Business news from Ukraine

Business news from Ukraine

PRIME MINISTER OF UKRAINE: DAY OF WAR COSTS UAH 2 BLN IN TERMS OF EXPENDITURES AND $4 BLN IN TERMS OF LOSSES

Prime Minister Denys Shmyhal says that from the point of view of state budget expenditures, a day of war costs UAH 2 billion, and from the point of view of losses – $4 billion.
“There are two numbers. How much a day of war costs in terms of state budget expenditures, how much we pay, and how much we need. This is in the region of UAH 2 billion, which is what it costs us to conduct hostilities, pay wages, and so on. And there are other expenses – $4 billion in losses, which costs us every day of the war in terms of the destruction of our infrastructure, the loss of economic potential, the loss of future GDP,” Shmyhal said in an interview on the air of the national telethon on Friday morning.
The prime minister said that Ukraine’s losses are, among other things, a reduction in the sowing campaign by 20% and the inability to fully realize its export potential.

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UKRAINE SIMPLIFIES THE RULES FOR ISSUING PERMITS FOR INTERNATIONAL ROAD TRANSPORT

Given the closure of transit through the territory of Belarus and the Russian Federation, as well as an increase in the number of freight transport by road, a number of restrictions are being removed or adjusted from April 4, 2022, the Ministry of Infrastructure of Ukraine announced on its Facebook page on Monday.

According to the report, in particular, the period of validity of the electronic application for permits has been extended from seven to 10 days.

In addition, the following changes have been adopted for carriers: Poland – increased to five permits of all types per vehicle from April to May; Czech Republic – increased to two permits of all types but one vehicle up to 10 tons (for a month); Serbia – the restriction on travel across the country for vehicles up to 10 tons has been lifted; Romania – temporary registration of permits of the Organization of the Black Sea Economic Cooperation to Georgia, Azerbaijan, Kazakhstan, Uzbekistan for vehicles of the ecological standard Euro-3 and higher.

The Ministry of Infrastructure notes that from the very beginning of the war, it has been conducting systemic negotiations with partner countries on the abolition of the permit system for the period of martial law.

“As of April 4, we managed to agree on the cancellation of bilateral and transit permits for transportation through the territory of six countries of the European Union, in particular from Bulgaria, Hungary, Italy, Denmark, Latvia, Estonia, as well as through the territory of Georgia and Turkey. Slovakia also provided transportation without permits,” the report says.

In addition, as noted, a mechanism has been established for permit-free passage of all humanitarian cargo with Moldova, Romania, Slovenia, Austria, the Czech Republic, Poland, Germany, the Netherlands and Lithuania.

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UKRAINE CUTS SALARIES FOR STATE WORKERS BY 10%

Spending on the payment of salaries in the public sector has been reduced by 10%, Prime Minister of Ukraine Denys Shmyhal has said.
“We have already reduced the total cost of wages in the public sector, except for the budgetary sector, meaning civil servants, not teachers and not doctors, by 10%. We have reduced costs by 10% in the Cabinet of Ministers, the President’s Office, the Verkhovna Rada,” Shmyhal said in an interview on the air of the national telethon on Friday morning.
The prime minister noted that the authorities intend, if necessary, to continue the trend to reduce the cost of wages in the public sector.
He also added that expenditures directly on the functioning of the government, parliament and the President’s Office have also decreased.
“Everything that can be abandoned, we do away with, and we redirect everything to the needs of the army and the Armed Forces,” Shmyhal said.
As reported, the Cabinet of Ministers has canceled the payment of labor intensity bonuses for the prime minister, ministers, their deputies and heads of regional and Kyiv state administrations until 2024.

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THE OPERATOR OF GAS TRANSMISSION SYSTEM OF UKRAINE ANNOUNCED RISKS OF LOSING THIRD OF TRANSIT TO EUROPE DUE TO RUSSIAN INTERFERENCE IN OPERATION OF COMPRESSOR STATION

The operator of the GTS of Ukraine (OGTSU) reports on gross interference by representatives of Russia and illegal armed groups controlled by them, the so-called. “LNR” in the operational work and technological processes of gas transportation through the compressor station (CS) “Novopskov” in the Luhansk region.
“The Novopskov CS is an important facility for organizing gas transportation to consumers in the Donetsk and Luhansk regions. Almost a third of the transit to Europe from the Sokhranivka gas measuring station (GIS) also passes through this station,” the OGTSU said on Friday.
According to it, a number of actions by the occupiers were recorded, providing for changes in the operation of communication equipment and technological modes, which in fact could lead to the loss of operational control over the CS equipment.
“This will lead to significant risks to the integrity of the gas transmission system, the stability of gas transportation regimes, and as a result, the impossibility of transporting gas through the CS, in particular, under a transit contract,” the GTS Operator of Ukraine explained.
The Ukrainian company called on the representatives of the aggressor to refrain from further pressure on its employees and interference in the work of the Constitutional Court.
“Otherwise, in case of loss of operational control, the OGTSU will be forced to stop the operation of this facility in order to maintain the integrity and safe operation of the GTS. Stopping the Novopskov CS means stopping transit through the Sokhranovka GIS. Responsibility for the consequences lies with the Russian Federation,” – emphasized in the message.
On April 6, OGTSU Director General Sergey Makogon said that since the beginning of the war unleashed by Russia, three main gas pipelines have been damaged, four compressor stations have been seized by the invaders, two gas distribution stations (GDS) have been destroyed, and another 48 GDS have been stopped.

