News

The share of gray companies in the Ukrainian grain market has reached 50% - expert

Grains, Cereal & Legumes
Market & Price Trends
Published Apr 17, 2024

Tridge summary

Following the outbreak of the full-scale war initiated by the Russian Federation against Ukraine, the grain market has witnessed a significant influx of companies with questionable backgrounds, now constituting 40-50% of the market, as reported by Oleksandr Golovin from Kernel. The Danube has emerged as a vital export hub, drawing a mix of exporters, including those with dubious reputations. Efforts to verify these entities have made exporting more difficult but have somewhat purified the market. Despite these hurdles, Ukraine's grain exports continue to reach new heights, suggesting that legitimate businesses have adapted successfully. Nevertheless, the growth of this 'gray' market is causing substantial issues for Ukraine, such as lost foreign exchange earnings, unregistered employment, and tax evasion, which are particularly problematic for a nation at war.
Disclaimer: The above summary was generated by a state-of-the-art LLM model and is intended for informational purposes only. It is recommended that readers refer to the original article for more context.

Original content

After the beginning of the full-scale war of the Russian Federation against Ukraine, the share of companies with a gray biography on the grain market increased to 40-50%. Oleksandr Golovin, commercial director of Kernel for Ukraine, stated this in an interview with Latifundist.com. The expert said that at a certain period, the Danube became the only point for the export of grain by water, and various companies followed this chain, including exporters with an unclear reputation. According to him, the introduced verification made exports more difficult, but partially cleared the market. Oleksandr Golovin added that for "white" companies, verification did not become a problem, but it brought a certain complication of activity. He noted that if the introduction of verification had really created any serious problems, exports from Ukraine would not have broken records. The share of the "gray" market has grown a lot. And for the state, this is a huge problem that needs to be solved. ...
Source: Agropolit
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