Business news from Ukraine

Business news from Ukraine

BUSINESS DURING MARTIAL LAW CAN CARRY OUT ACTIVITIES WITHOUT CONCLUSION OF STATE FOOD AND CONSUMER SERVICE

During martial law, businesses can carry out economic activities on a declarative basis without obtaining the conclusion of the State Food and Consumer Service.
This was announced by the European Business Association (EBA), referring to the official response of the State Food and Consumer Service to the request of the EBA.
“This week, the Association received an official letter from the State Food and Consumer Service, which states that business entities can carry out economic activities under martial law on a declarative basis by submitting a declaration on the production of economic activities to the Ministry of Economy of Ukraine without obtaining a conclusion,” the EBA reports.
In addition, the State Food and Consumer Service confirmed that the period of validity of permits, including its conclusions, is automatically extended for the period of martial law.
The EBA notes that the introduction of martial law and hostilities on the territory of the state have significantly complicated, and in some places made it impossible for entrepreneurs to obtain a number of permits.
We are talking, for example, about the conclusions of the state sanitary and epidemiological expertise, the receipt of which was a necessary condition for the sale of many types of goods, including critical ones for consumers, such as hygiene products, baby food, detergents, cosmetics, certain food products, and equipment. , others.

,

PRODUCTION OF ŠKODA CARS IN UKRAINE WILL RESUME IN JUNE

The Eurocar plant (Solomonovo, Transcarpathian region) will resume production of ŠKODA cars from June this year, which was suspended with the start of Russia’s military aggression in Ukraine, the company’s press service reported.
“The Eurocar company, the official distributor of ŠKODA cars in Ukraine, announces the resumption of taking orders and production. The Eurocar plant in Transcarpathia will start working again in June,” the distributor’s website said on Thursday.
Prices and configurations of cars available for order are posted on the distributor’s website, the official delivery time is up to 280 days, but in fact it will depend on the number of orders in the queue and may be less. Vehicles in stock that were in stock until February 24th are also available for purchase.
“ŠKODA dealerships work depending on the situation in the regions where they are located. The warranty for cars during martial law in Ukraine is maintained in case of untimely completion of scheduled maintenance, provided that the level of technical fluids is observed,” the message says.
The Eurocar plant, the official manufacturer of Škoda cars in Ukraine, began producing cars in 2001, investments in the creation of the plant amounted to $250 million. Capacities for small-scale assembly of cars were created, buildings for welding and painting shops were built.
According to the Ukravtoprom association, in 2021 the plant assembled 3,476 vehicles, which is 2.7% more than a year earlier.
As reported, at present, the Eurocar plant operates as a humanitarian logistics hub, as well as a center for helping employees, with the involvement of a network of contacts of foreign partners as external support.
According to the data of the National Commission for Securities and Stock Market (NSSMC), as of the fourth quarter of 2021, more than 68.84% of the shares of Eurocar JSC are owned by Atoll Holding JSC, the beneficiary-controller of which is Oleg Boyarin, another 20% are owned by LLC “Prostir Capital” (Kyiv), 10% – Polish “Iberia Motor Company”.

, ,

US HOUSE OF REPRESENTATIVES PASSES SEVERAL BILLS ON UKRAINE

The US House of Representatives passed a number of bills related to the situation in Ukraine on Wednesday, The Hill said.
One of the bills is aimed at alleviating the debt burden of Ukraine. Some 452 congressmen voted for it, while 56 voted against.
The document instructs the U.S. Treasury Secretary to seek from U.S. representatives in international financial organizations, including the IMF and the World Bank, the immediate suspension of debt service payments by Ukraine and the provision of financial assistance to Kyiv on favorable terms.
The second bill seeks to require the U.S. executive branch to seek to the fullest extent possible the exclusion of Russian officials from participation in meetings, meetings and other events of the G20, the Basel Committee on Banking Supervision, the Financial Stability Board, the International Insurance Association supervisors and the International Organization of Securities Commissions.
Some 416 congressmen voted for this project, while two voted against.
The third bill concerns the need for U.S. financial institutions to comply with U.S. sanctions against Russia and Belarus. It was approved by 418 votes.
According to the congressional database, all three documents must now go to the Senate for consideration.

, ,

ACCORDING TO THE UN, THE WAR IN UKRAINE CLAIMED THE LIVES OF AT LEAST 3,541 CIVILIANS, 3,785 WERE INJURED

Civilian casualties from February 24, when Russia started the war against Ukraine, to 24:00 on May 11 amounted to 7,326 civilians (a day earlier – 7,256), including 3,541 dead (3,496), reports the Office of the UN High Commissioner for Human Rights (OHCHR) on Thursday.

“OHCHR believes that the actual figures are much higher as information is delayed from some areas of heavy fighting and many reports are still awaiting confirmation,” the UN data document notes.

According to him, this applies, for example, to Mariupol (Donetsk region), Izyum (Kharkiv region) and Popasna (Luhansk region), where there are reports of numerous civilian casualties. They are subject to further verification and are not included in the above statistics.

