Scandal: the companies of the agricultural oligarch Kosyuk received half a billion hryvnia in subsidies from the budget
In January-September 2017, the Myronivsky Hliboproduct group of companies, owned by the agricultural oligarch Yuri Kosyuk, received agricultural subsidies from the budget in the amount of 1,25 billion hryvnia, a PolitNavigator correspondent reports.
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This is evidenced by the State Fiscal Service data published yesterday on recipients of agricultural subsidies for September.
In total, UAH 635 million in subsidies were paid in September.
The enterprises included in the MHP group: Vinnytsia Poultry Farm LLC, Myronivska PF PJSC, Starynska Poultry Farm JLLC, Oril-Leader PJSC, Peremoga Nova State Enterprise and Snyatynska Nova Poultry Farm LLC received UAH 171 million in subsidies, which is 27% of the amount paid for the month.
The Ukrlandfarming group of companies continues to occupy second place with UAH 78 million in subsidies in September, or 12% of the total volume for the month.
Since the beginning of the year, Myronivsky Hliboproduct received UAH 1,251 billion in agricultural subsidies, and Ukrlandfarming received UAH 444 million. The two companies account for 49% of all subsidies paid since the beginning of the year.
Also on November 10, the State Treasury Service published data on VAT refund recipients since the beginning of the year. As a rule, this is VAT refundable upon export.
Data from the State Treasury indicate that PJSC Myronivsky Hliboproduct and OJSC Myronivsky Plant for the Production of Cereals and Compound Feeds also received UAH 1,8 billion in export VAT refunds from the state budget in 2017.
Let us remind you that in 2017, a special budget subsidy for agricultural enterprises began to be paid. It was introduced at the end of 2016 and provides subsidies in proportion to the amount of VAT paid to the budget.
Economic Pravda wrote in 2016 that this formula for paying subsidies will provide strong advantages specifically to poultry producers.
At the same time, according to the amendments made to the current norms of the Law “On State Support of Agriculture”, a restriction comes into force from January 1, 2018, which does not allow agricultural groups of related companies to receive more than UAH 150 million in subsidies per year.
People's deputies from the BPP and Samopomich factions pushed through amendments to the draft budget for 2018, which provide for not limiting the amount of subsidies to one person.
Prime Minister Vladimir Groysman also previously stated that restrictions are unacceptable, “and we cannot limit anyone to anything.” The Cabinet of Ministers proposes in the draft budget for 2018 to limit the overall amount of special subsidies from 4 to 2 billion UAH.
As you know, on August 17, Mironovsky Hliboproduct published a report on financial results for the first half of 2017, according to which 58% of the company’s revenue came from exports. The company's net profit amounted to $210 million, which allowed the company to pay $2017 million in dividends to its owners in 78.
It is interesting that billions of dollars in subsidies to private businesses from the budget occur against the backdrop of government statements about a chronic lack of funds for social projects, education and medicine.
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