Business news from Ukraine

USAID WILL ISSUE $400,000 FOR KHARKIV SERVICES CENTER – OFFICIAL

KHARKIV. Sept 21 (Interfax-Ukraine) – The United States Agency for International Development (USAID) will provide assistance in setting up and organizing the work of the Kharkiv regional center of administrative services, Acting Head of Kharkiv Regional State Administration Yulia Svetlychna has said.

“We expect organizational, consulting, methodological, as well as financial assistance for the organization of this process from our international partners. USAID has expressed the desire to help us with office equipment (computers and software). As for USAID assistance, we plan to raise about $400,000 to organize this administrative center,” she said at a press conference in Kharkiv.

She clarified the project does not foresee money allocation from the regional budget.

She said the center will provide about 400 administrative and social services.

The center is to open in April 2017.

CABINET ENDORSES SIGNING OF AGREEMENT WITH CHINA ON 50 AMBULANCES FOR UKRAINE’S HEALTH MINISTRY

KYIV. Sept 20 (Interfax-Ukraine) – Ukraine’s Cabinet of Ministers has endorsed the signing of an agreement with the government of China on handing over 50 ambulance vehicles to Ukraine’s Health Ministry.

A respective decision was taken by the government at its meeting on Wednesday, an Interfax-Ukraine correspondent reported.

“The Economic Development and Trade Minister has been authorized to sign [the agreement],” First Deputy Prime Minister and Economic Development and Trade Minister Stepan Kubiv announced at the meeting.

Under the agreement, Ukraine will be able to receive 50 specially equipped ambulance vehicles worth $3.7 million from China, he said.

 

CABINET DISTRIBUTES UAH 223.6 MLN FOR STATE SPACE PROGRAMS

KYIV. Sept 20 (Interfax-Ukraine) – The Cabinet of Ministers has distributed UAH 223.6 million for state targeted programs and state orders in the space sector.

According to resolution No. 598 of September 8, the government approved the order of using funds in 2016 provided in the national budget for the implementation of the National Targeted Scientific and Technical Space Program of Ukraine for 2013-2017 and the distribution of state budget funds for state programs in the space field.

In particular, the government allocated UAH 8.4 million for transfer of Earth observation space technologies into the real economy sector GEO-Ukraine, UAH 121.7 million for obtaining data from the space Earth observation system and the Sich geophysical monitoring, UAH 15.4 million for space activities in the interests of national security and defense (activities are carried out under the state defense order), UAH 32.25 million for studying Ionosat solar-terrestrial and seismic ionospheric ties, and UAH 17.34 million to ensure independent access to the space.

GOVERNMENT APPROVES STRATEGY OF PENSION FUND MODERNIZATION AND DEVELOPMENT UNTIL 2020

KYIV. Sept 20 (Interfax-Ukraine) – The Cabinet of Ministers has approved the strategy of modernization and development of the Pension Fund of Ukraine until 2020, which provides for the introduction by the end of 2016 of the possibility of servicing citizens in any office of the fund regardless of the place of residence.

“This strategic document foresees strategic directions in the development and modernization of the Pension Fund until 2020,” First Deputy Minister of Social Policy Olha Krentovska said.

Pension Fund Head Oleksiy Zarudny noted the strategy foresees the introduction in 2016 of the possibility of servicing citizens in any office of the fund regardless of the place of residence, while providing services to citizens will be provided at the community level.

It is planned to introduce electronic pension service and create a unified electronic database of pension cases.

FOREIGN ECONOMIC RELATIONS WITH TURKEY NEED ACCELERATION

Although Ukraine is trying hard to solve the problem of diversification of exports due to the loss of eastern markets and the Republic of Turkey may become the best partner in many respects, trade between Ukraine and Turkey is on the decline. The industrial community together with government agencies should strive to change the situation. This was discussed at a meeting of President of the Ukrainian League of Industrialists and Entrepreneurs, head of the Anti-Crisis Council of NGOs Anatoliy Kinakh and Commercial Counselor of the Embassy of Turkey in Ukraine Haidar Kocak.

Trade between Ukraine and Turkey in 2015 fell by a quarter and the first half of 2016 it slid by another 17%. This does not fit into the foreign strategy of both countries and needs to be fixed. What is more, the Turkish industry needs such commodities as steel and fertilizers, which are produced by Ukraine in sufficient quantities.

The Turkish side insists that the introduction of free trade regime between the countries can significantly improve the situation. Progress was achieved in that issue, but Ukraine has decided to review certain positions. “In the end, it has turned out that Ukraine would like to leave 80% of traditional Turkish exports outside the free trade agreement, but precisely these positions are of paramount importance to us,” the commercial counselor stressed.

