The United Arab Emirates and Ukraine concluded an economic agreement aimed at increasing their bilateral trade, which has fallen sharply from its pre-war level.
Non-oil trade between the two countries reached $386 million last year, down from more than $800 million before the Kremlin’s February 2022 invasion of Ukraine, Thani Al-Zeyoudi, the UAE’s minister of state for foreign trade, said in an interview. The fall in trade is not specific to the Gulf nation, and similar trends with Ukraine since the start of the war can be seen across the globe, he said.
The agreement finalizes a trade pact that was announced two years ago, and is part of the UAE’s goal of growing its non-oil foreign trade with multiple nations. The deal aims to alleviate or remove tariffs on some products, and strengthen supply chains to the wider region for major exports such as grains, machinery and metals, according to a statement on the agreement released Monday.
Kyiv estimates the accord may boost Ukraine’s gross domestic product by 0.1% in the medium- to long-term, the Economy Ministry said in a statement on its website.
“Ukraine is a bridge for our exports to Europe, and an important source for our imports related to food security,” Al-Zeyoudi said in the statement. The agreement “will provide Ukrainian companies and entrepreneurs with a new platform that allows them to expand towards growth markets in Asia and Africa through the UAE.”
Al-Zeyoudi said the pact would “play an active role in revitalizing the Ukrainian economy, and would provide new opportunities for the business communities of the two friendly countries.”
“It is not a classic free trade agreement, it is comprehensive, and it includes goods, services, investments, digital trade, and so on,” Ukrainian Economic Minister Yulia Svyrydenko said. The ministry said it expects exports of metals and vegetable oil to rise as a result of the deal.
Joint investment between the two countries reached $360 million in 2022 across several sectors including logistics and infrastructure, travel and tourism, and technology, according to the statement.
The energy-rich UAE has been signing similar pacts with several countries it is targeting for trade growth such as India, Israel and Turkey. In 2021, the Gulf country said it planned to deepen its trade ties in fast-growing economies by drawing $150 billion in foreign investments.
The UAE has maintained ties with both Ukraine and Russia since the start of the Kremlin’s invasion. The Gulf nation’s business capital Dubai has been a destination for both Russians and Ukrainians.
As of April 2024 in Ukraine blocked more than 2 500 websites that provided the activity of gambling, also investigated more than 450 criminal offenses on the facts of their illegal organization, reports the Office of the Prosecutor General.
“As of April 2024, more than 450 criminal offenses are being investigated for illegal organization of gambling. Suspicion of 21 persons has been reported. The indictments against 72 people, including 7 indictments against 68 participants of criminal groups were sent to court,” – said in the message published on the website of the Office of the Prosecutor General.
“According to the results of recommendations sent by law enforcers to block illegal resources so far blocked more than 2,500 websites that provided the activity of conducting gambling and which hosted online casino resources without the appropriate license,” – noted in the message.
In 2023, law enforcers registered 169 offenses on the facts of illegal organization of gambling, 74 persons were notified of suspicion. 52 indictments against 97 people were sent to court. Law enforcers seized more than 7 thousand units of computer and other equipment, conducted about 500 searches and 700 inspections of addresses. The activity of 10 casinos was stopped. 10 indictments were sent to court against 42 people who are members of criminal groups.
“Prosecutors also provide procedural guidance in proceedings on a number of large companies involved in the organization and operation of illegal online casinos. Among examples: provided procedural guidance in criminal proceedings on the legalization of funds from illegal online gambling for a total of UAH 4.8 billion,” – stated in the message.
In addition, law enforcers are carrying out a pre-trial investigation into the sub-sanctioned legal entity, which is under the control of structures and citizens of the Russian Federation, organized and conducted illegal betting activities on the basis of resources of the international bookmaker’s office.
As reported, on April 20, the President of Ukraine Volodymyr Zelensky enacted the decision of the National Security and Defense Council of Ukraine “On countering the negative consequences of gambling on the Internet”.
Deputy Prime Minister – Minister of Defense of Australia Richard Marles announced another package of military aid to Ukraine from Australia in 100 million dollars.
“Australia will stay with Ukraine for as long as it takes for Ukraine to win this war. To that end, we are today announcing the next $100 million dollar aid package to Ukraine. 50 million of this will be for short-range air defense systems. Another 30 million will be for drones, as Australia is part of a drone coalition with the UK and Latvia. The remainder of the amount will be used to purchase support equipment, from inflatable boats to helmets and boots,” Marles told a joint briefing with Ukrainian Prime Minister Denis Shmygal in Lviv on Saturday.
He also added that Australia had been able to provide Ukraine with air-to-ground munitions.
“We understand that this conflict will be very long and we will provide more in the future because we are determined to stand with Ukraine for as long as necessary,” the minister stressed.
As Shmygal wrote in Telegram, in total, Australia’s support for Ukraine already amounts to more than $655 million, of which $540 million is specifically military aid.
“We very much appreciate such solidarity of the Australian people with Ukraine. Thank you Mr. Richard Marles for deep involvement in Ukrainian affairs, for effective solidarity, for the concrete things that Australia is doing for Ukraine,” wrote Shmygal.
Ukraine’s real gross domestic product (GDP) growth for January-March 2024 amounted to 4.5% (+/- 1%) from 3.6% (+/- 1%) at the end of January-February.
