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UkrSpyrt Advocates Reorganizing Distilling Plants For Bioethanol And Commercial Alcohol Production

Copyright 2008. Ukrainian News Agency, Inc

(Ukrainian News, Oleksandr Chepurko, 09/15/2008) The state concern of spirit industry UkrSpyrt considers it necessary to reorganize distilling plants into joint stock companies for bioethanol and commercial alcohol production. Ivan Yakovets, director of the concern, said this in an interview with the Business weekly.

"If the government wants to exercise control over ethanol production it would be worth creating joint stock companies with a government share rather than privatizing the distilleries", he said.

Yakovets advocates attracting private capital for commercial alcohol and bioethanol production provided the government has controlling stake in it.

Domestic distilling plants will not meet competition with commercial alcohol and bioethanol importers since most of them are small enterprises, he added.

"We have to build new plants. In order to develop a full-fledged market for commercial alcohol and bioethanol production the industry needs fundamental structural reorganization rather than its simple privatization", he said.

Yakovets is sure large enterprises with maximum low production costs and efficient refinery of spirit from impurities and water will satisfy these requirements.

As Ukrainian News reported, under resolution of September 10 the Cabinet of Ministers eliminated the state concern of spirit industry UkrSpyrt setting up the State Spirit and Liqueur Committee as a governmental body of the Agrarian Policy Ministry. In January-June, UkrSpyrt reduced spirit output by 8% or 1.1 million decaliters to 12.71 million decaliters, having reduced commodity volume in comparable prices by 6.7% or UAH 50 million to UAH 690 million. The UkrSpyrt distilleries earned UAH 9 million profit in 2007.

UkrSpyrt consisted of eight regional state unions of spirit and liqueur industry, and 76 state-run enterprises accounting for 95% of Ukraine's spirit output.

UkrSpyrt was founded by the Cabinet of Ministers resolution of June 29, 1996 on improvement of management of spirit companies and alcohol industry.

Date:  17.09.2008

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