Business news from Ukraine

UKRAINIAN ECONOMY MINISTER COUNTS ON BILL ON LOCAL CONTENT WITH SUPPORT OF MANUFACTURER

Minister of Economy Ihor Petrashko expects to find such a version of the bill on amendments to the law on public procurement, which will satisfy international partners and will support the Ukrainian manufacturer.
“Without stimulating production in Ukraine and using public funds to purchase goods produced in Ukraine, there will be no significant progress in the country,” Petrashko told a news conference during the Ukrainian Forum “Ukraine 30. Coronavirus: Challenges and Responses” held on Tuesday.
According to the minister, all countries of the European Union and the United States use incentives to ensure that public funds primarily go to the purchase of those goods that are produced in their countries.
Petrashko said that at the moment consultations with the EU and the United States on the local content bill (No. 3739 on amendments to the law of Ukraine on public procurement) are underway, as the reaction to it is ambiguous.
The minister added that the use of non-price criteria will benefit Ukraine’s trade with the European Union and the United States.
“Therefore, we want to find a format of persuasion and find the version [of the bill] that will allow us to support the manufacturer,” Petrashko said.

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UKRAINIAN PARLIAMENT ADOPTS BILL ON DIGITAL PASSPORTS AT FIRST READING

The Verkhovna Rada of Ukraine at the first reading adopted bill No. 4355 on amendments to the law “On the Unified State Demographic Register and Documents Confirming the Citizenship of Ukraine, Certifying the Identity or his Special Status”, which increases the status of using digital passports in the Diia application at the legal level.
Some 303 MPs voted for the document at a plenary session on Thursday.
“Ukrainians will be able to use digital passports on a par with paper ones. There will be no more options not to accept Diia anymore,” Deputy Prime Minister, Minister of Digital Transformation Mykhailo Fedorov commented on the adoption of the bill on his Facebook page.
He said that the relevant amendments to the said law were developed by the Ministry of Digital Transformation together with the Committee for Digital Transformation. “Prior to that, the use of passports in Diia was regulated by a decree of the Cabinet of Ministers,” Fedorov said. This bill also defines terminology, in particular the use of electronic passports.
The bill gives definitions to e-passport – a passport of a citizen of Ukraine in the form of a card and an e-passport for traveling abroad.
According to the bill, an e-passport can be presented on the territory of Ukraine for identification and confirmation of citizenship. However, this rule does not apply when crossing the state border and entering/leaving the temporarily occupied territories of Ukraine.
According to the document, electronic copies of an e-passport and an e-passport for traveling abroad can be submitted and used as copies of a passport of a citizen of Ukraine, a passport of a citizen of Ukraine for traveling abroad.
An e-passport, an e-passport for traveling abroad are issued free of charge at the request of a person who has a passport of a citizen of Ukraine or a passport of a citizen of Ukraine for traveling abroad, which are issued using the means of the unified state demographic register.

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INTERFAX-UKRAINE NEWS AGENCY TO HOST PRESS CONFERENCE ‘BILL ON DUAL CITIZENSHIP: MYTHS AND REALITY’

On Tuesday, February 2, at 17.00, the press center of the Interfax-Ukraine news agency will host press conference entitled “Bill on Dual Citizenship: Myths and Reality.”
Participants include Parliamentarians of Ukraine Oleh Dunda, Oleksandr Aliksiychuk and Dmytro Mykysha (8/5a Reitarska Street).
The press conference will be available on the YouTube channel of Interfax-Ukraine.
Media accreditation requires registration on the spot.

