Business news from Ukraine

Business news from Ukraine

DENMARK PROPOSES TO INCREASE AID TO UKRAINE

The Danish government proposes to increase aid for Ukraine’s civil needs from DKK 1.2 billion to DKK 1.5 billion next year, the Ministry of Foreign Affairs reports.
“Denmark will increase the scope of assistance for the development of Ukraine, which will again become the largest recipient country of Danish aid. In the Finance Law for 2024, the government proposes to increase from DKK 1.2 billion to DKK 1.5 billion (about $43.5 million) allocated for the civil needs of Ukraine and the countries of the Eastern Neighborhood within the Ukraine Fund of Ukraine,” the Danish Foreign Ministry said in a statement.
Minister for International Development and Global Climate Policy Dan Jørgensen noted that “assistance to Ukraine and the Ukrainian people is a top priority for the government.”
“Therefore, this year we again allocate a record high amount to civilian needs in order to continue to provide important support and help overcome the difficult consequences of the war. Ukraine’s recovery will be long, and the needs are huge,” the minister stressed.
The Ministry of Foreign Affairs indicates that the assistance will be aimed at providing emergency assistance to the victims of the war, as well as restoring the most important infrastructure of Ukraine.
“At the request of Ukraine itself, the government has taken on special responsibility for the city of Mykolaiv and its restoration. In Mykolaiv, Denmark is helping provide better access to water and heat, as well as restoring and repairing residential areas, schools and medical facilities,” the Danish ministry notes.
In addition, Denmark will assist countries such as Georgia and Moldova by accelerating the reforms and large-scale democratization processes they face as the consequences of the Russian invasion extend to neighboring countries with Ukraine, “which are suffering from Russian influence, the reception of Ukrainian refugees and power supply problems.”

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Net inflow of people to Ukraine before September 1 has sharply increased

For the seventh week in a row (from August 26 to September 1), the number of inbound border crossings into Ukraine exceeds the number of outbound crossings: due to the start of the school year, the difference this week jumped to 48,000 compared to 12,000-13,000 in the previous two weeks.

According to data from the State Border Guard Service of Ukraine released on Facebook, exit crossings fell to 327,000 this week from 362,000 last week, while entry crossings remained at 375,000.

The number of vehicles crossing Ukraine’s western border, according to the agency, also fell in the 35th week of the year, from 145,000 to 141,000, while the number of vehicles with humanitarian goods cleared fell from 704 to 653.

The Polish Border Guard Service also recorded an increase in the net inflow to Ukraine over the last seven days – up to 25.8 thousand from 6.2 thousand the previous week and 15.9 thousand a week earlier.

According to the Polish Ministry, the number of those who entered Poland from Ukraine during the week decreased from 229.0 thousand to 208.8 thousand, while the number of those traveling in the opposite direction decreased from 235.2 thousand to 234.6 thousand.

In general, since the beginning of the war, by September 1, 2023, 15.18 million people had arrived in Poland from Ukraine, while 13.47 million people had traveled in the opposite direction.

As reported, since May 10, 2022, the outflow of refugees from Ukraine was replaced by an inflow, which lasted until September 23 and amounted to 409 thousand people.

However, since the end of September, possibly under the influence of news about mobilization in Russia and “pseudo-referendums” in the occupied territories, and then massive shelling of energy infrastructure, an excess of the number of those leaving over those entering was recorded. It temporarily stopped in the second half of December – early January for the period of holidays, but then resumed again and in total since the end of September by the anniversary of the full-scale war reached 223 thousand people.

Since that time and up to today, thanks to the statistics of the last seven weeks, the number of border crossings to enter Ukraine has exceeded the number of crossings to leave by 159 thousand.

As Deputy Minister of Economy Serhiy Sobolev noted in early March, the return of every 100 thousand Ukrainians home gives a 0.5% increase in GDP.

