Business news from Ukraine

Business news from Ukraine

27% OF UKRAINIAN HOTELS SURVEYED ROOMS AS OFFICES DURING QUARANTINE

Two thirds of hotels have reduced their expenses by headcount optimization, 27% of respondents have implemented alternative services and rented rooms as offices, according to the study entitled “Ukraine Hotel Market & COVID-19 Impact” conducted by the Ukrainian Hotel & Resort Association (UHRA) together with international tourism experts from Horwath HTL.
“Two-thirds of hotels have decided to reduce prices – an instinctive (yet not necessarily efficient) step to boost occupancy. One third of respondents introduced digital & marketing tools. Apparently, before the pandemic was not considered critical. Some 27% of respondents have introduced alternative services, i.e., co-working, renting rooms as offices, etc,” UHRA International Relations Director Ivan Lun told Interfax-Ukraine.
He added that some respondents (7%) decided to change the function of some areas, i.e. for a gambling facility.
Lun said that vast majority of respondents (93%) confirmed an overall drop in their revenues, and more than 60% of hotels had revenues shrink by more than 40%.
“Only 4% of hotels showed an increase in revenues, and 3% reported that it remained at the level of 2019. Hoteliers who reported growing revenues were all located in the countryside,” the expert said.
Despite a difficult year for the industry, only 2% reported that they are actively seeking exit by selling their hotels and over 90% responded that they will keep operating even with certain limitations.
According to Lun, almost a quarter of hoteliers (23%) expect their performance to return to 2019 levels in 2021; 57% – in 2022 and only slightly less than 20% – in 2023 or later.
Some 122 respondents have participated in the survey, with an average size of 72 rooms per property. Two thirds of the responses came from urban, while 34% from rural locations.

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FOREIGN DIRECT INVESTMENTS IN UKRAINE IN Q-III OF 2020 (OPERATIONS, $ MLN)

Foreign direct investments in Ukraine in q-iii of 2020 (operations, $ MLN).

NBU

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MP DUNDA REGISTERS TWO BILLS ON REFORMING URBAN PLANNING SPHERE IN UKRAINE

MP Oleh Dunda (the Servant of the People faction) registered in the Verkhovna Rada bills on reforming the State Architectural and Construction Inspectorate and enhancing liability for violations in the urban planning sphere.
Relevant bills No. 5071 and 5072 were registered by the MP in the Verkhovna Rada on February 16, the website of the parliament said.
According to the explanatory note to bill No. 5071, which is available to Interfax-Ukraine, the bill provides for the introduction of phased state control over the construction process, which is carried out by local self-government bodies. State supervision is carried out by the central body of state power, which ensures the formation and implementation of state policy in the field of construction, one of the deputy ministers is also the chief inspector of the state urban planning supervision.
The bill also proposes to expand the range of entities providing services in the construction sector, subject to their certification. In addition, compulsory liability insurance is provided for certified persons in the field of urban planning (architects, design engineers, technical supervision, experts, etc.).
According to the provisions of the bill, a building permit will be granted if there is a positive conclusion of a comprehensive examination of design documentation, posted in the register with the qualified signatures of an expert organization.
Commissioning of facilities of CC1 class is carried out on the basis of an act of readiness of the facility, drawn up after its inspection in the presence of the customer, and signed by the technical supervision engineer and the author of the construction project. In the case of CC2 and CC3 class facilities, registration of a free state certificate of acceptance of the facility into operation is also carried out, which is formed after the signing of the act of readiness by the contractor, the head of the expert organization, experts and the insurer. These documents are also included into the register.
In turn, bill No. 5072 provides for an increase in fines for violation of legislation, building codes and regulations, including during planning and development of territories, violation of environmental safety rules, failure to comply with legal requirements of officials of state construction control and supervision, as well as personify liability for these violations.
In addition, it is proposed to introduce administrative liability for violations in the issuance of expert conclusions, author’s and technical supervision, performance of work without a qualification certificate or insurance contract, etc.
Criminal liability is provided for the issuance of a deliberately unlawful expert conclusion, violations by the executors of urban planning activities, non-implementation of state control and supervision, indicated in the explanatory note.

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UKRAINE AND CANADA TO BEGIN NEGOTIATIONS ON EXPANDING FREE TRADE AGREEMENT

During the first telephone conversation, Ukrainian Foreign Minister Dmytro Kuleba and Canadian Foreign Minister Marc Garneau agreed to begin negotiations in the near future on expanding the provisions of the Free Trade Agreement (FTA) between Ukraine and Canada in the sphere of services and investments, the Ministry of Foreign Affairs of Ukraine reported.
“The ministers discussed the intensification of interaction between Ukraine and Canada in the political, security, defense, trade, investment and migration spheres,” the Ukrainian Foreign Ministry said on Tuesday.
Kuleba also expressed gratitude for the work of the Canadian UNIFIER training mission in Ukraine. “Canada, with actions, not just words helps strengthen the security and defense sector of Ukraine. The Canadian instructors of the UNIFIER mission share important experiences and practices for transforming our armed forces in accordance with NATO standards. This is an example of cooperation between close partners,” the press service of the foreign policy department quoted the minister as saying.
The ministers welcomed the launch of the Ukrainian-Canadian working group on mobility issues to strengthen interpersonal ties. The Ukrainian Foreign Minister proposed to hold its first meeting next month and confirmed the interest of the Ukrainian side in concluding a bilateral agreement on youth exchanges.
“Kuleba informed the interlocutor about the priorities of the Crimean platform as a platform for consolidating international efforts to de-occupy Crimea and invited the Canadian side to take part in its inaugural summit this year. Garneau assured that Canada will continue to steadily support the sovereignty and territorial integrity of Ukraine,” the Ministry of Foreign Affairs of Ukraine reported.
The ministers paid special attention to the topic of countering the COVID-19 pandemic and vaccination of the population.
In addition, Kuleba and Garneau stressed the importance of coordinating further actions and forming common positions in preparation for the next stage of negotiations with Iran to bring to justice those responsible for the downing of Flight PS752 and to achieve justice for the victims of the tragedy and their families.
Finally, the interlocutors confirmed a mutual invitation to carry out working visits after the normalization of the epidemic situation.

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