The Verkhovna Rada’s chairman Andriy Parubiy has signed the law on the state budget for 2019. “I have just signed the law ‘On the State Budget for 2019.’ We passed it in keeping with all the requirements—by December 1. This guarantees us macrofinancial support from our international partners,” the speaker said in a tweet on Twitter on December 5.
Parubiy voiced the belief that the adopted document will be a budget “of development and growth.” “And, most of all, this is a budget to strengthen the defense and security of Ukraine,” he said. The document has been sent to be signed by the president of Ukraine.
The average daily room rate (ADR) in five-star hotels in Kyiv in euros in 2018 increased by 15% compared with 2017, to EUR 150 per day, while the occupancy rate was still 45-50%, Natalia Chystiakova, the director of the appraisal and consulting department at Colliers International (Ukraine), has said. “The Kyiv market is represented by more than 100 hotels with 10,500 rooms and serves 1 million visitors per year. In 2018 the market actually came to life for the first time after the situation of 2013-2014. There was an increase in ADR and occupancy … If next year the situation is stable, a further growth is planned,” she said at a press conference at the Interfax-Ukraine agency.
According to the expert, for the whole year the ADR indicator in Kyiv hotels grew by 10% and is approaching the 2013 level. At the same time, in the segment of five-star hotels, the second year in a row shows a rather low occupancy rate of 45-50%, while ADR rose by 15%, to EUR 150 per day. At the same time, in the category of three- and four-star hotels, ADR did not grow over the year, but the occupancy rate increased by 5%.
According to a company press release, the average occupancy rate of four-star hotels in 2018 was 50-58%, three-star hotels some 55-65%. The room rates were EUR 80 in the four-star segment, and EUR 45 in three-star hotels.
Georgia exported 78 million bottles of wine from grapes (0.75-liter bottles) in January-November 2018, 11% more than in the same period last year, the Agriculture Ministry’s National Wine Agency reported. Exports in 11M are 1.7% higher than the total for 2017 as a whole, which was the highest annual mark in 30 years.
Georgia exported wine to 53 countries in 11M 2018. Revenue from the exports rose 19% to $184.1 million.
Russia was the leading importer of Georgian wine in the period, boosting imports 10.7% to 48.588 million bottles or 62.3% of the total. Other major importers included Ukraine – 9.5 million bottles, China – 6.3 million, Kazakhstan 3.4 million and Poland 3 million. Exports increased significantly to countries outside traditional markets: Japan, UK, Romania, Czech Republic, Netherlands, France, Germany, Canada and elsewhere. Georgia also exported 17.8 million bottles of brandy (0.5-liter bottles), 9% more than in 11M 2017, to 25 countries. Revenue rose 3% to $36.4 million.
Overall exports of wine, brandy and other products – chacha, other alcoholic beverages, wine materials and brandy spirits – were worth $281 million, 10% more.
Georgia exported 76.7 million bottles of wine from grapes in 2017, 50% more than in 2016. Exports to Russia rose 76% to 47.779 million bottles or 62.3% of the total.
The Cabinet of Ministers of Ukraine has approved a draft amicable agreement between Philip Morris and Ukraine, foreseeing the abolishment of the tax notification for the amount of UAH 635.3 million by the State Fiscal Service of Ukraine.
According to the draft government resolution, this agreement should ensure the investment dispute settlement, prevent bringing a claim to international investment arbitration against Ukraine amounting to more than UAH 635 million, avoid significant expenses from the national budget during the arbitration, demonstrate to the partners of Ukraine and foreign investors that the government adheres to commitments to provide incentives and protect foreign investment.
The amicable agreement will be signed between Philip Morris International Inc., Philip Morris Global Brands Inc. (both the United States), Philip Morris Brands Sarl (Switzerland), PrJSC Philip Morris Ukraine and the state of Ukraine.
Acting Head of the State Fiscal Service Oleksandr Vlasov is authorized to sign the amicable agreement, and the State Fiscal Service is authorized to execute it after signing.
As reported, PrJSC Philip Morris Ukraine in March 2015 appealed and received permission from Kharkiv customs office to apply the processing mode in the customs territory of Ukraine for the production of cigarettes and accompanying products and their re-export for the period from April 1, 2015 through March 31, 2016. The company was authorized to conditional exemption from Ukrainian import duties and other import taxes on materials for processing under the terms of re-export.
After Philip Morris Ukraine carried out processing and re-export operations, the main directorate of the State Fiscal Service in Kharkiv region conducted an unscheduled inspection of the company’s compliance with the customs legislation of Ukraine regarding the clearance of goods in the processing mode in the customs territory of Ukraine.
According to the results of the inspection of the main directorate of the State Fiscal Service in Kharkiv region, on June 14, 2016, it approved decision notices that determined the liabilities for paying of import duties, additional import duty and VAT on the import of materials, as well as penalties for the total amount UAH 635.3 million Philip Morris Ukraine. Philip Morris Ukraine said that the actions of the State Fiscal Service are pressure on the company. After that, the parties entered into litigation.
The Better Regulation Delivery Office (BRDO) assesses growth of the e-commerce market in Ukraine at over 30% every year, IT Telecom Sector Head at BRDO Oleksandr Kurbakov said at a roundtable devoted to e-commerce and smart regulation for the progressive market held in Kyiv. “The e-commerce market in the world is growing at a rate of 23-25% per year. In Ukraine, these rates are much higher – about 30% per year,” he said, citing statistics.
At the same time, Kubrakov said that Ukraine is in the second lowest position in Europe in terms of GDP per capita, the lowest in terms of Internet penetration, and the country is lagging behind the neighboring countries in terms of penetration of bank cards by 10-20%. According to BRDO, the volume of the e-commerce market in Ukraine in 2017 exceeded $50 billion, or 3.2% of the total retail sales. At the same time, the growth rate of e-commerce in Ukraine amounted to about 31%, which is the second highest growth rate in Europe.
“A significant problem for the market is the obligation of the seller to print a fiscal receipt in hard copy at the moment when the money paid for the goods arrive. This practically makes Internet acquiring impossible with payments of more than UAH 7.5 billion per year and cash on delivery in the amount of more than UAH 12 billion,” Kubrakov said. He said that the solution to this problem could be permission to submit receipts in electronic form.
One troy ounce=31.10 grams
