Business news from Ukraine

EUROPEAN UNION ADVISORY MISSION TO UKRAINE (EUAM) OPENS OFFICE IN ODESA

The regional office of the European Union Advisory Mission to Ukraine (EUAM) opened in Odesa on March 7.
“The EU Advisory Mission was created in order to help with reform process and the fact that we are now opening a third regional presence and in doing so extending our support to Odesa shows that we are increasing our commitment in this regard,” said Kenneth Deane, the Civilian Operations Commander for the European Union’s civilian Common Security and Defence Policy Missions.
He also added that the mission would focus its efforts on justice and law enforcement with the aim of strengthening Ukrainian society’s confidence in the relevant agencies.
Deane stressed the importance of further reforms and the fight against corruption, without which the development of the law enforcement system is impossible.
For his part, head of Odesa State Regional Administration Maksym Stepanov promised full support for EUAM in the region. “After all, we need it,” he said, adding that he was confident in the high efficiency of the work of the mission.
In the short term, approximately 20 EUAM staff members – a combination of local and international experts – will start working in Odesa.

VIBER APPLICATION AUDIENCE IN UKRAINE EXPANDS BY 11% IN 2017

Growth of audience of Viber application in Ukraine in 2017 was over 11% compared with 2016, and the number of registrations in January 2018 grew by 50% year-over-year, the company’s press service has reported.
The company did not disclose the concrete figure for the number of subscribers and financial information, referring to corporate information policy of Japan’s Rakuten Group, the parent company.
“The number of messages that Ukrainian Viber users sent to other users from January 2017 to January 2018 increased to 55 billion, which is 80% more than in the previous year. Every second citizen of Ukraine now has the messenger,” the press service said.
According to the company, in 2017, Viber users in Ukraine were more likely to communicate with each other via free calls within the application. Thus, the users of the messenger took advantage of the possibility of audio and video calls 1 billion times, which is twice as many as in 2016. At the same time, the average talk time exceeded 6 minutes.
Trends in the use of Viber in Ukraine coincide with international ones. In 70% of cases during 2017, Ukrainians entered the messenger from a mobile phone (Android), 19% from the iPhone (iOS), 4% used Viber from the tablet, and another 7% – the version for desktop computers.
Viber is part of Japan’s Rakuten Inc., operating in the field of e-commerce and financial services. In 2018, Viber is available in 193 countries and localized in 28 languages.

MONDELEZ HAS 5.5-FOLD RISE IN NET PROFIT IN UKRAINE IN 2017

Private joint-stock company Mondelez Ukraine (earlier Kraft Foods Ukraine) saw a 5.5-fold rise in net profit in 2017, to UAH 310.2 million.
According to a company report on holding the annual meeting of shareholders scheduled for April 5, 2018, its assets last year slightly fell to UAH 3.305 billion. Fixed assets rose by 8.6%, to UAH 1.345 billion.
Total bills receivable narrowed by 12%, to UAH 843.8 million, and undistributed profit – by 2.3%, to UAH 1.677 billion.
Current liabilities grew by 3.6%, to UAH 1.521 billion.
Mondelez Ukraine is part of Mondelez International group of companies, one of the world’s largest producers of chocolate goods, cookies, sweets, and chewing gum.
The company in Ukraine includes Trostianets confectionery factory (Sumy region) and Chips Lux LLC subsidiary company (Kyiv region).

MPS PROPOSE TO REDUCE VAT RATE TO 16%, AMEND SIMPLIFIED TAXATION SYSTEM

People’s deputies have proposed to reduce the basic rate of value added tax (VAT) from 20% to 16% with the aim of optimizing payment of this tax, as well as abolish the third group of single tax payers.
Corresponding bill No. 8089 has been registered in the Verkhovna Rada, according to the parliamentary website. Its initiators were people’s deputies Andriy Shynkovych and Hennadiy Chekita (the Bloc of Petro Poroshenko faction).
“The current basic VAT rate of 20%, even if the system of electronic VAT administration is gradually implemented, makes it possible to apply a variety of schemes for VAT evasion in the form of the so called “twists” and fictitious business entities, since their services cost 10-12% and the VAT rate of 20% forces them to use their services to optimize tax burden and legalize the shadow turnover of goods and services,” the authors of the bill explained in an explanatory note to the document.
According to the explanatory note, the draft law proposes to abolish the third group of single tax payers.