Business news from Ukraine

TOURISM INDUSTRY OF UKRAINE LOSES ABOUT UAH 60 BLN IN 2020

The tourism industry of Ukraine in 2020 saw about UAH 60 billion damage due to the coronavirus pandemic.
“The demand is lower today and the damage to the market has been significant. If in the world the losses of the tourism industry amounted to about $ 800 billion, then in Ukraine, according to our calculations, about UAH 60 billion. This is the damage that the industry saw in 2020,” the head of the State Agency of Tourism Development in Ukraine, Maryana Oleskiv, said during a press conference on assessing the impact of COVID-19 on the hotel industry in Ukraine.
At the same time, she clarified that the agency plans to publish the detailed results of the industry in 2020 in early February.
At the same time, there is still no detailed statistical data on the tourism market and its participants in Ukraine, Oleskiv said.
“For the state agency, this will be one of the priorities in the next [2021] year. In the budget that we have, which is UAH 100 million, we plan to use a significant share of funding to create a unified tourism register, where all accommodation facilities and tourist activity subjects can register and receive operational statistics at least monthly,” the expert said.

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Ukraine and Moldova agree to move to new level of partnership

Ukraine is a strategic partner for the Republic of Moldova, and maintaining constant and pragmatic cooperation with Ukraine is an important task for Moldova, said Moldovan President Maia Sandu during her official visit to Ukraine.

“I am glad to be in Kyiv as President to restore friendship between our countries at the highest level. In recent years, the Moldovan-Ukrainian dialogue at the level of heads of state has been virtually suspended. I confirm that Ukraine is a strategic partner for the Republic of Moldova, and maintaining constant and pragmatic cooperation with Ukraine is an important task for the Republic of Moldova and for the President,” Maia Sandu said at a press conference following talks with President of Ukraine Volodymyr Zelensky in Kyiv on Tuesday.

She stressed that during today’s talks, the parties had agreed to bring relations between the two countries to another level – strategic partnership.

“Today we are taking an important step towards the establishment of these strategic relations. We decided to create the Council of Presidents of the Republic of Moldova and Ukraine as a new permanent format of cooperation at a high level,” Sandu said.

According to the Moldovan President, this mechanism of constant interaction will help in the development of policies and strategies, and will contribute to solving problems on the bilateral agenda, as well as to monitor the implementation of the agreed agreements.

“During the meeting, we reaffirmed our joint desire to intensify the implementation of the European integration program by our countries. This path is a strategic option for the Republic of Moldova and Ukraine, and a reliable way of developing a functional state with a modern market economy in the interests of citizens,” she stressed.

Sandu added that the heads of state also spoke in favor of strengthening the Moldovan-Ukrainian partnership with the Eastern Partnership, in particular within the framework of the summit of this initiative, which will be held this year.

“We paid special attention to the issues of Moldovan-Ukrainian relations, which for a long time remained unresolved. We agreed to intensify efforts and identify mutually beneficial solutions to existing problems. In this context, we agreed to resume dialogue through the specialized institutions of our countries, including the continuation of the activities of working groups and bilateral sectoral commissions on current issues,” she explained.

Sandu noted that the presidents discussed the need to find solutions in the interests of citizens of both countries in such key areas as ensuring security on the joint state border, ensuring environmental protection, cooperation in the energy sector, regulation in accordance with international law and in the interests of both countries related to the mutual recognition of property rights, the constant and balanced development of bilateral trade, the liberalization of international transport between countries and the problems associated with the operation of the Dniester hydropower complex.

“Taking into account that the waters of the Dniester River provide life to more than 7 million people who live in the basin of this river both in the Republic of Moldova and in Ukraine, it is very important to continue the dialogue between our countries to ensure the protection and sustainable use of the Dniester River, so that its water serve both our generation and future generations,” the head of state believes.

She and Zelensky also agreed to expedite the search for a sustainable solution to ensure mutual travel based on ID cards, which would benefit the citizens of both countries, she said.

