KYIV. Aug 17 (Interfax-Ukraine) – The losses faced by the state as a result of shadow schemes in agriculture totals about UAH 20 billion, which exceeds the level of benefits agribusinesses received at the expense of VAT in 2014 standing at UAH 19.8 billion, according to a press release issued by the Ukrainian Agribusiness Club association (UAC).
The agency said that the government is not giving up its attempts to abolish VAT benefits for the agricultural sector.
“Now the issue of filling the budget to ensure the normal functioning of the state and fulfilling the requirements of international lenders is very acute. But instead of implementing the promised reforms, eliminating corruption and withdrawing the economy out of the shadows, the government is trying to cover the budget deficit by increasing tax burden on agriculture,” UAC agricultural markets expert Vitaliy Kordysh said.
According to him, the effect of abolishing VAT benefits could be reversed. It would lead to the reduction of GDP in the industry businesses retreating into the shadows. Currently, the share of agriculture in the shadows is lowest among all the sectors of the economy and stands at 15% with the national indicators being at a level of no less than 42%.
The association believes the main reason for tax shortage in the national budget is the shadow turnover of agricultural land, counterfeit seeds, plant protection agents and the shadow grain market. In addition, according to official statements, damage amounting to $200 million, or UAH 4.6 billion, was caused by the State Food and Grain Corporation via corruption schemes.
KYIV. Aug 17 (Interfax-Ukraine) – Shipments of goods to the Crimean free economic zone, which operates in temporary occupied territory of Ukraine, from the rest of Ukraine in the first half of 2015 amounted to $472.5 million, while shipments from Crimea to the rest of Ukraine were estimated at $18.09 million, which was 26.1 down, the State Statistics Service of Ukraine reported on Friday.
Shipments of Ukrainian goods to Crimea in June 2015 alone were estimated at $82.04 million, while they brought goods worth $2.6 million from Crimea, which was 31.5 times down.
Shipments to Crimea to the tune of $81.45 million in May 2015 were 27.6 times down on shipments from Crimea to Ukraine ($2.95 million).
As was reported, Ukraine’s State Statistics Service has started monitoring and publishing data about freight movement between Crimea and the rest of Ukraine only this year.
Special customs regulations are in effect for goods shipment across the administrative border between the Crimean free economic zone to and the rest of Ukraine as of January 1, 2015, under the law on the creation of the Crimean free economic zone and specific procedure for doing business in the temporary occupied territory of Ukraine dated August 12, 2014.
KYIV. Aug 17 (Interfax-Ukraine) – The surplus of Ukraine’s foreign trade in goods in June 2015 demonstrated a positive trend for a fifth month in a row and amounted to $388.6 million against $296.1 million in May 2015 and $229.3 million in April 2015, the State Statistics Service reported on Wednesday.
The surplus of Ukraine’s foreign trade in goods in June 2015 from June 2014 soared by 6.4 times.
Goods exports in June 2015 declined by 29.3%, to $3.13 billion, while imports fell by 37.2%, to $2.74 billion.
Exports in June 2015 from May 2017 grew by 7.7%, while imports rose by 5%.
In the first half of 2015, goods exports declined by 35% year-over-year, to $18.53 billion, while imports fell by 38.5%, to $17.28 billion, while the surplus more than tripled to $1.25 billion.
KYIV. Aug 14 (Interfax-Ukraine) – The European Bank for Reconstruction and Development (EBRD) is eyeing the allocation of EUR100 million for the modernization of public transportation infrastructures in a number of Ukrainian cities, the bank said in a report published on Thursday. The focus will be placed on renovation and increasing transport’s efficiency.
The EBRD Board of Governors will consider the projects on October 14, 2015, it said.
The loans may be extended to public transportation companies in Odesa, Chernihiv, Chernivtsi and some other Ukrainian cities on municipality guarantees.
Before the agreements are signed, the EBRD is set to allot up to EUR 2.5 million under technical cooperation projects and another EUR 5.5 million will be granted after the signing is done.
The bank also said that its Board of Governors would consider on October 14 the allotment of EUR 8 million to the Odesmiskelectrotrans public utility company for buying 45 trolley buses.
According to consultation and technical cooperation in the subproject, EUR 50,000 is to be allocated before signing the agreement and EUR 350,000 – afterwards.
As reported, funding of the purchase of trolleybuses for Odesa is a long term project, more specifically – a 12-year project.
According to Odesa Mayor Hennadiy Trukhanov, the renewal of the trolleybus fleet of the city is long overdue, service life of 100 out of 140 available trolleybuses in the city has expired. However the city budget can’t afford to buy 45 trolleybuses.
According to experts, the last time Odesa bought new trolleybuses was in 2009, when 16 new trolleybuses appeared on the city streets. In 2013, Odesa also bought 13 previously used trolleybuses from the Czech Republic.
KYIV. Aug 14 (Interfax) – The European Commission has issued a fourth tranche of EUR 8.55 million under the program of support to the sectoral border management policy in Ukraine, the EU Delegation to Ukraine has reported.
Via the sectoral support program, the European Union is contributing to the modernization of the State Border Service and the Fiscal Service of Ukraine through the improvement of laws, norms and regulations and the introduction of better mechanisms for control and the modernization of border crossing infrastructure consistent with EU standards, it said.
Deputy Head of the EU Delegation to Ukraine Thomas Frellesen said he was confident that the financial support by the EU would strengthen cooperation between agencies involved in integrated border management; that would result in a more effective oversight over border control and the migration of citizens from other countries in accordance with Ukraine’s obligations under the action plan on visa liberalization.
He also said that funds would further facilitate cross border trade and speed up the demarcation of the border and the introduction of an e-customs system.
KYIV. Aug 14 (Interfax-Ukraine) – The European Bank for Reconstruction and Development is mulling a EUR 10 million loan to the district heating utility municipally owned enterprise Chernivtsiteplokomunenergo, operating in the city of Chernivtsi, the EBRD said in a statement.
The funds will be used to finance the installation of individual heating sub-stations, biofuel boilers, network replacement with pre-insulated pipes, modernization of boilers and control systems, and the installation of monitoring and dispatching system in the city, the EBRD said.
The EBRD finance includes EUR 7 million in an EBRD loan to the company, and EUR 3 million from the Clean Technology Fund (CTF), both secured by a municipal guarantee of the city.
The project is expected to be co-financed by a grant of up to EUR 4 million from the Eastern Europe Energy Efficiency and Environment Partnership (E5P).
The project is to be co-financed by a local contribution of up to EUR 2 million.
The total cost for the feasibility study assignment was EUR 180,000 financed under the Ukraine District Heating Project Preparation Framework by the government of Sweden. The estimated total cost for the IFRS audit assignment is EUR 20,000, proposed to be financed by the EBRD’s own resources.
What is more, the company’s corporate development program to improve financial and operational performance of the company. The estimated total cost for the assignment is EUR 250,000, proposed to be financed by a bilateral or multilateral donor or the EBRD Shareholder Special Fund (SSF).
The estimated total cost for project implementation support covering procurement advisory services, implementation support and contract supervision is EUR 450,000, proposed to be financed by a bilateral or multilateral donor or the SSF.
