Business news from Ukraine

Biden signs bill to provide aid to Ukraine and Israel – New York Times article

The $95.3 billion bill was passed after months of congressional gridlock jeopardized a major thrust of President Biden’s foreign policy.

President Biden was set to sign a $95.3 billion aid package for Ukraine, Israel and Taiwan on Wednesday, reaffirming U.S. support for Kyiv in its fight against Russia’s military attack after months of congressional gridlock threatened the White House’s main foreign policy thrust.

On Tuesday evening, the Senate voted overwhelmingly to approve the package, a sign of bipartisan support after growing policy divisions raised questions on Capitol Hill and among U.S. allies about whether the United States would continue to support Kyiv. The 79 to 18 vote gave Biden another legislative achievement to boast about, even in the face of an obstructionist House of Representatives.

“Congress passed my bill to strengthen our national security and send a message to the world about the strength of American leadership: We stand firmly for democracy and freedom, against tyranny and oppression,” Mr. Biden said Tuesday night, just minutes after the Senate vote.

He said he would sign the bill into law and address the American people on Wednesday “so we can start sending weapons and equipment to Ukraine this week.”

The White House first requested the security package in October, and officials explicitly acknowledged that the six-month delay has put Ukraine at a disadvantage in its fight against Russia.

“The Russians are slowly but successfully taking more and more territory from the Ukrainians and pushing them to the first, second, and sometimes third line of defense,” John F. Kirby, spokesman for President Biden’s National Security Council, said on Air Force One on Tuesday. “The short answer is yes, there has been damage done over the last several months.”

Nevertheless, the passage of the legislation ended an extraordinary period in Washington. Speaker Mike Johnson had to overcome fierce right-wing opposition to get it through the House of Representatives. The aid is split into four parts: one measure for each of the three US allies and another designed to sweeten the deal for conservatives, which includes a provision that could lead to a nationwide ban on TikTok.

The bill includes $60.8 billion for Ukraine; $26.4 billion for Israel and humanitarian aid to civilians in conflict zones, including Gaza; and $8.1 billion for the Indo-Pacific. It also includes sanctions against Iranian and Russian officials.

The House of Representatives also added a provision requiring the president to demand that the Ukrainian government repay $10 billion. The idea to include a portion of the aid to Ukraine in the form of a loan was another example of former President Donald Trump’s influence on Congress. Trump called for making any future aid to Ukraine a loan.

The White House tried to reach an agreement with Mr. Johnson in various ways for six months. Officials even agreed to some tougher measures at the US border when Mr. Johnson said he would not allow aid to Ukraine without border restrictions. But when Trump denounced the law, hoping to prevent Biden from winning the election, Republicans followed suit.

But when the Senate passed its own bill to provide $95 billion in emergency aid to Ukraine, Israel, and Taiwan without any immigration measures, it increased the pressure on Mr. Johnson.

https://www.nytimes.com/2024/04/24/us/politics/biden-ukraine-israel-aid.html

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Verkhovna Rada has adopted as basis bill providing for deregulation of trade in used cars

The Verkhovna Rada of Ukraine has adopted as a basis the bill №9083, providing for deregulation and detenization of the market of trade in used vehicles, said the head of the Verkhovna Rada Committee on Finance, Tax and Customs Policy Daniil Hetmantsev.

“Verkhovna Rada adopted as a basis the bill №9083 the initiator of which I am,” he wrote in his Telegram channel on Tuesday.

Getmantsev recalled that the market of used cars before the war was 1.7 million cars per year, in 2023 – 780 thousand.

“This year we expect 1.5 million and only 2.5% of this is sold in white. From the sale of a car in the “white” the state receives an average of 19.8 thousand UAH. From the sale in the “black” – 0″, – he wrote.

At the same time, the head of the parliamentary Committee reminds that for the work of the “white” market there is a hindrance – the requirement of additional registration of the car on the intermediary “with a bunch of unnecessary certificates”.

