Business news from Ukraine

Business news from Ukraine

Ukrainian Weather Center warns of severe weather conditions in Ukraine

Due to the influence of an active cyclone, severe weather conditions of the second (orange) hazard level are expected in Ukraine, except for the western and eastern regions, the Ukrainian Weather Center warns.

“On November 26-27, 2023, there will be heavy snowfall in Kyiv, Chernihiv, Cherkasy, Odesa regions, heavy sleet and rain in Sumy, Poltava, Kirovohrad, Mykolaiv regions, and in some places ice; snow cover in these regions will increase by 20-30 cm, in some places 40-50 cm; blizzards, snow drifts, and ice on the roads are expected,” the Ukrainian Weather Center said in a statement on Thursday.

Significant rains are reportedly expected in Kharkiv, Dnipropetrovs’k, Kherson, Zaporizhzhia regions and Crimea.

In the northern, central, southern regions and Crimea, winds will increase to 17-22 m/s, in some places up to 25 m/s, in Odesa and Mykolaiv regions 25-30 m/s; in the western and eastern regions wind gusts of 15-20 m/s.

In the Black Sea, winds are expected to increase to 25-30 m/s; wave height 20-30 cm, during the day on November 26 and at night on November 27, wave height 30-50 cm.

“Difficult weather conditions will lead to complications in the work of utilities and energy companies in most regions of the country, suspension of ports on the seashore; disruption and suspension of traffic on the roads of Kyiv, Chernihiv, Sumy, Cherkasy, Poltava, Kirovohrad, Odesa and Mykolaiv regions (threat level II, orange),” Ukrainian forecasters said in a statement.

Recognition of craft distillers will double number of legal producers

Recognition of craft distillers at the legislative level will double the number of legal producers by 2030, attract EUR7 million in investments in the industry, and create about a thousand jobs, said Kateryna Kamysheva, chairman of the Association of Craft Distillers, at a press conference at Interfax-Ukraine on Thursday.

According to her, on November 23, the law “On Amendments to the Tax Code of Ukraine and Certain Laws of Ukraine on Simplifying the Conditions for the Production of Distillates by Small Businesses” came into force in Ukraine, which will be fundamental in the formation of a legal market for craft spirits.

“Among other things, the production of strong distillates for Ukraine is a good prospect for Ukrainian farmers in the face of difficulties with the export of agricultural products. We are opening a new page in the history of Ukrainian spirits,” emphasized the head of the association.

Kamysheva said that when drafting the legislation, its initiators were guided by data showing that one craft distillery employs two to ten people. One producer can bottle products in 250 0.5-liter bottles per month, which will allow them to sell 3,000 bottles annually. At a cost of UAH 300 per bottle of craft distillate, the producer’s annual revenue can reach UAH 900 000.

According to the expert, the shadow market for the production of craft alcohol distillate currently includes about 500 entities with annual production volumes of 1.5 million bottles, resulting in a loss of UAH 75 million in VAT, UAH 39.99 million in excise taxes, and UAH 16.2 million in income tax to the state budget annually.

At the same time, if 70 legal producers of alcohol distillate enter the market by 2030, annual sales of craft distillate will amount to 2.52 million bottles, and gross revenue will reach UAH 1 billion. To produce 1 dkl of alcohol distillate, 60 kg of fruit and 40 kg of grain need to be processed. The new producers will process 28 thousand tons of grain and 42 thousand tons of fruit annually.

The development of small business and small farming in the postwar period will create conditions for employment of former military personnel, as well as for the development of women’s entrepreneurship, family businesses in rural areas, and will promote the development of related markets for the production of containers, labels, equipment for production and storage.

According to Kamysheva, Ukrainian craft alcoholic distillates are already highly regarded by European tasters, who complain about the inability to buy them legally.

“One of the main goals of changing the legislation to legalize the work of craft distillers is to simplify the conditions for obtaining licenses and the financial component of obtaining permits,” explained Lyudmyla Khomychak, head of the Food Security and Excise Products Division of the Department of State Policy in the Sphere of Sanitary and Phytosanitary Measures.

