Business news from Ukraine

Business news from Ukraine

PRESIDENT OF UKRAINE APPOINTS AMBASSADORS TO IRELAND, MONACO, SENEGAL

President of Ukraine Volodymyr Zelensky appointed by his decrees the Ambassadors of Ukraine to Ireland, the Principality of Monaco and Senegal.

Relevant decrees No. 177/2021, No. 178/2021, No. 179/2021 dated April 28, 2021 are released on the presidential website.

Thus, Ambassador of Ukraine to the French Republic Vadym Omelchenko was appointed as Ambassador of Ukraine to the Principality of Monaco concurrently.

Larysa Anatoliyivna Herasko was appointed as Ambassador of Ukraine to Ireland; Yuriy Anatoliyovych Pyvovarov was appointed as Ambassador of Ukraine to the Republic of Senegal.

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MOST POPULAR DESTINATIONS AMONG UKRAINIANS FOR MAY HOLIDAYS ARE SHARM EL-SHEIKH, HURGHADA ANTALYA AND UAE

The most popular destinations for the May holidays were the Egyptian resorts of Sharm el-Sheikh, Hurghada and Marsa Alam, the Antalya and Aegean coasts of Turkey, and the United Arab Emirates, sales director of the tour operator Join UP! Maryna Daineko told Interfax-Ukraine.

For the May holidays Join UP! added point flights to Antalya, primarily from Kyiv.

“We are launching all other flights of the flight program to Turkey (from May 2 Dalaman, later Bodrum and Izmir) in the planned volume,” Daineko said.

According to her, Albania, Montenegro and Cyprus are actively booking by Ukrainians for the May holidays. At the same time, the company noted a sufficient revival in the direction of excursion tourism.

“Those who are interested in a rich historical, excursion and gastronomic program choose tours to Georgia, Armenia and the direction little-known by Ukrainians – Serbia,” Daineko said.

According to her, in general, Join UP! records an increase in demand by 25% to 30% for trips abroad on May holidays, as well as an increase in booking depth.

“If in 2019 Ukrainians ordered a tour on average 27 days before departure, then in 2020 this period was halved, to 13 days. In 2021, Ukrainians adapted to the new realities and began to actively plan and book holidays in Turkey and other countries for both May and summer,” Daineko said.

The company said that in all countries tourists will need a negative PCR test done no later than 72 hours before departure.

“The conditions of entry and return to Ukraine often change, so we recommend that you check the current information with a travel agent before booking the morning and departure,” Daineko said.

LEVEL OF SHADOW ECONOMY IN UKRAINE GROWS TO 31% OF GDP

The level of the shadow economy in Ukraine in January-September 2020 amounted to 31% of GDP, which is 3 percentage points (p.p.) more compared to the same period in 2019, according to an analytical report of the Economy Ministry.

“The spread of the pandemic and the complication of the conditions for economic activity, formed as a result of the introduction of forced restrictive measures, led to the growth of the shadow economy in Ukraine. According to preliminary calculations of the Economy Ministry, the level of ‘shadow’ in January-September 2020 amounted to 31% of the volume of official GDP, which is 3 p.p. more than January-September 2019,” according to the repot posted on the ministry’s website on Wednesday.

At the same time, the ministry said that different methods show different dynamics of the level of the “shadow” in the economy, which indicates the atypical nature of the coronavirus crisis in comparison with other crisis periods.

So, of the four methods used to assess the “shadow”, the growth of its share over the nine months of last year compared to January-September 2019 was shown only by the method of unprofitability of enterprises – by 12 p.p., to 32% of GDP, according to the materials of the Economy Ministry.

Two more methods showed a reduction in the share of the shadow economy in Ukraine over the specified period: by 1 p.p., to 23% of GDP – according to the method of population expenditures – retail trade and services, and by 1 p.p., to 25% of GDP – according to the electric method.

“Considering the reasons that led to a reduction in the shadow economy by these methods, it is worth noting the presence of objective factors caused by the coronavirus crisis that limited the channels for carrying out shadow activities. In particular, in trade there was a limited possibility of selling goods on unorganized sites,” the ministry said.

As for the result of the assessment using the electric method, the decline in production due to the contraction of the world economy and the investment pause affected this, so that the reduction of the “shadow” according to this method is a purely mathematical result, the Economy Ministry said.

At the same time, according to the monetary method, the dynamics of the shadow economy in January-September 2020 remained unchanged – 31% of GDP.

As noted in the analytical report, most types of economic activity showed a tendency towards an increase in the level of the shadow economy.

