January 13, 2016

Deregulation in agriculture

On 8 December 2015, the Verkhovna Rada of Ukraine adopted the law on changes to the laws of Ukraine in relation to deregulation in agriculture, which aims at reduction of regulatory and licensing procedures for doing business in agriculture industry, in particular in the areas of veterinary medicine, pesticides and agricultural chemicals, livestock, food products, fisheries, natural resources, etc.

Thus, 22 outdated or overlapping licensing procedures were cancelled, in particular registration of typical fertilizers and fertilizers that do not contain potentially harmful contaminants, certification of breeding business, registration of foreign trade agreements regarding fishery products, etc.

The law simplified procedure for registration of water use and circulation of fertilizers and plant protection means, and cancelled a quarantine permit for their import, which may result in the possibility of attraction of new suppliers and positive impact on the price at the domestic market.

As of now, the license for industrial fishing, except inland waters and rivers, is required only for fishing outside the jurisdiction of Ukraine. In addition, in the sphere of subsoil use it is now possible to use groundwater for up to 300 cubic meters at one water intake without obtaining a permit.

The law also limits the controlling powers of the state authorities in order to reduce expenses of agricultural business and risks of corruption.

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