In the course of developing the rules for the functioning of the market of alcoholic distillates and alcoholic beverages and developing the working conditions for craft producers, the law on geographical names of alcoholic beverages was enacted, which distinguishes between the concepts of “alcoholic beverage” and “alcoholic distillate”. In addition, 44 categories of alcoholic beverages have been defined in accordance with European legislation, and unified principles for obtaining licenses, registering storage facilities, reporting, waste management, etc. have been established.

According to Khomychak, craft producers of alcohol distillate are allowed to avoid complex certification to obtain a license. Small producers only need to prepare declarations of conformity of the material and technical base and submit them to the State Service of Ukraine on Food Safety and Consumer Protection.

The newly enacted law significantly reduced the cost of obtaining production permits. Thus, a license for the production of alcohol distillate and alcoholic beverages will cost a craft producer UAH 780; a license for the wholesale of alcoholic beverages – UAH 30 thousand per year; a license for retail trade – UAH 8 thousand per year for each type of such products.

In addition, a craft distillery producer is obliged to submit a quarterly report to the State Service of Ukraine on Food Safety and Consumer Protection on the volume of production and/or turnover (including exports) in the form approved by the order of the Ministry of Finance. In case of violation of the law, including failure to submit and late submission of the report, a fine of UAH 1,020 is imposed. In case of sales of more than 10 thousand dkl of distillates during the year, the fine will be equal to 200% of the value of the products sold, but not less than UAH 17 thousand.

Ihor Marchuk, Chairman of the Subcommittee on State-Business Interaction and Investments of the Verkhovna Rada Committee on Economic Development, expressed hope that the art of distillate production will be revived in Ukraine and transformed into a powerful industry.

“The economic policy is aimed at stimulating family and craft production. We are working on expanding the line of craft goods, which will eventually be converted into relevant legislative initiatives. The Parliament is preparing to add a draft law on beer producers to the existing specialized laws on small producers of distillates and small producers of wine products and turn them into a craft triad of alcoholic beverages that will develop the Ukrainian gastronomic ethnic culture and culture of alcohol consumption,” he said.

According to Marchuk, the Verkhovna Rada and the Cabinet of Ministers are looking for financial incentives to develop processing in Ukraine and create value-added products. For its part, the government hopes to legalize the craft distillery industry, to ensure that it operates within the legal framework, creates new jobs, and pays taxes to the state budget.

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Milk production in Ukraine decreased by 6%

In January-October 2023, raw milk production by farms of all categories decreased by 6% to 6277.4 thousand tons compared to the same period last year, while industrial enterprises increased production and households reduced it, according to the Association of Milk Producers (AMP) based on the analysis of data from the State Statistics Service.

According to the report, in October 2023, milk yields in Ukraine amounted to 610.50 thousand tons, which is 3% less than in September this year and 6% less than in October 2022. At the same time, since the beginning of 2023, the share of enterprises in the production of raw milk has amounted to 37%, and households – 63%.

According to the AMP, in January-October 2023, enterprises increased milk production by 7% to 2341.4 thousand tons. In October this year, industrial milk producers increased their production to 228.9 thousand tons, which is 2% more than in September and 7% more than in October last year.

At the same time, households reduced milk production by 14% to 3936 thousand tons in 10 months of 2023 compared to the same period last year. In October 2023, the volume of milk yields in the population amounted to 381.6 thousand tons, which is 7% less than in September and 13% less than in October 2022.

According to Giorgi Kukhaleishvili, AMP analyst, the overall decline in raw milk production in Ukraine is mainly due to a drop in milk yields in households that have suffered the most from the consequences of Russia’s full-scale invasion.

“Despite these challenges, agricultural enterprises have managed to adapt to wartime conditions and increase raw milk production in the territories controlled by Ukraine. It should be noted that it is mainly extra-virgin milk produced by the enterprises that is processed. Ukraine is gradually switching to food processing of milk exclusively to this type of raw material,” the expert stated.