In the sectoral context, the highest level of “shadow” in the past year was recorded in the sector of transport, warehousing, postal and courier activities – 54% of the gross value added of the industry, which is by 22 p.p. more than the indicator for the nine months of 2019.

In the mining industry, according to the ministry’s estimates, the level of the shadow economy increased to 39% and in real estate transactions by 14 p.p. up to 44%.

In financial and insurance activities and agriculture, the ministry recorded a decrease in the share of the “shadow” in January-September 2020 by 4 p.p., to 27% and by 2 p.p., to 30%, respectively.

Among the factors that affect the shadowing of the economy, the ministry named a low level of protection of property rights, a poor judicial system, a high level of corruption, as well as the presence of territories which are not controlled by the government.

IN 2020 ZAPORIZHSTAL GETS UAH 3.6 BLN NET LOSS

Zaporizhia Metallurgical Plant Zaporizhstal, a member of Metinvest Group, reduced its net loss by 15.1% in 2020 compared to the previous year, to UAH 3.678 billion.

According to the company’s report, the consolidated net loss for this period decreased by 19%, to UAH 3.142 billion.

The negative financial result before tax in 2020 decreased by 9%, to UAH 4.500 billion, the consolidated pre-tax loss – by 11.8%, to UAH 3.965 billion.

At the same time, net income decreased by 1.9%, to UAH 45.631 billion, consolidated net income – by 1.8%, to UAH 45.376 billion.

Retained earnings by the end of last year amounted to UAH 13.073 billion, consolidated retained earnings – UAH 16.788 billion.

Zaporizhstal is one of the largest industrial enterprises in Ukraine, whose products are in great demand among consumers both in the domestic market and in many countries of the world. The plant specializes in high-quality hot-rolled steel coils, hot-rolled sheets, cold-rolled sheets, cold-rolled coils made of carbon and low-alloy steels, as well as steel strip, black plate, bent sections.

The main consumers of the products are manufacturers of welded pipes, enterprises of automobile, transport, agricultural engineering, manufacturers of household appliances.

FC DYNAMO KIEV BECOMES CHAMPION OF UKRAINE

Dynamo defeated Ingulets with a score of 5: 0 at the NSC Olimpiysky stadium in Kyiv on Sunday, April 25, having received the championship title three rounds before the end of the season.

Zabarny and Besedin scored the first two goals against Ingulets. After the break, Tsyhankov scored two goals into the opponent’s goal. Popov scored the last fifth ball after a corner kick.

For the first time since 2016, Dynamo has won gold medals in the Ukrainian championship. Lucescu’s team has become unattainable for competitors in the table of the 23rd round of the Ukrainian Premier League.

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GIGACLOUD, PARKOVYI DATACENTER, DE-NOVO TAKE LEADING POSITIONS AMONG UKRAINIAN CLOUD PROVIDERS

GigaCloud cloud provider tops the ranking of IaaS providers in Ukraine presented by Molfar research agency.

The agency said on its website that GigaCloud received the highest marks for its flexible loyalty system, technical support and disk performance.

Parkovyi datacenter, DE-Novo, Tucha and Tetcloud also took the leading positions.

The study was conducted using mystery shopping, according to a GigaCloud release made available on Tuesday. A request was sent to 18 IaaS companies in Ukraine on behalf of an accountant of an audit company planning to switch to remote work: a cloud for access to 1C: Enterprise 8.3 (8.3.11.2867) for five employees; preliminary testing of the service.

When calculating the result, the response time to the first request, the quality of technical support (including customer focus and softskills), assistance with migration, price and a number of technical parameters were taken into account.

Points were awarded in five categories: prices, response speed and conditions of a commercial offer, how long they have to sign a contract, service testing and technical testing.

The final ranking included 10 companies that responded to the request and provided testing of the service.

As part of the terms of reference, common for all rating participants, the most affordable prices were at Cosmonova, United-DC and GigaCloud. De-Novo has the highest cost of the service.

De-Novo topped the response and terms of commercial offer together with GigaCloud, the second place was taken by Tetcloud, and Parkovyi datacenter was third.

In the category how long they have to sign a contract GigaCloud received the maximum points in the subcategory contract delivery speed.

GigaCloud was a leader in the service testing category, the second and third places in this category were taken by Parkovyi and Tucha.

All companies that took part in the rating declared 24/7 technical support. However, according to the study, seven out of 10 companies responded to requests at night from more than one hour to complete ignorance. The response time to the request turned out to be less than an hour at only three participants (GigaCloud, De-Novo and Tucha).