“The abolition of meaningless state registration of used cars by the trading organization on itself, even if it buys them as goods for resale – will be a pledge for the withdrawal of the market from the shadow, the expansion of the activities of “white” auto traders and the elimination of schemes by which the budget underpays taxes,” – commented the bill Getmantsev.

As reported, the bill № 9063 on the abolition of state registration of used cars on trade organizations that buy them as a commodity for further sale, registered in the Rada on March 6, 2023.

Among its co-authors are Hetmantsev, MPs Yaroslav Zheleznyak (Golos faction), Maryana Bezuglaya, Yevhen Bragar (“Servant of the People”), Dmytro Razumkov (non-faction).

Official car importers and dealers noted that deregulation of the used car trade market will not lead to an increase in prices, as the official market dictates prices and no one will pay more than a car costs.

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Ukraine’s leading business associations once again ask to finalize draft bill on BEB

Business associations under the auspices of the Ukrainian Business Council are asking to finalize the government’s updated draft law on the Economic Security Bureau (#10439), as it leaves unaccounted for important proposals that jeopardize the reboot of the BEB.

“The most critical of the unaccounted proposals is the composition of the competitive commissions for the recertification of personnel and the mechanism for conducting the recertifications,” the 17 associations said in a statement circulated Thursday.

In their opinion, the detailed mechanism of re-certification should be set out in the draft law, and the commissions themselves should have a predominant voice of international experts who have an impeccable reputation and are well versed in the problems of law enforcement agencies.

Among other ignored proposals, the business pointed out the strengthening of the analytical function of the Bureau by providing free access for the BEB to existing state information systems and establishing criteria for the effectiveness of the work of the renewed BEB and their constant monitoring.

In addition, the appeal notes, it is important to limit access to positions in the BEB to persons with a dubious reputation based on the principle of reasonable doubt, given the small number of corruption cases that have resulted in convictions.

It is also crucial to retain in the final version of the draft the right to an overwhelming vote of international experts when electing the chairperson of the OIE, the document says.

In addition, in order to establish safeguards against unlawful pressure on business by law enforcement agencies, simultaneously with the reset of the BEB, the business requires amendments to the Code of Criminal Procedure regarding the introduction of standards of prosecutorial activity, limiting the powers of the National Police and the BEB in terms of assigning instructions to SBU operatives, ensuring the possibility of appealing to the investigating judge against any actions or inaction of the investigator, inquirer, prosecutor.

In addition, the business proposes to introduce a ban on reopening proceedings on the same grounds and seizure of material assets not specified in the ruling of the investigating judge, to establish responsible storage and immediate return to the owners of seized property after the decision, to select a reasonable level of bail and interim measures.

Among other requirements – to impose on investigating judges the obligation to verify compliance with the requirements of jurisdiction and to return the terms of pre-trial investigation and the procedure for their extension in actual criminal proceedings, except for serious and especially serious crimes, referred to the jurisdiction of NABU.

At the same time, the associations noted that the updated government bill on the BEB took into account a number of proposals of the business community, in particular, the election of applicants for the post of the head of the Bureau by a commission with a predominant vote of international experts, immediate recertification of all employees of the Bureau and audit one year and three years after the appointment of a new head.

According to the forecast of Yaroslav Zheleznyak, the first deputy of the Rada’s specialized committee, the bill #10439 will be put to a vote in the first reading as early as Thursday.

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US Senate approves bill on temporary government funding

The U.S. Senate has approved a temporary funding bill aimed at averting a government shutdown, previously approved by the House of Representatives, Reuters reported on Saturday.

The Senate, with a Democratic majority of 88 to 9, voted to pass the measure to avoid the fourth partial shutdown of the federal government in a decade, sending it to President Joe Biden to sign into law before a deadline of 12:01 a.m. Eastern Time (07:01 a.m. Kyiv time – IF-U).

Earlier, the House of Representatives voted 335 to 91 to fund the government through November 17, with more Democrats than Republicans supporting it.

