Business news from Ukraine

UKRAINIAN PARLIAMENT SUPPORTS RESIGNATION OF INTERIOR MINISTER AVAKOV

The Verkhovna Rada at a session on Thursday supported the resignation of Interior Minister Arsen Avakov.
Some 291 MPs voted for the corresponding decision.
As reported, Avakov on Tuesday submitted a letter of resignation from office.
Avakov headed the Ministry of Internal Affairs of Ukraine since February 27, 2014. For the first time, he was appointed to a post in the government under Arseniy Yatsenyuk (2014-2016). Later, Avakov was a member of the governments under Volodymyr Groysman (2016-2019), Oleksiy Honcharuk (2019-2020) and Denys Shmyhal (2020-2021).

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UKRAINIAN PARLIAMENT CANCELS CRIMEA FREE ECONOMIC AREA

The Verkhovna Rada of Ukraine has canceled the Crimea free economic area, which was introduced by law in August 2014.
The adoption of relevant bill No. 5502-d on recognizing as invalid the law of Ukraine on the creation of a free economic area “Crimea” and on the specifics of performing economic activities in the temporarily occupied territory of Ukraine and on amending some legislative acts of Ukraine was supported by 328 MPs.
“Taking into account the circumstances that operated in 2014, the law, in fact, introduced preferential conditions for the continuation of economic activities in the temporarily occupied territory. At the same time, the law regulated the implementation of the rights of Ukrainian citizens who remained to live in the temporarily occupied territory and introduced additional restrictions (in particular, customs), in the tax legislation such citizens were equated to non-residents,” the government said in the explanatory note.
The authors of the bill said that such restrictions have led to discrimination against citizens of Ukraine who have remained to live in the temporarily occupied territory or are registered in this territory.
In particular, the status of non-residents led to restrictions on access to banking services in the territory controlled by Ukraine. International and national human rights organizations have repeatedly stated about the negative consequences of the law for the observance of human rights and freedoms.
In addition, bill No. 5502-d proposes to regulate the procedure for persons entering and leaving the temporarily occupied territory, securing the right to free secondary legal aid for Ukrainian citizens living in the temporarily occupied territory and ensuring the implementation of the right to inheritance for such persons.
The Verkhovna Rada at an extraordinary meeting on Thursday also supported bill No. 5501, which amends the Tax Code regarding the administration of taxes and fees in the temporarily occupied territory of the Autonomous Republic of Crimea and the city of Sevastopol, and bill No. 5503 on amendments to the Customs Code in connection with the adoption of the law on the abolition of the Crimea free economic area.

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PARLIAMENT RETURNS 20% VAT RATE FOR LIVESTOCK PRODUCTS, RYE, OATS, SUGAR BEET

The rate of value added tax (VAT) on livestock products, rye, oats, flax seeds and sugar beets, reduced from the beginning of the year to 14%, will be returned to the level of 20%.
An Interfax-Ukraine correspondent has reported that the Verkhovna Rada adopted bill No. 5425-d on Thursday with 309 supportive votes with the required minimum of 226 votes.
The 20% rate will again apply to products with tariff heading 0102 (live cattle), 0103 (live pigs), 0104 10 (live sheep), 0401 (in terms of whole milk), 1002 (rye), 1004 (oats), 1204 00 (flax seeds), 1207 (seeds and fruits of other oilseeds), and 1212 91 (sugar beet).
At the same time, with respect to other grains and oilseeds, the VAT rate remained 14%. In particular, these are goods with codes according to tariff heading 1001 (wheat and meslin), 1003 (barley), 1005 (corn), 1201 (soybeans), 1205 (rape seeds) and 1206 00 (sunflower seeds).
As the head of the specialized agrarian committee Mykola Solsky said earlier, the idea of lowering prices and reducing tax violations at a reduced rate of 14% did not work for livestock products. The adopted bill is aimed at promoting the stability of the price situation in the relevant commodity markets, as well as creating equal and fair conditions for VAT taxation for agricultural producers and enterprises of the processing industry.

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PRESIDENT OF UKRAINE SEES NO REASON TO DISSOLVE PARLIAMENT

President of Ukraine Volodymyr Zelensky said if the Verkhovna Rada does not adopt the law on de-oligarchization, there is no point in dissolving parliament.
“I think that today Ukraine needs stability, that is why there are laws on de-oligarchization and on a referendum, when you can calmly resolve issues. Therefore, there is a law on lifting immunity and a law on impeachment. Everything should be regulated at the legislative level […] there is no point in dissolving the Verkhovna Rada today from the point of view of stability,” Zelensky said during a conversation with journalists at the Ukraine 30. Economy without Oligarchs all-Ukrainian forum.
According to the head of state, he is “confident in the Servant of the People party, which should support the bill.”
“There are also several democratic parties, as they call themselves. I think they should also support this initiative, despite the fact that it was my initiative, not theirs. Although in the future they will say that it was a joint initiative. The main thing now is to go through this process. This is a civilized way out from under the influence of oligarchs – for the government, business, individual officials and for oligarchs,” he said.
At the same time, as Zelensky sad the following: “If it happens that parliamentarians want to turn from legislators into businessmen, the president will expect support in society.”
“Then I will have a plan B,” he said.

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CHAIRMAN OF UKRAINIAN PARLIAMENT SIGNS ORDER TO CONVENE EXTRAORDINARY MEETING

Chairman of the Verkhovna Rada Dmytro Razumkov has signed an order to convene an extraordinary plenary meeting of the Rada in connection with the demand of 156 deputies, the press service of the parliament reports.
According to the released agenda, the deputies will hear information from the heads of the Security Service of Ukraine, the National Police and the State Bureau of Investigations regarding the events that took place near the building of the President’s Office on March 20, and will consider a draft resolution No. 5295 condemning these events.
The agenda also provides for the consideration of draft resolutions on the early termination of the powers of MPs Oleksandr Skychko and Ihor Kolykhayev, as well as on the appointment of early elections for the mayor of Kharkiv and Shehyni rural head in Lviv region.

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UKRAINIAN PARLIAMENT MAY UNBLOCK LARGE-SCALE PRIVATIZATION

The Verkhovna Rada Committee on Economic Development has recommended the adoption at the second reading bill No. 4543 on unblocking large-scale privatization, while its consideration is planned for next week, Deputy Head of the Committee Roksolana Pidlasa (the Servant of the People faction) told Interfax-Ukraine.
“The committee has just recommended bill No. 4543 on unblocking large-scale privatization for the second reading without changes. It is planned that next week the bill will be considered by the Verkhovna Rada,” she said after the committee meeting on Friday.
According to Roksolana Pidlasa, the law, if adopted, should enter into force the next day after its publication.
“For the first half of 2021, within the framework of large-scale privatization, it is planned to have President Hotel, United Mining and Chemical Company [UMCC], and First Kyiv Machine-Building Plant [previously Bolshevik plant]. There are audit reports on them and the process of preparing for privatization can be started,” the deputy head of the committee said.
As reported, the Verkhovna Rada on February 4 adopted government bill No. 4543, which provided for unblocking the large-scale privatization process.

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