As for the Situation around Silpo's Humanitarian Cargo and Commercial Procurement 30.04.2020

The Silpo chain has received inquiries regarding the use of humanitarian cargo during quarantine for commercial activities. Ukrainian supermarket chain Silpo clearly distinguishes between charitable purchases for humanitarian needs and goods that will be used to protect our employees and sold in supermarkets. All procurements are made transparently, in accordance with the relevant documentation.

During the quarantine, the Silpo chain purchased 5.2 million disposable three-layer protective masks in China, which were paid for, shipped and cleared through customs as commercial goods. The company has direct contracts with SkyUp and suppliers and partners in China, as well as all supporting documents. The cargo arrived in Ukraine on three planes, one of which also contained cold fog generators for disinfection of supermarkets and disposable protective caps for employees. Silpo paid for the shipment.

Silpo now puts a protective mask in every delivery package free of charge. In the supermarket, the mask can be purchased at a discounted price.

Customs clearance of the first cargo, which arrived fr om China on April 9, 2020, involved payment of duties and VAT. The following shipments, which arrived to Ukraine on April 22 and April 25, were cleared without payment of VAT and duties due to changes of the current laws*, namely the Resolution of the Cabinet of Ministers No. 271 dated April 8, 2020.

In addition, Ukrainian supermarket chain Silpo has allocated UAH 100 million for the purchase of hospital equipment and personal protective equipment for medical workers.

UAH 13,061,875.20 was used to pay for 12 high-quality HAMILTON ventilators made in Switzerland. Upon arrival to Ukraine, this equipment will be sent to hospitals in Kyiv, Vinnytsia, Kirovohrad, Chernivtsi and Ivano-Frankivsk regions. The purchase was made through the sole official representative of HAMILTON in Ukraine in cooperation with the Charity Fund “Tvoia Opora” (eng. Your Support), which will also participate in the distribution and delivery of purchased ventilators.

The Silpo network transferred UAH 46,745,494.84 for the purchase of 1,000,032 sets of coronavirus testing reagents. The purchase of reagents was initiated by the Coordination Council under the Office of the President of Ukraine together with the Anti-Crisis Headquarters for Counteracting the Spread of COVID-19 in Ukraine. Ukrainian chain Silpo agreed to be a donor to this procurement. Logistics was provided by the Coordination Council under the Office of the President. Quality control of reagents and their characteristics, as well as distribution to 26 laboratories was carried out by the Ministry of Health of Ukraine in accordance with the local needs.

Silpo also purchased 70,000 protective suits for medical workers worth $1,155,000. The first batch of 9,550 pieces has already arrived to Ukraine on a special SkyUp flight from Korea. Shipment was paid for by the Silpo chain. The protective suits are distributed among the hospitals by a volunteer organization in consultation with the Ministry of Health.

The second and third shipments are expected on May 3 and May 15, 2020. All suits are stored in Silpo warehouses and delivered directly to hospitals in collaboration with the volunteer organization. Upon receipt the suits, each medical institution signs the appropriate package of documents.

Honesty and transparency are essential components of our business. We will continue to do everything in our power to help Ukraine in this difficult time.

We call on the journalistic community to cover the humanitarian cargo situation correctly and without prejudice, and we thank everyone who defends truth.

Silpo is one of the largest food supermarket chains in Ukraine founded in 1998. As of April 26, 2020, there are 260 Silpo supermarkets, including 4 Le Silpo delicatessen. It is part of Fozzy Group, one of the largest trade and industrial groups in Ukraine.


(*) NB: Special Laws No. 530-IX dated March 17, 2020 and No. 540-IX dated March 30, 2020 supplemented the Tax and Customs Codes of Ukraine with provisions that allow goods designated for combating COVID-2019 to be cleared through customs without payment of VAT and duties, as well as to be sold in Ukraine without VAT. The benefit applies only to goods that are included in a special list approved by the Resolution of the Cabinet of Ministers of Ukraine No. 224 dated March 20, 2020. In the first version of the list, only goods, including personal protective equipment, that were supplied to healthcare institutions could be exempted from VAT and duties. Subsequently, by Resolution No. 271 dated April 8, 2020, which entered into force only on April 15, 2020, the Cabinet of Ministers of Ukraine changed the list of privileged goods so that it began to apply to all goods included in it, regardless of wh ere they are later delivered to. Therefore, the benefit can now be used by any company if it imports or supplies goods that meet the description according to the list of the Cabinet of Ministers of Ukraine, regardless of the further purpose of such goods (humanitarian or commercial).

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