Business news from Ukraine

DIIA.CITY PROJECT RECEIVES EMERGING EUROPE AWARDS – FEDOROV

The Diia.City project was awarded the Emerging Europe Awards, Deputy Prime Minister and Minister of Digital Transformation of Ukraine Mykhailo Fedorov said.
“The Diia.City project received the Emerging Europe Awards in the Modern and Future-Proof Policymaking nomination. The award celebrates the projects of countries that change the life of the developing region of Europe. The winners are chosen by people from all over the world who can vote online for their favorite project. This year, thousands of people took part in the voting, noting the importance of Diia.City,” Fedorov wrote on his Telegram channel.
The minister emphasized that “City was noted for its unique contribution to positioning Ukraine as a powerful IT hub, as well as for creating conditions for the development of companies and attracting investments.”
“I am sure that Ukraine will soon become the largest European IT hub. I am grateful to President Volodymyr Zelensky for the political will and full support in the launch of Diia.City,” Fedorov wrote.

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SAMSUNG APPLIES FOR RESIDENCY IN DIIA.CITY

The Ministry of Digital Transformation of Ukraine has received an application from Samsung for residency in Diia.City, Deputy Prime Minister, Minister of Digital Transformation Mykhailo Fedorov said on his Telegram channel on Tuesday.
In addition, according to Fedorov, the Ukrainian IT company MacPaw also applied for residency in Diia.City.
Samsung Electronics is a company that introduces technologies in the world of smartphones, TVs, and home devices. It is a leader in the introduction and commercialization of innovative technologies in the markets of South Korea, the United States and Japan. In Ukraine, the official office was opened in December last year.
MacPaw is a Ukrainian IT company that has been developing software for Apple systems since 2008. It creates applications that make it easy to work on Mac. The most famous products are the CleanMyMac MacBook cleaner, the Gemini photo deletion program, and the alternative appstore Setapp.
Diia.City is a special legal and tax regime for IT, which involves a set of measures to stimulate the development of the high-tech industry.

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AJAX SYSTEMS WANTS TO JOIN DIIA.CITY

Ukrainian developer and manufacturer of security systems Ajax Systems (Kyiv) has applied for residency in Diia.City, Deputy Prime Minister, Minister of Digital Transformation Mykhailo Fedorov has said.
“Their product is one of the most high-tech in the world. Since its founding in 2011, the company has managed to grow 100 times, attract over $10 million in investments, and also get into the list of Ukrainian companies preparing for an IPO,” he wrote on his Telegram channel last week.
Fedorov also said that if in 2011 95% of the market was occupied by wired systems, then in 2021 about 70-80% belongs to wireless solutions, and Ajax itself occupies a leading position in this segment. Today, the company’s devices protect more than 1 million users in more than 120 countries around the world.
“It’s great that all the company’s products are developed and manufactured in Ukraine. Capacities include R&D offices in Kharkiv, Kyiv and Vinnytsia, as well as two factories in Kyiv,” he added.
As reported by Fedorov, as of February 10, a total of 44 companies have already applied for residency in Diia.City.

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FOREIGN COMPANIES JOIN DIIA.CITY

Not only Ukrainian, but also foreign companies are joining Diia.City today, President of Ukraine Volodymyr Zelensky said.
“We want not only Ukrainian, but also foreign companies to become residents of Diia.City. And as far as I know, both the first and the second, well-known, advanced our and foreign companies, are joining Diia.City today,” he said, opening the Diia.Summit on Tuesday.

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ZELENSKY, IT INDUSTRY DISCUSS DEVELOPMENT OF DIIA CITY

Until 2030, Ukraine will increase the harvest and production of the main types of agricultural raw materials, which will allow the country to consolidate the status of a constantly growing producer and exporter of grains, oilseeds and sunflower oil, while a reduction is expected in production of sugar, milk and beef, the Ukrainian Agriculture Export Association (UAEA) reported.
As the UAEA told Interfax-Ukraine on Friday, the relevant data are contained in a joint report by the Food and Agriculture Organization of the United Nations (FAO) and the Organization for Economic Co-operation and Development (OECD), which compares the average annual production of the main types of agricultural products for 2018-2022 with projections in 2030.
Thus, the growth of the corn crop in Ukraine is projected from 33.99 million tonnes to 44.01 million tonnes (29.4% more), wheat – from 26.01 million tonnes to 35.86 million tonnes (37.8% more), and oilseeds – from 22.04 million tonnes to 26.29 million tonnes (19.3% more).
During the specified period, an increase in production of vegetable oil is also expected from 6.88 million tonnes to 8.4 million tonnes (22.1% more), poultry meat – from 1.15 million tonnes to 1.54 million tonnes (33.9% more), pork – from 0.71 million tonnes to 0.82 million tonnes (15.5% more), and fish and seafood – from 99,000 tonnes to 101,000 tonnes (2% more).
At the same time, Ukraine is projected to reduce milk production from 9.82 million tonnes to 8.93 million tonnes (9.1% less), sugar – from 1.38 million tonnes to 1.24 million tonnes (10.1% less) and beef – from 0.37 million tonnes to 0.33 million tonnes (10.8% less).
“The current forecasts of international organizations almost always consider Ukraine as a constantly growing producer and exporter of grains, oilseeds and sunflower oil, that is, our status as a supplier of raw materials to the world market will be strengthened,” the association summed up.

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REDUCED TAX RATE IN DIIA CITY TO ALLOW UKRAINIAN IT COMPANIES TO COMPETE MORE SUCCESSFULLY WITH FOREIGN ONES – OPINION

Co-founder of the Ukrainian multi-gaming e-sports organization Natus Vincere (NAVI) Oleksandr Kokhanovsky said that he supports the creation of a special legal regime for IT companies – Diia City.
As Kokhanovsky said during the presentation of Diia City on Monday, his plans are to raise at least $100 million investments in projects in which he is involved, while he noted that the conditions of Diia City would mean fewer risks for foreign investors.
According to him, the reduced tax rate, which will operate within Diia City, will allow Ukrainian companies to compete more successfully with foreign ones, and the strengthening of legislation in the field of intellectual property will improve the country’s image in the eyes of international investors.
“Our goal is to make Kyiv a core of e-sports in Europe. And I am very glad that now we have an ally that will speed up this process at times,” he said during the presentation.
Earlier, Deputy Chairman of the Verkhovna Rada Committee on Digital Transformation Yehor Chernev said that he hopes to adopt a legislative framework for the launch of a special legal regime Diia City by mid-summer.
The Ministry of Digital Transformation of Ukraine expects that the tax system for companies in the Diia City mode will help reduce the tax burden 5-fold.
According to Fedorov, thanks to Diia City, the income of the IT industry in Ukraine by 2025 may grow to $16.5 billion, and the number of jobs in this industry is planned to be increased to 450,000.

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