In January-October 2023, an increase in raw milk production was observed in farms of all categories in Kyiv (+4.3%), Cherkasy (+3%), Khmelnytsky (+2.1%), Chernihiv (+2%), Rivne (+0.7%), Poltava (+1.3%), and Kharkiv (+3.1%) regions.

On December 11, UKRAINIAN SPECIAL BUILDING AWARDS IBUILD 2023 will be held in Kyiv

Hurry up to apply for participation!

During the UKRAINIAN SPECIAL BUILDING AWARDS IBUILD will recognize the best representatives of the construction industry – companies that have survived in the market, support the economy and contribute to the reconstruction.

We remind you that the deadline for applications is November 27, 2023❗.

IBUILD 2023 has the following nominations:

– Developer 2023

– Temporary accommodation project 2023

– Contractor 2023

– Restoration project 2023

– Manufacturer of building materials 2023

– Residential complex 2023

– Partner bank 2023

– Residential complex project 2023

– Real estate law firm 2023

– Socially responsible business 2023

– Special nomination*.

To apply, please visit the UKRAINIAN SPECIAL BUILDING AWARDS IBUILD 2023 website at the link: https://docs.google.com/forms/d/e/1FAIpQLSejd2BBVLNLUiXHcEgNzFxK_vQFfzJ0NxCdcuIqk2ke2RnJlQ/viewform

This year the award will be held in a special charity format, the venue will be announced later.

Details on the website: https://ibuild.ua/

Organizer: Confederation of Builders of Ukraine

Media partners: Build Portal, ProfBuild, Stroy Review, Ukrainian News, Interfax-Ukraine, Suburban Real Estate Portal zagorodna.com, Property Times, Address Group, Ukrainian Interest, IA “Ukraine Communal”, Domik, TIME OF THE FIRST, Ukrainian Association of Agricultural Producers, DMNTR, Econation, Marketer, Budynok.com.ua, Founder, Economist.ua, UAWEB

WE WILL WIN AND REBUILD EVERYTHING!

TOGETHER TO VICTORY!

GLORY TO UKRAINE!

UAnimals presented a charity collection dedicated to endangered animals

On November 22, the humanitarian movement UAnimals launched Animalism, an online charity shop aimed at drawing attention to the problems of animals during the war and raising money to save them. The store’s first collection, “Red Data Book”, is dedicated to species that may disappear due to Russian aggression and human negligence. 100% of the funds raised will be directed to UAnimals’ animal welfare activities.

– The Red Data Book collection is another way to remind us that not only many individual animals may die because of the war, but entire species may disappear. We have been talking about this constantly since the beginning of Russia’s full-scale invasion of Ukraine. In fact, for this purpose, UAnimals also launched an international information campaign #StopEcocideUkraine to inform about the consequences of the war for animals and nature in general. It is difficult to measure these consequences right now, if only because there is no access to the occupied territories, but these consequences are terrible and will be felt for decades to come and far beyond Ukraine,”  says UAnimals founder Oleksandr Todorchuk.

You can get acquainted with the Red Book collection and place an order at https://animalism.shop. The Animalism by UAnimals store offers high-quality and comfortable items from local producers. For example, sweatshirts, T-shirts, whistles, scarves, blankets, and other items depicting the speckled owl, black stork, common polecat, Eurasian lynx, and other rare animals.

Since the beginning of the full-scale invasion, UAnimals has been saving animals from the war in Ukraine by supporting shelters and volunteers, sending food and medicine to animals, as well as sterilizing and evacuating stray animals from the frontline regions. Thousands of the animals we help have suffered directly from the war and the actions of the Russian army: they have been injured by shrapnel, hit mines, etc. UAnimals rescues animals of all kinds – domestic, pets, wild – regardless of their size, color, breed, or other characteristics. The organization is guided by the belief that every life matters.

