Business news from Ukraine

UKRAINIAN PARLIAMENT PASSES AT FIRST READING BILL REDUCING VAT TO 7% FOR REPRESENTATIVES OF CULTURE, CREATIVE INDUSTRIES

Verkhovna Rada has passed at first reading the President’s draft law on reducing value added tax (VAT) to 7% for representatives of culture, tourism, creative industries.
An Interfax-Ukraine correspondent has reported that some 273 MPs voted in favor of bill No. 3851 on amending the Tax Code of Ukraine to support culture, tourism and creative industries at first reading at the meeting on Tuesday, September 15.
“Since our field of work mainly requires offline performance and it is extremely difficult to shift to online mode, therefore we believe that… theatre, opera, ballet, music, concert, other performances, … production of … films and so on may be charged 7% VAT,” noted the Minister of Culture and Information Policy of Ukraine Oleksandr Tkachenko at the presentation of the law.
He added that the bill provides for 7% VAT for operations related to temporary accommodation services provided by hotels, in view of the extremely high losses that this sector suffered due to quarantine measures.
“This law had been the subject of lengthy debates in the relevant ministries and I ask you now to lend a hand to the field of culture and creative industries,” Tkachenko summed up.

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REPRESENTATIVES OF TOURISM INDUSTRY APPEAL TO PRESIDENT OF UKRAINE FOR HELP

Representatives of the tourism industry have appealed to President of Ukraine Volodymyr Zelensky, the government and the profile committees of the Verkhovna Rada with the request to create an anti-crisis committee with the participation of tour operators and to facilitate the mirror opening of borders with other countries, the press service of the Ukrainian League of Industrialists and Entrepreneurs (ULIE) has said.
According to the appeal, the tour operators demand negotiations between the Foreign Ministry and the countries that have opened borders for other countries, excluding Ukraine, as well as the introduction of mirror and simultaneous opening of borders with them.
The representatives of the industry insist that inbound and outbound tourism should receive equal support from the state.
“Designate professionals who will understand the difference between inbound, outbound and domestic tourism. These are concepts that cannot be interchangeable. Why are anti-crisis steps today are taken in the format of replacing outbound tourism with inbound tourism? This is not a way out of the crisis for the industry, but only a substitution of concepts, which will lead to even greater decline,” the appeal states.
According to the tour operators, more than 250,000 people work in the industry, and during quarantine thousands lost their jobs. In addition, travel companies incur losses due to penalties for the return of paid and unused tours. At the same time, the industry representatives emphasized that they do not require financial subsidies or provision of jobs.
The appeal was prepared by representatives of the tourism industry together with the anti-crisis council of public organizations and the ULIE.

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OVER 20 REPRESENTATIVES OF CONSTRUCTION AND CONSUMER MARKETS GET TO NEW UKRAINIAN PARLIAMENT

More than 20 representatives of the construction and consumer markets, including Olena Shuliak, Vadym Strunevych, Hanna Lichman from the Servant of the People party, Vadym Stolar and Dmytro Isayenko from the Opposition Platform-For Life party, and also self-nominees Oleksandr Feldman and Leonid Klimov pass to the Verkhovna Rada.
The list of the Servant of the People party included the head of the construction sector, board member of the Better Regulation Delivery Office (BRDO) Olena Shuliak (under No. 13), head of Kyivproekt and Ukrinvestbud Development LLC Vadym Strunevych (No. 39). Ukrinvestbud Development jointly with Saga Development is implementing the project of the Einstein Concept House residential complex at 24a Zlatoustivska Street in Shevchenkivsky district of Kyiv.
The list of the party also includes the head of Biant development company (Kryvy Rih), the director of the enterprise for production of concrete Rastro LLC, Yuriy Kysil (No. 42).

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UKRAINE’S PRESIDENT DISCUSSES WITH CHINESE BUSINESS REPRESENTATIVES INVESTMENT POTENTIAL OF AROUND $10 BILLION

Ukraine’s President Volodymyr Zelensky has met with Chinese business representatives to discuss investment and the two sides made a preliminary list of joint projects with a potential investment of around $10 billion.
“The meeting attendees made a preliminary list of projects with an investment potential of around $10 billion, which Ukraine is planning to implement jointly with Chinese companies of private and public ownership. The projects will be coordinated by the national investment board led by the president,” the presidential press service said.
“We spend a lot of effort to attract investors to Ukraine. We are ready to protect investments. That requires a new parliament and government as well as our desire,” Zelensky told his guests.
He offered to discuss the potential investment in infrastructure development, agriculture and gas field development in Ukraine.
“One issue is to build a concession road around Kyiv,” Zelensky said.
For their part, representatives from a Chinese state corporation, which specializes in building military infrastructure, told about projects they could implement in Ukraine at their expense.
Representatives from a private Chinese company, which owns one of the world’s top 500 biggest banks, suggested a number of projects on infrastructure, agriculture, energy efficiency and financial services.

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IMF REPRESENTATIVES TO VISIT KYIV ON NOV 4-9

The International Monetary Fund (IMF) Resident Representative in Ukraine Goesta Ljungman has reported on the upcoming visit to Kyiv of experts of the fund to discuss the 2019 draft budget, the adoption of which is a condition for providing Ukraine with funding for the new stand by program. According to Ljungman, the experts will stay in Ukraine on November 4-9.

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