Business news from Ukraine

AGRARIAN, INDUSTRIAL ASSOCIATIONS ASKING GOVERNMENT TO SOLVE PROBLEM OF SHORTAGE OF GONDOLA CARS

Representatives of large associations of industrial and agroindusitral enterprises of Ukraine have asked the Ukrainian prime minister to solve the problem in the sphere of transportation by rail, in particular, the shortage of gondola cars and rolling stock. The request is outlined in an address posted on the website of the Ukrcement association
“Rail transport provides for about 60% of the total volume of cargo transportation in Ukraine. To ensure efficient operation of enterprises of the leading sectors of the economy of our state, it is the freight transportation by rail that is critical. We are only approaching the period of the peak transportation, and the enterprises are already experiencing an acute shortage of gondola cars. These all restrains development of metallurgical, chemical, cement and agrarian sectors, “the associations said.
The authors of the document said that industrialists and agrarians do not receive the ordered cars in due time and do not have access to those for which they have already paid the rent. The cars are staying idle at cross rail stations, and enterprises continue incurring losses and disrupting the implementation of contracts.
In addition, the associations asked the prime minister to invite representatives of the associations of industrial enterprises and the agroindustrial complex to the government meeting, where the report of the board chairman of PJSC Ukrzaliznytsia will be heard.
The letter was signed by the Federation of Metallurgists of Ukraine, the association of enterprises Ukrmetallurgprom, the Ukrainian Grain Association, the Ukrainian Chemists Union, the Ukrainian Association of Ferroalloys Producers and the Association of Cement Manufacturers Ukrcement.

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UKRAINIAN GOVERNMENT PLANS TO INSPECT TELECOM BUSINESS

The Cabinet of Ministers of Ukraine plans to permit the National Commission for Communications and Informatization Regulation (NCCR) to inspect the telecommunications market, after placing the commission to the list of public supervision agencies to which the moratorium on inspections of business extended for 2018 does not apply. This is outlined in a draft government resolution on the approval of the action plan aimed at improving the quality of mobile communications services approved by the commission and posted on the official website of the commission.
The action plans also envisages the approval of the reviewed quality indicators and their limits for voice calls, SMS messages and Internet access in mobile communications networks.
It is proposed that the list of quality indicators is expanded with the following ones: average data upload and download speed, delays between the upload and download packages, package delay variations and the loss of packages without limits, as well as the response time of the operator call center’s specialists with setting the limits.
It is planned to take into account the impossibility of restoring telecom services in one day period if any emergency, accident or damage caused to linear and fixed facilities occurs if the fact of an emergency is recorded in law enforcement agencies in line with the Ukrainian legislation.
The operators would have a possibility of providing general telecom services using fixed end user equipment with the front-end.
As reported, the moratorium on inspections of business in Ukraine was extended until 2019. The Cabinet of Ministers of Ukraine placed 13 public agencies to the list of the agencies to which the moratorium does not apply.

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GOVERNMENT SETS UP COUNCIL FOR TRADE AND DEVELOPMENT

The Cabinet of Ministers of Ukraine has set up the Council for Trade and Sustainable Development, which will be headed by Deputy Economic Development and Trade Minister and Ukraine’s Trade Representative Natalia Mykolska, the Economic Development and Trade Ministry has reported on its website. The government made the decision on Wednesday.
“The Council’s task is to organize the work of the advisory group on trade and sustainable development in accordance with the provisions of the EU-Ukraine Association Agreement on the support of civil society, trade and development,” the report says.
The council will include representatives of government bodies and civil society.

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MINISTRY OF INFRASTRUCTURE WILL PROPOSE GOVERNMENT TO COMPENSATE INVESTMENTS IN SEAPORTS

The Ministry of Infrastructure of Ukraine in the near future might submit a draft resolution on compensation of investments in the port industry to the Cabinet of Ministers for consideration, Deputy Prime Minister Volodymyr Kistion has said. “We are talking about compensation of investments in the port industry of Ukraine, legalization of objects of port infrastructure that are not registered for objective reasons, both public and private,” he said at the Ukrainian Ports Forum 2018 in Odesa. In addition, the official expressed confidence that the ministry will soon complete the development of a new methodology for calculating port dues, as well as preparation of other legislative acts that will promote the development and modernization of seaports and will further provide opportunities to reduce port rates. At the same time, Kistion noted that since the beginning of the year the government has reduced port rates by 20%.

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GOVERNMENT APPROVES STATE PROGRAM OF COOPERATION WITH UKRAINIAN DIASPORA WITH UAH 106 MLN FINANCING

The Cabinet of Ministers of Ukraine has approved the state program of cooperation with foreign Ukrainians for the period until 2020 with approximate financing of UAH 106 million. The corresponding decision was made at a government meeting in Kyiv on May 10. It says the aim of the program is to ensure the deepening of cooperation with foreign Ukrainians by increasing the effectiveness of work of the executive bodies with this category of Ukrainians and their public organizations.
The approximate amount of expenditures under this state program is UAH 106 million, in particular UAH 98 million at the expense of the national budget, UAH 7.8 million from local budgets, and UAH 200,000 from other sources.
So, in 2018 it is planned to spend UAH 33.7 million on the program, some UAH 36 million in 2019, and UAH 36.3 million in 2020.
It is expected that the implementation of this program will create conditions for consolidation of efforts of foreign Ukrainians to promote an independent, democratic and rule-of-law state in Ukraine; will confirm the positive image of Ukraine in the world; will support the European integration of the country; contribute to strengthening the cultural, informational and linguistic needs of foreign Ukrainians; will ensure the preservation and development of the Ukrainian language abroad

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GOVERNMENT TO CREATE PROMOTION OFFICE TO SUPPORT SMALL AND MEDIUM-SIZED ENTERPRISES

The Cabinet of Ministers of Ukraine has approved a strategy for developing small and medium-sized enterprises (SME) until 2020, which in particular, envisages the creation of the SME Promotion Office and a network of business support centers. The decision was made on May 10.
The draft action plan of the strategy, a copy of which has been sent to Interfax-Ukraine, includes the implementation of a pilot project on partial securing loans for SME and designing of proposals on the possible schemes of securing these loans.
In addition, the Strategy provides for simplification of the procedure for closing down an enterprise, improving the licensing and permitting system, as well as improving the access of SME to public procurement, according to the document. In particular, the draft plan provides that the state-owned enterprise ProZorro should, by the end of the year, introduce separate sections for the business entity category in the participant registration card in the electronic procurement system, depending on the number of employees and revenues from any type of activity for the year, according to the action plan.
The government also finally abolished the use of seals.

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