Business news from Ukraine

Business news from Ukraine

UKRAINE INTERNATIONAL AIRLINES TERMINATES WORK OF OFFICE IN CHINA

Ukraine International Airlines (UIA, Kyiv) has decided to terminate the work of its division in Beijing (China).
According to the airline’s report in the information disclosure system of the National Securities and Stock Market Commission, this decision was made by the supervisory board in connection with the reduction of the staff of UIA and the reduction in costs for representative offices.
As reported, in September 2020, UIA ceased operations of its divisions in Turkmenistan, Uzbekistan and Belarus, and in October – in Switzerland, Spain, Italy, Germany and Austria.

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ANALYSTS AT BANK OF AMERICA DO NOT EXPECT FURTHER STRENGTHENING OF HRYVNIA

Analysts at Bank of America (BofA) Global Research do not expect further nominal strengthening of the hryvnia, according to a June 14 BofA study.
The bank said that it is still constructive in relation to the International Monetary Fund (IMF), but the bank does not expect further nominal strengthening of the hryvnia, especially given the seasonality of the exchange rate in the third quarter, BofA said.

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UKRAINIAN SUGAR PRODUCERS ASK NOT TO PERMIT DUTY-FREE IMPORT OF SUGAR

The National Association of Sugar Producers of Ukraine Ukrtsukor appealed to Minister of Economy Oleksiy Liubchenko with a request not to support the initiative of the Cabinet of Ministers to permit duty-free import of 120,000 tonnes of sugar until October 1, 2021. According to an appeal to the minister, published on the association’s website, the Ukrainian sugar industry is able to fully meet the needs of the domestic market, since as of June 1, sugar stocks in the warehouses of manufacturing plants amount to 300,000 tonnes, excluding stocks of agricultural producers, retail chains and the population. At the same time, according to Ukrtsukor, the average monthly sugar consumption in Ukraine is 80,000 tonnes.
“In addition, at the beginning of 2021, some 40,000 tonnes of white sugar were imported. Also in May 2021, Ukraine imported 60,000 tonnes of raw sugar from Brazil for industrial processing at two sugar factories into white sugar, and another 27,000 tonnes of raw sugar are already on the way to Ukraine and will be delivered by the end of June,” the association said in the appeal to the minister.
The above supplies, according to Ukrtsukor, will meet the domestic demand for sugar by the new season.
The association noted that in 2021 in Ukraine, the area under sugar beet crops increased compared to last year, which, together with favorable weather conditions, makes it possible to expect a sufficient yield of sugar beet. In turn, this will contribute to the full supply of the domestic market with sugar in the 2021/2022 marketing year (MY), as well as a possible decrease in sugar prices at the end of August 2021 with the beginning of the sugar making season.
As reported, the Cabinet of Ministers in June proposed to permit duty-free imports of 120,000 tonnes of sugar until October 1, 2021 in order to stabilize the situation in the market for this product.

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HALF OF UKRAINIANS PLAN TO BE VACCINATED AGAINST CORONAVIRUS

Almost every second Ukrainian plans to be vaccinated against coronavirus, while 19% of citizens intend to do this in the near future, the same number plan to be vaccinated later, another 10% will be vaccinated only when they have to do it for formal reasons, according to the results of the survey entitled “Attitude of Ukrainian citizens to vaccination against COVID-19,” held by the Razumkov Center from May 21 to May 26.
It is reported that compared to March 2021, the proportion of respondents who answered that they do not intend to get vaccinated against coronavirus decreased from 51.5% to 43%.
At the same time, the share of those who intend to get it in the near future (or have already received such a vaccination) increased from 12% to 19%, from 16% to 19% – the share of those who intend to be vaccinated, but later, 10% (the same as in March) intend to do this only when it is necessary for formal requirements (for example, for a trip abroad).
The older the respondents, the more often they express their lack of desire to get vaccinated (their share increases from 38% among those aged 18 to 29, to 51% among those aged 60 and over).
Among those who do not give up their intention to get vaccinated against COVID-19, 59% are ready to do it only if it is free (this is more than in March, by 7%), 23% of them are ready to pay for the vaccine, and another 6% are willing to pay to get vaccinated out of turn. The older the respondents, the more often they answer that they are ready to be vaccinated only free of charge (the proportion of such increases from 49% among those who are between 18 and 29 years old, to 77% among those who are 60 and over).
Those respondents who do not intend to be vaccinated are more often motivated by the fact that, in their opinion, the vaccines used in Ukraine are not sufficiently effective and safe, but they are ready to be vaccinated with “some other” vaccine (this answer is given by 31% of those who do not intend to get vaccinated).
Although, compared to March, the proportion of those who do not trust the vaccine has decreased (then it was 45% of those who refused to be vaccinated). Some 30% of them motivate their refusal by the fact that, in their opinion, the risks of vaccination exceed the risks of the disease itself, 15% – by the fact that they have already had coronavirus, 12% have medical contraindications, and 7.5% believe that the likelihood that they will get COVID-19 is very low.
The survey was conducted by the sociological service of the Razumkov Center from May 21 to May 26, 2021 using the method of face-to-face interviews at the place of residence of the respondents.
A total of 2,017 respondents aged 18 and over were interviewed in all regions of Ukraine, with the exception of Crimea and the occupied territories of Donetsk and Luhansk regions, based on a sample representing the adult population in terms of basic socio-demographic indicators. The theoretical sampling error (excluding the design effect) does not exceed 2.3% with a probability of 0.95. The research was carried out with the financial support of the representative office of the Friedrich Naumann Foundation for Freedom in Ukraine.

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UKRAINE RATIFIES AGREEMENT BETWEEN UKRAINE AND NETHERLANDS TO AVOID DOUBLE TAXATION

The Verkhovna Rada has ratified the protocol on amending the convention between Ukraine and the Netherlands on double taxation avoidance and prevention of tax evasion with respect to taxes on income and property.
According to these changes, the general rate of taxation of interest is increased from 2% to 5%, zero taxation rate of dividends and royalties is abolished, as well as taxation of royalties at the rates of 5% and 10% is set.
The protocol also enhances the ability of the competent authorities of the states to exchange information.
In addition, the parliament ratified an agreement with Germany on financial cooperation, which will allow attracting a concessional loan from KfW up to EUR 214 million and grant financing up to EUR 38 million.

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NATIONAL BANK OF UKRAINE’S OFFICIAL RATES AS OF 15/06/21

National bank of Ukraine’s official rates as of 15/06/21

Source: National Bank of Ukraine