Business news from Ukraine

Business news from Ukraine

Ukrainian parliament plans to regulate GMO products market

The Verkhovna Rada intends to regulate the sphere of handling genetically modified organisms (GMOs) and improve the system of assessing their risks as to their possible impact on human health and the environment.
The relevant draft law No. 5839 “On state regulation of genetically engineered activities and state control over the handling of GMOs and genetically modified products to ensure food security” was approved as a basis at the parliamentary session on Wednesday by 247 MPs (with the required 226 votes), a member of the Golos faction Yaroslav Zheleznyak said in a Telegram feed.
According to the explanatory note to the document, its adoption will allow to delineate the powers of public authorities to eliminate duplication of functions in the field of handling GMOs, to improve the system of risk assessment of GMOs on the possible impact on human health and the environment.
In addition, the document will implement European mechanisms for state registration of GMOs in Ukraine, improve the requirements for labeling of GMO products and establish the rules of their traceability as well as strengthen the state control in the field of GMO handling and establish liability for violation of the legislation in this area.
Thus, the adoption of the draft law will allow achieving systemic compatibility of Ukrainian legislation with the EU legislation in the field of GMO handling, which is envisaged by Ukraine’s obligations under the Association Agreement.

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Ukrainian parliament adopted state budget for next year

The Verkhovna Rada adopted the law “On the State Budget of Ukraine for 2023”, said MP Yaroslav Zheleznyak (Voice faction). “Parliament adopted the State Budget for 2023 in the second reading and in general,” he wrote in the Telegram channel on Thursday. According to Zheleznyak, 295 people’s deputies supported the budget for the next year, 35 abstained, and no one voted against.
The votes were distributed as follows: the Servant of the People faction – 211, the Voice – 10, the Platform For Life and Peace groups – 18, For the Future – 15, Trust – 16, Restoration of Ukraine – 15 , non-fractional – 10.
The factions “European Solidarity” and “Fatherland” did not give a single vote in support of the state budget.
“Now we hope that international partners will appreciate our punctuality and fully finance the pledged … deficit of $ 38 billion,” Zheleznyak wrote.
As reported, on November 2, the Parliamentary Budget Committee positively assessed the government’s finalization of the draft state budget of Ukraine for 2023, noted its agreement with the International Monetary Fund and recommended that the Verkhovna Rada adopt it in the second reading and as a whole.
The Committee proposed to increase spending on covering the activities of the Verkhovna Rada by UAH 120 million, on parliamentary control over the observance of constitutional human rights and freedoms – by UAH 96.56 million, on financing the statutory activities of political parties – by UAH 519.39 million, on events related to with the privatization of state property – by UAH 38.5 million.
In addition, it was proposed to additionally allocate UAH 62.76 million to the Specialized Anti-Corruption Prosecutor’s Office and UAH 16.38 million to the National Corruption Prevention Agency, all of this by reducing the Reserve Fund.
The Budget Committee recalled that in the draft state budget finalized for the second reading, revenues were increased by UAH 50.1 billion (or 3.9%), incl. for the general fund – by UAH 26.5 billion; expenses – by UAH 66.8 billion (or 2.7%), incl. for the general fund – by UAH 43.2 billion.
In addition, the deficit in the general fund was expanded by UAH 16.7 billion (or 1.3%) due to the same additional attraction of external financing – up to UAH 1 trillion 442.9 billion in total. “Thus, it is proposed to set the limit of the state budget deficit at the level of 20.6% of the forecast GDP (increased by 0.6 percentage points compared to the draft law submitted for the first reading),” the committee said, noting the significant risks of not receiving such loans.
As the deputies pointed out, the maximum amount of public debt at the end of 2023 was increased to UAH 6 trillion 422.7 billion, which is 102.3% of the forecast GDP (+2.2 percentage points to the bill submitted for the first reading).
When preparing the draft state budget for 2023 for the second reading, the forecast GDP growth was reduced to 3.2% from 4.6% and inflation to 28% from 30%. As a result, the revised forecast of nominal GDP is UAH 6 trillion 279.3 billion instead of UAH 6 trillion 399 billion.
“At the same time, the explanatory note to the finalized bill notes that more optimistic expectations of financial support from international partners, which will help support the balance of payments, led to an adjustment in the assumptions regarding the hryvnia exchange rate against the US dollar at the end of 2023 – UAH 45.8 / $1 (previous forecast – UAH 50 / $1), while its average annual value remains unchanged (forecast – UAH 42.2 / $1),” the committee said.
He added that the forecast of funds transferred by the NBU has been increased by UAH 51.6 billion and it is envisaged that such funds will be credited 50% each to the general and special funds, while in the bill submitted for the first reading – in full to the special fund. This growth made it possible to additionally allocate UAH 16.1 billion to the Fund for the Elimination of the Consequences of Armed Aggression, increased to UAH 35.5 billion.
Among the main changes for the second reading, the committee singled out an increase in pension spending by UAH 38.9 billion; production and broadcasting of television and radio programs for state needs – by UAH 1.4 billion; the judiciary – by UAH 1.3 billion (including the State Judicial Administration – by UAH 1.1 billion, the Supreme Court – by UAH 245.4 million, the High Council of Justice – by UAH 25.5 million), as well as increase in transfers to local budgets – by UAH 2.519 billion, mainly for social and economic development.
In total, revenues in the draft state budget-2023 finalized by the government for the second reading amount to UAH 1 trillion 329.3 billion, incl. for the general fund – UAH 1 trillion 173.1 billion, expenses – UAH 2 trillion 580.7 billion, incl. for the general fund – UAH 2 trillion 296.5 billion, the maximum deficit – UAH 1 trillion 296.5 billion, incl. for the general fund – UAH 1 trillion 124.6 billion.
The living wage is UAH 2589, the minimum wage is UAH 6700.

