Business news from Ukraine

Business news from Ukraine

OFFICIAL RATES OF BANKING METALS FROM NATIONAL BANK AS OF MAY 28

Official rates of banking metals from national bank as of May 28

One troy ounce=31.10 grams

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UKRAINE INTERNATIONAL AIRLINES PLANS TO RESTART FLIGHTS FROM MID-HAUL OPERATIONS BEFORE APRIL 2021

Ukraine International Airlines (UIA, Kyiv) intends to operate medium-haul international point-to-point flights capable of demonstrating substantial passenger load without transit feeding, the airline said in a Thursday press release.
The airline said that the airline expects to resume operations by referencing the best case scenario provided that the entry/exit restrictions for both Ukrainian and foreign nationals are lifted effective June 15, 2020.
UIA predicted that Ukraine International’s passenger traffic will decrease by approximately 46%, i.e., down to 1.9 million passengers (of which 0.986 million have already been carried before the lockdown).
At stage one – through April 2021 – the carrier intends to operate medium-haul international point-to-point flights capable of demonstrating substantial passenger load without transit feeding. Ukraine international expects to resume domestic operations. At stage two, as soon as passenger traffic is regenerated, the airline will restore minimal international route network.
UIA said that long-haul operations may be resumed after critical feeding flights are re-introduced to the schedule – in or about April 2021.
“Right after Ukraine International resumes operations, the airline plans to operate 14 aircraft, gradually increasing the number up to 28. The long-haul fleet will be optimized with due allowance for the necessities of stage one. Later on, based on the traffic and market landscape (namely drop in demand for long-haul aircraft), the carrier will decide on extending its widebody fleet,” the airline said.
To perform efficiently on the post-pandemic market, Ukraine International introduces changes to its base product.
“The airline plans to facilitate its fare policy, cut down business class capacity, increase the sales share via the website, and offer customers full-cycle service on the website providing passengers with an opportunity to make changes in their bookings. The airline is committed to increasing fleet operation and cutting costs while preserving substantial transit potential,” UIA said.

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UKRAINIAN WINEMAKERS URGE AUTHORITIES TO REDUCE TAX BURDEN

Ukrainian winegrowers and winemakers have asked the president and the government to reduce tax burden to minimize the economic consequences of the COVID-19 pandemic and the national quarantine. According to Bayadera Group’s press service, the initiative was supported by more than 50 vineyards and major wineries.
“In an open letter, they proposed, in particular, to introduce a special taxation regime for agricultural producers engaged in the cultivation of perennial plantations, viticulture and winemaking. Due to the worsening economic situation in the industry and adverse climatic conditions in the Black Sea region, this year they urge the abolition of certain taxes and reduce financial burden,” Bayadera Group said.
In addition, due to the negative consequences of the pandemic, national producers urge the government to support them by providing more loyal terms of representation in retail chains, increasing the share of Ukrainian wine and introducing duties as a protective mechanism.
“A significant increase in the import of alcoholic drinks in Ukraine has been observed over the past three years. For example, in 2019 the share of imported wine in retail chains was 58%, sparkling wine some 51%, vermouth and aperitifs some 69%,” Bayadera Group noted.
The winegrowers and winemakers hope that in connection with the difficult situation resulting from the pandemic and the introduction of quarantine, the authorities will take the proposed measures in the near future.

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UKRAINE EXTENDS BAN ON EXPORT OF ANTI-EPIDEMIOLOGICAL PRODUCTS

The Cabinet of Ministers has extended until July 1 the ban on export of anti-epidemiological products. The government made the corresponding decision at a meeting on May 27.
“It is proposed to change the validity of the licensing regime for export of anti-epidemiological products until July 1, 2020. In fact, we extend the ban on export of such goods by one month,” Minister of Economic Development, Trade and Agriculture Ihor Petrashko said.
The government also allowed export of waterproof laboratory suits and disposable isolation medical gowns of types 1-5 of protection.

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TOP 20 COUNTRIES OF UKRAINE’S FOREIGN TRADE PARTNERS OF JAN-FEB 2020 (THOUSAND USD)

Top 20 countries of Ukraine’s foreign trade partners of Jan-Feb 2020 (thousand Usd)

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U.S. EMBASSY NOTES IMPORTANCE OF RETAINING INDEPENDENCE OF NATIONAL HEALTH SERVICE OF UKRAINE

The U.S. Embassy in Ukraine has said that it is important that the National Health Service of Ukraine (NHSU) remains independent body.
“An independent and professional National Health Service of Ukraine is critical to ensuring Ukrainians have access to modern, efficient health care. We stand ready to continue partnering with the Government of Ukraine to strengthen the independence of institutions like the NHSU, as we also collaborate to combat the COVID-19 pandemic and its effects,” the U.S. Embassy in Ukraine wrote on its Facebook page on Wednesday.
In turn, the British Embassy welcomed the decision of the Health Ministry to extend the terms of the competition to select the head of the NHSU and announced support for the second stage of healthcare reform.
“Welcome @MoH_Ukraine [Health Ministry of Ukraine] extending deadline for temp Head of NHSU. Independent institutions, universal cover and patient-centred care all vital to #COVID19 response. UK strongly supports 2nd phase of health reform and will work with @Kabmin_UA_e [the Cabinet of Ministers of Ukraine] so long as reform commitment remains,” the British Embassy said on Twitter.
As reported, on May 22, the Cabinet of Ministers announced a new competition for the post of head of the NHSU. Candidates can submit documents before May 27.

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