Business news from Ukraine

Cabinet of Ministers may reduce threshold for duty-free parcels by more than 3 times

The Cabinet of Ministers of Ukraine in the bill on raising taxes by 138.7 billion hryvnias this year, among other things, proposes to reduce the threshold of duty-free import of parcels from abroad from EUR150 to EUR45, the Finance Ministry said on Thursday. According to the explanatory note to the bill, goods whose total invoice value does not exceed the equivalent of EUR45 for one recipient will not be taxed, compared to the current norm of EUR150.

It is noted that the goods must be transferred without any payment, intended for personal or family use, and their characteristics and quantity must not indicate that they are imported for any commercial purpose.

At the same time, the above criteria do not apply to excisable goods, perfume in the volume of more than 50 ml or toilet water in the volume of more than 0.25 liters or eight ounces, coffee in the volume of more than 0.5 kg or coffee extracts and essences in the volume of more than 200 g; tea in the volume of more than 100 g or tea extracts and essences in the volume of more than 40 g. If when imported into the customs territory of Ukraine the volume of the above-mentioned goods exceeds the specified, the duty-free threshold does not apply to them.

According to the table published by the head of the parliamentary committee on finance, tax and customs policy Daniil Hetmantsev, the expected additional revenues from the reduction of duty-free threshold for import of goods from abroad will amount to UAH 3.3 billion this year and UAH 8 billion next year.

https://interfax.com.ua/

 

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Geographical structure of ukraine’s foreign trade (surplus) in Jan-Apr 2024, mln USD

Geographical structure of ukraine’s foreign trade (surplus) in Jan-Apr 2024, mln USD

Source: Open4Business.com.ua and experts.news

“Ukrnafta” starts implementing American Petroleum Institute standards

PJSC Ukrnafta has started implementing the standards of The American Petroleum Institute in its operations, the company said in a press release on Thursday.
“Until 2023, the company was guided by outdated, Soviet-era standards of work. Accordingly, this affected absolutely all business and technological processes and did not allow us to develop at the desired pace. This is now changing,” the document explains.
In particular, the company signed a memorandum with The American Petroleum Institute and started purchasing modern equipment for production, service and stimulation – this year alone, modern pumps from German Oil Dynamics, American Baker Hughes and Alkhorayef Petroleum from Saudi Arabia will be installed in 150 wells of the company.
“However, the most important thing, the basis of all processes, is the implementation of standards, because these are the rules and regulations that the industry operates under throughout the civilized world. The first important step in this direction has already been taken: an agreement has been signed with The American Petroleum Institute to obtain and translate industry standards,” the company said.
Initially, 314 API standards have been identified, 20 of which relate to drilling, exploration, production and stimulation, and their translation has already been received and started.
The American Petroleum Institute has been defining and maintaining standards for the global oil and gas industry since 1924. These are work rules based on a century of experience and modern trends that improve safety, reduce costs, reduce waste and ensure the quality of the final product,” the company explained.
Ukrnafta added that these will be the first API standards available in Ukrainian.
“Ukrnafta is Ukraine’s largest oil producer and operator of a national network of filling stations. In March 2024, the company took over the management of Glusco’s assets and operates a total of 545 filling stations – 460 owned and 85 managed.
The company is implementing a comprehensive program to restore operations and update the format of its filling stations. Since February 2023, Ukrnafta has been issuing its own fuel coupons and NAFTAKarta cards, which are sold to legal entities and individuals through Ukrnafta-Postach LLC.
Ukrnafta’s largest shareholder is Naftogaz of Ukraine with a 50%+1 share. In November 2022, the Supreme Commander-in-Chief of the Armed Forces of Ukraine decided to transfer to the state a share of corporate rights of the company, which belonged to private owners and is currently managed by the Ministry of Defense.

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King of Great Britain received Vladimir Zelensky

Britain’s King Charles III received Ukrainian President Volodymyr Zelensky on Thursday, July 18, the British royal family said.

“Today the King received Ukrainian President Volodymyr Zelensky after a meeting of the European Political Community at Blenheim Palace. At the meeting 46 European leaders discussed a number of international challenges, opportunities and our shared values,” – said in a message in social network X.

In turn, the President of Ukraine thanked the King of the United Kingdom of Great Britain and Northern Ireland Charles IIІІ for the audience, emphasizing that the United Kingdom remains one of the closest and most important allies of Ukraine.

“We appreciate all the support given to the Ukrainian people,” Zelensky wrote in his Telegram channel.

