Business news from Ukraine


During the year of quarantine associated with the COVID-19 coronavirus pandemic from the beginning of 2020 to the beginning of 2021, the Ukrainian audience of social networks expanded by 7 million people, GlobalLogic said, citing the results of a study conducted on the basis of open data.
“At the beginning of 2020, there were 19 million users [of social networks] in Ukraine. In 2021, the figure reached 26 million. At the same time, the penetration of social networks has increased by half: now 60% of the country’s population is registered in them, while in January 2020 it was only over 40%,” GlobalLogic said in a report on Wednesday.
According to GlobalLogic, since 2019, the number of Ukrainians on Instagram has increased by 22% and on Facebook by 7%. Now they are used by 14 million and 16 million Ukrainians, respectively.
“Over the past year, the new social network TikTok reached 16% of users from Ukraine. Its growth was 500%. YouTube remains the most popular social network with coverage of 96% of users in Ukraine. On average, they spend about 40 minutes a day in the service,” GlobalLogic.
The number of Ukrainian Internet users, according to the company, also increased by 2 million, which is 33% more than in 2019, and at the beginning of 2021 was almost 30 million, that is, about 67% of the country’s population.
According to GlobalLogic, there are more Internet users not only in Ukraine, but also in the world: since 2019, their number has increased by 280 million.
In addition, due to the pandemic over the past year, people around the world have seen 57% more videos and movies, 37% more music and 15% more podcasts.
GlobalLogic used data from open sources such as Data Report, State Statistics Service, Kantar and PlusOne, as well as internal statistics, for its analysis.

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In the evening of March 12, at a meeting of the regional commission of the State Commission on Manmade Disaster, Emergency Response, it was decided to put under quarantine the tourist complex Bukovel and restrict entry to the territory of Polianytsia territorial community, which only local residents or people who work there can freely move through, the local newspaper Halka reports.
“It was decided to terminate the activities of the Bukovel resort. Tourists will not be able to visit it. If you are a tourist, then you must understand that you are not going to Bukovel – you are going to the red quarantine zone, a high-risk zone. We are making such a forced decision, and probably not the last. After all, the red zone, in which we live, is growing, and we do not see a trend towards its decrease,” said head of Ivano-Frankivsk Regional State Administration Andriy Boichuk.
The new rules will take effect from 24:00 on March 13.
“As of today, 51 administrative protocols have been drawn up in Bukovel tourist complex: for lift operators, ski equipment rental points. Additional checkpoints will be introduced on the territory of Polianytska territorial community. Only local residents or those who have a place of work in this settlement will be able to move freely, subject to quarantine requirements,” said Volodymyr Holubosh, head of the Main Department of the National Police in Ivano-Frankivsk region.

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Two thirds of hotels have reduced their expenses by headcount optimization, 27% of respondents have implemented alternative services and rented rooms as offices, according to the study entitled “Ukraine Hotel Market & COVID-19 Impact” conducted by the Ukrainian Hotel & Resort Association (UHRA) together with international tourism experts from Horwath HTL.
“Two-thirds of hotels have decided to reduce prices – an instinctive (yet not necessarily efficient) step to boost occupancy. One third of respondents introduced digital & marketing tools. Apparently, before the pandemic was not considered critical. Some 27% of respondents have introduced alternative services, i.e., co-working, renting rooms as offices, etc,” UHRA International Relations Director Ivan Lun told Interfax-Ukraine.
He added that some respondents (7%) decided to change the function of some areas, i.e. for a gambling facility.
Lun said that vast majority of respondents (93%) confirmed an overall drop in their revenues, and more than 60% of hotels had revenues shrink by more than 40%.
“Only 4% of hotels showed an increase in revenues, and 3% reported that it remained at the level of 2019. Hoteliers who reported growing revenues were all located in the countryside,” the expert said.
Despite a difficult year for the industry, only 2% reported that they are actively seeking exit by selling their hotels and over 90% responded that they will keep operating even with certain limitations.
According to Lun, almost a quarter of hoteliers (23%) expect their performance to return to 2019 levels in 2021; 57% – in 2022 and only slightly less than 20% – in 2023 or later.
Some 122 respondents have participated in the survey, with an average size of 72 rooms per property. Two thirds of the responses came from urban, while 34% from rural locations.

