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LAW OF UKRAINE

of July 4, 2002 No. 37-IV

About grain and the market of grain in Ukraine

(as amended on 01-07-2021)

This Law determines state policy by grain market development as priority sector of economy of agro-industrial complex of Ukraine. The law is directed to creation of legal, economic and organizational conditions of competitive production and market grouping of grain for ensuring internal requirements of the state for food, seed and forege grain, building-up of its export potential.

Section I. General provisions

Article 1. Determination of terms

In this Law the stated below terms are used in the following value:

1) the accredited exchanges - commodity exchanges to which the conclusion about their compliance on rendering services in the conclusion of stock exchange transactions of purchase and sale of grain and products of its conversion is provided by the relevant state body;

2) grain production - the activities of agricultural producers connected with grain cultivation, ensuring internal needs of Ukraine for seed grain, grain for the food, fodder and technical purposes, improvement of its quality, creation of the export potential of the market of grain, and also guaranteeing food security of the state due to development of own grain farm;

2-1) owner of grain warehouse - the physical person - the entrepreneur which is the owner of the granary the member of the complete, limited society, society with the accessorial liability performing activities of grain warehouse or the participant of other types of societies (including the shareholder of joint-stock company) whose share exceeds 10 percent in the authorized capital of the legal entity - grain warehouse;

2-2) Guarantee fund of accomplishment of obligations according to warehouse documents on grain (further - the Guarantee fund) - the public specialized not entrepreneurial institution created for the purpose of providing and protection of the rights and legitimate interests of owners of warehouse documents on grain in case of insolvency of grain warehouse and performing functions of public administration in the field of guaranteeing accomplishment of obligations according to warehouse documents on grain;

3) the Item 3) of part one of Article 1 is excluded

4) the Item 4) of part one of Article 1 is excluded

5) the State agent on ensuring export and import of grain and products of its conversion - the state company or economic society which share of the state in authorized fund constitutes at least 75 percent, determined on competitive basis by the Cabinet of Ministers of Ukraine on implementation of international treaties by ensuring export and import of grain and products of its conversion;

6) the Item 6) of part one of Article 1 is excluded

7) the Item 7) of part one of Article 1 is excluded

8) the Item 8) of part one of Article 1 is excluded

9) the Item 9) of part one of Article 1 is excluded

10) grain storage - package of measures, including acceptance, completion, storage and shipment of grain;

11) grain - the fruits of grain, leguminous and oil-bearing crops used for the food, seed, fodder and technical purposes;

12) foodgrain - the grain used for conversion and production of foodstuff;

13) grain of technical assignment - the grain intended for industrial conversion on other products (alcohol, starch, medical supplies, etc.);

14) forege grain - the grain of group of fodder and other grain crops intended for feeding of the cattle and bird in the form of compound feeds, derta, etc.;

15) grain warehouse - the subject of entrepreneurship which is the owner of the granary and provides to physical persons and legal entities services in storage of grain with issue of warehouse documents on grain and in the procedure provided by the law acquired the right to implementation of such activities by participation in the Guarantee fund of accomplishment of obligations for warehouse documents for grain;

16) the granary - specially equipped place for grain storage (the room, structure, etc.);

17) the grain processing companies - the companies which accept store and process grain, in particular flour-grinding, groat, formula-feed, oil-extraction, spirits malt beer factories;

18) the Item 18) of part one of Article 1 is excluded

19) grain market infrastructure - complex of the production and non-productive forming providing conditions of production of grain, its procurement, storage, conversion, realization, insurance, credit and financial and other services;

19-1) insolvency of grain warehouse - impossibility of grain warehouse which is participant (the temporary participant) of the Guarantee fund of accomplishment of obligations according to warehouse documents on grain, to perform accomplishment of the obligations to bailors according to warehouse documents on grain because of impossibility to return the amount of grain of the corresponding quality specified in warehouse documents and/or to compensate in full the cost of such grain irrespective of origins of this impossibility;

20) grain conversion products - flour, grain, compound feed, gluten, malt, grain conversion by-products, in particular bran, makukha and meal;

21) the register of grain (mortgage grain) - system of accounting of information on the grain (mortgage grain) accepted by grain warehouses on storage in certain amount and to certain term;

22) the register of warehouse documents on grain - system of accounting of information on the warehouse documents issued by grain warehouses on grain and owners of such documents;

23) the grain market - system of the commodity-money relations arising between his subjects in production process, storages, trade and use of grain on the principles of free competition, free choice of the directions of realization of grain and determination of the prices, and also the state control of its quality and storage;

23-1) system of guaranteeing accomplishment of obligations according to warehouse documents on grain - complex of the organization-legal actions aimed at providing proper accomplishment of obligations with grain warehouses to owners of grain, preserving stability of the market of services in storage of grain and at protection of the rights and legitimate interests of owners of warehouse documents on grain in case of insolvency of grain warehouse or in case of failure to carry out by grain warehouse of obligations on warehouse documents on grain;

24) warehouse documents on grain - the tovarorasporyaditelny documents issued by grain warehouse to the owner of grain as confirmation of acceptance of grain on storage and the certificate of availability of grain and the obligation of grain warehouse to return it to the owner of such document;

25)  No. 1193-VII is excluded according to the Law of Ukraine of 09.04.2014

26)  No. 1193-VII is excluded according to the Law of Ukraine of 09.04.2014

27) quality of grain and products of its conversion - set of consumer properties of grain and the products of its conversion conforming to requirements of state standards, specifications phytosanitary and veterinary sanitary standards and other regulating documents.

The part two is excluded according to the Law of Ukraine of 05.11.2020 No. 985-IX

Article 2. Law purpose

The purpose of this Law is:

ensuring food security of the state;

forming of investment, credit, tax, customs policy, favorable for market of grain;

optimization of structure and efficiency of grain production taking into account the potential of climatic conditions and market conditions;

ensuring functioning of the market of grain on the principles of combination of free competition and state regulation for the purpose of balancing of interests of subjects of managing and the state;

establishment of the state control of quality of grain, products of its conversion and high-quality seeds;

stabilization of market resources of grain;

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