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Wines, Tastes and Traditions: VIIІ International Forum of Winemakers and Sommeliers

On November 19, 2023, the VIII International Forum of Winemakers and Sommeliers was held in Kyiv, at the InterContinental Kyiv Hotel (2A Velyka Zhytomyrska St.), within the framework of which the following events took place:

– The jubilee XX All-Ukrainian Sommelier Competition “Master Sommelier – 2022-2023”,

– VII All-Ukrainian Cavist Competition “Best Cavist of Ukraine – 2022-2023”,

– Round table of winemakers and sommeliers as part of the Winemakers’ Dinner,

– Open tastings and presentations of wines, spirits, cheeses and other products for all guests of the events.

Organizers of professional events:

– Ukrainian Association of Winemakers and Sommeliers,

– Association of Cavists of Ukraine,

– The first in Ukraine Master Class Sommelier School.

General Partner – TM “Vinos dela Luz”

Partners: TM Big Wines, SV plus, Poli1898, Delamain, AELRED, Eyguebelle, ACHA, Purity, Zinka, Voda.ua, Cigar House Fortuna, Academy of Labor, Social Relations and Tourism, InterContinental Kyiv Hotel.

Ambassadors of several countries, MPs, the Chairman of the Trade Unions of Ukraine, heads of alcoholic beverage importers, restaurant managers, sommeliers, winemakers, heads of wine companies and wine boutiques, representatives of business structures, media and TV, wine connoisseurs and lovers attended the events.

The Forum opened with a minute of silence in honor of the deceased wine industry professionals who had previously participated in the Forum as participants and jury members.

Then, the anthem of Ukraine was performed live by a young singer Severina.

The professional jury was headed by Dr. Ricardo F. Nunez, owner of the international wine holding VINOS DELA LUZ. For the fourth year in a row, Dr. Nunez has been heading the jury and the Forum of Winemakers and Sommeliers of Ukraine.

Members of the professional jury:

– Natalia Blagopoluchna – President of the All-Ukrainian Association of Winemakers and Sommeliers, head of the First Sommelier School in Ukraine “Master Class”
– Oleksandr Sharay – sommelier, commercial director of SV+ company
– Yegor Bilov – sommelier of the InterContinental Kyiv Hotel, winner of the All-Ukrainian Sommelier Competition 2018
– Oleg Kravchenko – co-owner of Winbar, “Best Sommelier of Ukraine – 2011”
– Olga Girman – sommelier, winner of the All-Ukrainian Sommelier Competition 2021
– Dmytro Gurinchyk – national manager of the Cigar House “Fortuna”
– Irina Kovaleva, Director of the Tairov National Institute of Viticulture and Winemaking.
In the Final of the Contest, the participants competed in different rounds:: “Presentation and decanting of wine”, “Enogastronomy” (real serving of dishes from the chef of the restaurant Ruslan Morozyuk), “Cheese and wine”, “Blind tasting”, “Mixology”, “Cigar Tour”, etc.

In some of the tours, the participants communicated exclusively in English.

After the end of the competitions and the final work of the professional jury, the places were determined as follows:

“XX Anniversary Sommelier Competition 2022-2023”:

1st place – Svyatoslav Klymchuk (Kyiv, Bigoli restaurant)

2nd place – Igor Postoyankin (Kyiv, Catch restaurant)

3rd place – Natalia Sokolovska (Kyiv, DDS company)

“VII All-Ukrainian Cavist Competition 2022-2023”:

1st place – Vasyl Chuchman (Ivano-Frankivsk, Winetime wine boutique)

2nd place – Yevhen Boyko (Kyiv, Winetime wine boutique)

3rd place – Yevhen Brodyuk (Kyiv, Winetime wine boutique)

All finalists received Diplomas and gifts from the Partners, and the Winners received personalized cups.

The Chairman of the Jury Dr. Ricardo F. Nunez congratulated the Organizers and Finalists, thanked the Armed Forces of Ukraine and wished to hold the next Winemakers and Sommeliers Forum in peaceful Ukraine.

The General Information Partner is Interfax Ukraine News Agency.

Media Partners – Club of Experts, OPEN for BUSINESS, Kyiv Diplomatic magazine

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