The Cabinet of Ministers of Ukraine has approved the document “On the Establishment of the Ukrainian Part of the Ukrainian-Japanese Joint Committee for the Implementation of the Joint Crediting Mechanism,” the Ministry of Environmental Protection and Natural Resources of Ukraine reported.
Earlier, Ukraine joined Japan’s Joint Crediting Mechanism (JCM). The goal of the program is to reduce greenhouse gas emissions by introducing the world’s leading technologies for decarbonizing various sectors of the economy through investments by Japanese organizations. Ukraine and Japan signed a memorandum of cooperation under Article 6 of the Paris Agreement earlier this year.
“This decision is important for achieving our climate goals through joint lending instruments. Japan is a promising partner on this path. Through joint lending, we will be able to attract Japanese technologies and innovative developments to reduce greenhouse gas emissions. This includes the implementation of the UN Framework Convention on Climate Change and the Paris Agreement, and the green recovery of Ukraine according to the latest practices,” Minister Svitlana Hrynchuk said in a statement on the Telegram channel on Tuesday.
It is noted that the next step will be to approve the composition of the committee and its regulations. The committee is created to coordinate efforts to strengthen bilateral cooperation in the fight against climate change. For its part, Japan has already completed all the preparatory steps to launch cooperation.
The JCM reportedly allows Japanese organizations to invest in decarbonization projects in partner countries. The reduced greenhouse gas emissions resulting from such projects are partly credited as Japan’s contribution to its own emission reduction targets and partly in the country where the project was implemented. Today, the JCM mechanism operates in 29 countries.
According to Hrynchuk, for Ukraine, this means access to Japanese technologies – some of the best in the world – and guaranteed investments for green recovery. This will be a tangible support in overcoming the consequences of Russian armed aggression.
In the afternoon of January 1 in most western regions of Ukraine, wind gusts of 15-20 m/s (I level of danger, yellow), warns the Ukrainian Hydrometeorological and Meteorological Center.
It is noted that weather conditions may lead to complications in the work of energy, construction, utility companies and traffic.
U.S. oil exports to China almost halved in 2024, Bloomberg reports, citing Kpler data. The United States exported 81.1 million barrels of oil to China this year, which is 46% lower than the previous year (150.6 million barrels). Thus, China has dropped to sixth place among the largest buyers of US oil from second.
Chinese demand for oil is declining amid a slowdown in the country’s economic growth, the proliferation of electric vehicles and increased LNG consumption. The total volume of oil imports to China this year decreased by 7.2%. At the same time, the share of Russia, Iran, and Venezuela in maritime supplies rose to 26% from 24% a year earlier, with the Middle East accounting for about 60%.
At the same time, Europe has remained the main buyer of American oil at the regional level for three years.
The Netherlands continues to be the leader, importing 194.4 million barrels of oil from the United States in 2024. The second place is taken by South Korea (165.5 million barrels), which is trying to compensate for the decline in supplies from Kazakhstan, which has begun to cooperate more actively with Italy.
This year, the United Kingdom is in third place (11.8 million barrels), Canada is in fourth place (102.3 million barrels), and Spain is in fifth place (87.3 million barrels). The seventh place is taken by France (81.3 million barrels), and the eighth – by Taiwan (80.4 million barrels).
Analysts of the currency exchange market operator KIT Group together with their colleagues from Globus Bank and Unex Bank (both in Kiev) agree that the average annual exchange rate in 2025 will be close to UAH 45/$1, which corresponds to the figure included in the state budget for the next year.
“The most probable scenario is close to the government forecast, which is reflected in the state budget-2025, the average annual rate of 45 UAH/$1, which allows its fluctuations during the year in the range of 44-46 UAH/$1 with gravitation to a higher mark before the end of the year – so far we have no reason to underestimate the risks of further long-term devaluation”, – said in ‘KIT Group’ at the request of the agency ‘Interfax-Ukraine’.
Experts expect the official exchange rate to weaken to 42.2-42.5 UAH/$1 by the end of this year. They point out that the forecast for the beginning of 2025 depends on macroeconomic factors, in particular on further dynamics of international support, monetary policy of the US Federal Reserve System (FRS) and exchange rate parity in the international markets of the US dollar and euro.
“In the case of stable receipt of financial support from partners and allies and subject to low volatility of external markets, the hryvnia exchange rate will be relatively predictable, although it will hold further devaluation fairway,” analysts emphasize.
In turn, the head of the board of Globus Bank Sergey Mamedov notes that in forecasts of the official exchange rate for the next year, he also predominantly relies on the budgeted figure of 45 UAH/$1.
“We understand that the value of the dollar may depend on a number of factors and circumstances, among which we can highlight the amount of international financial support, which is directed to cover the budget “gap” between expenditures and revenues,” he explains.
Among the important factors affecting the exchange rate dynamics, the banker named GDP growth rate, inflation rate and military actions, which can create pressure on the currency market, prompting more active purchase of foreign currency both in the non-cash and cash markets.
“We cannot rule out that the forecast may not fully come true. However, the weighted average exchange rate of UAH 45/$1 is already a benchmark on which businesses rely when planning their activities for 2025, in particular housing developers who started their projects in the second half of 2024 with planned completion of construction in 2026,” Mamedov cited an example.
According to Globus Bank’s calculations, the hryvnia may weaken to the level of 46-47 UAH/$1 by the end of 2025.
