The Cabinet of Ministers of Ukraine tentatively in early July this year may approve the Strategy for Recovery of Small and Medium Entrepreneurship (SME) until 2027, Deputy Economy Minister Oleksiy Sobolev said.
“About three weeks are left before it (the Strategy – IF-U) will be approved. Consultations are going on now. We have implemented a lot of wishes (of international partners – IF-U) into the Strategy, and SME recovery is not just a government effort – it is a joint effort. We can create one document for everyone with a list of priorities, ideas for coordination, and the next phase is to create an alliance of SMEs from different countries to implement the strategy. And one of the tools is the EDF (Entrepreneurship Development Fund),” he said on the sidelines of the Ukraine Recovery Conference (URC2024) in Berlin on Wednesday.
The Deputy Minister of Economy noted that about 100 measures are planned within the framework of the Strategy implementation, which include tools such as business grants, tools of training programs, search for partners for enterprises, risk insurance.
“EUR8 billion of financing is planned for the next years, and this is realistic – if you look at the programs of partners in the SME Alliance, it is almost the same level,” Sobolev said.
He reminded that as a result of the Strategy’s implementation, the share of SMEs in total value added will increase to 75% by 2027 (from 70% in 2020), and “many new microbusinesses (with more than two employees) will be created.”
When asked what international assistance Ukraine needs first of all to implement the Strategy, Sobolev said that first of all access to financing is needed, as well as technical assistance.
“Some of the measures are innovative for us, some require additional resources and, of course, we need coordination with partners,” the Deputy Minister emphasized.
As reported, the SME Recovery Strategy until 2027 provides for the improvement of state policy in the field of SME development and support by creating conditions for sustainable development and digital transformation, facilitating access to finance, supporting the growth of SMEs in domestic and foreign markets.
The draft Strategy includes three strategic directions – recovery, ease of doing business and access to markets; digital transformation and entrepreneurial ecosystem; and access to resources, integration and competitiveness.
The Cabinet of Ministers of Ukraine has set from June 1, 2024 the electricity tariff for the population at the rate of 4.32 UAH/kWh with VAT, which is 64% higher than the current tariff of 2.64 UAH/kWh with VAT.
This was announced by the first deputy head of the energy Committee of the Verkhovna Rada Oleksiy Kucherenko.
“4.32 is a single price. For electric heating – up to 2000 kWh at the old price in the heating period, in the summer as for everyone,” he wrote in his Facebook on Friday.
The Cabinet of Ministers of Ukraine has agreed with the proposal of the Ministry of Energy to establish a state-owned enterprise (SOE) Marine Oil Terminal Pivdenny and to include it under the management of the said ministry. This is stated in the Cabinet’s order No. 381-r dated April 30, 2024, “On approval of the creation of SOE Marine Oil Terminal Pivdenny,” published on the government portal.
“The Ministry of Energy, together with NJSC Naftogaz Ukrainy, shall take measures to transfer the objects of the oil distribution and gas distribution system of the marine oil terminal Pivdenny, which are state property and are in the possession of NJSC Ukrtransnafta, to SOE Marine Oil Terminal Pivdenny,” the document says.
A total of 100% of the shares of Ukrtransnafta belong to NJSC Naftogaz Ukrainy.
The Cabinet of Ministers of Ukraine has approved the creation of two new industrial parks (IP) – “Dnister” on the territory of Yampol city territorial community of Mogilev-Podolsky district of Vinnytsia region and “Galicia” on the territory of Kalush in Ivano-Frankivsk region.
According to the Ministry of Economy, total investments in the two industrial parks for the next three years should amount to more than UAH 1.5 billion.
Prime Minister of Ukraine Denis Shmygal at a government meeting on March 29 announced the inclusion of the two new parks in the Register of industrial (industrial) parks, and the creation of the State Office for the development of industrial parks.
According to the Ministry of Economy, the concept of IP “Dnister” assumes the creation of 265 jobs in the processing industry on an area of 17.2 hectares.
“It is assumed that the park will specialize in the production of paper and paper products, processing of plant products and other activities compatible with those listed,” the report explains.
In turn, IP “Galicia” will be located on an area of 19.8 hectares and will provide the creation of up to 1000 jobs.
The main directions of activity are determined by the manufacture of construction materials.
On the territory of the park will be created production of building materials from clay, production of cement, lime and gypsum mixtures, as well as manufacturing of products from concrete, gypsum and cement.
According to the Ministry of Economy, the investors plan to start production of machinery and equipment, introduce processing of industrial and household waste, engage in scientific and technical activities, as well as create enterprises that will work with alternative energy and energy conservation.
As reported, the state budget-2024 for the first time provided for the allocation of 1 billion UAH for the development of infrastructure of industrial parks.
CABINET OF MINISTERS, Galicia, INDUSTRIAL PARK, UKRAINE, Дністер
The government of Ukraine proposes to increase the excise tax rate for alcoholic beverages classified as “intermediate products” from 8.42 to 12.23 UAH per 1 liter, i.e. to the level of the rate for sparkling and carbonated wines.
As reported by the Ministry of Finance, the corresponding bill with amendments to the Tax Code, the Cabinet of Ministers approved at a meeting on Friday.
“Revision of excise duties is due to the need to bring national legislation closer to the legislation of the European Union, which is relevant in view of Ukraine’s status as a candidate country for EU membership,” the Finance Ministry said.
The document provides for bringing in compliance with the norms of the EU Council Directive No. 92/83/EEC classification of alcoholic beverages in the part concerning the definition of the term “intermediate products” – wines and other fermented beverages referred to codes 2204, 2205, 2206 according to the Ukrainian classification of goods for foreign economic activity. In particular, we are talking about vermouth, cider and perry.
The Ministry of Finance predicts an increase in revenues from such an increase at the level of 4.5 million UAH per month.
The Cabinet of Ministers of Ukraine has approved the procedure for the use of funds for partial compensation to agrarians for the purchase of agricultural machinery of domestic production, Prime Minister Denis Shmygal said.
“This year we allocate UAH 1 billion for the program of partial compensation to agrarians who buy agricultural machinery of our Ukrainian production. We will compensate 25% of the cost. We approve today the appropriate procedure for the use of funds and improve some elements of this program,” Shmygal said at a government meeting on Friday.
Ot noted that according to the estimates of the Ministry of Economy, the program will allow to double the share of domestic agricultural machinery in the domestic market.
“Imports will decrease by about 10%. Re-equipment of 4.5 thousand producers will take place. About 1 thousand additional jobs will be created, which in turn will give more taxes to the budget,” – said Prime Minister.
AGRARIANS, CABINET OF MINISTERS, COMPENSATION, purchase of agricultural machinery
