Business news from Ukraine

Business news from Ukraine

Bill on liability for illegal border crossing lacks real enforcement mechanisms – Barristers

Bill No. 13673, which proposes to increase liability for illegal border crossing, does not yet have real enforcement mechanisms, according to Sergey Derevyanko, a lawyer with the Barristers law firm.

“The bill is incomplete, in particular because it is unclear how, for example, those who have left the temporarily occupied territories outside Ukraine and cannot return to their country for various reasons, such as serious illness or caring for a close relative with a disability, should act. According to the bill, such persons must return to Ukraine before the law comes into force or within three months after that, otherwise they will be held criminally liable, which, of course, violates the rights of such persons,” he told Interfax-Ukraine.

Derevyanko also noted that “it is unclear what to do with those people who, possibly without the relevant documents, left Ukraine at the beginning of the war for certain reasons and subsequently did not and do not have the opportunity to return to Ukraine in the near future.”

“This raises a number of questions, in particular, how and to whom these people, while abroad, should report their circumstances, given that changes to the Criminal Code regarding illegal crossing of the state border provide for exemption from criminal liability only on condition that persons who have been outside the country for three months from the moment of crossing the state border have returned to the territory of Ukraine and, before being notified of their suspicion of committing this criminal offense, have voluntarily reported what happened to the law enforcement agency,”

The lawyer also noted that the bill proposes to abolish criminal liability for violating the procedure for moving goods to or from the area of the anti-terrorist operation, “which is logical, since martial law has been introduced in Ukraine and, accordingly, the anti-terrorist operation is not yet being conducted.”

In addition, the bill provides for liability for obstructing the development of border infrastructure (obstructing the construction, development, or destruction/damage of engineering and technical or fortification structures, fences, border signs, border clearings, checkpoints across the state border of Ukraine, etc.).

Derevianko also drew attention to the bill’s provision on liability for conscripts, persons liable for military service, or reservists who violate the period of stay outside Ukraine established by law.

In addition, the bill proposes to increase liability for the illegal transfer of persons across the state border of Ukraine in conditions of martial law or a state of emergency.

“The purpose of the bill is to prevent evasion of conscription for military service through mobilization by ‘fleeing’ abroad, and to provide conscripts with the opportunity to return to Ukraine. If the bill is adopted, after three months, persons of draft age who illegally crossed the state border during martial law and did not return from abroad will be held criminally liable,” he said.

Commenting on what is meant by the “period of stay outside Ukraine under martial law established by law” specified in the bill, Derevyanko explained that “the current legislation does not provide a clear definition, but the terms of stay outside Ukraine for certain categories of citizens during martial law and a state of emergency are defined by Cabinet of Ministers Resolution No. 57 of January 27, 1995.”

“As an example, according to the aforementioned resolution, athletes included in the national teams of Ukraine may stay abroad continuously for no more than 30 calendar days from the date of crossing the state border, but not less than the duration of the event specified in the Unified Calendar Plan of Physical Culture, Health, Sports Events, and Sports Competitions of Ukraine for the corresponding year,” he said.

“It turns out that, as of today, there are no mechanisms for implementing the bill,” the lawyer concluded.

As reported, the Cabinet of Ministers submitted bill No. 13673 to the Verkhovna Rada, which proposes to increase the liability for illegal crossing of the state border.

It is noted that while in 2021 border guards recorded just over 3,000 illegal crossings of the state border of Ukraine, in 2022 such offenses more than doubled, in 2023 there were almost 10,000, in 2024, there will be more than 20,000, and in the first quarter of this year, almost 4,678 persons liable for military service were detained, which is 10% more than in the same period last year (4,539 persons).

The bill proposes introducing a penalty in the form of a fine ranging from 119,000 to 170,000 hryvnia or imprisonment for up to three years. For conscripts, persons liable for military service, or reservists who have exceeded the permitted period of stay abroad during martial law, a fine of 34,000 to 51,000 hryvnia or imprisonment for a term of three to five years is provided.

A fine of between 17,000 and 85,000 hryvnia or restriction or deprivation of liberty for up to three years is also provided for the deliberate damage of border infrastructure.

At the same time, the bill contains a provision exempting citizens from liability if they return to their homeland within a certain period and voluntarily report to law enforcement agencies with a statement about the criminal offense they have committed.

The Ukrainian Ministry of Internal Affairs noted on its Telegram channel on Friday that the draft law had been prepared by the ministry.

