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UKRAINIAN GOVERNMENT APPROVES BILL ON SIMPLIFYING ACCOUNTING RECORDS

KYIV. Aug 7 (Interfax-Ukraine) – The Cabinet of Ministers of Ukraine has approved the bill on simplifying accounting records developed by the Finance Ministry of Ukraine, according to a post by Deputy Finance Minister Olena Makeyeva on her Facebook page.

“What will this give to companies? A shorter list of requirements for the filling out of primary documentation, less of an accountant’s time is spent on records, [and Ukraine will gain a] higher position in the Doing Business rating,” she said.

The bill states that detailed tax invoices will become a primary document as they confirm business transactions.

The bill suggests imposing European criteria on how companies are classified. In particular, micro-companies are companies with accumulated assets value of up to EUR 350,000, net sales income sales of up to EUR 700,000, and average personnel of 10 people.

Small companies’ assets value should be set at up to EUR 4 million, net income – up to EUR 8 million, number of employees – 50. The figures for medium businesses are as follows, up EUR 20 million of accumulated assists, net income of up to EUR 40 million and up to 250 employees. If these figures are higher, then a company is a large company.

 

POROSHENKO SIGNS NUMBER OF LAWS ON PREVENTING CORRUPTION – DEPUTY HEAD OF PRESIDENTIAL ADMINISTRATION

KYIV. Aug 6 (Interfax-Ukraine) – Ukrainian President Petro Poroshenko has signed a number of laws on combating corruption and smuggling, Deputy Head of the Presidential Administration of Ukraine Andriy Taranov said at a briefing on Wednesday.

According to the president’s website, two of the signed laws extend the functions of the National Anti-Corruption Bureau.

The law on amending Article 216 of Criminal Procedural Code on specifying Anti-Corruption Bureau’s jurisdiction allows the Anti-Corruption Bureau to check officials’ declarations and gives the bureau’s detectives the authority to conduct a pre-trial investigation of crimes connected to the declaration of false information.

“Thus, if an official ‘forgets’ to include something in the declaration, the Anti-Corruption Bureau’s detectives will investigate him,” Taranov said.

Another law on amending Article 36 of the law on preventing corruption allows the National Anti-Corruption Bureau to thoroughly check declared information.

“Uncompleted construction, a building belonging to declaring person’s entourage, a building on declarant’s land – all these will be examined,” Taranov said.

The law on amending the law on principles of preventing and battling corruption regarding declarants serving in the military is aimed at protecting the rights of mobilized persons and members of their families.

“If a person was drafted for service in 2014 and by April 1 he didn’t manage to prepare a declaration because of serving in the military, he can file such a declaration within 30 working days after coming back to work,” Taranov said.

 

EBRD MIGHT ALLOCATE EUR 8 MLN TO ODESA OVER 12 YEARS TO BUY 45 NEW TROLLEYBUSES

KYIV. Aug 6 (Interfax-Ukraine) – The European Bank of Reconstruction of Development (EBRD) is considering the possibility of participating in a project to renew Odesa city electric transport by giving “Odesmiskelectrotrans” municipal company long-term funding with EUR 8 million over 12 years, upon the guarantee of Odesa City Council.

According to the City Council’s website, 45 new trolleybuses will be bought with the creditor’s money in accordance with the trilateral memorandum signed on Tuesday.

The agreement was signed by Odesa Mayor Hennadiy Trukhanov, director of the above-mentioned municipal company Dmytro Zheman, and EBRD Senior Banker, Head of Infrastructure and Energy, Mark Mageletsky.

According to the statement, the financial agreement will be signed after the check which is scheduled to take place over the following three months. While speaking with Mageletsky, Trukhanov said that the city was planning to reform the transportation system, increasing Odesmiskelectrotrans bus traffic, and reconsider the city’s route network.

In addition, the ticket system will be substituted for e-tickets, and e-map of transport movement will be created, as well as a timetable system.

Mageletsky said the EBRD is ready to provide consultation and technical help to the city on reform-related issues.

 

CABINET TO APPROVE PRIVATIZATION PLAN FOR FIRST FIVE STATE COMPANIES BY OCT 2015 – MEMO WITH IMF

KYIV. Aug 6 (Interfax-Ukraine) – The Ukrainian government will by the end of September approve a plan for the privatization of the first five state-owned companies, according to the updated memorandum on cooperation between Ukraine and the International Monetary Fund (IMF).

According to the text of the memorandum, by the end of September 2015 the list of state companies will be reviewed to identify non-operating companies for immediate liquidation. The review, prepared in consultation with IMF staff, will outline a timeline for the disposal of each company with the necessary intermediate steps, as well as preliminary estimates of budgetary and other costs stemming from liquidation, with the goal of initiating the first liquidations by late 2015.

Profile ministries will prepare the priority privatization list of ten companies by late July 2015. Companies will be selected based on cost-benefit analyses. Building on this list, a working group, including the State Property Fund (SPF), will be established to develop a privatization action plan. The plan will define the key parameters and conditions of the process, including the timeline for divesting, methods of privatization, and intermediate steps to be taken for each company. The action plans for five of these companies will be approved by an SPF decision by late August 2015.

“Furthermore, we will seek adoption, by cabinet resolution, of the action plan for these five companies by the end of September 2015,” the memorandum said.

EBRD COULD INCLUDE OTP BANK, RAIFFEISEN BANK AVAL IN PROGRAM OF ENERGY EFFICIENCY IN RESIDENTIAL SECTOR

KYIV. Aug 6 (Interfax-Ukraine) – The European Bank for Reconstruction and Development (EBRD) could issue a credit line of up to EUR75 million to Ukrainian banks under the program of financing energy efficiency projects in the residential sector, at the first phase including OTP Bank and Raiffeisen Bank Aval (both based in Kyiv) in the program.

According to the report, the EBRD board plans to approve the relevant projects on September 2, 2015.

It is expected that the EBRD will provide funds to financial institutions, which, in turn, will lend to end borrowers from the housing sector, including individual homeowners, groups of homeowners, housing construction associations, condominiums and cooperatives. These projects should include investment in high technology, energy efficiency, and measures to reduce energy consumption by at least 20%.

The bank documents said that the funds will be complemented by the mobilized hryvnia resources of Ukrainian banks, participating in the program, in the amount of up to EUR65 million.

In addition, the program foresees a promotional material grant of EUR15 million from the Eastern European Energy Efficiency and Environmental Partnership (E5P) and $25 million from the Clean Technology Fund (CTF), which should provide investment incentives for end borrowers, partial hedging of currency risks and cover losses on loans issued to housing construction associations.

POROSHENKO SIGNS LAW TO RATIFY MEMO WITH GERMANY ON EUR 500 MLN LOAN TO REBUILD DONBAS INFRASTRUCTURE

KYIV. Aug 5 (Interfax-Ukraine) – Ukrainian President Petro Poroshenko has signed a law on the ratification of a memorandum of intent by the governments of Ukraine and Germany on an untied commercial loan worth EUR 500 million for infrastructure projects.

The loan agreement was signed in Berlin on April 1, 2015, the presidential press service has reported.

KfW Development Bank signed it on behalf of the German federal government, which has provided a guarantee for the loan funds.

The money will be spent on infrastructure projects and aid for internally displaced persons from Donetsk and Luhansk regions.

The loan is primarily earmarked for modernization in the transport sector, energy sector, heating supply, energy efficiency, water supply and waste water disposal, social infrastructure and housing construction/reconstruction.

The Ukrainian parliament passed the law on July 15, 2015.