Developed countries have long been living with the idea that people are the most valuable asset with tough competition. This applies to people with great talents and experienced specialists, as well as to engineers, managers and skilled and even unskilled workers if the latter are proactive and hardworking. The world has become open, providing better access; its global rules guarantee the free exchange of goods, services, finance and the labor force. Yet, the government must take a clear stance, not only by demonstrating its concern over a brain drain but also developing programs to encourage, motivate workers, let them develop their own potential by all available means, including through self-employment and small businesses, guaranteeing stability and confidence in the future. This opinion was voiced by the Ukrainian League of Industrialists and Entrepreneurs (ULIE).
“The issue of preserving the workforce is a matter of national economic security. Poland nowadays employs one million Ukrainian specialists, and it is ready to offer jobs to another million people in 2017. Hungary has given the green light for the employment of 350,000 Ukrainians, and even Belarus invites our workers. According to a December survey by Research & Branding Group, about a third of employable Ukrainians have already thought or think about moving to another country for permanent residence. The emigration of businesses when large companies, mainly innovative ones, change their location for neighboring countries is becoming a trend. It means that today employers are willing to pay high salaries as in the EU rather than putting up with economic instability here,” ULIE President Anatoliy Kinakh has said.
The ULIE and the Anti-Crisis Council of NGOs sharply criticize corruption in the regulatory sector, problems with protection of rights and interests of entrepreneurs, investors in courts and law enforcement agencies.
The ULIE and the Anti-Crisis Council of NGOs insist that a comprehensive program should be developed to support self-employment and SMBs. Threats, groundless raids, fines, closures must be eliminated from regulatory practice vis-à-vis businesses. The Central Bank’s refinancing rate should be gradually reduced, while private banks should be given guarantees encouraging them to lend money to the real sector. The tax burden should be minimal. These issues will be on the agenda of the ULIE’s debates scheduled for the beginning of February.
Domestic manufacturers are ready to go into partnership with the government to implement large-scale state programs for the manufacture of farm and road construction equipment, locomotives and military hardware, which were announced by Ukrainian Prime Minister Volodymyr Groysman. He promised strong support for machine engineering to maintain the localization of production, save revenue in foreign currency spent on the purchase of equipment, which can be produced domestically, and provide Ukrainians with jobs. Such plans are backed by the Ukrainian League of Industrialists and Entrepreneurs (ULIE), the Anti-Crisis League of NGOs.
The government announced it would allocate funds to buy equipment for rescue and firefighting services, and agricultural equipment. The Cabinet also stressed the need for the support of manufacturers of railway cars and locomotives for the Ukrainian Railways (Ukrzaliznytsia). It also announced plans to form a pool of orders for domestic enterprises of the machine building industry.
“The idea that the industry in general and its advanced sectors, namely engineering, should become the core of Ukraine’s economic development was formulated by the business community in the anti-crisis program of joint actions by the government and businesses. Every industrial producer should have equal, government-guaranteed conditions for the development and modernization,” ULIE President Anatoliy Kinakh has said.
In his words, on the one hand, the government claims that the support of the industry is a priority; on the other hand, the National Commission for State Regulation of Energy and Public Utilities from February 1 is to raise power rates for industrial consumers by 1-3%, while NJSC Naftogaz of Ukraine is going to increase prices of natural gas by 22%. This is a significant deterioration in economic conditions for many manufacturers, including machine builders.
“To change the model of Ukraine’s economic development and the transition from raw materials to a model based on investment and innovation is a comprehensive and responsible task. It requires a thorough analysis of current problems the industry is facing, while populism and incompetence must be rooted out. It also requires that a high-quality, system-oriented program be developed and implemented on the basis of international standards and trends to rebuild and develop Ukraine’s industrial sector. The ULIE and the Anti-Crisis Council of NGOs are ready to directly participate in the process,” Anatoliy Kinakh has said.
KYIV. Jan 27 (Interfax-Ukraine) – The next round of negotiations between Ukraine and Turkey on signing a free trade area (FTA) agreement will be held in spring this year, Deputy Minister of Economic Development and Trade, Trade Representative of Ukraine Natalia Mykolska has said at a press conference at Interfax-Ukraine.
