine has imposed a ban on trade with offshore companies and has significantly tightened control over grain purchases.

According to the press service of the Ministry of Agricultural Policy and Food, the company abandoned the agency procurement scheme and work on a prepaid basis. In addition, it strengthened the procedure for forward purchases – grain delivery to the corporation's elevators is now obligatory.

"As a result, in the current year the corporation has not get any new debtor indebtedness, as well as any default on export contracts," the agricultural agency said.

According to the deputy chairman of the corporation Denys Polezhayev, in 2014 due to grain sales to four offshore companies, the corporation ended up with $132 million in debtor indebtedness.

"The ships were accepted, while we've got no proceeds. Now we are not able to collect the debts, as well as fall under the sanctions of the Economic Development and Trade Ministry. It is almost impossible to return the money, so we set the goal to eliminate even the minimum possibility of money withdrawal to offshore accounts in the future," he said.

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