The European Bank for Reconstruction and Development (EBRD) will allow NPC Ukrenergo to change the purpose of a EUR50 million loan for emergency liquidity support, and the European Fund for Sustainable Development will provide a guarantee to cover the first losses.
“This support is part of the EUR1 billion that the EBRD plans to implement in Ukraine this year in cooperation with donors and partners,” the bank said in a press release on Wednesday.
The EBRD notes that EUR50 million will ensure a stable electricity supply in the country, whose economy was significantly negatively affected by the Russian military invasion in February.
“At a time when Ukrainians are resisting Russian aggression, it is important to ensure proper electricity supply in their country, and therefore support the critical role of Ukrenergo. We are also preparing support with the EBRD for other important areas of the Ukrainian economy, which will be provided in the coming weeks , in particular to meet the liquidity needs of the railway and pharmaceutical industries,” Valdis Dombrovskis, Executive Vice President of the European Commission, is quoted in the bank’s message.
He joined EBRD President Odile Renaud-Basso to sign a European Fund for Sustainable Development (EFSD) guarantee on the loan, which will reduce the bank’s credit risk in the current war conditions, the release said.
According to him, Ukrenergo’s support is part of a total EUR1 billion support that the EBRD plans to implement in Ukraine this year in cooperation with donors and partners. In order to meet the most urgent needs of Ukraine, the bank has identified five priority sectors of the Ukrainian economy: trade finance, energy security, vital infrastructure, food security (providing liquidity through banks for farmers for the spring planting campaign, as well as for agricultural companies and grocery retailers), and maintaining liquidity for pharmaceutical companies.
As reported, in July 2019, the EBRD agreed to provide Ukrenergo with EUR149 million to upgrade key elements of the electricity transmission infrastructure to support system stability and synchronization with European electricity grids, as well as to help Ukraine bring its legislation and operating principles in line. with the Third Energy Package of the EU. This loan has been partially disbursed.
Following a Russian-led war, the EBRD and Ukraine agreed to change the purpose of part of an existing loan for emergency liquidity support.
The EFSD is the financial mechanism of the EU’s External Investment Plan, which provides support for investment in Africa and the EU’s partner countries.
The EBRD immediately condemned the Russian invasion of Ukraine on February 24 and promised to stand with Ukraine. On April 4, the Bank’s Board of Governors voted to suspend indefinitely Russia’s and Belarus’ access to EBRD financing and technical assistance. The bank is closing its offices in these two countries. In addition to the EUR2 billion resilience package, the EBRD has pledged to help finance the recovery of Ukraine when conditions permit/
All EBRD investments in Ukraine under the resilience package for Ukraine and neighboring countries affected by the war will involve risk sharing with partners.
Parimatch Ukraine and Oleksandr Usyk make a strong appeal to Ukrainians in a new joint campaign aimed to support Ukraine
Ukrainians are new superheroes. They discover their new hidden superpowers day after day. The whole world is amazed by the bravery, resilience, and courage of the Ukrainians and admired by their unity. No matter what is happening our people create the thing that cannot be seized – the victory of a free nation.
Parimatch Ukraine, the first officially licensed betting company in our country with Ukrainian roots, and Oleksandr Usyk, the Ukrainian boxer, and heavyweight champion, made a powerful and victorious appeal to all our citizens – «Born in Ukraine – Fired up to Win».
«We know that Ukraine starts with every one of us. And everyone is doing everything possible for our common victory. Our brave soldiers fight fiercely for Ukraine, and the volunteers help 24/7 those who desperately need it. Athletes take part in charity matches for peace and join high-profile media campaigns in support of our country. We believe and bringing the victory closer together. Businesses need to keep a cool mind, balance, and responsibility to the country. We have to defend the economic and digital front». – Natalia Hilevych, Parimatch Ukraine CEO said.
Parimatch Ukraine is a Ukrainian business. The company is proud of its Ukrainian roots and strongly condemns military aggression against Ukraine. The national business duty today is to resume work, adhere to all financial obligations to the State, and keep the spirit of Ukrainians high.
Parimatch – Born in Ukraine. Fired up to win!
Subscribers of the Kyivstar mobile operator can now communicate at their “home” tariffs in 16 EU countries.
According to the press service of the company on Wednesday, up to nine EU countries (Poland, Slovakia, Romania, Hungary, Moldova, Germany, Italy, Lithuania and the Czech Republic), where for more than a month subscribers can use mobile communications and the Internet at tariffs, as in Ukraine , Kyivstar adds France, Spain, Austria, Bulgaria, the Netherlands, Latvia and Estonia.
In addition, as noted, the operator increases the list of tariff plans for which new conditions apply. In contract and business clients, as before, they work in almost all tariffs, and for prepaid subscribers they will be available not only in the tariffs “Your” and “All together”, but also in part of the offers for 2019-2020.
