Business news from Ukraine

Khmelnytsky will purchase 44 Etalon trolleybuses with support of EBRD

Khmelnytsky Municipal Enterprise Electrontrans has signed an agreement with the winner of a tender for the supply of new trolleybuses funded by the European Bank for Reconstruction and Development (EBRD), a combination of Chernihiv Automobile Plant LLC and Politechnoservice LLC (Kyiv region), Khmelnytsky Mayor Oleksandr Symchyshyn said.
“We have signed an agreement with the winner of the tender for the purchase of 42 new trolleybuses. This will allow us to almost completely renew the trolleybus fleet and not return to this issue for years,” Symchyshyn wrote on Facebook.
As reported, on January 10, 2024, Electrotrans, together with the EBRD, announced a tender for the purchase of 44 units of new trolleybuses, as well as spare parts and diagnostic equipment, under the EBRD’s Green Cities program. Later, the number of trolleybuses was updated to 42.
In April 2023, the EBRD announced a EUR10.6 million loan to Khmelnytskyi’s Electrotrans for the purchase of trolleybuses, maintenance and diagnostic equipment. It was noted that the EBRD loan is part of a financial package that also includes investment grants from the EU and the US totaling EUR 4.45 million.
“For these funds, we are purchasing 44 trolleybuses along with spare parts and diagnostic equipment,” Symchyshyn wrote, adding that the winner of the tender for the purchase of 42 trolleybuses offered a lower than expected price, which allows the city to buy two more trolleybuses with the saved funds.
According to him, the plant is to deliver 42 trolleybuses to Khmelnytsky within 62 weeks, including 34 with a range of up to 2 km and eight trolleybuses with a range of up to 20 km.
The first five trolleybuses are to be delivered by the end of 2024.
The Etalon low-floor trolleybuses with electronics from Politechnoservice are equipped with air conditioning for the driver’s and passenger compartments, a screw compressor to reduce noise in the cabin, an information system, and USB connectors for charging phones.
“All the power electronics of the vehicles, as well as the autonomous driving systems, are made in Ukraine,” said Symchyshyn.
The project “Framework Program for the Development of Public Transport in Ukraine 2, Khmelnytskyi Trolleybus” is part of the EBRD’s Green Cities program, which Khmelnytskyi joined in 2019.

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Ukrainian shooter Serhiy Kulish wins silver medal in final of rifle competition

Ukrainian shooter Serhiy Kulish has won a silver medal in the final of the rifle shooting competition from three positions at a distance of 50 meters at the Olympic Games-2024 in Paris.

The athlete scored 461.3 points.

In this competition, the first place went to China and the third place to India.

This is the second medal in Ukraine’s piggy bank at the Olympic Games 2024, after the bronze medal won by fencer Olga Kharlan.

Kulish is a silver medalist at the Rio 2016 Olympic Games in air rifle shooting from a distance of 10 meters.

 

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Ukrainian business continues to demonstrate high dynamics in obtaining status of Authorized Economic Operators

Despite the full-scale war, Ukrainian business continues to demonstrate high dynamics in obtaining the status of Authorized Economic Operators (AEO): over the 4 years of the program, 48 Ukrainian companies have received 50 AEO authorizations. This status gives companies the highest degree of trust and a number of simplifications in customs procedures.

This dynamics of Ukrainian companies coincides with the dynamics of most EU countries in the first 4 years of the program, and sometimes exceeds it. The biggest “jump” in AEOs occurred in the fourth year of the program, when “local simplifications” without authorizations were abolished, which was not the case in any EU country.

For comparison, the dynamics of AEO for the first 4 years of the program in the EU (2008-2011):

– more than half of the countries (17 Member States) had similar (Denmark, Ireland, Slovenia, Czech Republic) or lower (Finland, Romania, Slovakia, Bulgaria, Greece, etc.) rates of increase in AEO authorizations;

– 8 countries had a higher rate of increase in AEO authorizations, in particular, the United Kingdom*, Austria, Belgium, and Sweden;

– only 3 countries out of 28 EU countries (France, Germany, the Netherlands) increased AEOs at a much higher rate than Ukraine. These countries generally have much stricter requirements for companies to preserve and restore documents and other business processes, the reliability of which is a condition for obtaining this status. Therefore, the authorization of enterprises did not require a large number of additional requirements.

Currently, there is every reason to expect a positive trend in the number of AEO authorizations obtained by Ukrainian businesses: 31 more applications are pending at the State Customs Service. This demonstrates the interest of domestic businesses in the program.

It is worth reminding that AEO is a special status that demonstrates a high level of trust in a business entity. It provides customs simplifications and advantages in international trade, which can also compensate for a number of difficulties at the border caused by external circumstances. The AEO status opens up opportunities for enterprises to develop and compete in foreign and domestic markets.

In Ukraine, the AEO program began operating in August 2020 after the adoption of the necessary legislative changes in the process of approximation to European customs law and standards of foreign economic activity.

As reported, as of November 7, 2023, the provisions of the Customs Code of Ukraine regarding the possibility of customs clearance of goods without presenting them to the customs authorities became invalid. In order to continue to use the possibility of clearing goods at the facilities of enterprises, the State Customs Service recommended that businesses obtain the status of an authorized economic operator.

