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Business news from Ukraine

ODESA CUSTOMS OFFICE TO RELAX IMPORTS OF RAW MATERIALS FOR LARGE UKRAINIAN PRODUCERS

ODESA. Dec 3 (Interfax-Ukraine) – Odesa customs office plans to guarantee customs clearance of imported raw materials for large Ukrainian producers at the prices given in invoices, Head of Odesa Regional State Administration Mikheil Saakashvili said at a meeting with head of Odesa customs office Yulia Marushevska.

“I met large producers who import raw materials for own production several times. Raw materials are not always imported from those 30 countries for the customs clearance of products from which invoice prices are used thanks to changes at the Odesa customs office. We refused using this principle for imports from other countries, as many companies artificially cut the prices and it is hard to monitor. If this is a large national producer, it is possible to efficiently control this. These companies should be supported in the current difficult economic situation. We’re obliged to relax imports of raw materials for them,” he said.

Saakashvili said that the preferential treatment is credit of trust. If any company sets the price of raw materials too low to pay smaller taxes and duties, the company would not be treated in this way anymore.

 

UKRAINE’S DCFTA WITH EU CREATES OPPORTUNITIES WHEN EFFICIENCY, COMPETITIVENESS, QUALITY TO BE DECISIVE, NOT CORRUPTION – POROSHENKO

KYIV. Dec 3 (Interfax-Ukraine) – The Deep and Comprehensive Free Trade Areas (DCFTA) between Ukraine and the European Union (EU) which take effect from January 1, 2016 creates unique opportunities for business, when efficiency, competitiveness and quality are the decisive factors of market share, not corruption, Ukrainian President Petro Poroshenko has said.

“When it is not corruption, which is linked with our eastern neighbor “pays more have the larger market share” that will be the decisive factors of market share, but simple business factors – efficiency, competitiveness and quality – will be decisive,” Poroshenko said at the Ukrainian-Lithuanian Economic Forum during his working visit to Lithuania on Wednesday.

Speaking to the representatives of businesses of the two countries the Ukrainian president reminded the events happened two years ago when Ukrainian society and Ukrainian business were waiting for the signing of the Ukraine-EU Association Agreement.

“When it was learnt that the agreement will not be signed, next day millions of people entered the streets. They did not demand the increase of salaries or pensions, reduction of taxes or receiving any social benefits. People demanded Europe,” Poroshenko said.

The press service of the head of state reported that the forum, in particular, will present the program of privatization of Ukrainian state enterprises and investment opportunities of Ukraine. The parties will also discuss potential implementation of the Association Agreement for economic cooperation between the two countries. Special attention will be paid to the cooperation in transport and energy sectors.

Ukraine-Lithuania business forum was organized by the Ministry of Foreign Affairs of Lithuania, Association of Lithuanian Chambers of Commerce, Industry and Crafts (ALCCIC), Vilnius Chamber of Commerce, Industry and Crafts, the Economic Development and Trade Ministry of Ukraine, Ukrainian League of Industrialists and Entrepreneurs (ULIE), Chamber of Commerce of Ukraine and Kyiv Chamber of Commerce and Industry.

DIGITAL FUTURE INVESTS $250,000 IN INTERNET SERVICE TO ANALYZE RIVALS IN SEARCH SYSTEM

KYIV. Dec 2 (Interfax-Ukraine) – Digital Future investment company has invested $250,000 in the Prodvigator internet service providing data for analyzing rivals in search systems, the company’s press service reported on Tuesday.

“The investor will receive 15% of the project,” the company said.

Digital Future said that at present, the service provides data for eight regions of Google presence – Ukraine, Russia, Kazakhstan, Bulgaria, UK, the U.S., Canada and South Africa and analytics from Yandex for Moscow and St. Petersburg. Over 26,000 specialists use the service now.

“Digital Future’s investment will be used to expand the functions of Prodvigator, occupy positions on the western market and expand and cover new regions,” the company said.

Digital Future provides smart-money to startups from Eastern and Central Europe oriented to the global market. It was founded in 2014 by businessman Oleksiy Vitchenko.