“Today, unfortunately, we are seeing mass attempts to evade mobilization by illegally leaving the country. As practice shows, administrative fines do not deter violators,” the statement said.

The Ministry of Internal Affairs explains that the draft proposes transferring the consideration of administrative cases of illegal border crossing to border guards, because it is faster and more effective.

As clarified to Interfax-Ukraine by the Ministry of Internal Affairs, cases of this category are currently handled by courts, and decisions are often delayed.

 

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Germany’s industrial sector continues to shed jobs at  accelerated rate

Germany is losing industrial jobs at an accelerated rate – and this is no longer a localized slump, but a steady trend. According to a fresh study by EY, the industry cut employment by 2.1% over the year, with the auto industry losing about 51,500 jobs (-6.7% year-on-year). Weak demand, expensive energy, competition from Asia, US duties and the expensive transition to electric vehicles are squeezing margins and forcing concerns to optimize staffing levels. In Q2 2025, industry revenue fell 2.1% YoY to €533bn, continuing a series of quarterly declines.

Structurally, the auto sector was the hardest hit, but contractions are also evident in mechanical engineering and metals, while chemicals and pharma are showing relative stability, as evidenced by both public excerpts from the EY barometer and industry commentary in the German business press. In aggregate, German industry has shed around a quarter of a million jobs since 2019, reflecting the cumulative effect of several consecutive shocks.

Operational metrics point to a sluggish cycle, with new orders in manufacturing falling in June and annualized turnover declining; this combination usually signifies weakness over the horizon of the coming quarters, even if individual months produce technical bounces in production. At the macro level, this is combined with a fall in GDP in Q2 and a downward revision of the dynamics of the beginning of the year.

The political backdrop has become tougher, with Chancellor Friedrich Merz openly stating that the current welfare state model is “unfundable” without reforms, signaling a possible shift in budget priorities in favor of incentives for employment and industrial competitiveness. For business, this means less room for “inertia” subsidies and more pressure on productivity, R&D and export adaptation.

What this means for companies and the labor market. Automakers and their supply chain will likely face a second wave of restructuring to accommodate the EV economy and US tariff geopolitics; engineering will continue to lose low-margin positions to Asian competitors, and growth will shift to high-engineering value-added niches. For chemicals and pharma, the window of resilience is preserved through contractual models and pricing power, but energy-intensive segments remain vulnerable to spot gas and electricity disruptions. The labor market will be “two-speed”: release on the assembly line and in basic metalworking in parallel with a shortage of specialists in automation, electronics, software, battery technologies and chemical technologies – this is already evident in the structure of vacancies and industry surveys.

Conclusion. The job cuts are not the “end of industry” but a painful realignment: Germany is losing mass jobs where it is losing out on costs and is trying to retain and grow employment in capital- and knowledge-intensive segments. The key to a turnaround is cheaper energy, faster permitting procedures, prioritization of industrial investments and retraining for the electric and digital agenda. In the meantime, order and turnover statistics signal that the bottom of the cycle has not yet been passed.

https://t.me/relocationrs/1332

 

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POSCO International plans to restore grain terminal in Mykolaiv region and build thermal power plant in Odesa

South Korean corporation POSCO International plans to resume full operation of its grain terminal in Mykolaiv region, according to a press release from the Ministry of Economy, Environment, and Agriculture following a meeting between Minister Oleksiy Sobolev and business representatives during a working trip to Odesa.

The ministry specified that the meeting discussed the prospects for developing infrastructure for storing grain and vegetable products (storage facilities and cold rooms).

“The Ukrainian side emphasized the need to develop mechanisms to protect businesses in wartime and reduce the cost of marine insurance. At the same time, the government is working on a program to support the restoration of trade routes in the Mykolaiv region,” the statement said.

The Korean delegation, consisting of POSCO International Corporation Vice President Kim Young-hoon and POSCO International Ukraine Sales Director An Suk-hyun, noted the Ukrainian government’s cooperation with the Economic Development and Cooperation Fund (EDCF). Through the EDCF and KEXIM Bank programs, Korean companies have the opportunity to participate in the transformational reconstruction of Ukraine. This includes POSCO, which has experience in implementing infrastructure projects abroad.

One of the company’s priorities is the construction of an RDF-fueled (Refuse-derived fuel) thermal power plant in Odesa. Consultations with the city administration on environmental and energy efficiency issues have already been held. The project to build a CHP plant in Odesa has been tentatively included in the list of priorities.

