12:21 12.10.2012

Winemakers asking Yanukovych to settle problem with non-payment of 1.5% fee on development of viticulture

2 min read

Associations uniting producers of grapes and wine, in an open letter to Ukrainian President Viktor Yanukovych have asked that he settle the problem of the delay in the payment of the 1.5% duty on the development of the sector this year.

The Association of Winegrowers and Winemakers of Ukraine, the Ukrainian Corporation of Winegrowing and the Wine Industry Ukrvynprom, and the Ukrainian Bureau of Grape and Wine and Ukrsadvynprom Concern drew up the letter.

According to the letter, which was published on Thursday, winemakers and winegrowers since the start of the year have not obtained a hryvnia of the funds foreseen in the law on the fee on the development of viticulture, horticulture and hop-growing, apart from payments of the debt for 2011.

"The special fund has around UAH 800 million on its accounts, which remain inaccessible to winegrowers who have the right to use them, without any explanation from the State Treasury of Ukraine," reads the letter.

Representatives of the sector said that at present, winemaking and winegrowing in the country is in a catastrophic state, which has been worsened by the loss of over one third of the grape harvest due to frost and a rise in the shadow alcohol market.

As reported, Ukraine in January-June 2012, cut production of wine by 25% year-over-year, to 6.14 million decaliters.

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