KLIMKIN, HAHN DISCUSS INTRODUCTION OF FTA BETWEEN UKRAINE AND EU

KYIV. Dec 2 (Interfax-Ukraine) – Ukraine’s Foreign Minister Pavlo Klimkin and EU Commissioner for European Neighborhood Policy and Enlargement Johannes Hahn have discussed the readiness to the introduction of a free trade area between Ukraine and the European Union.

“The meeting of Klimkin and Hahn has confirmed their readiness to work together to maximize the efficiency of a free trade area for Ukrainian and European businesses,” the Foreign Ministry’s press service wrote on Twitter on Tuesday.

Earlier on Tuesday, Klimkin had a meeting with EU High Commissioner for Foreign Affairs and Security Policy Federica Mogherini, during which he stressed that sanctions against Russia should be extended until the full implementation of the Minsk agreements.

FINANCE MINISTRY PROPOSES LEGALIZING GAMBLING IN UKRAINE

KYIV. Dec 2 (Interfax-Ukraine) – The Finance Ministry of Ukraine has proposed that the economic operations of casinos, bookmakers’ offices and online gambling are legalized.

The bill on gambling in Ukraine was posted on the ministry’s website on Tuesday.

The ministry proposes that the regulator is created – the national service for gambling – that will realize the state policy in the area of organization of gambling and issue licenses to gambling establishments. The operation of the service will be coordinated by the Cabinet of Ministers via the Finance Ministry.

According to the bill, legal entities created in the form of the economic entity on the territory of Ukraine with charter capital of over EUR 2 million can organize gambling. The charter capital is to be formed only in monetary funds, without borrowing.

The single operator on the lottery market will be created, and the regulating agency will license it via holding a tender.

The bills envisages requirements to the buildings of casinos, the minimum number of equipment (tables, gambling slot machines and other equipment) and the number of employees depending on the city or district. The cost of the one-year license for casinos varies within EUR 300,000-1 million and for online casinos – EUR 1.5 million.

Restrictions are introduced for bookmakers’ offices regarding their location and the area of buildings where they are placed. The bookmakers’ offices will be able to operate online. Two licenses will be issued – for bookmakers’ transactions worth EUR 1.5 million and for opening the bookmakers’ office worth EUR 1,500-3,000 depending on the city or town.

UKRAINE PLANS TO REVOKE CUSTOMS, TAX BENEFITS FOR IMPORTS OF ENERGY EFFICIENT GOODS

KYIV. Dec 2 (Interfax-Ukraine) – The Ukrainian government plans to draw up a bill on revoking customs and tax preferences for imports of energy efficient equipment, appliances and spare parts to Ukraine in 2016.

This is outlined in the national action plan for energy efficiency until 2020 drawn up by the Regional Development, Construction, Housing and Utilities Economy Ministry of Ukraine and approved by cabinet resolution No. 1228-r of November 25 posted on the government’s website.

The government said that the revoking of the preferences would result in the legal groundwork for the development f production of energy efficient equipment in Ukraine via granting equal economic conditions during the realization of energy efficient projects in Ukraine.

The national energy efficiency plan until 2020 states that by late 2015 and in 2016 the draft cabinet resolution on the approval of the technical regulations for energy labeling of air conditioners and TV panels will be drawn up.

According to the document, the Economic Development and Trade Ministry, Regional Development, Construction, Housing and Utilities Economy Ministry and the State Agency for Energy Efficiency and Energy Saving are executors of the plan.

As reported, referring to the State Agency for Energy Efficiency, on September 28, the governmental committee for economic development and European integration chaired by Ukrainian Prime Minister Arseniy Yatseniuk approved the draft cabinet resolution on the national action plan for energy efficiency until 2020.

The approval of the document is one of the key liabilities of the country as part of the implementation of 2006/32/EU directive on energy end-use efficiency and energy services.

The interim goal of the national plan in 2017 is the reduction of domestic energy consumption at the level of 5% of the average indicator for energy consumption in 2005-2009, the agency said.