Business news from Ukraine

GOVERNMENT APPROVES ORDER OF VAT ACCUMULATION BY FARMERS

KYIV. March 12 (Interfax-Ukraine) – The Cabinet of Ministers has approved the order of VAT accumulation on special accounts by agricultural enterprises.

The corresponding decision was fixed in cabinet resolution No. 156 dated February 24, the text of which has been posted on the government’s website.

“Changes have been put to the order of VAT accumulation by agricultural enterprises on special accounts opened at banks and/or authorities responsible for the treasury service of budget funds. Thus, agricultural producers have the opportunity to accumulate VAT funds to use them for production purposes. This mechanism will be in effect until January 1, 2017,” reads the report.

As reported, the Verkhovna Rada endorsed a compromise decision on the abolition of a special VAT regime for farmers by providing them with a preferential regime for the period of transition to the general taxation system.

In 2016, during the period of transferring to the general taxation system milk producers and cattle farmers will retain 80% of VAT, while the remaining 20% will be sent to the budget.

Farmers, working with grains and industrial crops, will pay 85% of VAT to the budget, while the remaining farmers will pay 50% of VAT. A special VAT regime for agricultural producers will be abolished from 2017.

KYIV TO RAISE SIX-TIME MORE INVESTMENT IN 2016 – KLITSCHKO

KYIV. March 12 (Interfax-Ukraine) – Kyiv authorities plan in 2016 to raise about UAH 10 billion in investment, which is 5.9 times more compared to the previous year, Kyiv Mayor Vitali Klitschko has stated.

“Last year we got UAH 1.7 billion of investment. Maybe someone will say this is not so much, but these are very important funds. This year we expect about UAH 10 billion of investment,” Klitschko said at a meeting with representatives of the member companies of the American Chamber of Commerce in Kyiv.

According to him, in 2015 the Kyiv authorities worked to optimize and simplify procedures to attract investors to the city. In particular, the period of approval procedures for proposed investment projects was reduced from 500 to 90 days.

In addition, Klitschko said the city authorities managed to establish cooperation with international financial and donor organizations in the context of attracting grant funds for the development of the city, as well as created the InvestInKyiv web portal, which allows potential investors to get free access to projects and commercial proposals of the city.

The Kyiv mayor said there are many areas for the development of investment projects in the city, particularly in transport and infrastructure, medicine, energy and waste treatment.

TOP-30 COUNTRIES EXPORTERS TO UKRAINE (THSD USD)

Source: State Statistics Services

Source: State Statistics Services

MHP TO LAUNCH POULTRY PLANT IN NETHERLANDS

KYIV. March 11 (Interfax-Ukraine) – Myronivsky Hliboproduct (MHP) in a month will launch a factory for poultry processing and production in the Netherlands.

“We will announce the launch of the enterprise in the Netherlands in a month,” head of the department for work with investors and mass media Anastasiya Sobotiuk told Interfax-Ukraine.

The company will specify the details of the plant’s launch and its capacity in an official press release in a month.

As reported, with reference to MHP chairman Yuriy Kosiuk, the holding planned by 2015 to complete negotiations on the acquisition of meat assets in the European Union.

The agricultural holding plans by the end of 2016 to expand the land bank by at least 50,000 ha. As of the end of 2015 it amounted to 370,000 ha.

MHP is the largest poultry producer in Ukraine. It also deals with production of grain, sunflower oil, and meat.

AGRICULTURE MINISTRY PREPARING PILOT PROJECT TO SELL 10,000 HA OF FARMLAND IN 2016

KYIV. March 11 (Interfax-Ukraine) – Ukraine’s Ministry of Agricultural Policy and Food is preparing a pilot project to sell 10,000 hectares of agricultural land in 2016.

“We have already launched a pilot project to sell 10,000 hectares of agricultural land,” minister Oleksiy Pavlenko said at the 12th annual investment conference of Dragon Capital in Kyiv.

He noted that to realize the project it is necessary to complete the formation of the cadaster and adopt necessary laws.

As reported, Ukrainian Prime Minister Arseniy Yatseniuk considers it necessary in the framework of the land reform to sell at public auctions one million hectares of land being in state ownership. At the same time, the prime minister did not specify whether he was referring to agricultural land, on the sale of which Ukraine each year extends a moratorium.

The moratorium on the sale or alienation of agricultural land in Ukraine in December 2015 was extended until January 1, 2017.

AGRICULTURE MINISTRY EXPECTS THAT GRAIN EXPORTS TO HIT RECORD OF 37 MLN TONNES IN 2015/16 AGRI-YEAR

KYIV. March 11 (Interfax-Ukraine) – The Agricultural Policy and Food Ministry of Ukraine expects that grain exports in the 2015/16 agricultural year (July-June) will expand to 37 million tonnes.

“This year we want to hit a record of 37 million tonnes,” Minister Oleksiy Pavlenko said at the 12th Annual Investor Conference organized by Dragon Capital in Kyiv on Thursday.

He said that a year ago grain exports hit a record of 35 million tonnes.