KYIV. Dec 8 (Interfax-Ukraine) – The cancellation of VAT refunds for exports of rapeseeds, soybeans and sunflower will worsen the image of Ukraine as a reliable trading partner, according to the Ukrainian Agribusiness Club.

"The amendment [to the law] will cause the deterioration of Ukraine's image as a reliable international trading partner. And frustration and penalties are expected as most of the deals have already been concluded. And this will lead to the deterioration of relations with our strategic partner, the European Union, since 90% of rapeseeds was exported to the EU," Director General of the Ukrainian Agribusiness Club Taras Vysotsky told Interfax-Ukraine.

According to him, the abolition of export VAT on soybeans, rapeseeds and sunflower will lead to direct financial losses for Ukrainian farmers.

"While maintaining current export prices for these crops and similar export rates, the agrarian sector will lose UAH 9-10 billion," he added.

During a press conference at Interfax-Ukraine on Friday, Vysotsky said that 90% of rapeseeds grown in Ukraine are exported, so restrictions on VAT refunds could affect the reduction of areas under this crop.

"Investments that were made in the technology of growing rapeseeds could be lost," the expert added.