Business news from Ukraine

Business news from Ukraine

UKRAINIAN PRESIDENT INSPECTS RECONSTRUCTION OF KHERSON AIRPORT

Ukrainian President Volodymyr Zelensky during a working trip to Kherson region has inspected the reconstruction progress at the Kherson International Airport.
“The head of state was informed that an investment project had begun in 2019 to ensure aircraft landing in the evening and at night, as well as in difficult weather conditions. The project has received over UAH 46 million from the State Regional Development Fund and more than UAH 5 million of regional development funding. The project’s implementation has already been funded by more than UAH 11 million. The opening of the airport’s updated lighting system is scheduled for September this year,” the presidential press service said on Friday.
In addition, the regional airport development program for 2018-2020 is currently being implemented. Routine runway repairs have been carried out, workers have been trained to launch the Kherson-Krakow flight, and additional equipment has been acquired to improve the quality of passenger service. The Ukrainian State Air Traffic Services Enterprise also decided to update landing systems at the airport in 2020.
“All this will allow the airport to get the first category of aircraft landing according to International Civil Aviation Organization (ICAO) standards,” the report says.
Head of Kherson Regional State Administration Yuriy Husiev stressed that the airport is strategic.
“In the south, this is one of the very important hubs, and I would like it to become a hub for flights from Mykolaiv, Kherson regions. Even from Zaporizhia they come to us because Ryanair launched very popular flights,” he said.
At the same time, the question remains of reconstructing the runway, updating the fleet of aircraft.
Infrastructure Minister Vladyslav Krykliy said the total cost of the full restoration of the runway is UAH 1.2-1.5 billion, and UAH 910 has been spent on it this year. He added with the president’s support the amount of funding may be increased this year.

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DYNAMICS OF CHANGES IN POPULATION OF UKRAINE FROM 1991-2020

Dynamics of changes in population of Uraine from 1991-2020

UKRAINIAN PRESIDENT: WE ARE DOING OUR BEST TO PROVIDE BUSINESSES WITH CHEAP LOANS

Ukrainian President Volodymyr Zelensky has said he will do his best to provide domestic businesses with cheap loans.
The president’s press service reported that on Friday the head of state met with farmers in Kherson region and the latter again complained about high interest rates for loans.
“The interest rates have been reduced to 8-10% per annum, but this is not enough to do business in a normal way. We understand everything and we will tackle the issue. At least the national banks will work for domestic entrepreneurs,” Zelensky said.
He recalled that the Affordable Loans at 5-7-9% program has already been launched and it will be improved.
“We are doing the utmost to provide [interest rates at the level of] 5-7-9%. I came from business, we took [loans] at 18-25% and that was terrible. The figures I am speaking about – we are doing our best to ensure these figures. And we will win,” the president said.
The entrepreneurs also touched upon the issue of cutting the VAT rate for a range of farming products, including livestock products.
Winemakers suggested the head of state to develop a comprehensive development program for winemaking.
Head of Kherson Regional State Administration Yuriy Husiev asked the entrepreneurs to collect their proposals and send them to the government so that it can develop a support program.
“We will consider the issue. Let’s send them [the proposals] to the government and the President’s Office – we’ll consider them simultaneously,” Zelensky said.

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WORLD BANK APPROVES $350 MLN LOAN TO UKRAINE

The World Bank’s Board of Executive Directors today approved a $350 million First Economic Recovery Development Policy Loan (DPL) for Ukraine in support of reforms that are critical to economic recovery. According to the press service of the World Bank, the key reforms supported by the DPL include: strengthening land and credit markets by creating a transparent and efficient market for agricultural land and resolving non-performing loans in state owned banks; fostering de-monopolization and anti-corruption institutions including by restructuring the gas sector; bolstering the social safety net for the vulnerable elderly population to cushion the impact of the COVID-19 pandemic.
“The COVID-19 pandemic is resulting in a sharp economic downturn that is hurting the incomes of ordinary Ukrainians and small businesses, and straining the government’s budget. This development policy loan provides $350 million to support budget expenditures at a difficult time. The World Bank welcomes the Government’s commitment to these reforms to prepare the economy for recovery, including the significant steps taken to end the moratorium on agricultural land sales, and to bolster benefits for the vulnerable elderly population,” Arup Banerji, incoming World Bank Country Director for Belarus, Moldova, and Ukraine, said.
This DPL is the first of two planned operations, with the second DPL expected to support the additional important land reform legislation and further strengthen pension benefits for the elderly population.
The development policy loan is part of the World Bank’s stepped-up support to Ukraine to address the impacts of COVID-19 and complements the approval of additional financing of $135 million for the Serving People, Improving Health Project and $150 million for the Social Safety Nets Modernization Project.
Additional support to directly cushion the most vulnerable population from the impact of the pandemic is also under preparation.
Since Ukraine joined the World Bank in 1992, the Bank’s commitments to the country have totaled about $14 billion for more than 80 projects and programs.