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AUSTRALIA ALLOCATES $20 MLN ADDITIONAL MILITARY AID TO UKRAINE

The Australian Government has announced further military support to the Government of Ukraine in response to Russia’s relentless and illegal aggression and an additional A$26.5 million worth of A$26.5 million ($19.4 million at current exchange rates) for the Ukrainian Armed Forces.
“This brings Australia’s total military assistance to date to approximately A$191.5 million (approximately $143 million),” Australian Prime Minister Scott Morrison and Defense Secretary Peter Dutton said in a joint press release. (Peter Dutton) Friday.
They indicated that the support is in addition to the $38 million worth of 20 Bushmaster armored personnel carriers that were announced free of charge to Ukraine earlier in the day.
The release clarifies that the government will not disclose specific details of the new aid package or delivery scheme at the direct request of Ukrainian officials and other partners.
“Our government will continue to identify opportunities for further military assistance where it can quickly provide the necessary capabilities to the Ukrainian Armed Forces. Australia may be thousands of miles away, but we stand shoulder to shoulder with Ukraine against this illegal incursion, providing weapons, equipment and even energy carriers,” the Prime Minister and Minister of Defense of Australia emphasized.
As reported, in addition to military support, Australia’s humanitarian aid to Ukraine at the end of March amounted to almost $50 million, as well as 70,000 tons of thermal coal.

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CANADA’S DRAFT BUDGET FOR 2022 PROVIDES FOR CAD500 MLN IN MILITARY AID AND CAD1 BLN IN LOANS TO UKRAINE

Canada’s draft federal budget for 2022 (starts July 1), presented by Deputy Prime Minister Chrystia Freeland in Parliament on Thursday, provides for the continuation of active financial support for Ukraine, in particular, the allocation of CAD500 million (almost $400 million) of military assistance and CAD1 billion (almost $800 million) loans.
“Canadians support the brave people of Ukraine, who are fighting for their lives, for their sovereignty, for their own and for our own democracy,” reads the preamble to a separate “Support for Ukraine” section of the budget, posted on the Canadian Treasury website.
According to him, at the beginning of this year, Canada announced the expansion of Operation UNIFIER, the mission of the Canadian armed forces to provide military training and support to Ukrainian forces, under which since 2015 Canada has trained about 33,000 Ukrainian military and security forces, as well as the provision of military assistance to over CAD90 million
“The 2022 budget proposes to allocate an additional CAD500 million in 2022-2023 to provide additional military assistance to Ukraine,” the draft reads.
It clarifies that Canada is already providing military assistance, both lethal and non-lethal, and is also partnering with allies to share intelligence and provide support in enhancing Ukraine’s cybersecurity.
With regard to sanctions and holding Russia accountable, the draft 2022 budget announced the government’s intention to clarify the powers of the Minister of Foreign Affairs to confiscate and dispose of assets belonging to individuals and entities under sanctions.
The document states that to date, Canada has provided CAD145 million in humanitarian assistance and CAD35 million in development assistance to provide direct support to Ukrainians affected by the illegal Russian invasion, as well as loans totaling CAD620 million to support Ukraine’s financial stability, economic sustainability and governance reforms.
“The 2022 budget announced that Canada will offer up to CAD1 billion in new credit resources to the government of Ukraine through a new managed account for Ukraine at the International Monetary Fund (IMF) so that the government can continue its activities,” the draft reads.
It clarifies that Canada has worked with the government of Ukraine, the IMF and other member countries to establish this mechanism and encourage allies and partners to participate.
In addition, Canada recalled that since March 17, it has given permission to Ukrainian refugees and their closest relatives of any nationality to stay in Canada as temporary residents for up to three years with the right to work. They will also have access to additional support such as language training and career guidance services.
The federal government is also developing a special permanent residence program for Ukrainians with relatives in Canada.
“The government has provided new funding of CAD111 million over five years with CAD6 million in subsequent years to implement these new immigration measures,” the draft states, including CAD78 million for this purpose in the draft 2022 budget.

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