Business news from Ukraine

AUSTRIAN FM VISITS UKRAINE IN FEBRUARY

Austrian Foreign Minister Alexander Schallenberg plans to visit Ukraine on February 7-8 to show a “clear signal of support,” OE24 has reported.
“In the midst of the aggravation of the Ukrainian crisis, Foreign Minister Alexander Schallenberg (ÖVP) wants to visit the Eastern European country in early February (February 7-8),” the OE24 article says.
It is indicated that Schallenberg said this on Thursday at an informal meeting of EU foreign ministers in Brest, France. The Austrian Foreign Minister plans to pay a visit together with his colleagues from Slovakia and the Czech Republic.
“Yes to dialogue, but certainly not the threat of tanks and missiles changing borders in the 21st century,” Schallenberg said, adding that Austria has always “taken a clear position” on Ukraine.

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THE PARENT GROUP OF AUSTRIA RECEIVES CONSENT FOR THE CONSTRUCTION OF A PLANT IN VINNITSA

The Austrian-based Head Group has received permission from the State Inspectorate for Architecture and Urban Planning of Ukraine to start the construction of the Head Vinnytsia plant on the territory of the Winter Sport industrial park, Andriy Ocheretny, the deputy mayor of Vinnytsia, said on Facebook.
“The completion of construction of the plant and commissioning of production facilities is scheduled for December 2022. The company plans to invest about EUR80 million in the creation of production, administrative and storage facilities,” he said.
The deputy mayor clarified that since May 12, 2021, preparatory work on the land plot continued at the site: more than 100,000 cubic meters of fertile soil layer were removed, reinforced concrete supports were installed for laying a cable power line, temporary connection networks from the substation were installed.
According to the project, the building of the plant will consist of production and storage facilities, an administrative building, a sewing workshop. The production building will house workshops for the manufacture of skis, boots and bindings, as well as warehouses for raw materials and finished products.
The total area of production premises after the commissioning of the enterprise in 2023 will be 43,000 square meters.
Ocheretny noted that, as expected, this plant will be one of the largest Head Group plants in the world and will provide jobs for more than 1,200 residents of Vinnytsia.
As reported, the total area of the Winter Sport industrial park is 25 hectares. The start of construction of the plant took place in May 2021.
Head International Holding GmbH manufactures sports equipment for winter sports, tennis and scuba diving. The company’s production facilities are located in Austria, the Czech Republic, Bulgaria, China. The company is present in 85 countries around the world.

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PRESIDENT OF UKRAINE APPOINTS NEW AMBASSADORS TO INDONESIA, AUSTRIA, TANZANIA

President of Ukraine Volodymyr Zelensky, by his decrees, has appointed ambassadors of Ukraine to the Republic of Indonesia, the Republic of Austria and the United Republic of Tanzania.
Relevant decrees No. 335/2021, No. 337/2021 and No. 338/2021 are published on the president’s website.
So, according to the documents, Vasyl Ivanovych Hamianin was appointed the Ambassador Extraordinary and Plenipotentiary of Ukraine to the Republic of Indonesia, Vasyl Vasyliovych Khymynets – the Ambassador of Ukraine to Austria.
Also, Andriy Ivanovych Pravednyk, the Ambassador of Ukraine to the Republic of Kenya, was also appointed the Ambassador of Ukraine to the United Republic of Tanzania.
Vasyl Hamianin is a Ukrainian diplomat and sinologist. Since 2011, he has been serving as the Minister-Counselor of the Ukrainian Embassy in the People’s Republic of China. In 2012-2013 – the Charge d’Affaires of Ukraine in the People’s Republic of China.
Vasyl Khymynets is the Director of the First European Directorate General at the Ministry of Foreign Affairs of Ukraine. In 2011-2012 and in 2014 – the Chargé d’Affaires of Ukraine in Germany.
Andriy Pravednyk has been serving as the Ambassador of Ukraine to Kenya since September 2018.

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MAJOR BUYERS OF UKRAINIAN IRON ORE IN JAN-MAY ARE CHINA, CZECH REPUBLIC AND AUSTRIA

Mining enterprises of Ukraine in January-May this year reduced exports of iron ore raw materials (iron ore) in quantity terms by 1.8% compared to the same period last year, to 18.536 million tonnes.
According to statistics released by the State Customs Service on Wednesday, during the specified period, foreign exchange earnings from iron ore exports increased 2.1-fold, to $3.132 billion.
Iron ore was exported mainly to China (45.44% of supplies in monetary terms), the Czech Republic (9.41%) and Austria (8.36%).
In January-May 2021, iron ore was imported to Ukraine for $127,000 in a total volume of 1,130 tonnes, while in January-May 2020, iron ore was imported from the Netherlands for $28,000, from Sweden for $10,000, from Germany for $1,000 and from Hungary $1,000 in the total volume of 84 tonnes.
In January-May 2021, iron ore was imported from Egypt (81.75%), Poland (10.32%) and Chile (2.38%).

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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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AUSTRIA PROPOSES TO CREATE SCHOOL FOR YOUNG FARMERS IN UKRAINE

The importance of investing in the development of the agricultural sector was noted by CEO of Austrian Agricultural Cluster Hermann Wieser, who proposed to create create a technical agricultural school for young farmers in Ukraine.
“Ukraine has land with excellent resources. The point is that you can process agricultural products into high-quality products and export them to the world,” Wieser said at the Ukrainian-Austrian business forum in Vienna on Tuesday attended by Ukrainian President Volodymyr Zelensky and Austrian President Alexander Van der Bellen.
Wieser called on the president of Ukraine to join the implementation of this project.

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