Ukrainian Agri Council (UAC) has taken the initiative to write off part of the obligations under forward contracts and agricultural receipts to those farmers who have suffered from crop losses due to bad weather conditions. The Ukrainian Grain Association (UGA) and the Ukrainian Club of Agrarian Business (UCAB), which agreed with UAC to develop and sign a memorandum, supported this initiative.

This was announced during a press conference "The problem of defaults in the grain market of Ukraine" by Deputy Chairman of UAC Mykhailo Sokolov.

Currently, we have the situation in Ukraine when the execution of forward contracts and agricultural receipts for the supply of grain to traders began to disrupt. However, some farms have objective reasons: the crop is completely lost due to natural disasters or it does not cover the required volume. Others don’t want to fulfill their obligations, demanding a higher price than stipulated in the contract, or refuse to fulfill it completely.

The Deputy Chairman of UAC emphasized that the refusal of such unscrupulous companies to execute the contract will lead to the loss of all: traders, farmers and Ukraine as a state on the international market.

"We have analyzed the contracts. In addition, we want to tell everyone who thinks that it is easy to refuse their execution: all this will end in a loss in court. There are no prospects here, these cases are simple for the courts. Only lawyers, who will be approached by both traders and farmers, will benefit. As a result, the traders will be fined for disrupted supplies, and the agricultural producers - for noncompliance with contracts. That means, in this situation, everyone loses. Until Ukraine is recognized as an unreliable partner in the international market and ceases to credit, which will harm all farmers, including those who have faithfully fulfilled their obligations," the Deputy Chairman of UAC explained.

As Mykhailo Sokolov noted, such a situation need to be prevented. So that those who really cannot fulfill the contracts because of objective reasons understand the conditions under which they will be restructured. That these conditions were fair and allowed them to develop. Moreover, those who decided to play in such a situation remained in the minority.

"We welcome the readiness of our contractors to sign the memorandum. In addition, we hope that this will allow the whole industry to go through this year's crisis with the least losses and will become the basis for further development," Mykhailo Sokolov mentioned.

The text of the memorandum will be open for signing by all relevant associations.