More custom wines: Ukraine decided to promote winemaking

Draft Law 9030, which was passed by Parliament in August, proposes removing the requirement for small wineries to obtain a license to operate in the production of spirits. writes about it Focus In his new article “Ukraine’s Wine Card. What’s going on in winemaking and why alcohol prices will rise”.

Thus, after the draft law comes into force, it will be sufficient to submit a declaration stating that the production of alcoholic beverages will be started for the production of small-scale wine products and be included in the relevant registry. In addition, the voted initiative envisions the following changes for the industry:

• granting the right to small wineries to purchase raw materials of Ukrainian origin (grapes, fruit, berries, honey);
• allow the wine to be poured into metal cans made of food-grade aluminum, as well as barrels made of aluminum and stainless steel;
• replace monthly reporting with annual reporting;
• impose a fine in the amount of 1020 hryvnia in case of non-submission or late submission of a report, or a report containing false information on the volume of production and / or turnover (including import and export) of alcoholic beverages.

Ukrainian raw materials and metal cans: what innovations in the law are welcomed by business

“It is of great importance that the state now shows interest in the wine industry, which is a branch of Ukraine’s agriculture. After all, in previous years, the country’s wine producers, especially small producers, could not show such interest and care. They are important issues for the sector,” says the President of the All-Ukrainian Association of Winemakers and Sommeliers Natalia Blagochupnaya.

All the bills that simplify the bureaucratic aspects of obtaining various permits, certificates and licenses help Ukrainian winemakers workshe loved it.

“The more wineries there are, the stronger the competition will be. It will force them to make new products, their own unique wine blends, in order to be in great demand by the consumer. This will lead to the development and planting of larger wineries.” “There is a huge variety of varieties in different regions,” said Volodymyr Pechko, head of the Ukrsadvinprom union.

The main innovation of the initiative is that small wineries are allowed to retail alcohol without a retail license, without adding alcohol, and even wholesale without a suitable license if they only use their own raw materials. said Nikolay Maksimov, lawyer at RIYAKO & PARTNERS Law Firm.

Another important relief is the permission to work with purchased raw materials.

“Many new wineries produce wine but don’t have their own vineyards. They plant vineyards but take three to five years to bear fruit. It’s great when you’ve already been given the opportunity to buy and at the same time plant vineyards and finally make wine from your own grapes.‘, notes Pechko.

Grape cadastre and the land market: the changes winemakers expect

Natalya Blagochuchnaya says the bill will not solve all the industry’s problems. Reminding that the “Grapes and Wine Law” should be brought to EU requirements, he said:

• changing the classification of wines by quality, introducing not only the concept of geographically indicated wines, but also the concept of CNP (controlled name of origin);
• patented new names for currently borrowed wine and other beverage names (champagne, cognac, sherry, Cahors, etc.);
• Clear zoning of grape varieties by region (soil types and climate);
• Taking steps to actual registration of vineyards in Ukraine etc.

A serious incentive for the development of winemaking in Ukraine can be the opening of the land market for legal entities.

Winemaker Ivan Plachkov explains: “Viticulture is a perennial plantation lasting 50-70 years. Where can a winemaker now buy land for 50 years? Is it by lease from the state? His own shares can give 7-10-15 years.”

Interview done focus Representatives of the association drew attention to the necessity of state control over industry and the initiation of a cadastre of vineyards.

“We don’t know where, how many vineyards we have, what varieties there are. The draft law on grapes and viticulture products, which was accepted in the first reading, deals with the registration issue. If we know which grapes we have, in what volume, how many and by whom, this will help establish a quality control system, there will be no chance of spilling anything wrong with the wine,” said Vladimir Pechko.

Recall that the government has not increased the minimum retail prices for alcohol, except for some wines, since 2018. Alcohol producers applied to the Ministry of Economic Development with a request for the relevant update. But the war prevented the adoption of the corresponding project.

Moreover Focus He wrote that the increase in electricity tariffs since July also affected alcohol prices. However, the Rada assured that Ukrainians should not be afraid of new increases in electricity tariffs and rising prices of other energy sources until the end of 2023.