“We had a video conference with the Turkish negotiating team. There will be another one in the near future. We expect the next round of negotiations to be held in spring,” she said.
According to her, the last round of Ukraine’s negotiations with Israel on the issue of a FTA agreement was quite intense. The parties have advanced in negotiating the text of the agreement in part of tariff talks.
“If there was a great period of time between the last round and this one, the next rounds will be planned in a shorter term. We will negotiate until the deal is profitable for Ukraine and meets our interests,” Mykolska said.
KYIV. Jan 27 (Interfax-Ukraine) – Exports of organic products from Ukraine in 2016 increased by 2.5 times, to 165,000 tonnes, compared to 2015, director of the Organic Standard certification agency Serhiy Halashevsky has said during the First International Congress Organic Ukraine 2017.
“Organic producers last year exported more than 165,000 tonnes of produce abroad. This is more than EUR40 million,” he said.
According to Halashevsky, 67,000 tonnes worth EUR21 million were exported in 2015.
Currently Ukraine has certified according to organic standards the production of marrow squash, onion, rhubarb, pepper, lavender, sage, rose, rosemary, coriander, sour cream, butter, meat, eggs, mushrooms, nuts, grains and others.
Ukraine imports organic products mainly from EU countries.
As reported, the Organic Ukraine union of certified organic producers predicts that the number of certified land under organic production in Ukraine in 2017 could increase by 10%, to 450,000 ha.
KYIV. Jan 27 (Interfax-Ukraine) – Public joint-stock company Agrarian Fund has fined a contract to supply 10,000 tonnes of flour to Angola, Board Chairman Andriy Radchenko has said in an interview with Dengi.ua publication.
“This year we signed a large contract with Angola to supply 10,000 tonnes of flour. We have starting implementing it,” he said.
He said that this is a pilot batch. If everything is good, the contract could be expanded in the range of goods and their volume.
In 2016, Agrarian Fund sold 240,000 tonnes of flour. The company’s market share grew to 12.2% compared to 11.8% in 2015.
Late 2016 the company launched sales of packaged flour (2 kg) under the Agrarian Fund brand.
“Revenue of the Agrarian fund in 2016 totaled UAH 2.14 billion. The projected net profit is UAH 48.5 million. Our financial target was met by 101%,” Radchenko said.
In 2016 the company sent UAH 1.5 billion to finance farmers and signed 190 contracts to buy 500,000 tonnes of wheat, rye and buckwheat.
KYIV. Jan 27 (Interfax-Ukraine) – The Ukrainian-Arab Business Council recently created has initiated the creation of a bank in Ukraine, the founders of which could be large Arab businessmen.
Council President Sheikh Imad Abu Al-Rub gave the information at a first meeting of the Council on Thursday with participation of Ukrainian and Arab business circles, the press service of the Construction Academy of Ukraine that took part in the meeting.
“We have an idea to create a bank in Ukraine with 100% Arab capital. This would facilitate the entrance of many Arab companies to the Ukrainian market,” he said.
Sheikh Imad Abu Al-Rub said that during negotiations representatives of the National Bank of Ukraine (NBU) and the Ukrainian government preliminarily backed the idea.
He said that at its first meetings the Ukrainian-Arab Business Council is solving tactic tasks – shaping the agenda and establishing contacts between Ukrainian and Arab business circles.
Its core goal is to promote the attraction of at least $100 billion of investment to Ukraine.
“Arab companies would like to invest in agriculture, processing industry and large investment projects. Ukraine is a very rich country, rich of resources and people,” he said.
He said that Ukraine is to pass laws protecting foreign investment, stamp out corruption in the judicial system and facilitate visa issue for business circles.
In turn, Vice President of the Construction Academy of Ukraine Viktor Leschynsky who took part in the meeting confirmed that now Arab companies are actively looking for a possibility of investing in many economic sectors of Ukraine, including industry and construction.
“For example, the Construction Academy of Ukraine is to act the key expert body in appraising construction projects aimed at attracting investment from Arab countries,” he said.
He said that first negotiations regarding construction of grain terminals, elevators and flour mills were held.
“I also heard that Arab businessmen showed their interest in a possibility of building roads on the concession terms, chemical and steel companies. They have a large potential,” he said.