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Government proposes to Parliament to update Customs Tariff of Ukraine to improve foreign trade

The Government on Friday approved a bill that brings the Customs Tariff of Ukraine in line with the requirements of the International Convention on the Harmonized Commodity Description and Coding System in the 2022 version, the Ministry of Economy reported.
The agency explained that the current Customs Tariff of Ukraine is built on the basis of such an international system of the 2017 version, while most countries of the world (China, the USA, the EU, Turkey, Switzerland) have already switched to the 2022 version.
In this regard, there are a number of complications associated with differences in commodity codes in the customs clearance of imported products or when comparing the customs statistics of Ukraine and trading partner countries.
“Ukraine is adapting to international standards for the classification of goods. We need this in order to increase our own exports, enter new markets, strengthen competitive advantages in world trade,” First Deputy Prime Minister Yulia Sviridenko, Minister of Economy, said in the release.
The Ministry of Economy clarified that if the bill is adopted, more than 350 changes will be made to commodity codes, mainly in relation to agricultural goods, chemical, forestry, textiles, non-ferrous metals, engineering, transport, etc.
The report clarifies that the new customs tariff does not provide for changes in the rates of import duty on goods.

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PARLIAMENT ADOPTED IN FIRST READING BILL ON INTRODUCTION OF BIM TECHNOLOGIES IN UKRAINE

The Verkhovna Rada adopted in the first reading and as a basis bill No. 6383, which provides for the introduction of building information modeling (BIM-technologies) at all stages of the life cycle of objects.
“In most developed countries, BIM technologies are already actively used in the design of construction projects. In particular, for state orders, their use is mandatory. The Ukrainian construction industry still does not have a very high level of digitalization, and BIM technologies are still used in their activities of only a few organizations. Finally, we will change this and our construction will become modern,” Elena Shulyak, deputy head of the Verkhovna Rada Committee on the organization of state power, local self-government, regional development and urban planning, said on Facebook.
According to her, thanks to BIM technologies, it will be possible to gain access to any information about the construction site, control construction work at all stages, rationally use resources and significantly reduce construction costs.
As reported, the draft law also provides for the mandatory use of BIM technologies in the development of project documentation for the construction of facilities with the involvement of budgetary funds. In this case, a transitional period of five years is established.
Earlier in February 2021, the Cabinet of Ministers of Ukraine approved the concept for the introduction of BIM technologies.

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VERKHOVNA RADA (PARLIAMENT) SHOULD SOON CONSIDER APPOINTMENT OF OMBUDSMAN

The Verkhovna Rada may at the next plenary session consider the issue of appointing its Commissioner for Human Rights, Chairman of the Ukrainian Parliament Ruslan Stefanchuk said.
“I think that personnel issues will be raised there (at the next meeting of the Verkhovna Rada), in particular, I hope that the parliament will be able to appoint a new ombudsman… and Ukraine will get a normal and full-fledged ombudsman,” the speaker said on air of the #UA national telethon on Saturday.
At the same time, he noted that there is no other candidate in the parliament, except for the head of the parliamentary committee on human rights, de-occupation and reintegration of the temporarily occupied territories, national minorities and interethnic relations, Dmitry Lubinets (deputy group “For the Future”).
“The chairman of the Verkhovna Rada or 118 people’s deputies has the right to nominate (the candidature of the Ombudsman). Only I have exercised my right to nominate a candidate, so it will be entered into the hall, ”Stefanchuk specified.
Earlier, First Vice Speaker Alexander Kornienko explained that, according to legislative procedures, the Rada could vote for the appointment of a new Commissioner for Human Rights no earlier than the beginning of July.
As reported, the Verkhovna Rada dismissed Lyudmila Denisova from the post of her Verkhovna Rada Commissioner for Human Rights. The corresponding decision was supported by 234 people’s deputies at the plenary session on Tuesday. The Rada appointed her to this position on March 15, 2018.
Chairman of the Verkhovna Rada Ruslan Stefanchuk announced on June 21 that he proposed to appoint People’s Deputy Dmytro Lubinets (for the Maybutne group) to the position of Commissioner for Human Rights.
Dmitry Lubinets is a Ukrainian politician and lawyer, People’s Deputy of Ukraine of the 8th convocation (from the Petro Poroshenko Bloc) and the 9th convocation (outside parties). In 2019, he entered the Verkhovna Rada as a non-partisan self-nominated candidate in constituency No. 60 (Donetsk region) and became a member of the For the Future parliamentary group, which became a party on June 2, 2020.

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PARLIAMENT SIMPLIFIES FINANCING MECHANISM OF UKRAINIAN CULTURAL FOUNDATION AND ITS EXPERTS

The Verkhovna Rada has simplified the mechanism for financing the current activities of the Ukrainian Cultural Foundation (UKF) and its experts during martial law.
The adoption of the relevant bill No. 7417 as a basis and in general was supported by 313 people’s deputies at the plenary session on Sunday, Yaroslav Zheleznyak, a member of the Voice faction, said in his telegram channel.
According to the explanatory note, in connection with the introduction of martial law in Ukraine, the fund’s expenses in 2022 were reduced by 90%. The authors of the document note that the bill provides for the removal of the current restriction on financing the activities of the UKF in 16% of the annual income of the fund.
This will ensure the proper organization and stabilization of the activities of the UKF, will prevent the dismissal of employees and a complete halt in the activities of the fund, which plays an important role in the development of culture and creative industries in Ukraine. In particular, it is required to simplify the mechanism for financing the current activities and logistics of the UKF, the activities of its expert councils during martial law.

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