“The American people can breathe a sigh of relief: There will be no government shutdown tonight,” Senate Democratic Majority Leader Chuck Schumer said after the vote. “From the beginning, Democrats have said that the only solution to avoid a shutdown is bipartisanship, and we are pleased that Speaker McCarthy has finally listened to our message.”

Democratic Senator Michael Bennett held up the bill for several hours in an attempt to negotiate a deal on further aid to Ukraine.

“While I would have preferred to pass the bill now with additional assistance for Ukraine, which has bipartisan support in both the House and Senate, it is easier to help Ukraine with an open government than if it were closed,” said Democratic Senator Chris Van Hollen.

Earlier it was reported that the bill on temporary funding does not include US assistance to Ukraine.

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Verkhovna Rada supported in second reading bill on simplification of small producers of distillates

The Verkhovna Rada supported in the second reading and as a whole the bill No. 5762 on simplification of conditions for the production of distillates by small business entities, the head of the parliamentary committee on finance, tax and customs policy Daniel Getmantsev said.
“The law should bring the current legislation in the sphere of production and circulation of alcoholic beverages and distillates in line with EU requirements, as well as relax the regulation in this sphere for small business entities,” he wrote in Telegram on Thursday.
In the law ¹ 5762 “On amendments to the TCU and some laws of Ukraine on the simplification of the conditions of production of distillates by small business entities” the definition of small producers of distillates and requirements for their material and technical base are presented.
Small manufacturers of distillates are allowed to report on the volume of products manufactured and sold quarterly (instead of monthly), as well as reduced fines for failure or incorrect submission of such reports from 17 500 to 1 020 UAH.
The document reduced the cost of licenses for wholesale of alcoholic beverages for small producers of distillates from 500 thousand UAH to 30 thousand UAH, it is also allowed to use all alcoholic distillates, derived from agricultural products for the production of alcoholic beverages.
The law cancels the mandatory certification of alcohol, distillates, bioethanol, alcoholic beverages, explained the head of the financial parliamentary committee.

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Verkhovna Rada upheld in first reading bill to abolish from July 1 flat tax 2%

The Verkhovna Rada has supported in the first reading the government’s bill #8401 on the abolition of a flat tax of 2% and other benefits for entrepreneurs starting July 1, 2023. This is one of the conditions for cooperation with the IMF and the dragging out of the bill has caused concern.
According to information on the website of the Rada, 227 people’s deputies voted for the adoption of the bill, with the required minimum of 226 votes.
“The adoption of the bill will increase revenues to the state and local budgets in 2023 in the amount of about 10 billion UAH,” Finance Minister Serhiy Marchenko commented on the parliament’s decision.
According to published information, the bill proposes to cancel the possibility for sole proprietors and legal entities to be single tax payers of group III with the application of the single tax rate of 2% of income and to resume payment of single tax for groups I and II FLP.
The bill provides for the resumption of documentary checks, but during martial law they will be held in the presence of safe access to areas, premises and other property used for economic activities and / or taxable objects, as well as documents and other information related to the calculation and payment of taxes and fees.
The ministry noted that it is proposed to resume the application of penalties for violations of tax laws, the correctness of the calculation, calculation and payment of a single fee for obligatory state social insurance and the use of BPR / BPR and resume the terms defined in the tax law.
Marchenko stressed that the bill does not provide for an increase in taxes and does not introduce new tax rates, and the rules are aimed primarily at bringing the tax laws back to their pre-war state.
The law is expected to take effect July 1, 2023 – as stipulated by agreements with the IMF.
As Ukrainian News earlier reported, the bill is one of the 19 structural beacons of the four-year, $15.6 billion EFF program for Ukraine, which was approved by the IMF Board of Directors on March 31.
The program’s schedule calls for three tranches of SDR664 million ($893 million) to be disbursed to Ukraine after the first tranche in mid-June and October this year and in late February the following year after the first, second and third revisions, when commitments are evaluated for the end of April, June and December this year, respectively.
The IMF mission on the first review of the program is currently working in Vienna. Its results may be as early as the end of May.

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