Business news from Ukraine

Business news from Ukraine

Romania and Bulgaria officially joined Schengen area

Romania and Bulgaria joined the Schengen area on Wednesday, and starting January 1, 2025, border controls will be abolished on the land borders of these countries with and between the Schengen countries.

“Romania and Bulgaria, welcome to Schengen,” European Parliament President Roberta Mecola wrote on social media on the night of January 1.

“From now on, there will be no more checks when crossing the land borders between Bulgaria or Romania and any Schengen country,” the European Parliament’s social network X reported.

The European Parliament recalled that border checks for air and sea travel were canceled back in March 2024.

The European Commission’s Directorate-General for Migration and Home Affairs called 2025 a historic year for Romania, Bulgaria and its people. “Full accession to the Schengen area is in line with European promises and legitimate expectations. This marks an important milestone in our history,” the statement said.

As reported in the social media of Hungary’s X presidency of the EU Council on December 12, the interior ministers “have just decided to abolish control of internal land borders with and between Bulgaria and Romania as of January 1, 2025.” Austria had previously opposed this because of the high level of illegal migration in Bulgaria and Romania, but later lifted its veto.

The Schengen area is a European space where border controls at the internal border have been abolished. The accession of countries will promote travel, trade and tourism.

Source: http://relocation.com.ua/rumuniia-ta-bolhariia-ofitsijno-vstupyly-do-shenhenskoi-zony/

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Poland takes over presidency of EU Council

On January 1, Poland will assume the presidency of the Council of the European Union for the second time, 20 years after the country joined the EU.
The Polish authorities have stated that the main goal of the country’s presidency of the EU Council is to implement priorities related to strengthening security. Warsaw motivates this choice, in particular, by the threat to the European Union that it sees from Russia.
“The Polish presidency will support activities to strengthen European security in all its dimensions: external, internal, information, economic, energy, food and health,” the program of the EU Council presidency states.
The Polish presidency promises to make efforts to uphold and promote the principles and values of the EU, emphasizing the special role of civil society.
Explaining its priorities, the Polish presidency points to “rising geopolitical tensions, the erosion of the international rules-based order, and hybrid attacks against European democracy and security.” All of this, according to Warsaw, “obliges us to defend the values on which the community is based, such as democracy, freedom and the rule of law.”
“For Europe, this is a time of tests and decisions. The EU must protect itself and its citizens and take care of its immediate neighbors. It must give Europeans a sense of security and prospects for development… To make Europe safer, we need the unity of the European Union and its willingness to work together with partners who share our values, including those who seek EU membership. We will support merit-based enlargement of the EU – welcoming new members is a geopolitical imperative and an opportunity to spread stability and economic growth across the continent,” the program says.
The Polish presidency announces plans for “continued support for Ukraine and its recovery” and the intention to “increase pressure on Russia and its allies.”
In defining defense tasks, Poland insists on “coordinated and ambitious actions that complement NATO’s efforts.” “It is necessary to increase defense readiness by increasing military spending, strengthening the defense industry and closing gaps in defense capabilities. The Polish Presidency will support these measures and will seek an in-depth discussion on defense funding in the EU. At the same time, member states must increase defense spending and maintain it at a level commensurate with threats,” Warsaw said.
The Polish presidency replaces the Hungarian presidency and, according to the rules of rotation of the EU Council presidency, will provide this function for six months. From July 2025, Denmark will take over the presidency.

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Starting from 2025, new passenger cars in Ukraine will be registered only according to Euro 6 standard

Starting from 1 January 2025, customs clearance for free circulation and the first state registration of new passenger cars in Ukraine (both imported and manufactured in Ukraine) will be subject to compliance with environmental standards of at least Euro 6.

This is stipulated by the Law of Ukraine on the requirements for compliance of vehicles with environmental standards, which was adopted by the Verkhovna Rada on December 17, 2024 and signed by the President of Ukraine Volodymyr Zelenskyy on December 30.

The exception is for new passenger cars imported or manufactured in Ukraine before December 31, 2024.

At the same time, as reported, the law postponed until January 1, 2027, the introduction of Euro 6 emission standards for vehicles (new and used) under UKTZED codes 8701 20 (tractors), 8702 (buses), 8704 (trucks), 8705 (special vehicles).

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Cargo transportation in Ukraine increased by 11.7% in 2024

The volume of cargo transportation in Ukraine in January-September 2024 increased by 11.7% compared to the same period in 2023 to 263.5 million tons, according to the State Statistics Service (Ukrstat).

