It was declared by Arseniy Yatsenyuk, Prime-Minister of Ukraine, during his meeting with the representatives of agrobusiness which was held at the transshipment terminal of NIBULON in Pereyaslav-Khmelnytskyy.
Minister of Agrarian Policy of Ukraine Oleksiy Pavlenko, Minister of Infrastructure of Ukraine Andriy Pivovarskyy, representatives of “Ukrzaliznytsa”, Ministry of Justice of Ukraine and other state institutions, and also key agro exporting companies and grain producers took part in the meeting.
According to Mr. Yatsenyuk, today the state must create all conditions for the development of agrarian sector which yield each third dollar of currency earnings, providing course stability and renewal of gold and foreign currency reserves.
Prime-Minister pointed out that one of key problems of the market is an existence of shady schemes within which traders buy grain of undefined origin for cash and avoid paying taxes. “Recently there were detained three vessels with grain. They were bought by the company with dead director but he continues to sign the documents. Primarily it discredits our public and transparent market. So we have to cooperate with you in order to unshadow the market, to create equal rules of play and to defeat corruption”, said Mr. Yatsenyuk.
NIBULON’s work in the market is an example of transparence, openness and efficiency of cooperation with state authorities.
“To be a leader in agrarian sector is to be a leader in everything including to be a leader of the grain market transparency. Since 2004 our company has been operating in united office mode in terms of which we arranged all services including customs office, sanitary service, quarantine service, port service, sanitation station etc. All in all eleven different services are directly at the terminal”, said Oleksiy Vadaturskyy, General Director of NIBULON, Hero of Ukraine.
Using teleconference there was a communication with a customs service officer that is placed at the export grain terminal in Mykolayiv city. There was a presentation of their real-time cargo handling process control – from arrival till transshipment to a vessel including photo fixation of a number plate, driver identification etc.
Arseniy Yatsenyuk underlined that NIBULON’s experience must be spread on other export terminals to simplify business activity of exporters and to increase goods turnover.
“Yesterday together with State Boarder Guard Service we discussed the reduction of the number of supervisory authorities during crossing of the State Boarder. According to our obligations undertook before the European Union there will be only two services on the board: board guard service and customs office. And I apply to two respective ministers (Minister of Agrarian Policy and Food and Minister of Infrastructure) – we need to do that “NIBULON’s” experiment that has being working there for ten years, should become the universal practice”, said Prime-Minister.
According to Minister of Agrarian Policy and Food of Ukraine Oleksiy Pavlenko, a working group that was created by two authorities, should prepare implementation of a system of the united office for supervisory services at the export terminal in Odesa port.
“We will use the principle of the united office according to NIBULON in Odesa port in the nearest time.”
It will be the first project and then we will go further to other ports. All owners of private terminals with whom we communicated are ready to purchase equipment and to create qualitative conditions in order the controllers to work on their territory”, added Minister of Infrastructure.
During the meeting Prime-Minister and agrarians agreed to create of a single data base of respectable participants of the grain market which will do unreal to purchase grain from fictitious companies or enterprises with dingy past. Therewith Arseniy Yatsenyuk promised to discuss the issue of limitation of cash turnover in the grain market with the Head of National Bank Valeriya Hontareva.
According to Oleksiy Vadaturskyy a trader should be the first one who has to provide with safety and transparency of his own work.
“We are an exemplary company in this issue. We are a company which concluded more than four thousand contracts directly with the agricultural producers. And namely, more than 80% of contracts with producers and less than 20% with brokers who have to purchase grain only from producers. We do not purchase grain from brokers who purchase from the other brokers”, noticed O. Vadaturskyy.
“We clearly monitor all schemes of shadow cash cycle. And our company fights against negative influences which are in Ukraine. We can teach many foreign companies how to work transparently in Ukraine. Because (numerous) foreigners who have come here today, expect that President, Prime Minister, Fiscal Services will deal with unshadowing of the market instead of them. But these companies will not know their partners by sight”, added the General Director of NIBULON.
According to him, there were a little more than 200 exporters in Ukraine some years ago. “Now there are more than 1000. Today exporters are the companies which were registered 1-2 months ago, do not file accounts to Fiscal and Statistic Service. Foreigners buy grain from such “partners” and do not analyze where they got this grain in Ukraine. That’s why it is necessary to start from land, make an inventory of land, what agricultural crops are grown there, what is the croppage etc. And where this grown grain was sold. Today, unfortunately, nobody deals with this in Ukraine”, noticed O.Vadaturskyy.
He also emphasized, that today producers, who sell grain to “grey” mediators for foreign currency, incur losses as they sell at the peak of offer. “In a month-two-three grain will rise in price. It is possible to sell it today through the mechanism of collateral grain purchase, bring it to elevator, put in storage, and sell only when finances are needed for buying material resources. And in spring it is possible to sell this grain for quite different price”, says O. Vadaturskyy.
Also Prime Minister Arseniy Yatsenyuk took a favourable view of “NIBULON” experience in attracting foreign investments in development of infrastructure of agriculture sector in Ukraine.
Particularly he congratulated the company with receiving $130 mln of syndicated loan from the EBRD for trading and export activity in Ukraine. “It is a perfect example of the fact that our Western partners consider agriculture sector as a branch which could and should be invested”, noticed Prime Minister.
“You understand that in such conditions, when such events occur (in the East of Ukraine), receiving of such loan is very important. Despite the war with the aggressor, we work with 15 banks, and some foreign banks join for working with our company. Investments in our company are not suspended but indeed credit lines are added”, noticed O. Vadaturskyy.
According to Minister of Agrarian Policy Oleksiy Pavlenko, first of all investments are necessary for infrastructure of agricultural market, particularly, in building of such terminals as “NIBULON” has.” It is not just a port river elevator, it is an elevator, which gives high quality grain, which then goes to 65 countries of the world. It is a great investment, US$ 20 mln. Within the frame of the river logistic development of such elevators it is necessary at least three times more than now. Because today we transport only 5% of cargo by the river routes”, noticed the Minister.
According to him, next year Ukraine can export around 36 mln tons of grain crops, however in 3-4 years this index can double if the investments will be made in infrastructure. According to O.Vadaturskyy calculations, to triple grain transportation by the rivers – from the current 3 mln tons (plan for 2015/16 MY) to 10 mln tons, it is necessary another 25 elevators, in which $500mln should be invested. ”Moreover, after dredging works we can talk about opportune cargoes. Or we will be able to transport wood, kalium from Belarus to the north from the south, without mentioning container transportation. In such a way agricultural sector can become a powerhouse of economic development of Ukraine. For shipbuilding, metallurgy industry, and for building industry, noticed the General Director of “NIBULON”.
On the opinion of Prime Minister Arseniy Yatsenyuk, the experience of the company in building its own cargo fleet is important.
“That’s why we came to Oleksiy Vadaturskyy, because the question is about increasing of inland transportation by water ways. Water ways are essential savings according to tariff. Figures are different, railway shows 12-15 dollars, river routes show 7-8 dollars. This is one more additional income source for you- and for us- for decreasing loading of the roads, of the railway, increasing gross domestic product. You will build barges, will build tugs, and this gives us the opportunity of shipbuilding recovery in the country”, said the Head of the Government.
He also addressed to Minister of Agrarian Policy and Food of Ukraine with the request to work out the set of actions, which give the opportunity to agrarians to switch their transportations from the railway and automobile transport to water ways.