Business news from Ukraine

Business news from Ukraine

Since beginning of year, housing prices in Ukraine have increased by 16%

index housing prices  in Ukraine at the end of January-March 2024 amounted to 116%, while in the same period of 2023 the index amounted to 111.4%, reported the State Statistics Service (Gosstat). According to its data, in the primary market housing prices  in the first quarter of 2024 accelerated growth to 17.6% against 9.8% in the first quarter of last year. Three-room apartments went up in price the most – by 17.9%. The growth of prices for one-room apartments amounted to 17.8%, two-room apartments – 17.5%.

In the secondary market, prices accelerated growth to 15.3% in January-March 2024 against 12.5% in the same period of 2023. Thus, the price growth for one-room apartments amounted to 15.9%, two-room apartments – 15.2%, three-room apartments – 15.5%.

According to the agency, compared to the previous quarter, housing prices rose by 5.7%, with the primary market – by 5.2% and the secondary market – by 6%.

According to the State Statistics Committee, in the first quarter of 2024, prices on the “primary” increased for one-room apartments by 5.2% compared to the fourth quarter of 2023, for two-room apartments – by 5.3%, three-room apartments – by 4.9%. In the secondary market, prices rose by 6.1%, 6.2% and 5.9%, respectively.

The State Statistics Committee pointed out that the figures are given without taking into account the temporarily occupied territories and part of the territories where hostilities are (were) conducted.

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Deutsche Welle’s analysis of Ukraine’s support costs

Governments face increased borrowing, taxes and public sector cuts to finance their soaring military budgets. European NATO members are set to spend a record $380 billion on defense this year — a tough sell to voters.

If you want a reminder of the security threats faced by the world today, take a look at how much governments have hiked defense spending. Global military budgets reached $2.44 trillion (€2.25 trillion) last year, nearly 7% higher than in 2022. It was the steepest year-on-year rise since 2009, recorded during the second year of Russia’s full-scale invasion of Ukraine. For every man, woman and child, world military spending is now at its highest since the end ofthe Cold War — at $306 per person.With Kyiv unprepared to fight such a large-scale conflict, Western countries ramped up military aid to Ukraine, while other escalating tensions with Russia and in the Middle East and Asia also prompted governments to shore up their defenses, unlike any time since World War II.

In 2024, the United States has allocated $886 billion for defense, a rise of more than 8% over two years. For the first time, NATO’s European partners are projected to meet the target set by the military alliance of spending 2% of gross domestic product (GDP) — a major bugbear of former US President Donald Trump, as many weren’t. This year alone, they’ve budgeted a collective $380 billion on defense, NATO chief Jens Stoltenberg said in February.

Poland leads the way (measured by GDP)

While Germany is still playing catch up with other NATO members — helped by Chancellor Olaf Scholz’s special €100 billion ($109 billion) fund to upgrade the Bundeswehr armed forces — Poland is due to spend 4.2% of GDP on defense this year, the highest in the military alliance. Others on NATO’s eastern flank also far exceed or will soon surpass the 2% target, due to the heightened security threat on their borders.

As a result, governments are facing an increasingly tough choice over how to pay for those new defense commitments, just as many economies weaken due to the effects of the ongoing global geopolitical tensions and lingering inflation. Many countries are already fiscally stretched.

“Short-term commitments for military equipment for Ukraine should be financed with additional debt. That’s the way wars have historically been funded,” Guntram Wolff, a senior fellow at the Brussels-based think tank Bruegel, told DW. “But for longer-term increased defense spending, either taxes need to go up or you cut other spending.”

“Is it painful politically? Sure! But if you spread it across the various government departments, it will be less so.”

Germany cuts ministry budgets, apart from defense

Germany, which faces the prospect of lower tax revenues due to weaker growth, has slashed spending across most government departments and has singled out international development aid for an almost €2 billion cut this year.

“Germany has some very significant trade-offs to make,” Jeffrey Rathke, president of the American-German Institute at the Johns Hopkins University in Washington D.C., told DW. “They need to be managed politically so that they don’t erode public support for strengthened security and defense.”

Leftist political parties in several countries have led calls for peace between Russia and Ukraine and have stoked the debate over whether the new military spending could be better spent on health care or social programs.

Rathke noted how Germany’s debt brake, which limits the government’s ability to borrow money to cover gaps in the budget, meant that Scholz’s coalition has less wiggle room compared to, say, France.

While Poland’s finances are in much better shape than many Western European countries, Prime Minister Donald Tusk, who ousted the right-wing populist government last October, is struggling to deliver on election promises, including raising the limit before income taxes are levied, due to the much higher defense budget.

Other EU states struggle with NATO target

Other countries, such as those hit worst by the 2011 European debt crisis, have already faced deep austerity measures and any further cuts could affect the quality of public services.

Italy, for example, is expected to spend just 1.46% of GDP on defense this year and warned that meeting NATO’s 2% target by 2028 would be tricky. The country’s debt-to-GDP ratio is forecast to hit 137.8% this year.

Other countries in similar fiscal tight spots, like Spain, could find limits on any additional deficits needed to fund new military spending, which could be anything from 0.5% to 1.5% of GDP. Last year, Madrid hiked its defense budget by 26%.

“The European debt crisis forced budgetary adjustments of 5% to 7%, even 10% for Greece,” Wolff said. “Fortunately, these cuts will be much less painful than anything the European south had to endure.”

Sweden, Norway, Romania and the Netherlands have lower debt burdens. But even so, Dutch far-right firebrand Geert Wilders also plans significant spending on social security housing and agriculture to ensure his new four-party coalition holds.

