Association of Ukrainian Exchanges, UGA asking authorities not to allow monopolization of agrarian exchange market

Kyiv, July 5 (Interfax-Ukraine) – The Association of Ukrainian Exchanges and Ukrainian Grain Association (UGA) have called on the country's leadership not to allow the introduction of obligatory registration of foreign economic contracts only on the Agrarian Exchange, which is initiated by the Ukrainian Agriculture Ministry.

Director General of the Association of Ukrainian Exchanges Borys Berenshtein said at a press conference at Interfax-Ukraine on Monday that the associations' appeal was sent to the Ukrainian president, government, SBU, Prosecutor's General Office, Antimonopoly Committee of Ukraine, the state commission for financial service markets regulation and other power bodies.

Berenshtein said that the ministry published a draft resolution, which awards to the Agrarian Exchange an exclusive right to be organizer of trading on export and import of goods, which are under state regulation, on the agrarian exchange market.

"[The ministry] want that all contracts are registered on the Agrarian Exchange," he said.

He said that this creates preconditions for the introduction of corruption schemes, price manipulation and unfair competition.

UGA President Volodymyr Klymenko said that the said initiative would lead to the increase of companies' expenses, as they would have to go to Kyiv, where the Agrarian Exchange is located, to register contracts.

The experts also said that exchange fees would jump by 5-10 times due to market monopolization.