Business news from Ukraine

FOREIGNERS WHO INVESTED OVER $100,000 WILL HAVE OPPORTUNITY TO APPLY FOR IMMIGRATION PERMIT IN UKRAINE

Foreigners and stateless persons who have invested over $100,000 in enterprises established by them in Ukraine will have the opportunity to apply for an immigration permit in Ukraine.
The relevant resolution was adopted by the Cabinet of Ministers at a meeting on Wednesday without discussion, an Interfax-Ukraine correspondent said.
According to the draft document posted on the government’s website, such investments must be confirmed by a certificate from the bank on the receipt of such an amount to the immigrant’s investment account and its use for foreign investment in the Ukrainian economy. Or a bank certificate on the transfer of such an amount to the current account of the enterprise from the personal foreign account of the immigrant.
In turn, the State Migration Service of Ukraine, in accordance with the document, checks in the bank before making a decision whether these investments have not been returned.
In addition, the government has included persons who have served in the Armed Forces for more than three years in the list of those who are subject to immigration quota and who are eligible to apply for Ukrainian citizenship.

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GERMAN INVESTORS CONSIDER COURTS, NOT CORRUPTION AS MAIN PROBLEM IN UKRAINE

German investors believe that the main problem in Ukraine is not corruption, but the work of the judicial branch of power, German Ambassador to Ukraine Anka Feldhusen has said.
“What German investors really need is the same rules for everyone. What always scares our investors is bad examples when even large German companies in Ukraine are under pressure from law enforcement agencies, like the State Security Service of Ukraine (SBU). The reason for this is not clear to us. Companies just want to work quietly in Ukraine, to give jobs and make a profit. This is closely related to the judicial reform. Our investors tell me that corruption is no longer such a big problem,” the ambassador said in an exclusive interview with Interfax-Ukraine.
According to her, in order to attract German small and medium-sized businesses to Ukraine, they need to be given good examples that they can invest in Ukraine and be calm.
“When I used to work in Ukraine, there was always the issue of VAT refund, now it is not. Now the problem is the possibility that competitors go to court for completely incomprehensible reasons, and for large German companies it is still possible, because they have lawyers, money and time. Very often they win lawsuits, but it lasts a long time. The German economy is a medium and small business, and in order to attract them to Ukraine, they need to give them good examples that they can invest in Ukraine and be calm,” Feldhusen said.
At the same time, the ambassador said that a German pharmaceutical company recently bought the Biopharma plant in Bila Tserkva, Kyiv region. “This is a good example, because it did not happen in Kyiv, not in Kharkiv, not in Dnipro. This is a small city and it will be good for people,” she said.
“Another example is the Kostal company, which produces automotive electronics. They are already working in Pereyaslav-Khmelnytsky, and now they are opening a plant near Boryspil (both cities are located in Kyiv region). In this case, the question was about connecting the plant to the infrastructure. It is not at all clear why it was so difficult. They solved it with the help of the Ukrainian government. There will be a new plant and many new jobs,” the ambassador said.
Feldhusen said that German business has a desire to invest in Ukraine, only more good examples are lacking.

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FOUNDERS OF NOVA POSHTA BECOME INVESTORS IN CO-WORKING SPACE

The founders of Nova Poshta, Viacheslav Klimov and Volodymyr Popereshniuk, have become investors in the Kooperativ co-working space, which was opened at the end of 2019 in Kyiv’s Paladis business center at 23 Sichovykh Striltsiv Street (in the building of the former book factory Zhovten).
The creators of the project are Andriy Fedoriv, the founder of Fedoriv Group and Fedoriv Agency, Vasyl Grogol, the founder of Bursa hotel, and an entrepreneur from France.
“Somehow at the beginning of summer, the guys came to a meeting at Fedoriv Agency and saw how cool the completed Kooperativ had turned out. We started a long conversation, the result of which was the decision – Slava and Volodia will acquire part of the project’s shares and join Vasyl Grogol and me as partners,” Fedoriv wrote on his Facebook page.
According to him, in the future, the partners will work on the development of the Kooperativ co-working space together.
“The first step will be the integration into Kooperativ of our legendary space in the Arena [Arena City business center] with an area of about 1,000 square meters. Fedorivhub will become Kooperativ Hub from September 1, and the former Fedoriv office will become a co-working space for about 100 residents … Despite a difficult year, it shows good results and as an operating company we are already expanding,” Fedoriv said.

