Business news from Ukraine

Business news from Ukraine

UKRAINE INTERNATIONAL AIRLINES RESUMES REGULAR FLIGHTS KYIV-ODESA

Ukraine International Airlines (UIA) resumes regular flights between Kyiv and Odesa on June 5.According to the company’s press service, flights from Kyiv will be carried out on June 5 and 6, and in the opposite direction on June 8 and June 9.
According to the data in the UIA reservation system, the cost of one ticket with baggage is from UAH 1,500.
The airline asks passengers to adhere to the quarantine rules, to carry personal protective equipment, masks, and also to remember the need to maintain a social distance at the airport.
As reported, the Cabinet of Ministers of Ukraine decided to launch domestic flights from June 5, and international flights from June 15.

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UKRAINIAN BATTERY MANUFACTURERS ASK PRESIDENT TO HELP LEGALIZE PURCHASE OF MATERIALS

Megatex LLC (Konstantynivka, Donetsk region), the manufacturer of batteries from used batteries, has asked President of Ukraine Volodymyr Zelensky to help solve the problem of legalizing the purchase of recyclable materials.
“We produce accumulator batteries from used batteries, and now when buying recyclable materials (any), a company engaged in cashing money flows is at the end of some link, while the plants recycling this raw material take the punishment from the tax service and prosecutor’s offices. If this is brought to the legal business, the government will receive UAH 4-5 billion of additional receipts,” Head of the company Yuriy Shapran said during a meeting between the president and business representatives of Khmelnytsky region on Wednesday, June 3.
In his opinion, a solution of this problem could be a tax of 3-4%, which the processor would pay for the supplier of raw materials.
“If buyers of recyclable materials pay a tax of about 3-4% for the supplier, then this money will go to the budget. Today, I can frankly say this, this is the cost of the services of cashing companies and it will be easier for business to work, it will not spend time on all these troubles with the law,” Shapran said.
He said that in this case there will be no avoidance of identifying a supplier, which the EU is opposed to.
“We identify him (the supplier), but we pay this tax for him and then he is free, he is honest. The company paid the tax for him and it will not require any additional taxes afterwards,” Shapran said.
In addition, he considers it necessary to cancel the payment of a 5% import duty on recyclable materials for the production of batteries.
“We import raw materials from abroad, and we have a 5% duty, while there is no any duty on other raw materials. We have very low margin, so it is very difficult,” the head of the company said.
He also said that the company is ready to work, it has prospects and more and more foreign partners (it exports 75% of its products), and it is also ready to increase production volumes.
“There were problems under the previous government authority, namely Vesta plant in Dnipro, where former MP Dzenzersky [Denys Dzenzersky, MP of the seventh convocation] worked completely off the books. They were bankrupt, but they worked and the tax service did not come there, while we were unprofitable for four years,” Shapran said.
“That is, there are two problems, namely, to legalize the purchase of recyclable materials and remove the import duty on raw materials,” he said, providing Zelensky with the prepared materials.
Since 1993, Megatex LLC has been producing various lead alloys and is engaged in the production and maintenance of accumulator batteries, their purchase and recycling.

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UKRAINE TAKES SECOND PLACE OUT OF 123 COUNTRIES EXPORTING ORGANIC FOOD TO EU

Ukraine has strengthened its position in the EU organic market and, according to the results of 2019, took the second place out of 123 countries exporting organic food to the EU, having risen two positions compared to the previous year, OrganicInfo portal has reported, citing the European Commission’s annual report titled “EU Imports of Organic Agri-Food Products: Key Developments in 2019.”
According to the report, in 2019, 3.24 million tonnes of organic agri-food products were imported into the EU, more than 10% of which came from Ukraine. According to the results of last year, Ukrainian exports to the EU increased by 27%, to 337,860 tonnes. Mostly Ukraine supplied the EU with cereals (including wheat, excluding rice) with 76.9% of cereals were Ukrainian origin, wheat (31.8%), oilseeds (except soy, 18.2%), soy (13%), and fruits (11%). Ukraine is also among the largest exporters of oilcake, fruit juices and vegetables, which are key export products.
OrganicInfo said that in 2018, Ukraine ranked fourth in terms of organic exports to the EU, being behind China, Ecuador and the Dominican Republic.

