Business news from Ukraine

WORLD INTELLECTUAL PROPERTY ORGANIZATION TO HELP UKRAINE IN DEVELOPING NATIONAL STRATEGY FOR INTELLECTUAL PROPERTY

First Deputy Prime Minister and Minister of Economic Development and Trade Stepan Kubiv and Director General of the World Intellectual Property Organization (WIPO) Francis Gurry have reached an agreement on a joint project to develop the National Strategy for Intellectual Property in Ukraine. “I just met with Director General of the World Intellectual Property Organization Francis Gurry. It is nice that his organization has highly and positively appreciated our work in reforming our intellectual property domain. We agreed on a joint project to develop the National Intellectual Property Strategy and continue to form an extensive network of innovation support centers in Ukraine,” Kubiv wrote on his Facebook page.
Also, he said, together with WIPO, Ukraine will continue to introduce alternative procedures for resolving disputes in the field of intellectual property.

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TRADE TURNOVER BETWEEN UKRAINE AND INDIA AMOUNTS TO $2.3 BLN IN JAN-OCT 2018

Trade turnover between Ukraine and India in January-October 2018 amounted to $2.3 billion, of which $1.5 billion was the cost of sunflower oil, First Deputy Prime Minister, Minister of Economic Development and Trade Stepan Kubiv has said. “India ranks first in terms of exports of Ukrainian goods to the countries of the Asia-Pacific region and is the fifth largest buyer of Ukrainian products among countries in the world,” he wrote on Facebook.
The Ministry of Economic Development and Trade said on Twitter the Ukrainian delegation headed by Kubiv on January 11-13 is on a working visit to India to participate in the 25th international summit “New India: Rising to Global Occasions.”

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NEW SEWING FACTORY IS OPENED IN UKRAINE

Yaroslav company (Kyiv), specializing in production of textiles and bedding, has opened Krolevets sewing factory (Sumy region), which specializes in sewing women’s shirts, pajamas, and workwear.
According to a report by Krolevets City Council on its Facebook page, the factory already employs about 100 people, but in 2019, with the opening of another shop, it is planned to increase the number of employees to 300 people.
At present, in particular, the factory is fulfilling an order for sewing jackets for the workers of Nova Poshta.
“It’s nice that in such a difficult time, despite the legal regime of martial law in the territory of Sumy region, new enterprises are opened,” Head of Sumy Regional State Administration Mykola Klochko, who was present at the opening of the factory, said.
The director and owner of Yaroslav company, Oleksandr Barsuk, previously reported that the company annually invests about $1 million of credit funds in equipment and modernization of production facilities.
The main specialization of the company is production of bed linen, blankets, mattresses, goods for children, kitchen textiles.
In 2017, the revenue of Yaroslav was UAH 354 million (in the first quarter of 2018 almost UAH 91 million).

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UKRAINE WANTS TO EXPAND RAILWAY SERVICES TO POLAND

The Infrastructure Ministry of Ukraine jointly with the Infrastructure Ministry of Poland are working on restoration of two train services in 2019, Ukrainian Infrastructure Minister Volodymyr Omelyan said at a press conference in Kyiv.
“Together with our Polish colleagues, we are working on the restoration of railway services on the Przemyśl-Malhowice-Nyzhankovychi (Lviv region) line, as well as for Lublin-Lviv. I am sure that these lines have the future,” he said.
Omelyan said that the initiative to resume the railway services between Ukraine and Poland came from Infrastructure Minister of Poland Andrzej Adamczyk.
“We agreed that in December Ukrzaliznytsia and the Polish railway will finally agree on the launch format of these lines, and closer to the New Year we will be able to announce the terms for their implementation,” the Ukrainian minister said.
Omelyan also reported that today the decision was made to launch a container train between China and Europe, namely between China and Poland, on the territory of Ukraine.
“We plan that the number of such trains will be about 1,000 a year,” he said.

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CABINET OF MINISTERS APPROVES AGREEMENT BETWEEN PHILIP MORRIS AND UKRAINE

The Cabinet of Ministers of Ukraine has approved a draft amicable agreement between Philip Morris and Ukraine, foreseeing the abolishment of the tax notification for the amount of UAH 635.3 million by the State Fiscal Service of Ukraine.
According to the draft government resolution, this agreement should ensure the investment dispute settlement, prevent bringing a claim to international investment arbitration against Ukraine amounting to more than UAH 635 million, avoid significant expenses from the national budget during the arbitration, demonstrate to the partners of Ukraine and foreign investors that the government adheres to commitments to provide incentives and protect foreign investment.
The amicable agreement will be signed between Philip Morris International Inc., Philip Morris Global Brands Inc. (both the United States), Philip Morris Brands Sarl (Switzerland), PrJSC Philip Morris Ukraine and the state of Ukraine.
Acting Head of the State Fiscal Service Oleksandr Vlasov is authorized to sign the amicable agreement, and the State Fiscal Service is authorized to execute it after signing.
As reported, PrJSC Philip Morris Ukraine in March 2015 appealed and received permission from Kharkiv customs office to apply the processing mode in the customs territory of Ukraine for the production of cigarettes and accompanying products and their re-export for the period from April 1, 2015 through March 31, 2016. The company was authorized to conditional exemption from Ukrainian import duties and other import taxes on materials for processing under the terms of re-export.
After Philip Morris Ukraine carried out processing and re-export operations, the main directorate of the State Fiscal Service in Kharkiv region conducted an unscheduled inspection of the company’s compliance with the customs legislation of Ukraine regarding the clearance of goods in the processing mode in the customs territory of Ukraine.
According to the results of the inspection of the main directorate of the State Fiscal Service in Kharkiv region, on June 14, 2016, it approved decision notices that determined the liabilities for paying of import duties, additional import duty and VAT on the import of materials, as well as penalties for the total amount UAH 635.3 million Philip Morris Ukraine. Philip Morris Ukraine said that the actions of the State Fiscal Service are pressure on the company. After that, the parties entered into litigation.

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TAXI MARKET IN UKRAINE ESTIMATES AT UAH 40 BLN A YEAR

The Better Regulation Delivery Office (BRDO) estimates the volume of the illegal taxi market in Ukraine at 93-98% with the market volume being UAH 40 billion a year, head of the Infrastructure sector at BRDO Vladyslav Prytomanov has said during the round table “The taxi services market” in Kyiv. “According to experts, the total volume of the taxi market in Ukraine is UAH 40 billion a year, which are distributed between carriers (UAH 36 billion) and information and dispatch services (UAH 4 billion). At the same time, the level of market shadowing ranges from 93% to 98%, about 95% on average,” he said.
According to BRDO, there are about 220,000 taxi drivers in Ukraine, serving 280 million passengers annually. The average cost of a taxi ride in Ukraine is relatively low compared to other countries and amounts to UAH 60-90 for a trip within the city.
The expert noted that the budget revenues from the taxi market work are 1-3% of the minimum projected.
Speaker of the Association of Responsible Carriers public organization Oleksandr Diachenko, in turn, said that according to a study conducted by GfK, 42.7% of drivers are willing to work with an illegal taxi service if they need to pay 15-20% of taxes for legal work.

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