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AFRICA TO BE IN LIMELIGHT OF RENEWED COUNCIL OF EXPORTERS AND INVESTORS UNDER FA MINISTRY OF UKRAINE

Africa will be in the limelight of the renewed Council of Exporters and Investors under the Foreign Affairs Ministry of Ukraine, said Foreign Minister Dmytro Kuleba adding that development of cooperation with the African states was one of the priorities of the foreign policy of Ukraine. “Only few days ago, we launched the Council of Exporters and Investors at the Ministry of Foreign Affairs. It now unites 120 leading Ukrainian export-oriented companies. The purpose of this agency is to simplify trade and investment between nations, and Africa will be in the limelight of this Council,” he said in a video address on the occasion of Africa Day posted on ministry’s Twitter on Monday.
Kuleba said that Ukrainian companies were already exporting grain, drinks, meat, equipment and machinery to the African countries. “The IT sector is one of the most promising in our relations,” the minister added.
He emphasized that one of the priorities of Ukraine’s foreign policy was the development of cooperation with the African states.
“Good relations between us symbolize the great prospects of our cooperation and will lead our nations to prosperity and a better life,” he explained.
According to Kuleba, now 20,000 students from Africa are studying in Ukraine, and Ukraine will be glad to see more of them.
“I’m glad that more and more Africans are choosing Ukraine for higher education. Currently, 20,000 students from the African countries are studying in our country, and we welcome more,” said the foreign minister.

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UKRAINIAN PRESIDENT PROMISES TO INVESTORS TO AVOID HASTY AMENDMENTS TO LEGISLATION

Ukrainian President Volodymyr Zelensky is not in favor of hasty and ill-conceived retrospective amendments to legislation that worsen the condition for doing business in the country, the head of state said at a briefing in Vilnius on Wednesday after a meeting with Lithuanian President Gitanas Nauseda.
“I want to confirm once again: my team and I will not take any hasty and ill-conceived steps related to retrospective changes in our legislation that would worsen the conditions for doing business in the country,” Zelensky said.
“We respect any investor who already works in our country. This applies to everyone, regardless of sector and business, from a restaurant to the green energy sector,” the president added.
He said that the second Lithuanian solar power plant was opened in Ivano-Frankivsk region on Wednesday (the plant of Lithuania’s Modus Grupe with a capacity of 14 MW in the village of Zalukva).
“It’s pleasant that Lithuanian companies not only stay on the Ukrainian market, but also continue developing investment projects,” Zelensky said.
According to him, Ukraine expects the boost of investment activities.
“We are betting on improving the mechanisms of public private partnership, which is one of the tools to attract additional investment in the public sector of the economy,” the head of state said, recalling the recently adopted law on concession.

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FOREIGN INVESTORS IN UKRAINIAN WIND FARMS NAME POSSIBLE TERMS FOR VOLUNTARY RESTRUCTURING OF FEED-IN TARIFF

The voluntary restructuring of feed-in tariff in wind energy is possible subject to other market reforms, according to a letter from foreign developers of large wind farms, namely NBT, Windkraft Ukraine, LongWing Energy, Greenworx Holding and Akuo Energy, which was sent to President of Ukraine Volodymyr Zelensky in late October.
According to the document, the restructuring may concern new wind farms or expansion of existing facilities, which will be commissioned on the basis of preliminary electricity sale and purchase contracts signed by the end of 2019, with the exception of projects or their stages being under construction or already having a financing agreement.
As an example, wind farm developers are considering a 5.0–7.5% reduction in the feed-in tariff rate for the wind farm project portfolio with a capacity of 1.9 GW compared to the feed-in tariff defined for wind farms for 2020–2022 in exchange for extension of the term of electricity sales contracts up to 15 years from the date putting wind farms into commercial operation.
At the same time, the authors of the letter oppose retrospective changes in the renewable energy market, drawing the head of state’s attention to the fact that the consequences of this option will be the loss of about $2.5 billion of direct investment, as well as the exit from the sector of foreign investors. According to the companies’ estimates, foreign investment in wind energy has already reached $1.2 billion, and an additional $2.5 billion is planned for the next three years.
In their opinion, the consequences of any retrospective changes to the previously approved by the law schemes for supporting wind energy incentives will be more significant than the problem of financing Guaranteed Buyer state enterprise.

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