Anatoliy Kinakh in turn said that the process of negotiations on free trade is always difficult because every country seeks to increase exports of value-added commodities and limit the supply of raw materials. All of them are trying to protect the domestic markets and support domestic producers.

“However, in view of the fact that Turkey is our very important trade partner, I believe that the approval of free trade is timely, and agreement of the positions must accelerate. That is why we are ready to arrange a joint roundtable meeting in October this year with Turkish producers, members of the Union of Industrialists and Entrepreneurs of Turkey and Ukraine that are ULIE members, representatives of ministries and departments to discuss all disputable issues,” Anatoliy Kinakh said.

Haidar Kocak informed the ULIE president that two Turkish companies in Ukraine were being inspected by Ukrainian law-enforcement agencies, which slowed their work and reduced efficiency.

The leader of the Ukrainian League of Industrialists and Entrepreneurs said that companies from neighboring states would have support from the ULIE and its employees in protecting the rights and interests of businesses.

The sides expressed confidence that the Ukrainian-Turkish economic and investment relations have every reason to continue sustainable development based on trust, mutual benefit and understanding.

UKRAINE MAY JOIN EUROPEAN UNION’S INVESTMENT PLAN

Partners from the European Union do not rule out that Ukraine may join the EU’s Investment Plan, however, the main condition is the successful adaptation of Ukraine’s economy to regulations and standards adopted in the EU and the accelerated modernization of the economy.

Boosting Ukraine’s participation in EU projects was discussed by Ukrainian delegates, who attended the 26th Economic Forum of Central and Eastern Europe in the Polish city of Krynica Zdroj, along with representatives of European institutions, politicians and diplomats. The Ukrainian delegation included industrialists and entrepreneurs, as well as activists of the National Forum “Transformation of Ukraine.”

Joining the so-called “Juncker plan” is in Ukraine’s interest. This is a five-year European Union Investment Plan worth EUR 315 billion. It was proposed by President of the European Commission Jean-Claude Juncker.

The project is based on injection of EUR 21 billion in seed money in the economy in order attract private investment, which should make up most of the target sum.

“Our goal is to join the project. EU partners do not rule out this, but we need to do our homework in the end: adapt the economy, create incentives for growth of business and investment activity, fully switch to international safety, quality and production standards,” President of the Ukrainian League of Industrialists and Entrepreneurs (ULIE) Anatoliy Kinakh said.

He sees that this “slightly open” window of opportunity is an excellent incentive for quicker and more efficient reforms in the country. What is more, there are achievements in that direction – a bailout program developed by the Anti-Crisis Council of NGOs to overcome negative economic consequences and a concept paper for transformation of the state, which was prepared by the National Forum “Transformation of Ukraine.”

The Transformation of Ukraine Forum includes representatives of the Ukrainian state institutions, politicians, the clergy, businessmen, public figures, EU representatives, foreign experts and diplomats. One of the members of the Supervisory Board is an active lobbyist of Ukraine – Jerzy Kwiecinski, who is Secretary of State in Poland’s Ministry of Economic Development and a member of the Cabinet of Ministers of the Republic of Poland. He helps facilitate not only relations with the government but also with the parliaments of neighboring states.

Polish experts are ready to share their experience, participate in the elaboration of the concept of a program for the development of Ukraine. They also expressed their intention to continue support of Ukraine’s position regarding the deepening of cooperation with the EU, greater integration under joint projects.

“But we do not focus only on friendly partners from Poland. We use the ULIE’s representative office in Brussels to be in constant dialogue directly with the leadership of the EU, the European Parliament, the European Commission, and others. Partners from BusinessEurope, the largest business association in Europe, have also been engaged in lobbying Ukrainian business’ interests and strengthening their contacts with European colleagues,” the ULIE president said.

The ULIE signed a memorandum of cooperation with BusinessEurope, which involves, among other things, joint monitoring of EU programs and the participation of Ukrainian businesses and NGOs in them.

“These are great and yet unrealized opportunities. We should do our best and avail ourselves of these opportunities,” Anatoliy Kinakh said.

European officials, heads of national government, businesspeople gathered for one of the most important economic and political events in Central and Eastern Europe, the 26th Economic Forum, held in the Polish city of Krynica Zdroj on September 6-8. The event focused on the EU’s unity.

They discussed macroeconomics, management, international politics and security. This is a unique opportunity to reach preliminary agreements on major subjects of economic life, energy and others.