According to the agency, cargo turnover for the first 9 months of this year increased by 15.7% to 138.17 billion ton-km.

According to the State Statistics Service, the number of passengers transported in January-September this year increased by 9% to 1.62 billion people, while passenger turnover increased by 12.7% to 32.51 billion passenger-km.

It is noted that the growth dynamics of these indicators is slowing down. In particular, in the first quarter, cargo turnover grew by 24%, while in the first half of the year it grew by 18.6%, and passenger turnover by 23.9% and 17.2%, respectively.

The data exclude the territories temporarily occupied by Russia and parts of the territories where military operations have been (are) ongoing.

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New rules for circulation of alcohol and alcohol in Ukraine come into force on January 1, 2025

On January 1, 2025, the provisions of the law on state regulation of production and circulation of ethyl alcohol, alcohol distillates, bioethanol, alcoholic beverages, tobacco products, tobacco raw materials, liquids used in electronic cigarettes and fuel came into force in Ukraine, the State Customs Service (SCS) reported.

According to the amendments provided for by Law No. 3817-IX, the placement of these goods in certain customs regimes is allowed only if they have the relevant valid licenses or in storage facilities included in the register of the State Tax Service.

The State Customs Service reminded companies transporting ethyl alcohol, alcohol distillates, bioethanol, alcoholic beverages, tobacco products, tobacco raw materials, liquids used in electronic cigarettes, and fuel across the customs border of Ukraine to take this information into account during the next customs clearance of exported goods.

Ukraine increased gas production in 2024

According to the results of 2024, the volume of natural gas production in Ukraine is estimated at 19.1 billion cubic meters, which is 400 million cubic meters more than in 2023 (18.7 billion cubic meters) and 600 million cubic meters more than in 2022 (18.5 billion cubic meters), said Artem Petrenko, Executive Director of the Association of Gas Producers of Ukraine (AGPU).

“According to preliminary estimates of our association, this year gas production in Ukraine will amount to about 19.1 billion cubic meters. Compared to 2023, we see an increase of more than 400 million cubic meters,” he said during an online meeting on the results of the year and prospects for the development of the energy sector of Ukraine at Energy Club on December 30.

According to the Executive Director, the positive trend of gas production growth in 2024 was ensured by both state-owned JSC Ukrgasvydobuvannya and PJSC Ukrnafta and private sector companies.

“Since August, the negative trend in private companies has been broken, and we have been recording an increase in gas production by private companies since August, and in five months they have managed to increase average daily gas production by more than 25%,” Petrenko said.

Also, according to preliminary data of the AGCU, more than 140 wells were drilled in Ukraine in 2024.

“This actually repeats the record-breaking year of 2023, when more than 150 wells were drilled. In total, over almost three years of full-scale invasion, gas producers have drilled more than 360 new wells,” the expert added.

According to him, since 2018, when the state provided incentives for drilling to Ukrainian gas producers, state and private companies have started drilling more than 720 wells in the country.

According to Petrenko, amid the ban on gas exports, Naftogaz of Ukraine continues to transparently buy gas on the Ukrainian Energy Exchange (UEEX) not only from producers but also from all market participants willing to sell gas on Naftogaz’s terms. According to the AGCU, since 2023, Naftogaz has purchased almost 2 billion cubic meters of gas at the UEEX.

“Under the conditions of closed exports, this is the only effective mechanism of cooperation between Naftogaz and participants, which is an incentive for private companies to increase gas production,” he emphasized.

At the same time, the Executive Director believes that in 2025, a negative factor for Ukrainian gas production will be the level of gas transmission tariffs, which the National Energy and Utilities Regulatory Commission (NEURC) increased for GTS Operator of Ukraine LLC by more than 4.5 times for internal entry points to the GTS starting January 1.

“This will affect not only state-owned companies but also private ones, as under the moratorium on gas price increases, it will reduce the investment opportunities of companies that they could direct to increase Ukrainian gas production,” Petrenko said.

As reported, gas transportation tariffs for internal entry points to the Ukrainian gas transmission system will increase 4.6 times from UAH 101.93 per 1 thousand cubic meters per day to UAH 464.37 per 1 thousand cubic meters per day starting January 1, 2025, and 4 times for external entry points, from UAH 124.16 per 1 thousand cubic meters per day to UAH 501.97 per 1 thousand cubic meters per day.

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