The Constitutional Court of Ukraine recognized that Law of Ukraine “On amending some laws of Ukraine concerning the prevention of negative effects of the global financial impact on the development of agro-industrial complex” from February 4, 2009 # 922-VI, does not meet the Constitution of Ukraine. The decision of CCU abolished by a right for processing enterprises to send the sum of the tax value-added, which must be paid to the budget for the payment of subsidies to agricultural producers.
The decision of the Constitutional Court of Ukraine on the abolition of subsidies to milk producers will lead to a drop in cattle and higher prices for milk.
According to the expert, the decision of the Constitutional Court of Ukraine from November 24, “virtually wiped almost the only effective way to support the Ukrainian farmers. They will no longer receive subsidies amounting to 20%, resulting in a sharp increase in the cost of milk on the market and cause significant blow to the industry”.
“Such situation further sharpens the crisis in dairy industry, which leads to the decreasing of total number of cattle in Ukraine. If the state regulatory measures are not been urgently taken, the deficit of milk will become truly alarming proportions”.