15:33 30.01.2015

Fivefold increase in cost of alcohol wholesale license to destroy small wine producers, says expert

2 min read
Fivefold increase in cost of alcohol wholesale license to destroy small wine producers, says expert

The fivefold increase in the cost of a license for alcohol wholesale will result in the removal of small Ukrainian wine producers from the market, former energy minister of Ukraine and founder of the Kolonist wine trademark Ivan Plachkov said.

He commented on the initiative proposed in draft law No. 1488 drawn up by MPs Hanna Hopko, Viktor Kryvenko, Tetiana Ostrikova (the Samopomich faction) and Oleh Musiy (Petro Poroshenko's Block faction).

"The draft law proposed by lawmakers hasn't been thought thoroughly and it will result in the stoppage of small companies with a loss of jobs in rural areas. The Kolonist trademark produces 100,000 bottles with a turnover of UAH 5 million a year (the average price of a bottle is UAH 50). How the company can pay UAH 2.5 million a year for the license? The adoption of the law will result in destruction of small producers of good wine," reads an open address of Plachkov to lawmakers.

He asked to remove the document and amend it by setting the cost of the license depending on the number of bottles produced. Plachkov proposed that the fee for the license should be canceled for winemakers who use own grapes in production of wine. This approach will allow healthily competition and high quality of wine.

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