“In collaboration with foreign partners, we were able to significantly change the conditions of international roaming. Thanks to this, more than 80% of our customers can use calls and the Internet abroad by simply paying their own tariff. This is not only cheaper and more convenient for them, but is very important for Ukrainian telecom. The more customers abroad pay their tariff and use Kyivstar services, the more we will be able to invest in the restoration of infrastructure in Ukraine and in supporting customers in areas with hostilities,” Oleksandr, head of the additional services and operator relations department at Kyivstar, is quoted. Galushko.
Due to the armed invasion of the Russian Federation into Ukraine and the shutdown of part of the country’s economy, a decrease in the welfare and purchasing power of the population is expected, due to which, in particular, consumers of high-mountain water will switch to cheaper bottled water, while consumers of bottled water will mainly switch to filtered tap water.
Dmitry Nikiforov, the owner and founder of AT Market LLC (Kyiv), engaged in bottling high-mountain Carpathian water under the trademarks Voda UA, Goryanka, Karpatska Vysokogyrna, told Interfax-Ukraine about the inevitable narrowing and decline of the water market.
“Narrowing and shrinking of the market will occur, because we objectively understand that the well-being and purchasing power of people are declining, and the consumer will save as much as possible on all consumer goods,” he said.
“A priori, our water cannot be cheap. This is Carpathian water, which, by definition, will be more expensive than all the others, thanks to the logistics and complexity of its production. We work in the “medium plus” segment, and it will sag significantly. This is inevitable,” stated Nikiforov.
As reported with reference to the new forecast of the European Bank for Reconstruction and Development, the fall in Ukraine’s GDP in 2022 will be 30%. If large-scale efforts of the world community to restore the country’s economy take place, next year its economy is expected to grow by 25%. In March, the EBRD estimated this decline at 20% with an increase of 23% in 2023.
Top 20 countries Ukraine has posted the highest surplus of trade in 2021 (thsd USD)
SSC of Ukraine
The state should immediately stop the practice of registering tax invoices in Ukraine, including the assessment of criteria for classifying enterprises as those with risky activities, and also replacing value added tax (VAT) with a tax on withdrawn capital.
Dmytro Nikiforov, the owner and founder of AT Market LLC (Kyiv), which is engaged in bottling high-mountainous Carpathian water under the trademarks Voda UA, Goryanka, Karpatska Dzherelna Vysokohirna, expressed such an opinion in an interview with the Interfax-Ukraine agency.
At the same time, he believes that the rate of taxes levied in the country is feasible for business and does not need to be reduced.
“We need to immediately kill this ‘hydra,’ which is called the registration of tax invoices. This is the tool by which thieving tax officials and MP who back them ‘wash out’ the turnover from businesses in the amount of VAT. The state must immediately stop the practice of registering tax invoices, which does not exist anywhere in the world,” Nikiforov said.
According to him, the practice of registering tax invoices and the procedure for determining the criteria for classifying the activities of enterprises as risky harm business, washing out its working capital, and should be stopped immediately.
“There is no need to lower taxes, they are feasible. By and large, VAT should be abolished in principle, and a clear and understandable turnover tax and non-refundable sales tax should be introduced. Because any refundable tax like VAT is a so-called square tax and creates corruption risks, but such people control this issue that it is impossible to move it,” the businessman specified.
“Therefore, the abolition of VAT and income tax with a replacement for a tax on withdrawn capital is what the state should do for business. Without this, business will not be cured, no matter how it is stuffed with loans. All funding is broken down by the fact that in the existing paradigm it simply cannot work,” Nikiforov added.
As reported, Finance Minister Serhiy Marchenko supports restoring the VAT administration system with automatic cash reimbursement, “even if it is painful and requires payment deferral.”
“For some reason, decisions were made that actually broke the current system of registering tax invoices, checking risks and automatic budgetary VAT refunds. In fact, since March, our system for registering tax invoices has not been working … I am a supporter of the system of automatic VAT refunds working, and business receiving funds,” he said in an interview with Interfax-Ukraine.
On February 28, the Cabinet of Ministers of Ukraine established the possibility of automatic registration of tax invoices for certain types of agribusiness and food industry enterprises, which will allow them to submit documentation without bureaucratic delays.
According to Roman Leschenko, who at that time was the Minister of Agrarian Policy and Food of Ukraine, after February 28, tax invoices of legal entities growing crops, farm animals and poultry, engaged in fishing, and processing milk, butter and cottage cheese are automatically registered.
In addition, the list includes all enterprises producing meat, fruit and vegetable juices, vegetable oil, animal fats, edible fats; products of the flour-grinding industry; bread and bakery products, flour confectionery, cakes and pastries; cocoa, chocolate, sugar confectionery; tea and coffee; spices and seasonings; prepared food and dishes; baby and dietary food; prepared feed for animals kept on farms; soft drinks and other bottled waters.
