Ukraine allows settlement deadlines for grain and oilseed exporters to be extended to 180 days

UkrAgroConsult

The Cabinet of Ministers of Ukraine has expanded the list of goods for which the Economy Ministry may extend settlement deadlines for export-import transactions established by the National Bank of Ukraine. At a company’s request, the deadline may be extended by up to 180 days.

The list includes major grains and oilseeds — wheat, rye, barley, oats, corn, soybeans, rapeseed and sunflower seed. The decision also covers soybean, sunflower, rapeseed and mustard oils, oilcake and a number of other agricultural products.

The Agriculture Ministry said the changes were needed due to a significant increase in delivery times caused by disruptions to maritime logistics. According to the ministry, transportation times for agricultural products have increased by 40–50%, affecting the execution of foreign trade contracts and the timing of export proceeds.

In August, due to restrictions on seaport operations, Ukraine was able to export only 33% of the required volume of agricultural products, Agriculture and Food Minister Taras Vysotskyi said. Exporters were forced to make greater use of Danube ports, railways and road routes across the western border, but their capacity is limited, while additional transshipments increase delivery times.

The government’s decision is intended to reduce the risk of financial penalties for exporters when delays in receiving export proceeds are caused by logistical circumstances beyond their control. Extensions will not be granted automatically but will be based on a decision by the Economy Ministry following an application from the Ukrainian exporter.

Tags: grain