“As well as the fiscal capacity and the indebtedness problems, this resource debate is overlaid on an ongoing difference of threat perception across Europe,” Rathke said, so countries located further from Ukraine may be less keen to prioritize defense than those near its border.

Next target: 3%?

Defense spending is expected to keep increasing over the next decade. NATO’s 2% defense spending target was first set in 2014 after war broke out between the Ukrainian military and Russian-backed separatists in the east of the country and Moscow annexed Ukraine’s Crimea peninsula.

Last year, at a meeting in Vilnius, Lithuania, NATO leaders agreed that the target could often exceed 2%. Germany, which until now has struggled to meet the original target, has now mooted the prospect of a 3% budget target, which would have even bigger ramifications for government finances.

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Kazakhstan receives digital copies of unique ancient Kipchak books from Ukraine

In the framework of international cooperation and cultural exchange, representatives of the Embassy of the Republic of Kazakhstan in Ukraine visited the Central State Historical Archive of Ukraine in Kyiv. The main purpose of the visit was the ceremony of handing over digital copies of the Kamianets-Podilskyi Armenian Voytov Court record books written in the Armenian-Kipchak language.

The ceremony was attended by counselors of the Embassy Alibek Alibekov, Yevgeniy Katrenov and Daniyar Satybaldin, director of the Central State Historical Archive of Ukraine Yaroslav Fayzulin, as well as archive staff and representatives of Kazakh business.

These unique historical documents are of great importance for the cultural heritage and history of both Ukraine and Kazakhstan. They testify to the rich cultural and historical ties between the peoples who lived on the territory of modern Ukraine and Kazakhstan.

The representatives expressed special gratitude to Kazakh businessman and philanthropist Aidyn Rakhimbayev, who made it possible to obtain these historical documents. Aidyn Rakhimbayev is known for his numerous charitable projects and support of cultural initiatives. In gratitude for his cooperation, five modern computers were donated to the Central State Historical Archive of Ukraine on behalf of Mr. Rakhimbayev.

This gesture contributes to strengthening bilateral relations between the two countries, as well as supports the preservation of historical heritage and the development of cultural ties.

Ancient Kipchak books are handwritten documents created in the Middle Ages, when the Kipchaks (Polovtsians) were one of the most powerful nomadic peoples in Eastern Europe and Central Asia. These books contain valuable historical, legal, and literary texts that reflect the social life, traditions, and legal systems of the time.

The Armenian-Kipchak language is considered to be a unique historical and linguistic phenomenon that arose as a result of the long coexistence of Armenian and Kipchak communities on the territory of modern Ukraine. This language was used by Armenians living in the Crimea, Kamianets-Podilskyi, and other cities where the Kipchaks had significant influence. The Armenian-Kipchak language is a mixed language that combines elements of the Kipchak (Polovtsian) and Armenian languages, making it a unique cultural heritage.

The Kamianets-Podilskyi Armenian Voytiv Court was a judicial institution that operated in Kamianets-Podilskyi during the Middle Ages. It resolved legal issues of the local Armenian community. The record books of this court are valuable sources on the history of law, ethnography, and social life of the society of that time. These books have been stored in the archive for centuries and have now become available thanks to their digitization.

Kazakhstan has now received digital copies of unique ancient Kipchak books, which are now available for study and research, enriching the historical heritage of both countries.

On July 22, 1992, the Republic of Kazakhstan and Ukraine established diplomatic relations. And in December 1994, the Embassy of the Republic of Kazakhstan in Ukraine was opened.

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Ukrainian Foreign Ministry announces tender for car insurance

On May 21, the Ministry of Foreign Affairs of Ukraine announced a tender for voluntary insurance of motor vehicles and compulsory insurance of civil liability of owners of land vehicles, according to the electronic state procurement system Prozorro.

The expected cost of purchase of services is UAH 342,898 thousand.

The deadline for submission of tender documents is May 29.

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Ukraine to take part in Paris Olympiс

Ukraine will take part in the 2024 Olympic Games in Paris, France, the Ministry of Youth and Sports said.

“These games have a special meaning for Ukraine, because it is an opportunity to show the world our will and strength of spirit. Ukraine’s slogan at the Olympic Games is “The Will to Win” This time for Ukraine, the Olympics is, first of all, a big screen to the world. We have to remind that Ukraine is, fights and is able to win. The very fact that in Paris perform under the Ukrainian flag is a great demonstration of willpower,” – stated in the press service of the Ministry of sports.
As reported, the National Olympic Committee of Ukraine (NOC) and the Ministry of Youth and Sports of Ukraine have developed recommendations for Ukrainian athletes regarding contacts with Russian and Belarusian athletes at the Olympic Games 2024 in Paris (France).

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59% of new fops in Ukraine were opened by women in 2024

This is the highest figure in recent years

More than 43 thousand fops in Ukraine in 2024 were created by women, according to the Unified State Register. This is more than half of the total number of newly created sole proprietorships in the first quarter of this year. Women most often open businesses in retail, personal and information services. Men are more likely to choose computer programming and wholesale trade.

43,554 new sole proprietorships were created by women in the first quarter of 2024. This is more than half – 59% – of the total number of new businesses and a record high in recent years. Men opened 30,496 new businesses in the same period. For comparison, in 2021, the share of women was 51% of the total number of newly created fops.

Most often, women entrepreneurs choose retail trade (68% of women and 32% of men), other personal services (89% of women and 11% of men), and information services (63% of women and 37% of men).

At the same time, men are more likely to choose computer programming (58% of men and 42% of women) and wholesale trade (52% of men and 48% of women).

https://opendatabot.ua/analytics/fops-gender-2024-4

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