“The project in Odesa is very important for our ministry because it combines an investment component with an environmental component. The initiative is aimed at protecting the environment and introducing modern technologies to reduce emissions. In the future, this practice can be extended to other regions of Ukraine. The Agency for Reconstruction is submitting this project to the Unified Project Portfolio of the State, and it is expected to be evaluated by experts and subsequently approved by the Strategic Investment Council,” Sobolev said.

Regarding the implementation of a joint project with JSC Ukrzaliznytsia – the construction of a railway depot – various mechanisms for attracting investment are currently being considered, in particular, public procurement and public-private partnership instruments. The first option opens up more opportunities for Korean companies to participate in Ukraine’s recovery, while the second option allows for the localization and involvement of Ukrainian manufacturers in the project as part of the “Made in Ukraine” state policy aimed at stimulating the development of national production.

 

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ARMA transferred $3.6 mln from sanctioned company to state

The National Agency for Asset Tracing and Management (ARMA) transferred more than $3.5 million from the sanctioned company ROYAL PAY EUROPE to the state budget, according to ARMA’s press service.

“These funds will be directed to the Fund for the Elimination of the Consequences of Armed Aggression and will be used for the restoration of the country: the construction of housing for those who have lost it, the restoration of infrastructure, the development of medical facilities, and the construction of protective structures,” the statement said.

According to reports, the exact amount is $3,572,585.29.

The press service notes that ARMA continues to ensure that seized and sanctioned assets benefit the state and bring victory closer.

 

Allo has opened first Roborock showroom in Ukraine

Tech retailer Allo has opened Ukraine’s first official showroom for the Roborock home appliance brand, according to Allo’s director of development and format management, Mykola Astapov.

Roborock is a global leader in the vacuum cleaner category, having successfully integrated AI into its gadgets.

“Artificial intelligence has burst into our lives following the advent of a large number of smart gadgets. We work in a very interesting market, where devices are becoming “smarter” every day, helping users in their daily lives. Meet the first official Roborock Shop-in-Shop in Dnipro, based in the flagship Allo Makh store in Most City!” Astapov wrote on Facebook.

According to the Ukrainian Council of Shopping Centers, the Roborock showroom has its own sign and entrance inside the shopping center, with a 3-meter-long demonstration area and special flooring inside so that customers can test the brand’s vacuum cleaners.

Allo has been the official exclusive distributor of the Roborock brand in Ukraine since early 2025.

According to the website, as of August 2025, the chain has 286 stores in 118 cities in Ukraine.

Allo LLC was founded in 1998. According to Opendatabot, the participants of the LLC are PP Dniproinvest 2016 (95.19%), Dmytro Derevitsky (3.6%), and Maksym Raskin (1.21%). Derevitsky is listed as the ultimate beneficiary. Revenue for 2024 was UAH 10 billion 585.6 million, which is 38% more than in 2023, and net profit was UAH 27 million 133 thousand, which is 31.6% more than in 2023.

 

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Average occupancy rate of Ukrzaliznytsia carriages increased by 6.4% despite falling demand

Ukrzaliznytsia (UZ), the monopoly railway operator, carried 639,700 passengers between August 18 and 24, which is 0.8% less than a week earlier, according to a statement by the company on Telegram.

“We are gradually coming out of the peak travel season, but we continue to provide detailed information on passenger traffic statistics!” wrote UZ CEO Oleksandr Pertsovskyi on his Facebook page.

Demand for the most popular route, Kyiv-Lviv, amounted to 128,000 requests last week, which is 15.2% less than the week before. The Kyiv-Odesa route received 71,700 requests, which is 22.3% less than during the period from August 11 to 17.

Demand for the Kyiv-Kharkiv route decreased by 8.6% to 63,300 searches, and for the Kyiv-Peremyshl route by 10.3% to 58,400.

According to statistics, the total volume of traffic still remains higher than last year: during the reporting week, the increase was 3.9% or 23,700 passengers.

The average number of passengers carried per car from August 18 to 24 was 467, which is 6.4% more than during the same period in 2024.

In addition, the number of passengers in children’s groups increased 1.3 times to 23,600, and the number of military personnel transported through the special reserve increased 2.4 times to 12,000.

As reported, in the first half of 2025, Ukrzaliznytsia increased passenger traffic by 1.2% compared to the first half of 2024, to 13.52 million. This is 23% more than in January-June 2023, Pertsovsky previously reported on Facebook.

 

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