Business news from Ukraine

Business news from Ukraine

Zelenskyy Signs Decrees to Align Sanctions with EU Decisions

Ukrainian President Volodymyr Zelenskyy has signed two decrees enacting decisions by the National Security and Defense Council of Ukraine to align sanctions with those of the European Union, according to the president’s press service.

“The synchronization of EU sanctions under the 20th package covers 120 individuals and organizations and imposes economic sanctions targeting key sectors of the Russian economy. Some of them are already subject to Ukrainian sanctions. Today’s decision applies to an additional 16 Russian citizens and 31 companies from Russia, Belarus, the UAE, Kyrgyzstan, Kazakhstan, Uzbekistan, and the temporarily occupied territory of Ukraine,” the statement reads.

Among the individuals are heads of Russian strategic enterprises, state-funded institutions, units of the Russian army, and entities serving Russia in our temporarily occupied territories.

The list also includes Russian defense industry enterprises, manufacturers of electronic warfare equipment, software, and drone components, as well as companies involved in oil, gas, and gold extraction. In particular, restrictions have been imposed on the Russian manufacturer of aerospace products and drone components, LLC

“Atlant Aero,” as well as on the Russian manufacturer of communication systems and components for UAVs and missiles, LLC “Irz-Zvyazok.”

Sanctions have been imposed on companies from the UAE that sell machine tools and laboratory equipment, chemical products, and spare parts for commercial aircraft, as well as on an oil exporter in Belarus.

Ukraine has also imposed restrictive measures on three Russians: Prosecutor Lyudmila Balandina, who was involved in systematic repression and human rights violations against individuals who supported Ukraine or criticized the Russian government; Judge Dmitry Gordeev, also implicated in repression, who issued politically motivated rulings against opposition figures and human rights defenders; and Russian editor and propagandist Maria Sittel, who systematically disseminated disinformation.

Sanctions have also been imposed on 19 Iranian citizens, 7 Sudanese citizens, and 11 Iranian companies involved in Iran’s ballistic missile and drone programs.

“We continue to coordinate sanctions regimes with the EU and our partners. We expect further pressure on Russia and all those who help it sustain its aggression. We are already finalizing joint work on draft EU and partner-state sanctions decisions, including the 21st sanctions package,” noted Vladyslav Vlasyuk, the President’s Advisor and Representative on Sanctions Policy.

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Montenegro to Tighten Controls on Home-Brewed Rakija Under Pressure from EU

According to Serbian Economist, Montenegro is drafting new regulations for home producers of rakija and other spirits as part of its efforts to align its legislation with EU requirements. Even small producers who make the beverage solely for their own consumption will be required to register with the Customs Service and declare their distillation equipment.

The regulations are contained in a draft of the new law. The law is set to take effect after Montenegro joins the European Union.

According to the draft, an individual will be able to produce up to 50 liters of strong fruit-based alcoholic beverage per year per household without paying excise tax. However, such a beverage may only be used for personal consumption, family members, and guests. The sale of homemade rakija under this regime will be prohibited.

A producer planning to produce more than 50 liters per year or sell the beverage will be required to register as a small distillery and pay excise tax. For strong alcoholic beverages, the rate remains at 1,250 euros per hectoliter of pure alcohol. This corresponds to €12.50 per liter of pure alcohol, and for rakia with an alcohol content of about 50%, approximately €6.25 per liter of finished beverage.

The draft also provides for the status of a small distillery. Such a distillery will be able to produce up to 1,500 liters of pure alcohol per year, which is equivalent to approximately 3,000 liters of 50% rakia. A preferential rate—50% of the standard excise tax on spirits—will apply to such producers.

The new rules significantly tighten control over home production. A small producer will be required to submit an application to the local Customs Service office at their place of residence no later than eight days before production begins. The application must specify the capacity of the still and the production location.

If a producer exceeds the 50-liter limit without notifying customs or begins selling the beverage without registration and excise accounting, the entire batch produced will be considered illegal. In this case, the customs authority may assess excise tax on the entire volume, not just the excess over the limit.

Several types of penalties are provided for violations. First, monetary fines for failure to register, failure to submit a notification, exceeding the permitted volume, and selling without excise clearance. The published materials do not provide an exact scale of fines in euros, but indicate that the new law specifically establishes such penalties.

Second, the violator may be charged unpaid excise tax on the entire volume of alcohol produced. Interest will also be charged on the amount of unpaid excise tax.

Third, the Customs Service will be able to seize illegally produced alcohol and decide whether to sell or destroy it. This measure will apply in cases where production is deemed illegal due to exceeding the limit, failure to report, or selling without registration.

