Kiyv, 23 December 2011 - On December 22, 2011, the Parliament (Verkhovna Rada) of Ukraine adopted a Law of Ukraine on amendments to the Tax Code of Ukraine stipulating partial restoration of the system of compensations paid to producers of raw milk, which was in place before January 1, 2011.
According to the Law, the VAT sums accrued by milk processors will be partly credited to the special account in the State treasury for further direct payment as a compensation to the raw milk suppliers, the rest of these funds will be payable to the special fund of the State Budget.
Distribution of the above mentioned VAT sums is also stipulated by the Law (70% of accrued VAT sums to be credited to the special account, 30% - to be payable to the State Budget in 2012; 40% and 60% in 2013; 50% and 50% in 2014 respectively).
The Comment of Anatoliy Yurkevych, Chairman of Milkiland N.V.:
“We welcome the adoption of this Law, which is of extreme importance for dairy industry in Ukraine and believe it will come into force on January 1, 2012. We consider that its implementation will help to overcome the unfavorable trend of the decrease of diary cows headcount and domestic milk production, stabilize the business of the raw milk processors and will positively influence social conditions in the rural areas”.
About Milkiland N.V.
Milkiland is a TOP-5 diversified dairy producer operating in Russia and Ukraine offering a wide range of dairy products such as fresh dairy, cheese, and butter, to satisfy consumers in their everyday needs for healthy and tasty foods.
In Russia, the company produces fresh dairy products at Moscow-based OJSC “Ostankino Milk Combine” and sells under Ostankinskaya brand. Also, Dobryana Ukrainian cheese is sold in many Russian cities, including Moscow, St. Petersburg, Voronezh, Nizhniy Novgorod, Saratov, Kaluga, Chelyabinsk, Orel, Ekaterinburg, Omsk, and Kaliningrad.
In Ukraine, the company controls 10 plants producing wide range of dairy products. Its cheese, fresh dairy products and butter are widely available across all Ukrainian cities under brands Dobryana and Kolyada. Milkiland exports dairy products from Ukraine to over 30 countries.
The revenue of the company in the year 2010 was EUR 258mn, net profit EUR 22mn.
Milkiland N.V. is a Dutch holding company controlling the Group. DE “Milkiland Ukraine” is its 100% subsidiary controlling the business of the Group in Ukraine. Shares of Milkiland N.V. have been listed on the Warsaw Stock Exchange since December, 6, 2010.
For more information please contact:
Sergey Trifonov, IR Officer of Milkiland N.V.
tel. + 380 67 327 9838