Business news from Ukraine


The volume of construction work performed in Ukraine in January 2021 decreased 11.2% compared to January 2020, to UAH 7.2 billion, the State Statistics Service has said.
According to the statistics department, in January, the volume of construction work performed decreased by 80.3% compared to the previous month (according to seasonally adjusted data – by 14.6%), while compared to November 2020, this figure decreased by 1.2%.
The State Statistics Service reported that in January 2021 compared to January 2020, the growth in the volume of construction work was observed only in the segment of construction of engineering structures – the figure was 44.8%. At the same time, in residential construction, the decline in the volume of construction work amounted to 9.1%, in nonresidential – 6%.
The share of new construction of the total volume of completed construction work was 43.1%, repairs – 27.6%, reconstruction and technical re-equipment – 29.3%.
An increase in the volume of construction work in January 2021 compared to January 2020 was recorded in Sumy (by 0.2%, to UAH 88.7 million) and Khmelnytsky (by 128.1%, to UAH 285.8 million) regions.
In other regions of Ukraine, there was a decrease in the volume of construction work, in particular, in Zakarpattia region (by 59.4%, to UAH 22.8 million), Vinnytsia (by 55.6%, to UAH 96.8 million) and Luhansk (by 48.5%, to UAH 12 million). In Kyiv city, the indicator decreased 18.2%, to UAH 1.8 billion.
The data are given excluding the temporarily occupied territory of Crimea and territories in Donetsk and Luhansk regions.

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The duty-free tariff quota for the import of eggs from Ukraine to the U.K. in April-June 2021 will be half of the amount determined by last year’s agreement (204.5 tonnes) due to lack of applications for imports of these products in January-March, the press service of the Ministry of Foreign Affairs said on Tuesday.
The ministry said that the Rural Payments Agency in the U.K. has announced the start of accepting applications for the import of Ukrainian poultry eggs for the second quarter of 2021.
The Ministry of Foreign Affairs on its website quoted the rules for distribution of this quota for poultry eggs and albumin from Ukraine in accordance with the provisions of the Political, Free Trade and Strategic Partnership Agreement signed by Ukraine and the United Kingdom of Great Britain and Northern Ireland in October 2020.
According to the document, the administration of quotas for these products is managed by a system of import licenses, and the volume of the quota is distributed quarterly in parts – 25% of its total volume. The import license will be valid for the nine months (until December 31, 2021), and can be obtained by any British company that imported at least 25 tonnes of similar products in the period from September 17, 2019 to September 16, 2020 or September 17, 2018 through September 16, 2019.
The insurance premium for the import license is set at GBP 17 per 100 kg of product.

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Ukraine expects to receive some $2.9 billion in financing from the International Monetary Fund (IMF) in 2021, for which the parliament is supposed to pass legislative amendments on reforming the judicial system, presidential economic advisor Oleh Ustenko said.
“We expect to receive an IMF tranche this year. Our program envisions $5 billion, and we have already received $2.1 billion,” Ustenko said on Ukrainian television on Monday.
“Ukraine’s cooperation with the International Monetary Fund is continuing,” he said.
“The Verkhovna Rada is supposed to pass legislative amendments essential for receiving the next tranche. I am talking about the need for judicial reform and [legislation] ensuring the functioning of anti-corruption infrastructure,” he said.
He said “the requirements of the program of cooperation with the IMF coincide with the program of the President of Ukraine, on which the head of state has repeatedly said.”
Ustenko also said, in order to amend the Ukrainian legislation in terms of the judicial system, the president held many meetings, communicated with Ukrainian and foreign experts and persuaded the MPs of the Verkhovna Rada.
“The program is taking place. As soon as the relevant legislative initiatives of the president are voted in the Verkhovna Rada, we can say that on our part we have fulfilled what we promised. We promised to fulfill not only the IMF, we do not do it for someone, we do it for Ukrainian people,” the advisor to the head of state said.
Ustenko said that successful cooperation with the IMF will give Ukraine the opportunity to make more profitable borrowings on the international market and is a good signal for foreign investors.
He also added that 2020 was a difficult year in terms of attracting investment, but the Ukrainian economy could receive about $3 billion in foreign direct investment in 2021.