Fourth, customs will be able to seal or confiscate equipment used for the production of strong alcoholic beverages. This measure applies if the distillation apparatus is unregistered or is used to produce more than the permitted volume and to sell without excise accounting.

For Montenegro, this issue has not only fiscal but also social significance. Home production of rakija is a widespread tradition in the country’s rural areas and throughout the Balkans. Therefore, the new rules may cause discontent among some households that are accustomed to producing the beverage for personal consumption without a complicated registration process.

The authorities, in turn, aim to make the market more transparent, curb the illegal sale of strong alcohol, and bring the excise system into line with European standards.

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EU May Propose Restrictions on Children’s Access to Social Media as Early as This Summer

The European Commission may present legislative proposals as early as summer 2026 to restrict minors’ access to social media. This was announced by European Commission President Ursula von der Leyen while speaking at a democracy summit in Copenhagen.

According to Reuters, von der Leyen said that the European Commission is stepping up measures to protect children from the “addictive design” of digital platforms, including TikTok, Meta, Facebook, Instagram, and X. She linked excessive social media use by teenagers to risks related to sleep, mental health, anxiety, cyberbullying, and other threats to young people.

However, this does not involve an immediate shutdown of social media platforms or a temporary suspension of their services for all users. Primary sources mention a possible “social media delay” for children, meaning a delay or restriction on the age at which minors can independently use social media. Euronews reports that the European Commission may present plans for a Europe-wide ban or age restriction for children as early as this summer.

The European Commission has already established a special panel of experts on children’s online safety. According to official EC documents, by the summer of 2026, the panel’s co-chairs are to present von der Leyen with recommendations on protecting children online, including possible harmonized age restrictions for access to social media and other online services.

Digital age verification will be a separate element of the future policy. In April 2026, the European Commission held the second meeting of the special panel, dedicated to current rules for protecting minors online and EU initiatives in this area. Reuters also reported that the EU has already developed an age verification app designed to help restrict children’s access to inappropriate content and services.

The new proposals could become part of a broader EU digital policy, including the Digital Services Act and the future Digital Fairness Act. The EU is currently investigating major platforms regarding the protection of minors, advertising transparency, researchers’ access to data, and the use of mechanisms designed to capture users’ attention.

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Switzerland has partially aligned itself with EU’s 20th sanctions package against Russia and Belarus

Switzerland has expanded its sanctions lists targeting Russia and Belarus, partially aligning itself with the European Union’s 20th sanctions package, adopted in response to Russia’s ongoing war against Ukraine.
According to the Swiss government, the Federal Department of Economic Affairs, Education, and Research expanded the sanctions lists against Russia and Belarus on May 22.
An additional 115 individuals and entities have been subject to the new restrictions. Asset freezes and a ban on the provision of funds are being imposed on them. Individuals are also prohibited from entering Switzerland and transiting through its territory.
The Swiss government specified that the new sanctions apply, in particular, to individuals and organizations linked to the Russian military-industrial complex and the energy sector.
In the trade sector, Switzerland is imposing stricter export controls on an additional 60 companies, including entities in third countries. The aim of this measure is to prevent the supply of critically important goods to the Russian military-industrial complex.
Bern has also adopted some of the EU measures targeting Russia’s “shadow fleet.” The restrictions have been extended to 46 additional vessels, with bans on their purchase, sale, and the provision of services to them. At the same time, in accordance with the EU decision, previously imposed bans on 11 vessels have been lifted.
In addition, Switzerland has imposed a ban on transactions involving two Russian ports and one port in a third country that are used for the transport of Russian petroleum products.
At the same time, Switzerland has not yet included seven companies from a third country, which were mentioned in the EU decisions, on its sanctions list. Bern stated that operational measures are being applied to prevent the circumvention of sanctions.

 

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Tivat, Montenegro, to Host EU–Western Balkans Summit on June 5

According to Serbian Economist, the event will take place at Porto Montenegro, and city authorities are already preparing temporary traffic restrictions, changes to access procedures, and enhanced security measures.

Montenegrin President Jakov Milatović and European Council President António Costa have sent joint invitations to the leaders of EU countries and Western Balkan states. The summit is set to bring together European leaders at a time when enlargement policy is once again high on the EU’s agenda.

The summit is expected to be attended by European Union member states and six Western Balkan countries: Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia, and Serbia. These six economies are traditionally part of the EU-Western Balkans format, which is used to discuss the region’s European integration, reforms, security, infrastructure, energy, and economic convergence with the EU.

Earlier, local authorities reported the arrival of over 30 European delegations, though the final number may be higher when accounting for representatives of EU institutions, EU member states, countries in the region, and accompanying teams.