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UKRAINIAN PARLIAMENT PASSES BILL ON ECONOMIC SECURITY BUREAU

The Verkhovna Rada on Thursday adopted bill No. 3087-d on the Bureau of Economic Security – a new central executive body, which activities are coordinated by the Cabinet of Ministers and which is tasked with counteracting economic offenses.
An Interfax-Ukraine correspondent has reported that the document was supported by 242 MPs with the required minimum of 226 votes.
In particular, 201 MPs of the ruling Servant of the People faction, 17 MPs of the Dovira group and 16 MPs of the opposition Holos faction cast their votes for the bill.
“It was a very difficult one and a half years of work. It was a very complicated bill… Thanks to those who interfered. With you, the reform has become more difficult, but richer. Although, of course, the most important thing in the creation of the Bureau of Economic Security is still ahead,” Head of the profile parliamentary committee Danylo Hetmantsev said, commenting on the adoption of the law.
The adoption by the Verkhovna Rada of this document was welcomed by Prime Minister Denys Shmyhal, who called it “a landmark event.”
“Ukraine is taking another step towards Europe and the civilized world. The tax police are becoming a thing of the past, and a new analytical body will appear in its place, which will investigate financial and economic crimes without corruption and masked shows,” the head of government said.
The Ministry of Finance said that the adoption of the law on the creation of a financial investigation body is part of Ukraine’s international obligations, in particular, under the Stand-By Arrangement with the International Monetary Fund (IMF) and EU macro-financial assistance.
The ministry recalled that the document was developed with the aim of eliminating the tax police and creating an independent state law enforcement agency, which is obliged to perform the functions of analytical assessment, prevention, detection, suppression, investigation and disclosure of criminal offenses attributed by law to its jurisdiction.
The new body will unite all the units for combating economic crimes of all law enforcement agencies and will pay more attention to analytical work, which will reduce pressure on business and improve the investment climate in Ukraine.
According to the document posted on the Rada’s website, the Bureau of Economic Security should be created, and the State Fiscal Service should be liquidated within six months after the law enters into force (its publication). It was recommended that the Cabinet of Ministers take measures to form a tender panel to appoint the Director of the Bureau, create this new body and its territorial departments. An open competition for positions in the central office of the Bureau of Economic Security must be held within four months from the date of entry into force of the law.
In addition, an audit of material resources, weapons and special means of the State Fiscal Service of Ukraine should be carried out and they are to be transferred to the Bureau of Economic Security.

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UKRAINIAN PARLIAMENT PASSES AT FIRST READING BILL REDUCING VAT TO 7% FOR REPRESENTATIVES OF CULTURE, CREATIVE INDUSTRIES

Verkhovna Rada has passed at first reading the President’s draft law on reducing value added tax (VAT) to 7% for representatives of culture, tourism, creative industries.
An Interfax-Ukraine correspondent has reported that some 273 MPs voted in favor of bill No. 3851 on amending the Tax Code of Ukraine to support culture, tourism and creative industries at first reading at the meeting on Tuesday, September 15.
“Since our field of work mainly requires offline performance and it is extremely difficult to shift to online mode, therefore we believe that… theatre, opera, ballet, music, concert, other performances, … production of … films and so on may be charged 7% VAT,” noted the Minister of Culture and Information Policy of Ukraine Oleksandr Tkachenko at the presentation of the law.
He added that the bill provides for 7% VAT for operations related to temporary accommodation services provided by hotels, in view of the extremely high losses that this sector suffered due to quarantine measures.
“This law had been the subject of lengthy debates in the relevant ministries and I ask you now to lend a hand to the field of culture and creative industries,” Tkachenko summed up.

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UKRAINE’S VERKHOVNA RADA PASSES AT FIRST READING BILL ON BUREAU OF ECONOMIC SECURITY

Ukraine’s Verkhovna Rada has adopted at the first reading bill No. 3087-d on the creation of the Bureau of Economic Security, which should become a single body for combating economic crimes and remove the duplication of these functions from various law enforcement agencies.
An Interfax-Ukraine correspondent has reported that the bill was supported by 245 MPs with the required 226 votes.
According to the document, the director of the Bureau is appointed based on the results of a competition and dismissed by the president. However, by the second reading it is planned to amend the bill to reassign the head of this body to the Cabinet of Ministers, said the co-author of the bill and Head of the committee on finance, tax and customs policy Danylo Hetmantsev.
According to him, this is necessary taking into account the decision of the Constitutional Court on the unconstitutionality of the appointment of Artem Sytnyk as director of the National Anti-Corruption Bureau.
As the text of the bill shows, it is proposed to set the maximum number of the Bureau’s employees at 4,000 people. In turn, Hetmantsev said that the current number of employees of the tax police is 4,600.
“The director is accountable to the Verkhovna Rada of Ukraine,” Hetmantsev said.

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