“UKRSPYRT”. FRESH STARTIn September 2017 at the request of the Trade union to the Cabinet of Ministers of Ukraine Yuriy Luchechko was appointed an acting Director of the State enterprise “Ukrspyrt”.

The enterprise was in a critical condition. Within a short period, a new team under the leadership of Luchechko has managed to implement efficient enterprise management mechanisms and design a strategy for the development of the industry. The key elements of the strategy are product line diversification, modernization, energy efficiency, control optimization and transparent procurement.

Thus, in the IV quarter of 2017 over 51 million UAH of costs were retrenched on procurement of raw materials and energy sources. In 2018 80% of grains for SE “Ukrspyrt” are supplied straight from the manufacturers. In 2018 cost-cutting on grain procurement at the beginning of the year amounted up to 66.26 million UAH, on natural gas procurement - 17.97 million UAH, and on equipment procurement - 37.7 million UAH.

For the period from September 2017 till September 2018 they have managed to increase the commodity output to 1 billion 889.9 million UAH which exceeds the figure for the same period in previous years by 14.7 million UAH.

SE “Ukrspyrt” throughout 2017 – 2018 has restored industrial capacities of the production of domestic premium quality vodka “Nasha Volya” and “Starozhyttya”. From December 2017 Ukrainian domestic vodka is exported to Germany. A retail chain of the domestic alcoholic products “Natsionalnyi Product” was opened. SE “Ukrspyrt” has ended 2017 with a profit of 12.1 million UAH. The cumulative profit for the same period (September 2018) amounts to over 55 million UAH.

As a consequence of implementation of a strategic development plan the enterprise will be capable to additionally produce a readily marketable product for the amount up to 5 billion UAH and accordingly pay up to 1 billion UAH of taxes. However this has to be supported at the legislative level.

For further existence of the domestic alcohol industry it is an imperative that the Supreme Council of Ukraine has to approve the corresponding draft laws, namely:
1. On the introduction of statutory moratorium on collection of tax debt, accumulated in 2010 – 2014 by the officials subject to the criminal proceedings opened against them.
2. Differentiation of excise duty rates for food-grade and industrial alcohol. Such rate is effective in all of our neighboring territories, in particular in EU. Therefore, alcohol-containing products in Ukraine pass customs clearance under the lowered rates, which does not allow for support of a domestic producer (draft laws No 6649, No 6650).
3. Obligatory supplementation of fuel with bioethanol. Ukraine has joined the appropriate EU directive but does not observe it yet (draft law No 7348).
4. Introduction of electronic excise label according to the block-chain technology. It minimizes the risk of counterfeiting and automates the control over retail market of alcohol.

On August 29, 2018 the Cabinet of Ministers of Ukraine rewarded the acting Director of SE “Ukrspyrt” Yuriy Luchechko a Recognition Certificate of the Cabinet of Ministers of Ukraine for a significant personal contribution into support of development of agricultural and industrial complex, perennial dedicated work and professionalism. The certificate was awarded during the meeting of the Government committee under chairmanship of the First Vice Prime Minister – the Minister of Economic Development and Trade of Ukraine - Stepan Kubiv.

Having received high honours Yuriy Luchechko said: “I want to thank the Cabinet of Ministers of Ukraine for high appreciation of work of SE “Ukrspyrt” team and our collegiate staff for fruitful and concerted effort. It is the achievement of our entire team. Optimization of the management processes, restoration of order in procurement, modernization of production that were started for the first time in the last 8 years, international expansion, return to production of biofuels and domestic vodka were not overlooked by the government and they inspire our tem for further achievements. We also hope that our legislative initiatives that are important for development of the industry will be backed up by the government in the draft laws sometime soon. The legislative changes relate to taxation and should be considered with a raft of legislation, required for adoption of the State budget Of Ukraine for 2019”.

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