For Montenegro, hosting the summit is of particular significance. Milatović called it a historic moment, as the country is hosting such a major meeting between the European Union and the Western Balkans for the first time.

Tivat will operate under special arrangements in connection with the forum. On June 4–5, the city expects temporary traffic restrictions, heightened security measures, and changes to access in the Porto Montenegro area, where the summit will take place. Short-term road closures are possible, primarily on the route from Tivat Airport to the city center, as well as special traffic arrangements on Arsenalska and Istarska Streets.

Some parking lots will be temporarily closed, and Tivat Airport will adjust its operations to accommodate the international forum. Authorities are also considering changes to school schedules on June 4–5 and are preparing a cultural program for residents and visitors on the city waterfront on June 4.

The main political theme of the summit is the European perspective for the Western Balkans. Against the backdrop of the war in Ukraine, intensifying geopolitical competition, and the EU’s desire to accelerate expansion, the region has once again found itself in the spotlight in Brussels. Montenegro and Albania are considered the most advanced candidates for EU accession, while Serbia, Bosnia and Herzegovina, Kosovo, and North Macedonia face more complex political and institutional dynamics.

For the region’s economy, the summit is important not only as a political meeting. The focus is expected to be on infrastructure connectivity, access to European funds, energy security, a common regional market, transport corridors, and investments.

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Ukrainian cement exports to EU virtually blocked – “Ukrcement”

Ukrainian cement exports to the EU are nearly blocked with the implementation of the second phase of the CBAM (Carbon Border Adjustment Mechanism); our country must take a proactive stance in supporting its own producers, emphasized Lyudmila Kripka, Executive Director of the “Ukrcement” Association.

“The conditions that the Ukrainian cement industry faced at the start of the second phase of the CBAM, that is, at the beginning of this year, can be more realistically described not as a ‘barrier’ but as an ‘embargo.’ We were assigned default CO2 emission values for cement from Ukraine at 1,518 kg/t of clinker, which is nearly double the actual figures, even using the wet production method,” Kripka said at the “Trade Wars: The Art of Defense” conference in Kyiv on Wednesday.

She also noted that there are currently no verifiers in the EU for the purposes of the CBAM, but even if there were, the arrival of European verifiers in Ukraine (a mandatory requirement in the first year) is unlikely due to the high level of security risks.

“Under such conditions, exports are impossible in principle! And we see the consequences: cement production has decreased, budget revenues have shrunk, and foreign exchange earnings have fallen, leading to an even greater imbalance in the country’s trade balance,” Kripka noted.

The “Ukrcement” Association, both on its own and together with partners whose products fall under the CBAM mechanism, appealed throughout 2025 to the government, the EC, and all stakeholders regarding the application of the declaratory principle for the duration of the war and reconstruction (this is possible under Part 7 of Article 30 of the CBAM Regulation on force majeure, which has devastating consequences for the economy and industrial infrastructure). However, according to Kripka, EC officials reassured them that the impact of the CBAM’s implementation on the Ukrainian economy would be minimal. First-quarter results showed that the impact is significant, effectively blocking exports.

“Currently, the EC acknowledges that the default value is incorrect; they also see a problem with the certification of verifiers, which concerns not only Ukraine but also EU countries. They promise to correct these issues within a month,” Kripka said.

According to her, these encouraging statements have prompted companies to resume exports, but the risk of catastrophic sanctions remains for companies and dealers that made these shipments.

At the same time, the cement industry is one of the leaders in domestic industry in terms of systematic preparation for the full launch of the CBAM.

“We have made significant progress in the use of alternative fuels, have concrete examples of launching our own ‘green’ power generation, conduct continuous emissions monitoring (CEM), and have verified these emissions using verifiers available in the country,” Kripka said.

Therefore, she emphasized, in response to the question “what is holding back the development of exports to EU countries,” one can point to “uneven competitive conditions.”

“We see that the world is shifting toward a model of economic pragmatism and the protection of domestic markets. Under these conditions, Ukraine has very limited time to adapt its economy to the new reality. “We must take a proactive stance in supporting our own producers,” Kripka explained.

She cited neighboring Poland as an example of healthy “aggressive pragmatism.” In 2024, Ukrainian cement exports to Poland totaled 854,000 tons. Poland produced 17.7 million tons of cement that year. In fact, exports from Ukraine accounted for 3.7% of Poland’s production. Meanwhile, front-page headlines in the press spoke of the “disappearance of Polish cement plants,” and an inter-factional parliamentary group called “Support for the Development of Poland’s Cement Industry” was established in the Polish Sejm.

Kripka emphasized that in order not to be left behind in industrial competitiveness, our country must take a proactive stance in supporting its own producers.

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