Changes in the legal regulation of the agricultural sector under martial law (UPDATED: due to legislative amendments)

Today's military realities have forced the Cabinet of Ministers of Ukraine (the "CMU")  to make a number of changes in the legislation governing the agricultural sector, in particular:

  1. Establishment of licensing and export ban for certain products

On 5 March 2022, the CMU adopted Resolution No. 207 "On amendments to annexes 1 and 5 to Resolution of the Cabinet of Ministers of Ukraine dated 29 December 2021 No. 1424".

The Resolution imposes the prohibition on the export of certain agricultural products, namely: rye, oats, buckwheat, millet, sugar, salt (suitable for human consumption), live cattle, meat and edible meat products (salted, in brine, etc.). On 12 March 2022, the Government added mineral and chemical fertilizers (nitrogen, phosphorus, potassium and others) to the list of goods banned for export. Later, the ban on exports of nitrogen fertilizers, as well as cattle, meat and edible meat products, was lifted (according to Resolution No.353 dated 24 March 2022 and Resolution No.422 dated 9 April 2022 respectively).

Export licensing of agricultural products such as wheat, a mixture of wheat and rye (meslin), corn, chicken meat and eggs, and sunflower oil has also been introduced. Subsequently, the Government removed corn and sunflower oil from this list, adding such goods as cattle, meat and edible meat products (according to Resolution No.352 dated 24 March 2022 and Resolution No.422 dated 9 April 2022 respectively). As there are no quotas for these products, licensing is automatic. The licensing procedure for these goods is currently simplified in comparison with the one approved by Order of the Ministry of Economy of Ukraine dated 9 September 2009 No. 991. Thus, to obtain a license, a subject of foreign economic activity must submit to the Ministry of Economy (e-mail tradedefence@me.gov.ua and diravka@me.gov.ua):

The processing time of the request should not exceed 24 hours. In fact, this means the automatic issuance of a free license during the 24 hours, provided that the Ministry of Economy is informed in the prescribed manner.

  1. Abolition of additional seed certification procedures

According to the official information of the CMU, by Order dated 1 March 2022 No.132, the Ministry of Agrarian Policy and Food of Ukraine abolished additional procedures for certification of seed material during martial law.

Therefore, the State Center for Certification and Examination of Agricultural Products should ensure:

  • a smooth process of sale of seeds and planting material by the subjects of seed production and nursery of the 2021 harvest and the remnants of previous years required for sowing, without additional certification procedures;
  • recognition of foreign certificates for imported seeds without additional certification procedures.

We recall that prior to the introduction of martial law, the legislation provided for the need to apply additional certification procedures to imported seeds, whose foreign certificates did not meet the following requirements:

  • there is an agreement on mutual recognition of the results of certification work with the certification body of the country of origin of seeds or planting material
  • products imported into Ukraine can be identified by accompanying documentation as manufactured according to the regulatory documents in force in Ukraine
  • the mandatory requirements and norms specified in the foreign certificate meet the requirements and norms in force in Ukraine

Also, the State Service of Ukraine for Food Safety and Consumer Protection is recommended to recognize certificates issued by other countries without phytosanitary examination (analysis), in the presence of a phytosanitary certificate of the exporting country during customs clearance of seed material. At the same time, the phytosanitary inspection is not cancelled even under martial law.

  1. Abolition of registration of agricultural machinery during martial law

According to the official information of the Government, the Ministry of Agrarian Policy and Food of Ukraine during the martial law abolished the obligation of registration of agricultural machinery provided by Resolution of the Cabinet of Ministers of Ukraine dated 8 July 2009 No.694, namely:

  • tractors
  • self-propelled chassis
  • self-propelled agricultural, roadbuilding and reclamation machines
  • other agricultural machines and their components of domestic and foreign production

After the end of martial law in the whole territory of Ukraine or in its separate localities, owners will be obliged to register (re-register) the appropriate vehicle within 90 days.

  1. Automatic registration of tax invoices

On 28 February 2022, the CMU approved Resolution No.163 "On amendments to clause 3 of the Procedure for suspending the registration of a tax invoice/ adjustment calculation in the Unified register of tax invoices".

In accordance with this Resolution, tax invoices/adjustment calculations are automatically registered if they simultaneously meet the following requirements:

  • reflect only transactions with products / goods of groups 1-24 UKT FEA,
  • compiled by a micro- or small enterprise whose main type of activity is included in the exhaustive list of NCEA specified in the Resolution. Such types of activities include, inter alia:
  • cultivation of cereals, legumes, melons, rice, vegetables and fruits
  • breeding of cattle, sheep and goats, pigs, poultry
  • marine and freshwater fisheries
  • production of meat, oil and animal fats, products of the flour and cereals industry, bread, pasta, baby food and other food, mineral and other waters, sugar, tea, coffee
  • milk processing, butter, and cheese production, etc.

Automatic registration of tax invoices / adjustment calculations under this Resolution is valid for the entire period of martial law.

For more information, please contact Asters' Counsel Anzhelika Livitska and Associate Victoria Kurus

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