Ukraine’s Verkhovna Rada has ratified a protocol on Amendments to the Convention between the Government of Ukraine and the Republic of Turkey for avoidance of double taxation with respect to taxes on income and real estate.
An Interfax-Ukraine correspondent has reported that a total of 320 MPs backed bill No. 0005 on ratification of the amendments on Wednesday.
According to the conclusion of the foreign policy committee, the changes relate, in particular, to the procedure for taxation of income received by residents of the state, which is party in the treaty, from the disposal of shares or other rights; the procedure for taxation of remuneration received in connection with employment on a ship, aircraft, or other transport operated by an enterprise of the state, which is party in the treaty. The changes will also concern the exchange of information.
The Cabinet of Ministers has approved a draft law on ratification of an agreement on the development of cooperation with Turkey.
The government took a corresponding decision at a meeting on Wednesday.
According to the explanatory note to the draft law available to Interfax-Ukraine, the implementation of the document will favor the implementation of technical cooperation projects – the transfer of know-how, training of personnel, the supply of equipment and materials, and will also contribute to financial projects and grants to finance the supply of goods, equipment and materials.
The agreement also provides for the creation of a Programs Coordination Office of the Turkish Cooperation and Coordination Agency (TIKA) in Ukraine.
State-owned enterprise Spetstechnoexport and Turkey’s defense company Aselsan have signed a memorandum confirming plans to start production of Turkish tactical communications devices in Ukraine. An Interfax-Ukraine correspondent has reported that the sides signed the document at the 15th international specialized exhibition Arms and Security 2018 opened in Kyiv on October 9.
Spetstechnoexport Head Vladyslav Belbas told Interfax-Ukraine that the signed document confirms mutual commitments of the parties outlined in the offset agreement signed by Spetstechnoexport and Aselsan in July in Ankara after a meeting of the bilateral intergovernmental commission for defense cooperation. The details of the project are being approved.
As reported, in October 2017, Aselsan and Spetstechnoexport signed a government-guaranteed contract in Kyiv for the amount of $43.635 million for delivery of tactical communications to be used in the USB band in the interests of the Armed Forces of Ukraine in 2018 as part of the government defense procurement order. According to Ukrainian legislation, purchases of defense imports under the government defense procurement order amounting to more than $5 million provide for the conclusion of an offset agreement.
ASELSAN, COMMUNICATIONS DEVICES, PRODUCTION, TACTICAL, TURKEY
The Verkhovna Rada has ratified the agreement between the governments of Ukraine and the Republic of Turkey on mutual assistance and investment protection, which provides Ukrainian and Turkish investors with assistance in use of investments, as well as secures guarantees against illegal expropriation and nationalization. Some 244 people’s deputies supported the corresponding bill with the quorum being 226 votes.
According to the website of the Ministry of Economic Development and Trade, the agreement also provides for the free transfer of payments and the application of internationally recognized dispute settlement procedures.
In addition, the parliament ratified the trade agreement between Ukraine and the Kingdom of Thailand.
The corresponding bill, providing for the creation of a special intergovernmental commission on trade, was supported by 241 people’s deputies.
The devaluation of the Turkish lira in the near future will not lead to sharp price fluctuations in export and import transactions between Ukraine and Turkey, but there are fears of a decrease in the revenues of Ukrainian exporters that supply goods to the Turkish market, the Ukrsadprom association has reported. “The main export goods for each country are largely tied to a stable foreign currency and depend more on the situation on the global market rather than on changes in the domestic market. Therefore, in the short term, at least until the end of this year, it’s not worth expecting sharp price fluctuations in export and import operations with Turkey,” the association’s press service told Interfax-Ukraine.
At the same time, according to Ukrsadprom experts, there are some concerns about the possible transition of Turkey in payments on foreign economic transactions with its main partners, including Ukraine, from the U.S. dollar to the national currency.
“We are currently considering the possibility of Turkey’s transition to settlements in foreign economic transactions with its main partners … This could cause inconvenience both in the settlement mechanism itself, and in setting prices and the appropriate exchange rate, because, according to most expectations, the Turkish lira will continue depreciating. As a consequence, there is a possibility of lower revenues for Ukrainian exporters,” Ukrsadprom indicates. However, in addition, there are grounds for a certain reduction in import prices for Ukraine when making purchases in Turkey, the association noted.
Ukrsadprom said Turkey is one of the largest importers of domestic agro-food products. For the first six months of this year, Ukraine exported agricultural products to Turkey for $458 million.
Ukraine in the first half of 2018 exported fruit and berries worth $100 million, which is 59% more than in the same period of 2017. According to the Ukrsadprom association, the main products in the structure of exports remain walnuts worth $64 million, frozen berries for $23 million, apples and pears for $8 million. “Compared with last year, the volume of walnut exports increased from 12,000 to 19,000 tonnes, apples and pears from 6,000 to 24,000 tonnes, while the deliveries of frozen berries decreased slightly from 17,000 to 14,000 tonnes,” the report says.
The main buyers of Ukrainian gardening products, according to the association, are the countries of the European Union, which account for more than 60% of the value of exports.
“In the six months, the largest fruit supplies in monetary terms from Ukraine were made to Poland for $11.2 million, France for $9.9 million, Turkey for $9.3 million, Belarus for $8 million, Germany for $5.1 million, Greece for $5 million and the Netherlands for $4.7 million,” the report says.
As noted, Ukrainian apples are mostly delivered to Belarus (46% of the value of supplies), Moldova (21%), and Sweden (10%).
BELARUS, BERRY, EXPORT, FRANCE, FRUIT, GERMANY, POLAND, TURKEY
