A new tool: a draft law on electronic agricultural receipts has been registered in the Verkhovna Rada

Ukrainian farmers will soon be able to get a new modern tool for attracting financing and developing their own business. The draft Law No. 9266 on Electronic Agricultural Receipts has been registered in the Verkhovna Rada of Ukraine, which will make the lending procedure for domestic producers of agricultural products more accessible, reliable and easy.

It is proposed that electronic agricultural receipts will be introduced as non-emission securities. However, traditional paper receipts are not canceled and will exist in parallel.

The key norms of the draft law are as follows:

• electronic agricultural receipt is an independent subject of circulation on the capital markets, can be an object of purchase and sale, a source of profit. That is, the agricultural receipt is a non-issued security. Electronic agricultural receipts will exist in the form of an electronic document in the Register of electronic agricultural receipts;
• the draft law expands the range of entities that can issue electronic agricultural receipts at the expense of agricultural cooperatives;
• simplifying and reducing the cost of issuing, circulating and terminating electronic agricultural receipts compared to traditional paper ones;
• the subject of the pledge may be the future harvest, live animals, products of animal and vegetable origin, products of their primary processing;
• the draft law ensures the reliability of the electronic agricultural receipt. If the debtor does not have collateral for the electronic agricultural receipt, the creditor can collect the loan on the basis of a special extract from the Register of electronic agricultural receipts at the expense of other property.

From the beginning, the NSSMC has supported the initiative of introducing agrarian receipts in electronic form. Convenient access of Ukrainian farmers to the capital market right now, during the war, is an issue that needs a quick solution. Therefore, the NSSMC welcomes the registration of the draft law and believes that it will contribute to economic growth and effective development of the agricultural sector and the capital market.