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DECISION OF THE CONSTITUTIONAL COURT OF UKRAINE

of April 15, 2004 No. 10-rp/2004

On the case of the constitutional representation of 45 People's Deputies of Ukraine concerning compliance of the Constitution of Ukraine (constitutionality) of provisions of Articles 6, 9 Laws of Ukraine "About state regulation of production and realization of sugar" (case on determination of minimum price of sugar)

Case No. 1-7/2004

NAME OF UKRAINE

Constitutional court of Ukraine as a part of judges of the Constitutional Court of Ukraine:

Selivon Nikolay Fedosovich - the chairman,

Evgrafov Pavel Borisovich,

Ivashchenko Vladimir Ivanovich,

Kostitsky Mikhail Vasilyevich,

Malinnikova Lyudmila Fiodorovna,

Mironenko Alexander Nikolaevich,

Nemchenko Vasily Ivanovich,

Wheaten Valeria Grigoryevna,

Rozenko Vitaly Ivanovich,

Savenko Nikolay Dmitriyevich - the judge-speaker,

Victor Egorovich's buffoons,

Silent Vladimir Pavlovich,

Tkachuk Pavel Nikolaevich,

Shapoval Vladimir Nikolaevich,

considered at plenary meeting case concerning compliance of the Constitution of Ukraine (constitutionality) of provisions of Articles 6, 9 Laws of Ukraine "About state regulation of production and realization of sugar" of June 17, 1999 N 758-XIV (Sheets of the Verkhovna Rada of Ukraine, 1999, N 32, the Art. 268).

Reason for consideration of the case according to Articles 39, 40 Laws of Ukraine "About the Constitutional Court of Ukraine" became the constitutional representation of 45 People's Deputies of Ukraine.

The basis for consideration of the case according to Articles 71, 75 Laws of Ukraine "About the Constitutional Court of Ukraine" are availability of dispute on constitutionality of the specified provisions of the Law of Ukraine "About state regulation of production and realization of sugar".

Having heard the judge-speaker Savenko M. D. and having researched case papers, the Constitutional Court of Ukraine established:

1. The person of law on the constitutional representation - 45 People's Deputies of Ukraine - appealed to the Constitutional Court of Ukraine with the petition to consider question concerning compliance of the Constitution of Ukraine (constitutionality) of provisions of Articles 6, 9 Laws of Ukraine "About state regulation of production and realization of sugar" of June 17, 1999 (further - the Law).

According to People's Deputies of Ukraine, establishment of minimum price of sugar in case of the conclusion of agreements of purchase and sale in the domestic market of Ukraine violates the rights of citizens - consumers of sugar, and producers of sugar - its owners. Therefore provisions of article 6 of the Law do not answer with provision of Articles 13, 42 Constitutions of Ukraine concerning protection of the rights of all persons of law of property by the state and housekeeping, social orientation of economy; ensuring protection of the competition in business activity.

The person of law on the constitutional representation also considers that the stipulated in Article 9 Laws the penalty in the amount of the double cost of sugar which realization is enabled with violation of established procedure is not adequate to the level of public danger of this offense and possible harm. Such degree of responsibility of business entities can lead to the actual forced withdrawal of the fixed and revolving funds of the company that contradicts requirements of article 41 of the Constitution of Ukraine according to which nobody can be illegally deprived of the property right.

2. The president of Ukraine in the letter to the Constitutional Court of Ukraine noted that determination of fundamentals of domestic policy, one of components of which is price policy, is assigned by the Constitution of Ukraine to the Verkhovna Rada of Ukraine (Item 5 parts one of Article 85). These constitutional powers are realized by the Verkhovna Rada of Ukraine, in particular, in the Law of Ukraine "About the prices and pricing" according to which the Cabinet of Ministers of Ukraine provides implementation of state policy of the prices; determines the list of products, goods and services, the state fixed and regulated prices and rates on which affirm relevant organs of public administration. Therefore, establishment according to article 6 of the Law of minimum price of sugar does not contradict the Constitution of Ukraine.

Implementation with the Law of penalty in the corresponding size, is emphasized by the President of Ukraine, is special measure of responsibility, reaction of the state to illegal actions in the market of the sugar which is strategically important products and 22 parts one of article 92 of the Constitution of Ukraine according to which the Verkhovna Rada of Ukraine determines offenses and responsibility for them answer Item provisions.

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