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RATIO OF FERTILITY AND MORTALITY BY REGION AS OF JAN-APR, 2020

Ratio of fertility and mortality by region as of Jan-Apr, 2020

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STATE-OWNED UKRAINIAN SEA PORTS AUTHORITY CLEANS AREA NEAR SITE OF DELFI TANKER SINKING NEAR ODESA

State-owned Ukrainian Sea Ports Authority (USPA) has said it eliminated pollution of the sea next to the sunken tanker Delfi in the area of Dolphin Beach. The enterprise insists on solving the problem of raising it, stressing that the ship owner must do this, USPA’s press service said on Thursday.
“The administration of the seaports of Ukraine, taking into account the active discussion of this issue by the public, emphasizes that the only legal way to solve the problem with the emergency tanker is to carry out all the work and eliminate the consequences of the incident directly and exclusively by the owner,” the statement said.
At the same time, the state-owned enterprise notes that the USPA does not have any legal grounds for independently raising the vessel. According to Article 123 of the Merchant Shipping Code, USPA will receive such a right only if a number of conditions and circumstances independent of it arise directly:
– the owner of the vessel will not ensure its recovery within the time limits established by the captain of the port (State services of sea and river transport of Ukraine). USPA will have the right to raise the vessel no earlier than July 20, 2020;
– the State Environmental Inspectorate provides an appropriate document stating that the tanker poses an immediate threat to environmental pollution;
– the owner of the vessel documents the readiness and undertakes to compensate USPA SE the cost of the work;
– the captain of the port of Odesa grants permission to raise property that has sunk within the water area of the seaport.
“If at least one of the above conditions does not occur, the right (and in this case the obligation) to raise and remove the vessel will remain solely with the owner. As of June 23, USPA received an official, clear and unambiguous refusal for compensation of expenses, and also assured of a full understanding of the responsibility and financial, organizational and technical readiness of the ship owner to raise his own ship,” USPA said.
At the same time, as noted in the message, organizationally, USPA was ready as early as April 1, 2020 (the deadline originally set by the port captain). Tender documentation was worked out and agreed and funds are provided in the financial plan.
According to the latest data from the state-owned enterprise, the work execution plan provided by the ship owner was worked out and agreed by the captain of the Odesa Sea Port and the State Environmental Inspectorate. Based on the above, the activation of the preparatory work, at the request of the ship owner, the deadline for the completion of the work on cleaning the tanker from the Odesa beach by the port captain has been extended.
Earlier, the State Environmental Inspectorate reported that according to the results of samples taken by Ukraine’s State Ecological Inspectorate, the content of oil products in the Black Sea near the Dolphin beach (Odesa) is 16.4 times higher than the permissible concentration.
As reported, in the Gulf of Odesa, the Delfi tanker under the flag of Moldova suffered a disaster – the ship broke anchor.
USPA said initially the tanker was in neutral waters and did not apply for entry into the Odesa or “South” sea ports. But later a signal was given that the ship was in distress, it was left without fuel, with an inoperative engine. In this regard, the Odesa Rescue Coordination Center, which received the signal, began to take measures to eliminate the emergency. It was agreed to tow the tanker to Ochakiv port.
On the night of November 22, Delfi managed to gain an anchor at a distance of about 1 mile from the coast near the Dolphin Beach. However, according to USPA, at 5:00, the vessel began drifting again. On the evening of the same day, rescuers managed to evacuate three crew members from the ship. They were hospitalized, doctors reported overwork and hypothermia.
The owner of the vessel had to take measures by March 31, 2020 to raise and remove the sunken tanker from the waters of Odesa Sea Port. On April 1, the prosecutor took control of the case.

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