Having AEO authorization allows a company to take advantage of all the benefits of AEO and will facilitate access to the simplifications provided for by the Customs Code and the Convention on a Common Transit Procedure. In particular, the simplifications include reducing the level of risk in relation to the goods being transported, prioritizing customs formalities and releasing goods at the company’s location.

Earlier, roundtables were devoted to customs reform, where the event’s organizer and moderator Maksim Urakin stated that the State Customs Service provides 35-40% of state budget revenues, and these figures have remained stable in recent years. That is why customs reforms are so important for the country.

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Ukrainian exporters will receive licenses in electronic form

As part of the deregulation reform, the Ministry of Economy has amended the order “On the Procedure for Licensing the Export of Goods,” according to which Ukrainian exporters will receive licenses in electronic form, the ministry’s press service reports.

“Digitalization of services provided by the state to business is one of the key components of deregulation. We are currently fully transferring the process of obtaining licenses by exporters to an electronic format. And we are working on a similar simplification of the procedure for importers. In addition, we are simplifying the process of obtaining permits by reducing the number of documents required to apply for a license,” said First Vice Prime Minister and Minister of Economy Yulia Svyrydenko.

According to the amended order, entrepreneurs will be able to submit documents and obtain licenses in electronic form, while they can also submit documents in paper form if they wish.

In addition, the list of documents required to obtain a license has been shortened. The amendments to the Order also update the license application form, the license form, instructions for filling them out, and the regulations on the licensing procedure.

In order to obtain licenses for the export of goods from Ukraine, entrepreneurs who have chosen the electronic form of submitting documents should go to the section “Foreign Economic Activity” on the Unified State Web Portal of Electronic Services at https://my.gov.ua/info/service/2817 /details.

The entrepreneur must submit a package of required documents in his/her electronic cabinet. After they are reviewed within the established timeframe and if a positive decision is made, the license will appear in the applicant’s account in electronic form.

If a person submits documents in paper form and wants to receive a response by e-mail, then at the stage of submitting documents, they must provide the recipient’s mail address and indicate that they want to receive a response in this way.

The Ministry of Economy noted that during martial law, the issuance of licenses for the export and import of goods is free of charge. Therefore, the letter of application for a license does not require a guarantee of payment of the state fee for its issuance and an upload of a package of documents.

The Interagency Working Group on Accelerated Review of State Regulatory Instruments for Business has already reviewed more than 1,300 regulatory instruments for business, of which 456 are recommended to be canceled and 584 to be simplified, the Ministry reminded.

Source: https://interfax.com.ua/

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State Property Fund of Ukraine has announced an auction for privatization of Zaporizhzhya Production Aluminum Plant

The State Property Fund of Ukraine (SPFU) announced an auction on 6 August to privatize a 97.5458% stake in the authorized capital of Zaporizhzhya Aluminium Smelter (ZalK). According to the SPF press release, an online auction for the privatization of 607 million 446,012 thousand shares is scheduled for August 6. The auction will be held in the electronic trading system Prozorro.Sale with a starting price of almost UAH 151.9 million, and the deadline for submitting bids is August 5.

It is noted that ZALK is an excellent brownfield project, as it is located in Zaporizhzhia, next to the national highway H08. The facility’s advantages include a large total area of premises and land. The new owner may consider the facility for business or its relocation.

The JSC’s balance sheet includes 1497 registered units of real estate and infrastructure with a total area of 370,929.85 square meters. The property also includes 291 units of vehicles and special equipment. The real estate owned by the JSC is located on 25 registered land plots with a total area of 216.0856 hectares.

As of May 31, 2023, part of the company’s real estate with a total area of 6,755.6 sq. m. was leased out under eight agreements with the maximum term of validity until September 1, 2065.

The company’s balance sheet includes 18 state-owned objects that were not included in the company’s authorized capital and remained in state ownership (two shelters, instruments, radio stations, engineering networks, roads, etc.)

The company has debts, including overdue accounts payable of UAH 6.44 billion.

Under the terms of the auction, the new owner is obliged to ensure repayment of wage arrears and budget arrears within 18 months from the date of transfer of ownership, as well as to prevent dismissal of ZalK employees within six months, in accordance with the requirements of Articles 40 and 41 of the Labor Code of Ukraine.

For more information about ZALK JSC, please follow the link: http://surl.li/oyxgsp

Zalc used to be the only primary aluminum producer in Ukraine. In 2004, the Russian group SUAL became the owner of Zalc. In 2007, the plant came under the control of UC RusAl, which was created as a result of the merger of aluminum and alumina assets of RusAl, SUAL and Swiss trader Glencore. In the long-running lawsuits, a verdict was reached on the termination of the sale and purchase agreements for 68.01% of ZalK’s shares and the return of this stake to state ownership. The authorized capital of ZALK JSC is UAH 155 million 682.28 thousand, with a share price of UAH 0.25.

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Estimated number of population in regions of Ukraine based on number of active mobile sim cards (mln)

Estimated number of population in regions of Ukraine based on number of active mobile sim cards (mln)

Source: Open4Business.com.ua