KYIV. Dec 23 (Interfax-Ukraine) – The state should create conditions for development of the electric transport market in Ukraine and stimulate national production, Ukrainian Infrastructure Minister Volodymyr Omelyan has said.
“I am sure that with the current staff and technological resources, Ukraine must produce electric cars. Our ambitious goal is the arrival of at least three strategic investors from top ten manufacturers to the country,” the ministry’s press service reported, citing Omelyan.
The minister said that Ukraine’s goal is to have the share of electric car sales of total car sales of 15% in 2020 and own production of electric cars.
“I have a strong belief that this market segment exists, and this is the future. We have large chances to occupy own market share, as the starting conditions are equal for everyone. We have support of the Energy and Coal Industry and Ecology and Natural Resources Ministry. I think that the state would also support the development of electric transport in Ukraine,” he said.
According to the minister’s presentation posted by the press service, as of November 2016 a total of 1,630 electric cars were in Ukraine. Their annual growth is 13.2%, and their sales share is 0.7%.
Among obstacles for developing the electric car market is psychological (it is unclear where to charge, how to organize charging and fears to stay without power in a field), financial (expensive cars and repair), institutional (weak conditions for market development) and technological (small batch production and sophisticated technologies).
The minister proposes to exempt imports of electric cars from paying VAT until January 1, 2021. It would cut the price of electric cars by 16.8%, as well as to exempt from paying the registration fee to the Pension Fund for primary registrations until January 1, 2021 (minus 4.8% of the cost) and paying excise duty until January 1, 2021 (the cost of the car will fall by EUR 109).
The minister proposes tax benefits for profit tax and government grants to buy electric cars.
For production of Ukrainian electric cars it is proposed to exempt sale of electric cars from paying VAT until January 1, 2021, the registration fee to the Pension Fund, setting a zero duty on imports of spare parts to electric cars, setting a delay in paying VAT on imports of spare parts and the introduction of a beneficial rate for land tax for electric car manufacturers until January 1, 2028.
KYIV. Dec 22 (Interfax-Ukraine) – Industrial production in Ukraine in November 2016 increased by 3.7% compared to the same month of 2015, while in October it rose by 0.8%, in September by 2%, and in August by 3.4%, the State Statistics Service has reported.
According to a new formula of data provision, the agency said that adjusted for the effect of calendar days industrial production in November from November last year rose by 2.3% against 1.6% in October, 2.2% in September and 1.5% in August.
In general, for the 11 months of 2016 the growth in industry accelerated to 2.1% from 1.9% in the ten months and 2% for the first eight and nine months.
Industrial production in November compared to October this year increased by 0.8%, and taking into account the seasonal factor by 0.7%.
Industrial production in January-November 2015 from January-November 2014 fell by 14%, and in general over the past year industrial production in Ukraine declined by 13.4%, while in 2014 by 10.1%, in 2013 by 4.7%, and in 2012 by 0.5%.
KYIV. Dec 22 (Interfax-Ukraine) – IT outsourcing service exports from Ukraine would grow by 15-20% in 2016 compared to $2.5 billion in 2015, Managing Director of GlobalLogic Ukraine Ihor Beda has said in an interview with Interfax-Ukraine.
“The sector is expanding and the growth pace resumes. It is not at the level seen before crisis when we got used to grow by 30-35% a year. I expect that this year IT outsourcing service exports will grow by 15-20%, and in the current conditions it is not bad,” he said.
He said that GlobalLogic Ukraine with the 12% growth target increased software design exports by 15-17%.
“I can say that GlobalLogic faced a task to have growth of around 12% this year. It is obvious that we would grow by at least 15% and even more – 17%,” Beda said.
GlobalLogic Ukraine is a large IT companies in Ukraine. It is part of GlobalLogic (the United States). The offices in Ukraine have been since 2006 with over 2,700 employees in Lviv, Mykolaiv and Kharkiv.
KYIV. Dec 22 (Interfax-Ukraine) – Ukraine’s Verkhovna Rada has approved granting preferences to Ukrainian aircraft building industry for the period from January 1, 2017 until January 1, 2025.
Bill No. 3457 amending Section XX Transitive Provisions of the Tax Code of Ukraine regarding support of the aircraft building industry was approved by 253 parliamentarians late on Tuesday.
According to the document, for the period from January 1, 2017 until January 1, 2025 aircraft builders are exempted from paying VAT for imports of goods (apart from excisable goods) used for the needs of aircraft building and transactions to supply the results of research and design works to the customs territory of Ukraine.
The aircraft builders are also exempted from paying profit tax. The saved funds will be considered the targeted financing for research and designs works, re-equipment of the technical base, increase of production and introduction of new technologies. The aircraft building companies are also exempted from paying land tax on parcels where industrial facilities are located.
KYIV. Dec 22 (Interfax-Ukraine) – The Individuals Deposit Guarantee Fund and the Finance Ministry of Ukraine on December 21 signed an agreement to sell 100% of shares in PrivatBank, the press service of the fund has reported.
“Since the moment of the transfer the state is the owner of 100% of shares in the bank in the person of the Finance Ministry. This was made thanks to coordinated actions of the Finance Ministry, National Bank of Ukraine (NBU), Deposit Guarantee Fund, National Commission for Securities and the Stock Market, National Depository of Ukraine, Ukrgasbank and Ukreximbank,” the fund said on its Facebook page.
All the required procedures were settled within 72 hours: reserves for active transactions have been formed, additional shares have been issued and placed, amendments to the bank’s regulations have been made, the transition balance has been formed and all the procedures for selling the shares and reshuffle the owners of the bank have been finished.
“PrivatBank’s capital is negative. According to the law on the individuals deposit guarantee system, the Deposit Guarantee Fund sold all the shares of the bank to the Finance Ministry for UAH 1,” the fund said.
In general, it took two days to buy ownership rights to the shares of PrivatBank since the start of the procedure for removing the bank from the market.
The Refinancing Rate is a rate at which the NBU provides loans to commercial banks for replenishment of their monetary reserves and lending funds
