Business news from Ukraine

GOVT STOPS AIR EXPRESS PROJECT

The Cabinet of Ministers has provided funding for the state-owned enterprise National Project Air Express to stop the implementation of a project of passenger railway communication between Kyiv and Boryspil airport.
The government adopted the relevant resolution at a meeting on Wednesday.
According to an explanatory note to the document, this will minimize Ukraine’s losses associated with the termination of credit and commercial agreements concluded between the SOE National Project Air Express and the China National Complete Engineering Corporation together with the Export-Import Bank of China.
It is expected that as a result of the resumption of negotiations and termination of agreements, about $73.7 million can be returned to the Ukrainian side.
The explanatory note also states that at the moment the SOE National Project Air Express is not solvent, and in order for the enterprise to be able to terminate the contracts under the mentioned project, it is necessary to pay off debts on salaries and payments to the state budget, as well as accumulate funds for participation in litigation.
In particular, the state-owned enterprise National Project Air Express has arrears in wages – UAH 831,000, in payment of personal income tax – UAH 341,000, in military fee – UAH 28,500, and in single social security tax – UAH 222,000.
As reported, in Ukraine for a long time there was an unrealized national project Air Express – railway passenger communication Kyiv-Boryspil International Airport, construction of other infrastructure facilities in Kyiv region. For its implementation in 2011, under state guarantees, a loan agreement was concluded with the Export Import Bank of China in the amount of $372.3 million. CCEC was appointed as a general contractor for the turnkey construction works.
In June 2015, it became known that Ukraine and China were ready to discuss the possibility of redirecting credit funds provided for Air Express to other projects, and in March 2016, the Ministry of Infrastructure received the consent of Chinese partners to reformat the Air Express project.
On November 30, 2018, Ukrzaliznytsia launched an express train to Boryspil airport with a floating schedule of 21 to 30 voyages per day. To this end, about 4 km of non-electrified track was added to the existing railway infrastructure, including a 272 m long railway overpass over the M03 Kyiv-Kharkiv highway. Two passenger platforms were built. For operation on the route Central Kyiv Railway Station-Boryspil Airport, Ukrzaliznytsia repaired five rail buses manufactured by Pesa Bydgoszcz SA previously purchased for operation on other routes.

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THE GOVERNMENT REGULATES THE OPERATION OF THE MEDDATA MEDICAL PROCUREMENT MONITORING SYSTEM

The Cabinet of Ministers has regulated the operation of the MedData information and analytical system, which allows monitoring data on procurement and provision of medical institutions with goods and services purchased at the expense of budgetary funds.
According to the relevant government resolution adopted on January 19, the government is the owner of the system, the Ministry of Health is the owner of the information, and the state-owned enterprise Medical Procurement of Ukraine is the holder and administrator of the system.
At the same time, Medical Procurement of Ukraine ensures the functioning, implementation, support and maintenance of the system, as well as monitoring and analysis of the quality of its functioning.
In addition, Medical Procurement of Ukraine provides for information interaction with public electronic information resources, information protection from unauthorized access, technical support for the operation of hardware and software resources, user access to information in the system, compatibility and electronic interaction with the central database and/or electronic medical information systems.

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UKRAINE SETS IMMIGRATION QUOTA FOR 2022 AT 8,488 PEOPLE

The Cabinet of Ministers of Ukraine has set an immigration quota for 2022 at 8,488 people.
The relevant decision was made at a government meeting on Wednesday.
In particular, a quota for relatives of Ukrainian citizens (siblings, grandparents, grandchildren and granddaughters) was 805 people; for persons who were previously citizens of the country – 406 people; for parents, spouses and minor children of immigrants – 2,345 people; and figures of science and culture, whose immigration meets the interests of Ukraine – 730 people.
For persons who have carried out foreign investment activities in the economy of Ukraine in foreign convertible currency in the amount of at least $100,000, immigration is established without restrictions.
In addition, this year, 4,101 highly qualified specialists or workers can immigrate to Ukraine under a quota, the urgent need for which is tangible for the country’s economy.
Among other things, a quota of 99 people has been established for persons who have served in the Armed Forces of Ukraine for three or more years.
For persons who have continuously lived in the territory of the state for three years from the date of establishing a status of victims of human trafficking for them, a quota of two people has been established.
As reported, in 2021, the immigration quota was 9,818 people.

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THE GOVERNMENT HAS APPROVED THE FINANCIAL PLAN OF THE ODESSA PORT PLANT

The Government of Ukraine, two days before the end of 2021, approved a financial plan for it for JSC Odesa Port-Side Plant, which assumes a net profit of UAH 106.995 million.
Relevant order of the Cabinet of Ministers No. 1781 of December 29 was published on its website on Friday, December 31.
The financial plan itself is absent in the publication, however, according to its explanatory note published on the government website, due to a loss of Odesa Port-Side Plant in the 2020 tax declaration in the amount of UAH 5.02 billion, dividends are not planned for 2021.
The explanatory note does not contain other details of the financial plan, but it says about the intention to receive an overpayment of income tax in the amount of UAH 320.6 million by the end of this year.
Odesa Port-Side Plant manufactures chemical products, and is also engaged in transshipment of chemical products to sea transport.

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GOVERNMENT MAKES STATE REGULATION OF PRICES FOR LONG LOAF, SUNFLOWER OIL

The Cabinet of Ministers of Ukraine has included a long loaf, and sunflower oil in the list of food products, the rise in price of which must be declared in advance by business entities selling them, and also prohibited setting a markup for rye-wheat bread and long loaf in excess of 10%.
The government decision is contained in government resolution No. 1432 dated December 30, 2021.
“The list of goods of large social significance approved by government resolution No. 341 dated April 22, 2020 shall be supplemented with paragraphs as follows: Long Loaf and Sunflower Oil,” the government said in the resolution.
In addition, the highest retail markup for rye-wheat bread and long loaf is set at no more than 10% of the wholesale selling price, taking into account advertising, marketing, logistics services, preparation, processing, packaging, and other services related to the sale to the end consumer.
This regulation is introduced for the period of quarantine caused by the COVID-19 pandemic.
According to current government resolution No. 341 dated April 22, 2020, goods that have large social significance are subject to mandatory declaring of food price increases. These include buckwheat groats, granulated sugar, wheat flour of the highest grade and noodles from it, pasteurized milk with a fat content of 2.5%, rye-wheat bread, chicken eggs of the C1 category, chicken carcass, still mineral water and butter with a fat content of 72.5 %
A business entity is obliged to notify the State Service on Food Safety and Consumer Protection about an increase in the price of these food products by more than 15% 30 days before the start of the application of the new price, 14 days with an increase by 10-15% and 3 days with an increase by 5-10%.

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UKRAINIAN GOVERNMENT APPROVES 2021 STATE BUDGET WITH DEFICIT OF 5.47% OF GDP

The Cabinet of Ministers of Ukraine has reduced the deficit in the draft national budget for 2021 from 6% to 5.5% of GDP, Prime Minister Denys Shmyhal has said.
“An opportunity has been found to reduce the budget deficit to GDP from 6%, as proposed at first reading, to 5.5%,” he said at an extraordinary government meeting on Thursday.
Thus, the deficit was reduced by UAH 24 billion, to UAH 246.35 billion.
In the initial draft, state budget revenues were determined at the level of UAH 1.071 trillion, expenses – UAH 1.331 trillion. The new wording of the bill provides for UAH 1.092 trillion in revenues and UAH 1.328 trillion in expenses.
As reported, the state budget for 2020 provides for a deficit of 7.5% of GDP.

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