Ukraine and Israel have agreed on a special commercial flight Kyiv-Tel Aviv-Kyiv in early March to return Ukrainians home, spokesperson for the Ministry of Foreign Affairs of Ukraine Oleh Nikolenko has said.
“Ukraine and Israel have agreed on a special commercial flight Kyiv-Tel Aviv-Kyiv at the beginning of March to return Ukrainians home. The Ukrainian Embassy in Israel will additionally inform on the exact date and conditions for purchasing a ticket. Israel’s borders for regular flights remain closed,” he wrote on Twitter on Friday.

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Kazakhstan is increasing the number of regular flights with Russia, Kyrgyzstan, Uzbekistan, Ukraine, and the Maldives.
The relevant decision was made by the interdepartmental commission to prevent the spread of Covid-19, the civil aviation committee of the Kazakh Industry and Infrastructure Development Ministry said on Wednesday.
Thus, in accordance with the interdepartmental commission’s decision, the number of flights to Russia will increase by seven in general, from three to 10 flights per week on each side. This includes the number of Nur-Sultan-Moscow flights increasing from two to four per week on each side and Almaty-Moscow flights increasing from one to four per week on each side. Shymkent-Moscow flights, one per week on each side, and Aktau-Moscow, one per week on each side, are resumed.
The number of flights to the Maldives is up from four to seven per week for Kazakh companies on the Almaty-Male route.
The number of Almaty-Bishkek (Kyrgyzstan) flights is increasing from two to three per week.
Along with this, the number of flights to Uzbekistan is increasing from three to four (on each side) due to one more Nur-Sultan-Tashkent flight per week. Since September 11, one flight has been performed on the Nur-Sultan-Tashkent route and two on the Almaty-Tashkent route.
The number of flights to Ukraine is increasing to two, due to the resumption of one flight per week on the Nur-Sultan-Kyiv route. In August 2020, flights on the Almaty-Kyiv route were resumed.

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Insurance companies of Ukraine in 2020 paid profit tax to the state and local budgets in the amount of UAH 1.674 billion, which is UAH 334 million (24.5%) more than in the same period in 2019, and 51, 5% more than in 2018, Oleksandr Zaletov, the vice president of the League of Insurance Organizations of Ukraine (LIOU), has said.

According to him, as a result of the impact of the COVID-19 pandemic, a significant trend in 2020 was the revision of business strategies for almost all insurance companies without exception. The drop in sales for a number of types of insurance (Green Card, tourism, KASKO) encouraged insurers and insurance intermediaries to digitalize. To one degree or another, distance sales and settlement using Internet technologies have become the main strategic objectives of the digitalization of the Ukrainian insurance market. In fact, an indicator of the competitiveness and investment attractiveness of the insurer was the ability to remotely conclude or renegotiate an insurance contract, amend it, and provide documents to the insurer confirming the insured event.

According to Zaletov, unfortunately, the legal framework and technologies for remote servicing of insurance companies’ clients lag significantly behind the needs and need further reform. In addition, on the way of increasing the customer focus of insurers, the tasks of improving the legislative regulation of issues aimed at protecting the rights of consumers of insurance services and countering their discrimination in the field of insurance are of particular importance. In this regard, it should be noted that basing an insurance rate on a characteristic that cannot be changed is contrary to the ideals of the EU and fairness.

“The terms of insurance contracts must not be excessive, inadequate or unfairly discriminatory, for example, direct or indirect restriction of citizens’ rights on the basis of race, color, political, religious and other beliefs, gender, age, health status, disability, ethnic and social origin, property status, residence, linguistic or other characteristics,” he said.

According to Zaletov, other representatives of non-banking financial markets, primarily financial companies, lessors and pawnshops, are also steadily increasing tax payments. So in 2020 they paid profit tax in the amount of UAH 604 million to the state and local budgets, which is UAH 196 million (47.1%) more than in the same period of 2019, and 149.6% more than for 2018.