According to the UNHCR, the number of Ukrainian refugees in Europe as of August 29 was estimated at 5.834 million, and in the whole world at 6.203 million, which is 4,000 and 6,000 more than a week ago.

In Ukraine itself, according to the UN data as of the end of May, there were 5.088m internally displaced persons.

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Ukraine’s 2024 budget envisages raising minimum wage to UAH 7100 from January 1

The minimum wage in Ukraine may be raised to UAH 7100 from January 1, 2024, and from July 1 – to UAH 8000 per month from the current UAH 6,700 per month, First Deputy Finance Minister Denis Ulyutin said at an online meeting with all-Ukrainian associations of local governments and finance departments of regional state administrations and Kyiv City Council to discuss the main indicators of the state budget.
As the Ministry of Finance reported on its website on Friday, during the budget forecasting it is also planned to increase from January 1, 2024 to 3195 UAH per month the forecasted salary of the employee of the I tariff category of the Unified Tariff Schedule, frozen from December 1, 2021 at the level of 2893 UAH.
And at the end of May this year, the Ministry of economy proposed to increase the minimum wage from 2024 by 14.2% – up to 7651 UAH, and the size of the official salary of the employee of the І tariff category of the Unified tariff grid to 3443 UAH.
“In 2024 to support local governments will continue to provide almost 24 billion UAH of additional subsidy from the state budget to local budgets for the most affected frontline and frontline territories. The basic subsidy from the state budget to local budgets for the next year is projected in the amount of UAH 20.2 billion,” Ulyutin also said.
In addition, Deputy Finance Minister Roman Yermolichev pointed out that from January 1, 2024, remuneration of civil servants will be based on the classification of civil service positions and the system of grades. According to him, this will allow to introduce transparent conditions of labor remuneration in the system of public authorities.
Regarding the educational subvention, he said that now the resource for it, taking into account the increase in social standards, is taken into account, but without distribution to the territories, because the indicators from the Ministry of Education are expected after September 5.
“Expenditures on the health sector will be reimbursed from the state budget, the subvention to support individual medical institutions is retained for next year. As for the social sphere, it should be noted that we are now working on a mechanism to determine a unified model of co-financing of social services under martial law and laying the resource for the social project “Veteran’s Assistant”, – added Yermolichev.
It is indicated that during the discussion were also discussed the issues of balances on the accounts of local budgets, distribution of personal income tax from the military, features of horizontal equalization of tax capacity of local budgets, as well as the main approaches and problems of distribution of inter-budget transfers under martial law.

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Meta may introduce paid subscriptions to Instagram and Facebook

U.S. corporation Meta is considering introducing paid Facebook and Instagram subscriptions with no ads for users in the European Union, The Wall Street Journal reports.
It is reported that this could be a response to regulatory scrutiny and a sign of how people perceive technology in the U.S. and Europe.
“Those who pay to subscribe to Facebook and Instagram won’t see ads on the apps. This could help Meta avoid privacy concerns and other scrutiny from EU regulators by giving users an alternative to the company’s advertising services, which rely on analyzing people’s data,” the report said.
According to the publication, Meta will also continue to offer ad-free versions of Facebook and Instagram in the European Union. It is noted that it is still unclear how much the paid versions of the applications will cost and when the company will be able to release them.

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Ukrainian Taryan Group to build complex on island of Bali

Investment and development group of companies Taryan Group (Kyiv) has announced its entry into the international real estate market with the Taryan Dragon project on Bali, Indonesia.
“Taryan Group is becoming an international developer. We are pleased to announce a new dream project – Taryan Dragon in Bali, Indonesia,” said the group’s founder Artur Mkhitaryan on Facebook.
According to him, the complex will be implemented in the format of resort&residence investment real estate. The return on investment is expected to be 17%. The architect of the project is the British John Dawes.
Taryan Group, founded in 2011, is implementing a project of a premium residential complex Taryan Towers for three buildings at 12 John Paul II Street in the capital (commissioning of the complex is scheduled for the end of 2023).

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