Yevhen Cherniak, owner of the Khortytsia trade mark, is sure of the shadow alcohol beverage market to be down as the government has introduced minimum retail prices for alcoholic beverages.

Ukrainian News learned this from the company's press service.

"The government agreed on October 30 the resolution on setting minimum prices for certain types of Ukrainian-made alcohol beverages", the statement says.

Thus, The Cabinet has charged the minimum vodka price at UAH 70 per liter of 100% spirit, i.e. UAH 14 per 0.5 liter of vodka; three-star cognac will cost UAH 125 per liter of 100% spirit, i.e. UAH 25 per 0.5 liter of three-star cognac. The minimum price for four-star cognac has been established at UAH 140 per liter of 100% of spirit, i.e. UAH 28.01 per 0.5 liter of four-star cognac, five-star cognac UAH 160 per liter of 100% spirit, i.e. UAH 32 per 0.5 liter of five-star cognac.

Cherniak pointed to the importance of the decision for alcohol beverage producers and the industry as a whole.

"Implementation of the resolution will result in reducing shadow alcohol beverage turnover and boosting revenues to the national budget", the press-service quotes him as saying.

According to the company, the counterfeit alcohol beverage market makes currently about 25%.

As Ukrainian News earlier reported, Khortytsia distillery and Soyuz Victan company called on the Cabinet of Ministers to fix the minimum price for 0.5 liter of vodka at the level of UAH 14.

In September, Khortytsia forecasted a minimum price of UAH 25 per 0.5-liter-bottle of vodka if the excise duties on ethyl spirit and alcoholic beverages are raised sharply.

The Cabinet of Ministers proposes that the parliament gradually raise the rates of the excise duties on ethyl spirit and alcoholic beverages by UAH 12.5 per liter or 58% to UAH 34 per liter of 100% spirit in 2009.

Currently, the rates of the excise fee for the ethyl spirit and alcoholic drinks are UAH 21.5 per liter and UAH 10 per liter of cognac.