Ukraine

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6:42 AM Sunday, October 21, 2018
UBJ.am
UBJ.am - Monday, December 11
Veggie exports double; Taxes cut for new gas wells; 100 state companies listed for privatization; No import taxes on electric cars
image/svg+xml Kyiv Lutsk Rivne Zhytomyr Lviv Ternopil Khmelnytskyi Uzhgorod Chernivtsi Vinnytsia Chernigiv Sumy Kharkiv Poltava Cherkasy Kirovohrad Lugansk Dnipropetrovsk Donetsk Zaporizhzhia Mykolaiv Odesa Kherson Simferopol Sevastopol Ivano- Frankivsk
  • Ukraine’s vegetable exports doubled through September, hitting $44 million, Denis Krasnikov, vice president of the Union of Industrialists an Entrepreneurs, told AgroPolit news site. Top buyers are: India -- 36%; Belarus –34%; Turkey –12%; and Poland – 9%. The next step, Krasnikov said, is investing in European standard processing: “Vegetable ragus, marinated vegetables in the form of canned food, and the like. Incomes will grow at least one-third."
  • Fruit exports grew 64% through September to $24 million, Denis Krasnikov,said at the annual conference, Vegetables and Fruits of Ukraine. With the EU buying almost half of Ukraine’s fruit exports, Krasnikov called for more processing “in the form of extracts, juices, jams. All this can increase the yield of exports by 20-30%.”
  • Hungary, Ukraine and the European Commission have signed an agreement for a EUR 5 million program to develop Ukraine’s Danube region. The program calls for cross-border economic development projects for Zakarpattia, Ivano-Frankivsky, Chernivtsi and the Danube delta in Odesa.
  • A Hungarian fund, Egan, plans to make EUR 100 million in loans to Ukrainian entrepreneurs of Hungarian origin through 2020, Novoe Vremya news site reports. Targeting ethnic Hungarian business men and women in Zakarpattia, the fund makes loans of up to $10,000 at preferential rates. Hungary’s State Secretary Arpad Janos Potapi is quoted saying almost 100,000 Zakarpattia residents – about 8% of the region’s population -- have been issued Hungarian passports.
  • Ukraine should increase coal production to make up for lost sources from mines in separatist controlled areas, according to Oleksandr Dombrovsky, first deputy chairman of the Rada’s committee on Fuel and Energy Complex, Nuclear Policy and Nuclear Safety. “Because the anthracite remained on that side, and the heat generation, working on the anthracite, remained on the Ukrainian territory,” Dombrovsky was forced to import coal at high prices from the US and South Africa.
  • The bill "Buy Ukrainian, Pay Ukrainians" violates Ukraine’s obligations to the EU and to World Trade Organization, says Ivanna Klimpush-Tsintsadze, deputy prime minister for European and Euro-Atlantic. Writing on her Facebook page, she says that such a law would break international agreements and would “return us to the times of opaque schemes, entail the enrichment of our suppliers, additional expenditures of the state budget, and this money will be taken out of the pocket of taxpayers."
  • Europe's lowest wages are paid in Ukraine, according to Texty.org.ua, a Ukrainian analytical center. Ukraine’s after tax monthly salary of 190 euros was followed by Moldova -- 216 euros -- and Azerbaijan -- 232 euros. Rounding out Europe’s top 10 poorest were: Armenia, Georgia, Belarus, Kazakhstan, Albania, Macedonia and Serbia. The highest average salaries are paid in Switzerland -- 4,421 euros; Iceland – 3,440 euros; and Norway -- 3,405 euros.
  • Starting Jan. 1, there will be no VAT or excise tax levied on imported electric cars. The tax exemptions, which should cut costs by 17%, are to last for five years. Infrastructure Minister Volodymyr Omelyan wrote on his Facebook page: "Great news and a big step forward. The next step is the adoption of a law on stimulating the production of batteries and electric vehicles in Ukraine!”
  • Tax rates for new gas wells and new condensate wells have been lowered by about one third, effective Jan. 1. New gas wells will pay a 12% rate for drilling up to 5 km, and 6% for deeper wells. New condensate wells will pay a 29% rate for drilling up to 5 km, and a 14% rate for deeper wells.
  • Black Box Corp., based in Pennsylvania, USA, has been awarded a $10.4 million contract to supply command, control, communications, computer, and surveillance systems to Ukraine’s Ministry of Defense. The contract is the expansion of a 2016 contract under the Ukraine Security Assistance Initiative, which is administered and funded by the U.S. Army.
  • The Rada has adopted Ukraine's state budget for 2018. The document is based on GDP growth of 3%, inflation of 9% and an average hryvnia exchange rate of 29.3 to the dollar. The budget totals nearly one trillion hryvnia, or $34 billion.
  • Tax revenue for Ukraine's national and local budgets has increased by 28% through November, compared to the same period last year. Due to better tax collections and a mild economic recovery, revenue raised so far this year totaled $28.2 billion.
  • Cigarettes taxes will go up 30% on Jan. 1, according a bill passed by the Rada.
  • Under the new law, taxes will increase by 20 percent a year over the following seven years. By 2025, Ukrainians are to pay $2 a pack in excise taxes on cigarettes.
  • A list of almost 100 state companies approved for privatization in 2018 has been posted on the website of the State Property Fund. Big items include: the thermal power plants of Mykolaiv, Dnipropetrovsk, and Kherson; the heating plant of Kremenchuk; controlling shares of Turboatom and the regional power plants of Kharkiv, Khmelnytskyi, Mykolaiv, and Zaporozhie. Also listed are controlling shares in four chemical companies: Odessa Portside Plant, Sumykhimprom, Zaporozhie Titanium and Magnesium, and Zaporozhie aluminum plant. Armed with a streamlined sales procedure, the fund hopes to raise almost $1 billion in sales in 2018.
  • Europe-Ukraine trade is up by 29% this year, Prime Minister Groysman said in Brussels on Friday. Currently, the EU accounts for 43% of Ukraine’s total foreign trade. President Poroshenko predicts it will soon be 50%.
  • Ukraine’s trade with Lithuania jumped by 45% through September, President Poroshenko said Friday at the Ukrainian-Lithuanian Economic Forum in Vilnius. UIA and Wizz Air fly from Kyiv to Vilnius.
  • Ukrainian airlines have three years to switch to Ukrainian-made Antonov regional jets, from foreign-made regional aircraft – Brazilian Embraer, Canadian Bombardier and French ATR. On Jan. 1, 2021, tax exemptions will expire for the temporary leasing of foreign made passenger aircraft from the 44 to 110-seat range. By then, Antonov expects to get European Aviation Safety Agency certification for its An-148, which carries from 68 to 85 passengers, and for the stretched fuselage version, the An-158, which carries up to 99 passengers.
  • EasyJet is to launch flights next year from Lviv to three British cities, Tetiana Romanovska, the Lviv airport director posted on Facebook. The airport also is in talks with a Spanish discount carrier, she said. With traffic up 47% this year, the airport director said she is exploring flights from Lviv to New York, Toronto and Central Asia -- Kazakhstan, Kyrgyzstan and Uzbekistan. Next year’s confirmed new destinations from Lviv are: Olsztyn, Poland (LOT); Batumi, Georgia (Yanair) and Gdansk, Katowice, Dortmund and London Luton – all on Wizz Air.

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UBJ a.m. is reported by UBJ Editor in Chief. He is reachable at laurenson.jack@theubj.com
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