Business news from Ukraine

KIEV TOUGHENS QUARANTINE RESTRICTIONS

Due to the rapid spread of coronavirus in the capital, strict quarantine restrictions are being introduced in the city from November 1, Kyiv Mayor Vitali Klitschko said during a briefing on Thursday.
According to him, at the moment the capital, according to a number of criteria, has already reached the indicators of the “red” zone, in connection with which the city authorities will turn to the government with a request to strengthen quarantine restrictions.
“The decision to refer a city or region to the ‘red’ zone is made by the State Commission for Emergency Situations. And we appeal to the government to make such a decision. But I want to state that the capital, within its powers, introduces strict restrictions, which we announced earlier,” said Klitschko.
According to him, from November 1, all capital catering establishments, shopping and entertainment centers, hotels, gyms and social institutions can be visited only with a negative PCR test or a certificate of vaccination.
In addition, all schools in the city will switch to distance learning from Monday, kindergartens will be able to work only if 100% of the staff are vaccinated. In this mode, educational institutions will work until the epidemiological situation in Kyiv improves.
Public transport will not be stopped, but only people who have a vaccination certificate or a negative PCR test for coronavirus will be able to use it. Law enforcement officers will carry out spot checks on vehicles.
“We are introducing these severe restrictions because there are no other options in order to save the life and health of people,” the mayor stressed.

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UKRAINE UPDATES QUARANTINE RESTRICTIONS AT DIFFERENT LEVELS OF EPIDEMIC

The Cabinet of Ministers of Ukraine, at a meeting on Monday updated the list of quarantine restrictions at different levels of epidemic danger, in particular, it allowed businesses to operate in the “red” zones, subject to full vaccination of workers and visitors.
So, according to the explanation of the Ministry of Health on Facebook, there is a requirement for the mandatory wearing of masks in public buildings and transport in the “green” zone.
In the “yellow” zone, in addition to the mask mode and the need to maintain a distance, it is also prohibited:
– mass events with the participation of more than one person per 4 square meters of the area of the premises or territory;
– the congestion of cinemas and other cultural institutions by more than 50% of seats;
– the congestion of gyms and fitness centers is more than one person by 10 square meters;
– the work of educational institutions, except for those where at least 80% of employees have a “yellow” or “green” COVID certificate.
These restrictions will not apply if more than 80% of staff and 100% of visitors, except for persons under 18, are vaccinated against COVID-19 with one or two doses and have presented the corresponding certificate.
Restrictions peculiar to “yellow” zone are applied to the “orange” zone. Local authorities may impose additional restrictions.
In the “red” epidemiological zone, it is prohibited:
– the work of public catering, except for targeted delivery and take-out orders;
– work of shopping and entertainment centers, cinemas, theaters, entertainment establishments, cultural institutions, except for historical and cultural reserves, film and video filming;
– operation of non-food markets and shops, gyms, swimming pools and fitness centers;
– work of educational institutions, except for those where 100% of employees are vaccinated with two doses;
– holding mass events, except for official sports events and matches of team playing sports without spectators;
– operation of hotels, hostels, etc.
– The restrictions will not apply if all staff and all visitors, except those under 18, are fully vaccinated against COVID-19.

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BUSINESSES IN JUNE IMPROVE ASSESSMENT OF PROSPECTS DESPITE CONTINUATION OF QUARANTINE RESTRICTIONS

The Business Activity Expectations Index, calculated by the National Bank of Ukraine (NBU), rose to 51.6 in June from 50.5 in May, according to a survey of enterprises conducted by the National Bank of Ukraine and published on the website of the regulator.
“In June, companies across most of the surveyed sectors reported optimistic expectations of their business performance – the indices of the construction, industrial and services sectors moved above their neutral levels. Meanwhile, companies in the trade sector have reported pessimistic expectations for three months running,” the report says.
“Industrial companies upgraded their optimistic expectations of their business performance amid benign external and internal environments – the sector’s index was 52.5 in June, up from 50.8 in May. Respondents reported much firmer expectations for the amount of manufactured goods, while also remaining upbeat about an increase in the number of new orders, including new export orders,” the bank said.
“Service companies also improved their expectations of their business performance, with the sector’s index moving to 52.3 in June, up from 50.7 in May. Respondents expected an improvement in all performance indicators, expecting most strongly an increase in the amount of services that have been provided, and the services currently being provided,” it said.
“Residential housing and non-residential facility construction companies upgraded their performance expectations most of all. The sector’s index moved up from 49.4 in May to 58.1 in June – the highest figure among the sectors. Respondents expressed strong expectations for the amount of construction work done and the number of new orders, while also reporting intentions to hire more staff for the first time since September 2019,” according to the document.
“In contrast, trading companies were downbeat about their business performance – their index dropped to 48.2 in June, down from 49.9 in May, remaining below the neutral level for three months in a row. Respondents reported dimmer expectations about all performance indicators, such as trade turnover, goods purchased for sale, and staff numbers. Most companies in the sector expected a further decrease in their trade margins,” the report notes.
“Companies across all sectors expect a rise in their selling prices on the back of continued increases in raw material and higher purchase and supplier prices. Staff expectations remain guarded – companies across all sectors, apart from the construction sector, still report no intentions to expand their workforces,” the NBU says.
This survey was carried out from June 3 through June 22, 2021. A total of 316 companies were polled. Of the companies polled, 42.1% are industrial companies, 28.8% companies in the services sector, 24.4% trading companies, and 4.7% construction companies, while 36.1% of the respondents are large companies, 32% medium companies, and 32% small companies.

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