Business news from Ukraine

500 SOCIAL INFRASTRUCTURE FACILITIES TO SUPPORT CHILDREN TO BE CONSTRUCTED IN UKRAINE THIS YEAR

This year, it is planned to build about 500 social infrastructure facilities to support and develop the young generation of Ukrainians within the framework of the Big Construction project.
A significant part of the Big Construction national program, which was initiated by the head of state, is made up of social infrastructure facilities, the presidential press service said on Tuesday.
So, this year it is planned to build or restore 95 schools, 70 kindergartens, 80 sports facilities and equip almost 200 outpatient clinics. There are about 500 objects in total.
“To make childhood in Ukraine happy, President Volodymyr Zelensky, the government, the Verkhovna Rada and local authorities are taking measures to protect and support young Ukrainians and create the most favorable conditions for their intellectual, cultural and physical development,” the President’s Office says.

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WORLD BANK ALLOCATES ADDITIONAL $100 MLN FOR UKRAINE TO SUPPORT SMALL AND MEDIUM ENTERPRISES

The World Bank’s Board of Executive Directors approved today $100 million in Additional Financing for the country’s COVID-19 response under the Ukraine Access to Long Term Finance Project, the funds of which will be used to support export-oriented small and medium-sized businesses.
“The World Bank’s Board of Executive Directors approved today $100 million in Additional Financing for the country’s COVID-19 response under the Ukraine Access to Long Term Finance Project,” the WB said on Saturday.
The Ukrainian state-owned Ukreximbank (UEB) is a borrower and implementing agency of the ongoing Bank project, the message reads.
“Bank project, Access to Long Term Finance, and the additional funds will be used by the UEB to provide loans to export-oriented small and medium enterprises (SMEs) affected by the COVID-19 pandemic. The project is focused on providing sub-loans of longer maturity than are currently present on the market,” the WB said.
“These new loans from Ukreximbank will create jobs, stimulate competitiveness, help Ukrainian companies find new customers abroad, increase revenues, and contribute to poverty reduction as Ukraine recovers from the pandemic,” the bank’s press service quoted Arup Banerji, World Bank Regional Country Director for Eastern Europe, as saying.
Implemented since the summer of 2018, the ongoing $150 million Access to Long Term Finance Project has already had a positive effect on Ukraine’s SME sector. More than 50 entrepreneurs from all over Ukraine had already received financial support as part of the project. The majority of SMEs supported by the project work in agriculture and food processing industries, where Ukraine’s exporters hold natural comparative advantages and where SMEs traditionally dominate. The project also provided loans to firms in various production industries: manufacturing of mining equipment and refrigerators, dental and electric equipment, plastic packaging, wood processing, carpet-weaving, etc.
The World Bank’s current investment project portfolio in Ukraine amounts to about $3.3 billion, in 11 ongoing investment projects and one Program for Results operation.

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UKRAINE DOES EVERYTHING TO SUPPORT LOCAL FILM BUSINESS – CULTURE MINISTER

The government is doing everything to support the Ukrainian film business, even despite the COVID-19 pandemic, and Ukraine has gained a good reputation as a partner of international film companies, Minister of Culture and Information Policy Oleksandr Tkachenko has said.
“Even during the difficult period of the pandemic, we are doing everything so that the Ukrainian film business has support from the state, and Ukraine gains a good reputation as a partner of international film companies. We have cool locations and equally cool productions for this. This has already been proven by the film The Last Mercenary from Netflix with Jean-Claude Van Damme in the title role, of which the lion’s share of the shooting took place in Kyiv,” Tkachenko wrote in his Telegram channel.
He also said that Ukraine presents its films and a national stand at the European Film Market of the Berlin Film Festival. There are such domestic films as “Stop-Zemlia” and “Ursus”, animation “Gulliver Returns”, documentary “Puzzles”.
According to Tkachenko, the stand is “a guarantee for the future. Both for promoting our films abroad, and for advertising the system of cash rebates and other benefits from filming in Ukraine.” In particular, the Locations.com.ua service was presented – an online catalog for finding the best locations in our country.

