Kiyv, 23 December 2011<\/b>\u00a0–\u00a0On December 22, 2011, the Parliament (Verkhovna Rada) of Ukraine adopted a\u00a0Law of Ukraine\u00a0on\u00a0amendments to the Tax Code of Ukraine stipulating partial restoration of\u00a0the system of\u00a0compensations paid to producers of raw milk, which was in\u00a0place before January 1, 2011.
\nAccording to the Law, the VAT sums accrued by milk processors will be partly credited to\u00a0the\u00a0special account in the State treasury for further direct payment as a compensation to\u00a0the\u00a0raw milk suppliers, the\u00a0rest of these funds will be payable to the special fund of the State Budget.
\nDistribution 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%\u00a0and 60% in 2013; 50%\u00a0and\u00a050% in 2014 respectively).<\/p>\n
The Comment of Anatoliy Yurkevych, Chairman of Milkiland N.V.:<\/i>
\n\u201cWe welcome the adoption of this Law, which is of extreme importance for dairy industry in\u00a0Ukraine 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\u201d.<\/i><\/p>\n
About Milkiland N.V.<\/b><\/p>\n
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.
\nIn Russia, the company produces fresh dairy products at Moscow-based OJSC \u201cOstankino Milk Combine\u201d 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.
\nIn 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.
\nThe revenue of the company in the year 2010 was EUR 258mn, net profit EUR 22mn.
\nMilkiland N.V. is a Dutch holding company controlling the Group. DE \u201cMilkiland Ukraine\u201d is\u00a0its\u00a0100% subsidiary controlling the business of the Group in Ukraine. Shares of Milkiland N.V. have\u00a0been listed on the Warsaw Stock Exchange since December, 6, 2010.<\/p>\n