Ukraine five-month foreign trade

Ukraine's State Statistics Committee reports that Ukraine exported raw hides and skins, and leather and leather products, worth US$97 million in the first five months of this year, a year-on-year increase of 18.7%. Ukrainian imports of the same types of commodities in the January to May period were 8.2% higher year-on-year at US$50 million Ukraine's Agrarian Policy Ministry is preparing to extend until 2008 the system under which producers of livestock and other agricultural products retain the VAT component of the sales price of their products, according to the Interfax news agency. The current system is operational from October 2005, when the relevant law was signed, until 2007. The aim of the system is to support the production of agricultural producers. However, the Finance Ministry opposes the extension proposal. The Agrarian Ministry says it would agree to the elimination of the system if 'proper direct support' in the form of direct subsidies is given to producers.