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Kyiv will adhere to additional strengthened quarantine restrictions in order to save lives and prevent a possible collapse of the medical system, mayor of the capital Vitali Klitschko has said.
“Kyiv, where the incidence rate remains high, is forced – whether we like it or not – to comply with a lockdown. Yes, the economic consequences of quarantine will be disappointing. We understand how difficult it is for business now … But today the main thing is the health and life of each of us, our relatives and friends, our friends, the health and lives of Ukrainians. It is very important to prevent a possible collapse of the medical system,” Klitschko wrote on his Facebook page.
The Mayor of Kyiv recalled that many other countries had previously introduced strict restrictions, and today they have also extended them.

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The Cabinet of Ministers of Ukraine has introduced changes to decree of December 9, 2020 No. 1236 “On the establishment of quarantine and the introduction of restrictive anti-epidemic measures in order to prevent the spread in Ukraine of the acute respiratory disease COVID-19 caused by the SARS-CoV-2 coronavirus” that lax trade.
Corresponding decree of January 5, 2021 No. 9 was published on the government website on Thursday evening.
In particular, according to the decree, the government allowed the sale of household chemicals, periodicals, collection and storage of waste.

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Additional strengthened quarantine restrictions starts in Ukraine

Additional strengthened quarantine restrictions began to operate to prevent the spread of COVID-19 in Ukraine from 00:00 on Friday, January 8.

As reported, according to resolution of the Cabinet of Ministers of Ukraine No. 1236 of December 9, 2020, the lockdown will last until 00:00 on January 25, 2021.

During this period, the operation of cafes, restaurants and bars (except for delivery and takeaway), non-food stores, non-food markets, cinemas, fitness clubs, gyms, swimming pools, theaters and shopping centers is prohibited. Also, all educational institutions are placed on vacation, except for kindergartens and special educational institutions. In addition, all public events are prohibited.

During a lockdown, retail chains are allowed to sell food products, provided that at least 60% of their area is intended for food sales.

It is also allowed to trade in medicines, medical goods, hygiene products, communication equipment, veterinary drugs, feed, seeds, plant protection products, household chemicals and the printed press, trade in fuel.

According to decree No. 1236, trade in other groups of goods can only be carried out on condition of targeted delivery of orders.

It is also allowed “to carry out activities for the provision of financial services, activities of financial institutions and activities for the collection and transportation of currency values, the activities of postal operators, as well as medical practice, veterinary practice, the activities of gas stations (without food zones), activities for maintenance and repair vehicles, hairdressers and beauty salons by appointment.”

It is prohibited to conduct all mass (entertainment, sports, social, advertising and other) events (except for the organization of skiing leisure, but without the work of catering establishments and the sale of alcoholic beverages). At the same time, the ban also does not apply to the New Year and Christmas holidays (without concerts and fairs, including food fairs), official sports events included in the Unified Schedule of Physical Culture and Health and Sports Events of Ukraine and matches of team playing sports of professional sports clubs without spectators, provided that the participants of such events comply with the relevant sanitary and anti-epidemic measures and the implementation of mandatory daily monitoring of the health of the participants.

Also, the work of catering establishments and places for food in hotels is prohibited from 11:00 to 6:00 the next day, except for the provision of catering services in a hotel room at the request of customers.

Central and local executive authorities, other state bodies, from January 11 to January 22, 2021 inclusively, were instructed to establish a remote (home) work mode for employees, except for employees for whom it is impossible to establish a remote (home) work mode due to the nature of the performed tasks, and workers providing administrative services.

It is also recommended “to local government bodies, enterprises, institutions, organizations regardless of the form of ownership, except for institutions, regardless of the form of ownership, providing financial, banking and housing services, health protection, food supply, energy supply, water supply, communications, those that provide the functioning of the infrastructure of transport support, the sphere of defense, law and order and protection, critical infrastructure facilities, to establish a remote (home) work mode for workers in the period from January 11 to January 22, 2021, inclusively.”

Resolution No. 1236 also extended the quarantine regime in Ukraine until February 28, 2021. At the same time, planned hospitalizations in communal and state medical institutions are prohibited, the work of private clinics is not limited. Private medical institutions can carry out planned hospitalizations and operations in compliance with the necessary sanitary and epidemiological standards.

As mayor of Kyiv Vitali Klitschko said earlier, during the lockdown, public transport of the capital, including the metro, will work, but urged to use public transport only when it is necessary.