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CORONAVIRUS EPIDEMIC IN THE U.S. MAY SERIOUSLY DAMAGE TRUMP’S ELECTION CHANCES

International relations expert of the Ukrainian Institute of Politics Danylo Bohatyriov has said that the upcoming elections in the United States will be one of the dirtiest in the country’s history.
During the debut program “Expert Kitchen” on the Expert Club YouTube channel, Bogatyriov said that Trump’s chances to be re-elected to a second term are still rather high, although the situation with the coronavirus epidemic and chaos in the healthcare system may have a negative impact on his prospects.
The expert emphasized that despite numerous scandals during Trump’s tenure he managed to fulfill most of his campaign promises, and in the eyes of his voters he is an extremely effective president, who has returned to the United States a portion of industrial facilities, which had been withdrawn from the country earlier. In addition, he created hundreds of thousands of new jobs.
However, the heavy mortality from COVID-19 and the inability of the country’s healthcare system to cope with the number of infected American citizens could be used by Trump’s opponents during the entire election campaign, which could salvage the campaign of his main rival – 77-year-old Joe Biden.

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PRESIDENT OF UKRAINE WANTS TO ADD DORMITORIES TO BIG CONSTRUCTION PROGRAM

President of Ukraine Volodymyr Zelensky plans to discuss the issue of adding dormitories to the Big Construction program with the Infrastructure Ministry, the prime minister and the Regional Development, Construction and Housing and Utilities Ministry, according to the press service of the Office of President of Ukraine.
“We will discuss with the Infrastructure Ministry, the prime minister and the Regional Development Ministry a possibility of adding construction of dormitories in Ukraine to the Big Construction program,” he said during a working visit to Khmelnytsky region on June 3, during which he checked the implementation of the program.
The head of state said that during a meeting with the rectors of the top universities on June 2 he was informed that one of the major problems in higher education is the lack of student dormitories with good conditions.
The program provides for the construction of five schools, kindergartens and sports complexes in each region, he said, adding that all education institutions should be commissioned by September 1.
“Probably, not all of them will be ready due to coronavirus, but the majority of them should be ready,” the president said.
“Our strategy is very simple: we have to build as many such important infrastructure facilities as possible over the five years given to us by the people of Ukraine and the God,” Zelensky said.
The president also checked the construction site of a kindergarten in the village of Davydkivtsi, Khmelnytsky district. He was told that the total cost of the project is more than UAH 27 million, as well as that the building was 65% ready at that moment and it would be put in operation by September 1.

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GOVERNMENT BACKS INSTALLATION OF 25 WIM SCALE SYSTEMS ON ROADS

The Cabinet of Ministers of Ukraine has supported amendments to the Government Program for Improving Road Safety in Ukraine for the period until 2020, thanks to which 25 Weigh-in-Motion (WiM) scale systems will be installed and 50 portable truck weighing scales will be upgraded. According to the press service of the Infrastructure Ministry of Ukraine with reference to Minister Vladyslav Krykliy, the Cabinet of Ministers adopted the corresponding decision on Wednesday.
“Due to violation of the rules for the passage of oversized and heavy vehicles, roads are being destroyed. The government is spending on their repairs and the number of accidents on these roads is increasing. Today, out of the 78 portable truck weighing scales purchased in 2017, 50 require replacement of weighing elements. I am glad that the government supported the changes to the government program for improving road safety. Now, for effective overall weight control, 50 portable truck weighing scales will be updated, and 25 WiM complexes will be installed,” the press service said, citing the minister.
Accordingly, with the changes, the cost of installing modern WiM systems was increased by UAH 380.7 million, and the cost of the purchase of 50 portable truck weighing scales was increased by UAH 15 million.
In addition, it is envisaged to increase the number of tablets for employees of the National Police by 200 units (up to 1,200), to purchase 30 mobile diagnostic stations for checking the technical condition of vehicles and 30 road laboratories for checking the condition of the road network. It is also planned to purchase another 10 rescue vehicles for the State Emergency Service in order to reduce the time of arrival of the service to the accident site to 7-10 minutes.

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