“As of today, the budgeted figures look quite realistic, and at the end of next year, if there are no significant changes in the security situation, the exchange rate range of 45-47 UAH/$1 is highly probable,” Anna Zolotko, director of treasury operations department at Unex Bank, pointed out in a comment to Interfax-Ukraine.
“However, I would not rush into any forecasts right now. The probability that the war will end in 2025 is not zero. And provided that reliable security guarantees are received, the situation in the economy will change rapidly, including with regard to the hryvnia exchange rate,” the banker added.
According to her, in case of realization of a positive scenario – the end of hostilities – we should expect an inflow of foreign investments. In this regard, Zolotko does not exclude that in a certain period there may be a situation when the regulator will have to buy back the currency instead of selling it on the interbank market.
“Obviously, such a scenario looks somewhat fantastic now, but it cannot be ruled out,” summarized Zolotko.
KIT Group analysts explain that the record jump in demand for foreign currency at the end of this year is due to the traditional activation of business settlements on foreign contracts and the growing demand for cash currency among the population.
“However, during the year, we observed a predominantly insignificant spread between buying and selling rates – this is a clear evidence of balance in the market. Whereas in December the spread between buying and selling rates of the dollar reached 0.8-1 UAH, which indicates the growth of pressure on the market,” – experts comment on the situation.
However, due to the importation of record volumes of cash currency and currency interventions of the National Bank, the hryvnia exchange rate managed to keep in relative stability, they point out.
“For next year, an important factor will be an increase in the tax burden on deposits. If banks are unable to offset the decline in deposit yields with interesting offers, there is a high probability of overflow of savings and free hryvnia liquidity into cash currency outside banks, which may also become a powerful factor of pressure on the exchange rate,” the experts explain.
Mamedov notes that, most likely, cash rates of hryvnia to US dollar in 2025 will differ from interbank rates in the range of 0.3-0.5 UAH. Thus, if the rate on the interbank at the end of the year will be at around 46-47 UAH/$1, it may average 46.5-47.5 UAH/$1 on the cash market.
“However, at the moment it is extremely difficult to linearly forecast the situation without taking into account a number of dynamically developing or possible factors,” the banker said.
In turn, Zolotko named among the key factors of record volumes of cash currency imports the increased demand from the population against the background of devaluation expectations, taking into account the restrictions on the purchase of non-cash currency equivalent to UAH 50 thousand/month in one bank, as well as a significant improvement in the channels of cash currency supplies by land transport to Ukraine.
“There is no problem in the numbers themselves. Now the NBU has enough reserves, the projected receipts of international aid, at least for the next year look convincing, so there are enough resources to cover this excess currency demand. At the same time, we should not forget that we are talking primarily about the formation of savings, i.e. some “private” foreign exchange reserves,” the banker emphasized.
As reported, last year the official hryvnia exchange rate devalued by 4.5% – to 37.9824 UAH/$1, while the government laid in the budget-2023 average annual figure of 42.2 UAH/$1, and at the end of the year – 45.8 UAH/$1.
For the current year, the hryvnia has fallen by 10.6% to 42.0390 UAH/$1 as of December 31, while the Cabinet of Ministers laid down an annual average of 40.7 UAH/$1 in the state budget, and 42.1 UAH/$1 at the end of the year.
Analysts KIT Group, annual average rate, GLOBUS BANK, UNEX BANK
According to the National Bank of Serbia (NBS), the country’s economy has achieved impressive results in 2024, becoming one of the most stable and fastest growing in Europe. The expected GDP growth is 3.8%, which is significantly higher than the European average. This was made possible by a prudent monetary policy, investment initiatives, and the successful recovery of key sectors of the economy after the global crises of recent years.
One of the most significant events of the year was the assignment of an investment credit rating to Serbia. This status strengthens the confidence of international investors in the country, opening access to more favorable financial conditions and attracting large investments. Experts emphasize that this step is an important incentive for further economic growth.
An important economic achievement was the successful reduction of inflation to the target range of 3% ± 1.5%, which was achieved in May 2024. Since then, the inflation rate has remained stable, which demonstrates the high efficiency of the measures taken by the National Bank.
Throughout the year , Serbia demonstrated the stability of the dinar against the euro. This not only strengthens the confidence of the population and business, but also attracts the attention of foreign companies that view Serbia as a reliable economic partner.
The Serbian government continues to actively support small and medium-sized businesses by introducing preferential lending terms and subsidy programs. In 2024, significant funds were also allocated for the development of infrastructure, agriculture, and the IT sector, which created new jobs and improved the business environment.
The economic achievements of 2024 have strengthened Serbia’s position as one of the leaders among Europe’s emerging economies. New challenges and goals lie ahead, including further reducing inflation, developing export potential, and improving the quality of life. The country’s leadership is confident that the increased pace of reforms will allow the country to maintain its positive momentum in the coming years.
These results are proof of the resilience of the Serbian economy and its ability to adapt to modern challenges, which strengthens the country’s position in the international arena.
Croatia has a multi-level taxation system that covers both legal entities and individual entrepreneurs (IEs). Let us consider the main taxes applicable to these categories of taxpayers.
Main taxes for legal entities in Croatia:
There are separate taxes for individual entrepreneurs.
Other taxes and fees
The Croatian tax system is characterized by progressive and diverse taxes, which requires careful planning and accounting when doing business.It is recommended to consult with professional tax advisors to ensure compliance with current legal requirements and optimize the tax burden.
Source: http://relocation.com.ua/osoblyvosti-systemy-opodatkuvannia-v-khorvatii/