Sandu noted that one of the projects discussed during the meeting concerns the development of road infrastructure on the Chisinau-Soroca-Yampil-Kyiv highway.

“This will create an automobile transport corridor that will reduce trip time between Chisinau and Kyiv, and may become the fastest route from the central region of Ukraine to the countries of Central and South-Eastern Europe,” she said.

The President of Moldova started her speech in Ukrainian. She also thanked Zelensky for the invitation to make this visit.

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UKRAINE APPROVES CONCEPT OF DONBAS ECONOMIC DEVELOPMENT

The Cabinet of Ministers of Ukraine has approved the Concept of economic development of Donetsk and Luhansk regions until 2030.
The relevant decision was made at the Wednesday government meeting.
The purpose of the document is to determine the conceptual approaches and main directions of the strategy for the economic development of Donbas for the creation of regulatory, institutional and organizational conditions for the formation and development of the economy of Donetsk and Lugansk regions.
According to the concept, the reboot of Donbas economy will take place in two stages: firstly, under current conditions in the controlled territory of the regions, secondly, throughout Donetsk and Luhansk regions after reintegration.
According to Prime Minister of Ukraine Denys Shmyhal, these territories require additional incentives that will create an attractive platform for involving investments.
In particular, this is about development in the direction of the real sector of the economy, industrialization, the development of critical infrastructure and logistics.

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UKRAINE’S TAX SERVICE WILL FULLY OPERATE AS SINGLE LEGAL ENTITY FROM JANUARY 1

The State Tax Service will operate as a single legal entity from January 1, 2021.
“From January 1, 2021, the territorial bodies of the State Tax Service, created as its separate divisions, begin to exercise the powers and functions of the territorial bodies of the State Tax Office, which are liquidated as a legal entity,” the service said on its website on Thursday.
The corresponding order was signed by head of the department Oleksiy Liubchenko on Thursday.
According to him, this is the final step in the transition of the service to the format of a single legal entity.
Thus, from January 1, the service will consist of the central office and territorial bodies as separate units, the department added.

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UKRAINE EXPANDS LIST OF GOODS, WHICH ARE EXEMPT FROM VAT IMPORTS

At the Wednesday meeting, the Cabinet of Ministers of Ukraine expanded the list of goods needed to combat coronavirus (COVID-19), the import and delivery of which to the customs territory are exempt from VAT, test systems and laboratory equipment.
According to the text of the decree, this is about test systems for ELISA testing and antigen testing.
In addition, the government has approved a decree that will simplify the procurement of medicines for the treatment of patients with COVID-19. In particular, the requirements of Cabinet of Ministers decree No.333 some issues of state regulation of prices for medicines and medical products will not apply to the purchase of medicines for the treatment of patients with COVID-19, which will increase the access of medical facilities to medicines.

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Ukraine ratifies convention with Austria for avoidance of double taxation

The Verkhovna Rada has ratified the protocol with amendments to the convention with Austria for avoidance of double taxation and prevention of tax evasion with respect to taxes on income and property.

The Ministry of Finance said on its website the protocol provides for an increase in the general tax rate of dividends from 10% to 15% and interest from 2% to 5%.

“Increased were also the rates of royalties paid for the use of any copyright on scientific work, patent, etc. from 0% to 5%, for the use of copyright on literary works or works of art from 5% to 10%,” the Ministry of Finance said.

In addition to the increase in rates, it is envisaged to supplement the convention with new articles on limiting the possibility of applying the preferential provisions of the convention, if the main purpose is to obtain such benefits, and on expanding the ability of the competent authorities of Austria and Ukraine to exchange tax information.

“These changes and rates correspond to the general practice of Ukraine’s conclusion of such agreements and protocols to them with other countries of the world – similar rates are contained in most of the conventions and protocols to them, concluded by our state,” the ministry explained.

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