Growth accelerated to 4.6% (+/- 1%) in March from 3.9% (+/- 1%) in February and 3.5% (+/- 1%) in January this year, according to an estimate released on the website of the Ministry of Economy of Ukraine.
“In March 2024, the trend of recovery growth continued, supported by the stable operation of the Ukrainian maritime corridor (stimulated activity in rail transport, metallurgy and metal ore mining), increased production capacity in the extractive industry, intensified production of mineral fertilizers, increased demand for construction materials, taking place against the backdrop of improved business sentiment … and revival of consumer activity …,” the Ministry of Economy pointed out.
The Ministry added that in March, almost all aggregated economic activities formed a positive contribution to the total GDP. Thus, exports of products of agricultural production and mining and metallurgical complex were provided by the Ukrainian Sea Corridor; and investment demand generated by the budget, as well as the increase in production capacity in the extractive industry formed a positive contribution of production types.
At the same time, it is pointed out that the dynamics of electricity production slowed down significantly in the context of significant rocket attacks in late March, which led to serious damage to energy infrastructure and will require a significant period of time and resources to restore it.
As reported, the National Bank of Ukraine on April 25 worsened its forecast for the country’s GDP growth this year from 3.6% to 3% after 5.3% last year.
When approving the draft state budget for the second reading in early November 2023, the government forecasted GDP growth of 4.6% this year.
Earlier Experts Club analytical center and Maxim Urakin released a video analysis of how the GDP of the world’s countries has changed in recent years, more detailed video analysis is available here – https://youtu.be/w5fF_GYyrIc?si=BsZmIUERHSBJrO_3 Subscribe to Experts Club youtube channel here – https://www.youtube.com/@ExpertsClub
EXPERTS CLUB, GDP, MACROECONOMICS, MINISTRY OF ECONOMY, UKRAINE, УРАКІНА
Ukraine and Latvia are working to increase drone production, Ukrainian Foreign Minister Dmytro Kuleba has said.
During a joint press conference in Kyiv with Latvian Foreign Minister Baiba Braže, Kuleba noted the great potential of Ukrainian and Latvian companies to increase production of attack UAVs.
“I am very grateful to Latvia for its leadership in the Drone Coalition. We are now working together to increase this production – we need more drones. I believe that Ukrainian and Latvian companies can really do a lot in this direction,” he said.
The minister also noted Latvia’s decision to join the Czech initiative to purchase artillery shells and noted that the production of shells was one of the central issues during the bilateral talks.
Kuleba also thanked Braža for making her first visit in her new position to Ukraine, which is a sign of special respect for Ukraine and its defenders.
The level of wages in 2024 plans to increase 72% of surveyed companies, almost the same number of companies (74%) feel the shortage of staff, these are the results of a study of the labor market in Ukraine from the European Business Association (EBA).
According to the published data, 39% intend to increase wages by 11-15%, and 28% – by 6-10%, while plans to increase it by 16-20% – reported 13%, and above 21% – 2%.
It is also specified that the shortage of personnel has significantly increased since the fall survey, when 55% of respondents complained about it, while today only 7% of respondents do not feel it at all, while 17% feel it partially.
Within the survey, 79% of respondents reported a salary increase in 2023, 46% reported an increase in functionality and hiring new employees, and 36% reported an increase in budgets for staff development, training and maintenance.
In addition, 27% informed about increasing bonuses and bonus payments, while 10% of respondents reported staff reductions.
As for 2024, survey participants noted that companies are planning to increase salary levels (72% of respondents), increase training and development budgets (39%), increase the number of employees (35%), and enter other markets and find new partners (32%).
54% of survey participants indicated that their companies offer the opportunity to work remotely, but not for all categories of workers. 28% of respondents indicated that remote working is possible for all workers and only 17% reported that it is impossible to work remotely.
“Accordingly, there is a gradual dynamic of workers returning to offices. For comparison, in January 2023, only 4% of companies did not have the possibility of working remotely,” states the EBA.
The association also added that 52% of respondents have employees abroad, but their share does not exceed 5% of the total staff of the company, while 19% of respondents have 6-10% of employees abroad.
It is noted that 32% of respondents have all employees of the company now live and work in Ukraine, which is higher than in previous periods. At the same time, some companies use formats of temporary contracts abroad, upon completion of which employees can return to Ukraine.
Poland, Germany, Czech Republic, Romania, Great Britain, Spain, Israel, Netherlands, Slovenia, Austria, Norway, Belgium, USA, Switzerland, Canada, Latvia, Italy, Luxembourg were named among the countries where most of the companies’ employees live.
It is emphasized that 41% of respondents do not plan to return workers to the office in the near future, 12% said that the company plans to return all workers to the office in the near future, and 20% of respondents said that the company plans to return not all categories of workers.
To tear away vacancies in companies, 67% of survey participants intend to do so, with 48% of respondents not planning to change the number of employees in 2024, and 26% will increase staffing by ≥5%.
Also, 7% said that the number of employees will increase by 6-10% and 5% of respondents wrote that their companies plan to reduce the number of employees.
109 HR professionals (49% department heads, 24% middle managers, 26% top management, 3% junior staff) participated in the study, it lasted from February to April 2024 and covered the period August 2023 – April 2024.
More than 60% of the participants in this study will represent international businesses. 50% of companies are from large businesses, 43% from medium-sized businesses and 7% from small businesses.