“The majority of civilian deaths or injuries were caused by the use of explosive devices with a wide area of effect, including shelling from heavy artillery and multiple launch rocket systems, as well as rocket and air strikes,” the report says.

According to confirmed UN data, 1,300 men, 844 women, 93 boys and 77 girls died, while the sex of 69 children and 1,158 adults has not yet been determined.

Among the 3,785 injured were 98 boys and 90 girls, as well as 167 children whose gender has not yet been determined.

Compared to the report the day before, one child died and seven more were injured.

OHCHR indicates that in Donetsk and Luhansk regions, as of midnight on May 12, there were 1,781 (1,750) dead and 1,473 (1,466) injured in government-controlled territory, and 116 (115) dead and 476 (462) injured in territory controlled by self-proclaimed “republics”.

In other regions of Ukraine under government control (in Kyiv, as well as in Zhytomyr, Zaporozhye, Kyiv, Sumy, Odessa, Nikolaev, Kharkiv, Kherson, Dnepropetrovsk, Cherkasy and Chernihiv regions), the UN recorded 1644 (1631) dead and 1836 (1832) wounded .

The daily summary has traditionally stated that the increase in numbers from the previous summary should not be attributed only to the May 11 cases, since during this period the Office verified a number of cases from previous days.

,

AGRICULTURAL MACHINERY MARKET IN UKRAINE TO AT LEAST HALVE IN 2022 DUE TO INVASION OF RUSSIA – EXPERT

The market of agricultural machinery in Ukraine in 2022 will decline due to the aggression of the Russian Federation by at least 50%, depending on the company, the fall can be 50-80%, according to a posting on the website of the Czech manufacturer of agricultural machinery Bednar on Tuesday.
“For some it may be 50%, for others 80% or more, it will depend on the strategy of each company and the current situation in the country. As a patriot of Ukraine, I would like to see those brands lost in Ukraine more who decided not to leave the Russian market, but it depends on the conscious position of our farmers, whether they will take this factor into account when choosing a unit or not,” the company quotes Mykhailo Krishko, director of the company’s representative office in Ukraine.
He recalled that at the end of April, Bednar decided to finally leave the Russian market as a sign of full support for the Ukrainian people in the face of Russian aggression, and from the first day of the war stopped accepting any orders from Russian and Belarusian dealers and stopped all investments in these markets.
At the same time, all equipment previously ordered by Russian companies was offered for sale to other markets, and several units have already been bought out by Ukrainian farmers.
According to Krishko, before the start of the war, Ukraine was actively fighting for leadership in the annual turnover rating of Bednar, the company expected to increase its share in the company’s turnover to 20% by the end of 2022. The head of the Ukrainian representative office expressed hope that after the Ukrainian victory in the war, the country would become the largest market for Bednar equipment, since most of its units are created to work in the conditions of large agricultural enterprises, which are relatively numerous in Ukraine.
Bednar manufactures agricultural equipment for tillage, seeding, mulching, fertilization and crop residue management. Its products are exported to 39 countries with different climatic and soil conditions.
The equipment manufacturer has been operating in the Russian Federation since 2010 and had representative offices in 10 regions of Central Russia. In 2020, about 75 units of equipment were delivered to the Russian Federation, in 2021 deliveries were increased to 150 units.

STATE YOUTH HOUSING FUND PURCHASES 100 APARTMENTS FOR IDPS

The State Fund for Support of Youth Housing Construction announced the purchase of housing for further leasing to internally displaced persons (IDPs) from large families whose housing was destroyed as a result of Russian aggression.
As reported in the release, a total of 100 apartments are being purchased: in Kyiv and Chernihiv regions, 35 each, in Sumy 20 and Zhytomyr 10.
Housing, renovated and furnished, can be purchased from individuals and legal entities-owners of such housing.
The minimum total area of housing is 31.5 square meters, maximum – 94.5 square meters.
As reported, by Resolution of the Cabinet of Ministers No. 495 of April 29, 2022, the procedure for the buyout, construction of housing for the purpose of transferring to internally displaced persons for temporary residence was approved.
The State Youth Housing Fund can purchase ready-made housing, provided that the cost of acquiring 1 square meter of the total area of housing (taking into account all mandatory payments paid by the buyer when purchasing housing) does not exceed the marginal cost.
The marginal cost is calculated based on the indirect cost of housing construction in the regions of Ukraine determined by the Ministry of Regional Development and increased for: cities – regional centers, cities of regional significance with a population of more than 300,000 people and settlements located in areas adjacent to the borders of cities – regional centers – 1.75 times; other settlements – 1.5 times.
For example, in February 2022, the Ministry of Regional Development approved an indirect cost for Zakarpattia region of UAH 13,892/square meter, and for Kyiv – UHA 18,704/square meter. This means that the marginal cost of housing ready for occupancy, which can be paid by the state or communities, in Uzhgorod is UAH 24,311/square meter, in Kyiv it is UAH 32,732/square meter.

, ,