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EUROPEAN PARLIAMENT REITERATES ITS SUPPORT FOR UKRAINE’S INDEPENDENCE

The European Parliament reaffirmed its continued support for the sovereignty and territorial integrity of Ukraine, continuing to condemn the illegal annexation of Crimea and the de facto occupation of certain regions in the east by Russia.
This is discussed in the section “Cooperation in the field of the common foreign and security policy (CFSP)” of the resolution on Ukraine’s implementation of the Association Agreement, voted by the European Parliament during the plenary session. The spokesperson was deputy from the European People’s Party Michael Gahler (Germany).
“The European Parliament Reiterates the Union’s unwavering support for and commitment to Ukraine’s independence, sovereignty and territorial integrity within its internationally recognised borders, and its support for the internationally coordinated sanctioning of the Russian Government and agents who are undermining the country’s sovereignty and territorial integrity,” according to the resolution.
In addition, the European Parliament ontinues to condemn the illegal annexation of Crimea and Sevastopol and the de facto occupation of certain areas of Donetsk and Luhansk and calls on the Russian Federation to fulfil its international obligations, to withdraw its military forces from the territory of Ukraine.
The European Parliament also welcomes the resumption of the peace talks under the Normandy four format on 9 December 2019 in Paris after a deadlock of three years.
The European Parliament strongly condemns Russia’s destabilising actions and military involvement in Ukraine; expresses concern about Russia’s ongoing build-up of military facilities and installations in the Crimean Peninsula. In addition, the European Parliament condemned Russia’s illegal actions aimed at seizing control of the Kerch Strait, as they constitute a breach of international maritime law and Russia’s international commitments, in particular the construction of the Kerch Bridge and its rail link without Ukraine’s consent, the laying of underwater cables and the closing up and militarisation of the Azov Sea, which severely hinders Ukraine’s economic activities. The European Parliament called on the Russian Federation to ensure unhindered and free passage to and from the Azov Sea in line with international law, and access to the occupied Ukrainian territories of Donbas and annexed Crimea for international non-governmental organizations and international humanitarian organisations and to release of all Ukrainian political prisoners and prisoners of war in Russia, Crimea and the parts of Donbas not controlled by the Ukrainian Government.
The European Parliament also considers it possible for the Commission and the European External Action Service to intensify their efforts towards a peaceful settlement of the conflict.
In addition, the European Parliament called on the EU High Representative, the Commission and the member states to provide the necessary support for the creation of the Crimean International Platform, which will coordinate, formalize and systematize efforts aimed at restoring the territorial integrity of Ukraine.

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UKRAINIAN ECONOMY MINISTER COUNTS ON BILL ON LOCAL CONTENT WITH SUPPORT OF MANUFACTURER

Minister of Economy Ihor Petrashko expects to find such a version of the bill on amendments to the law on public procurement, which will satisfy international partners and will support the Ukrainian manufacturer.
“Without stimulating production in Ukraine and using public funds to purchase goods produced in Ukraine, there will be no significant progress in the country,” Petrashko told a news conference during the Ukrainian Forum “Ukraine 30. Coronavirus: Challenges and Responses” held on Tuesday.
According to the minister, all countries of the European Union and the United States use incentives to ensure that public funds primarily go to the purchase of those goods that are produced in their countries.
Petrashko said that at the moment consultations with the EU and the United States on the local content bill (No. 3739 on amendments to the law of Ukraine on public procurement) are underway, as the reaction to it is ambiguous.
The minister added that the use of non-price criteria will benefit Ukraine’s trade with the European Union and the United States.
“Therefore, we want to find a format of persuasion and find the version [of the bill] that will allow us to support the manufacturer,” Petrashko said.

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SKYUP ASKS UKRAINIAN AUTHORITIES TO SUPPORT AVIATION INDUSTRY

SkyUp Airlines (Kyiv) since April 2020 has repeatedly addressed the President, the Prime Minister and the Minister of Infrastructure of Ukraine with letters asking to support the country’s aviation industry, the company has told Interfax-Ukraine.
It is noted that in June 2020, together with other enterprises of the industry, SkyUp appealed to the government with a request to provide state support to the industry. The appeal also outlined the problems the enterprises faced and proposals for their solution in cooperation with the state.
SkyUp emphasizes that, in addition to financial support, there can be many models of assistance – loans, loans under state guarantees, loans under the companies’ obligations, etc.
“The main thing is that this scheme is working, and there is a dialogue with the enterprises,” the company said.
“Today, the issue of state support for the industry remains open. Moreover, to date we have not received compensation for the special flights that were carried out to return more than 12,000 Ukrainians from Egypt in March,” SkyUp added.
Earlier, Ukraine International Airlines (UIA) stated that it had also repeatedly sent requests to the authorities about the need to support both the company itself and the Ukrainian aviation industry as a whole.

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