Zelenskyy accuses Viktor Orban of betraying Europe at leaders’ meeting in UK – The Guardian

Ukrainian president condemns Hungarian prime minister’s unilateral ‘peace mission’ to Moscow

Volodymyr Zelenskiy has taken aim at the Hungarian prime minister, Viktor Orbán, accusing him of betraying fellow European leaders after Orbán’s recent “peace mission” to Moscow.

The Ukrainian president kicked off the European Political Community summit at Blenheim Palace on Thursday with an emotional speech in which he made veiled but repeated references to Orbán’s recent attempts to get close to Moscow.

Zelenskiy was addressing a room packed full of European leaders and defence ministers, who have gathered in Oxfordshire at a pivotal moment for the war in Ukraine.

He told the session: “We have maintained unity in Europe by acting together, which means that Putin has missed his primary targets … This is our advantage, but it remains an advantage only as long as we are united.”

Referring to Putin, he said: “He may try to approach you, or go to some of your partners individually, trying to tempt or pressure you to blackmail you so that one of you betrays the rest. We keep our unity.”

In an apparent reference to Orbán’s recent visit to meet Putin in Moscow, he added: “If someone in Europe tries to resolve issues behind our backs, or even at the expense of someone else, if someone wants to make some trips to the capital of war to talk – and perhaps promise something against our common interests or at the expense of Ukraine or other countries – then why should we consider such a person?

“The EU can also address all their issues without this one individual.”

Orbán has regularly been a thorn in the side of European leaders attempting to maintain unity in their support for Ukraine. Earlier this year he blocked a €50bn (£42bn) support package for Kyiv for more than a month while he negotiated additional conditions.

This month, the Hungarian leader travelled to Moscow for what he called a “peace mission”, holding a joint press conference with Putin in which the Russian leader told Kyiv to give up more land, pull back its troops and drop its efforts to join Nato.

Orbán then held talks with the former US president Donald Trump, after which he wrote to European leaders telling them Trump had “well-founded plans” for peace should he return to the White House after November’s presidential election. Trump has since underlined his desire to back out of foreign conflicts by choosing the isolationist JD Vance as his running mate.

Orbán’s actions on the world stage have caused alarm in European capitals, with Zelenskiy’s invitation to Blenheim Palace designed in part as a show of unified support for Ukraine.

Hours before the Ukrainian president spoke, Ursula von der Leyen issued a similar message in a speech to MEPs. The president of the European Commission said: “Two weeks ago, a European prime minister went to Moscow. This peace mission was nothing but an appeasement mission.”

Keir Starmer, the British prime minister, made a strong statement of support as he introduced Zelenskiy on Thursday. “Every day Ukraine fights to protect not just the Ukrainian people, but the European people – a continent where our belief in freedom, democracy and the rule of law was hard won, that wants to live in peace,” he said.

“President Zelenskiy, in your struggle to uphold those values, we salute you. Once again, have no doubt, we will stand with you for as long as it takes.”

Zelenskiy also used his speech to European leaders to urge them to provide air defences for Ukraine and not to place limits on their use. The UK has provided Ukraine with Storm Shadow missiles, but is not allowing Zelenskiy to use them against Russian territory.

“We should not fear these capabilities,” the Ukrainian president said. “The more effective our air defences, the more helpless Putin will be. The fewer restrictions we have on the use of effective weapons, the more Russia will seek peace.”

Source: https://www.theguardian.com/world/article/2024/jul/18/zelenskiy-accuses-viktor-orban-of-betraying-europe-at-leaders-meeting-in-uk

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Cabinet of Ministers has exempted number of goods from VAT for period of martial law

The Cabinet of Ministers of Ukraine for the period of martial law has exempted from VAT operations on the supply of components for vehicles (including special and specialized), as well as fuel and lubricants for security and defense forces, said the Cabinet’s representative in the Verkhovna Rada Taras Melnychuk following a government meeting on Thursday.

The government’s decision is enshrined through amendments to the government resolution from March 2, 2022 N178 “Some issues of imposition of value added tax at a zero rate during martial law”.

“It is established that until the termination or abolition of martial law, operations on the supply of goods (spare parts, batteries, car tires, coolants, components, additional equipment, etc.) for vehicles (including special, specialized vehicles), as well as fuel and lubricants … are subject to value added tax at a zero rate,” Melnychuk wrote in Telegram.

https://interfax.com.ua/

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