The European Bank for Reconstruction and Development (the EBRD), International Monetary Fund (IMF) and the World Bank draw the attention of Ukrainian government to possible negative consequences as a result of adoption of the draft law No8053 “On Amendments to the Law of Ukraine “On State Support of Agriculture of Ukraine”. That is the issue of  the letter of  the EBRD, IM Fand World Bankin Ukraine of  the 23rd of February, 2011 to the Prime Minister of Ukraine Mykola Azarov (full text). “We believe that this law, if passed, would create of a State monopoly on the export of grains and would de facto eliminate private grain traders from the market” it is stated in the letter. Representatives of the international financial institutions note that this law “is now sending further negative signals” to investors willing to invest long term into production and grain processing. It is noted in the letter that “confidence in the Ukrainian investment climate is clearly deteriorating”, a number of existing of potential clients of our institutions are putting their investment programmes on hold. Some are considering withdrawing from Ukraine completely. “Ukraine currently has a unique opportunity to become a major global food supplier. This will only be possible with significant amounts of private long term capital flowing into the sector” – is reported in the letter. The Ukrainian Grain Association (UGA), the Ukrainian Agrarian Confederation (UAC) and The Grain and Feed Trade Association (GAFTA) brought in an exception against the approval of the draft law No 8053. The main scientific and expert management of the Verkhovna Rada recommended the Parliament to reject the draft law. “Adoption of the law will bring agribusiness industry of Ukraine 20 years back and actually will destroy civilized grain market,” President of UGA Volodymyr Klymenko said. “The bill contradicts to all norms of domestic and international law, destroys free market relations in the state, causes the outflow of investment in agriculture and economy of Ukraine, distorts the existing positive image of Ukraine as an agrarian state, deprives it of confidence from the international community and provokes the introduction of sanctions on its side. According to the president of The Grain and Feed Trade Association (GAFTA) Oleksiy Gavrylov adoption of this law “will lead to serious underinvestment of agribusiness industry of Ukraine. It is not only about the grain complex, but also about all its derivatives – meat, milk, etc. It is difficult to imagine such a state quasi-monopoly somewhere in Europetoday. This model of regulation that is more characteristic of undemocratic regimes where the government tries to control everything – both at the input and output.” As American Chamber of Commerce in Ukraine reported earlier, amendments to the Law “On State Support of Agriculture of Ukraine”, proposed by the draft law No 8053, could lead to economic isolation of Ukraine.