On 22 October 2019,
H.E Ambassador Mykola Tochytskyi will meet with the Belgian Businesspeople active in Ukraine for a briefing regarding:
“Further information about the current Status of the Business climate after the elections in Ukraine”.
Briefing & Hight level Networking Reception event.
For more information about participation in this event, please contact: office.belgium@uito.eu
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Minister Tymofiy Mylovanov: Taras Kachka will become Ukraine’s trade representative
Minister for Economic Development, Trade and Agriculture Tymofiy Mylovanov has confirmed that ex-Foreign Minister Taras Kachka will become his deputy and Ukraine’s trade representative. The minister stated this during the Svoboda Slova talk show, when asked to comment on the reports that Taras Kachka would be appointed Ukraine’s trade representative, an Ukrinform correspondent reported. "As to Taras Kachka, the answer is yes. And we will appoint other people as soon as possible," Mylovanov said.
As reported, there were media reports that Taras Kachka had applied for the post of deputy minister of economic development, trade and agriculture – Ukraine’s trade representative.
President Zelensky instructs government and parliament to improve business climate in country
President of Ukraine Volodymyr Zelensky has instructed the new Government in cooperation with the new Parliament to improve the business climate in the country, the president’s press service has reported. During a meeting with the leadership of the Verkhovna Rada, the Cabinet of Ministers and the law enforcement bodies on Monday, the head of state noted that in order to stimulate investments, the Parliament should adopt a law on concessions and a law on the lease of state and communal property (new version) by October 1, 2019. It should also adopt a law stimulating investment activity in Ukraine and strengthening the protection of foreign investment by January 1, 2020. In addition, by December 1, 2019, the Government must hold negotiations and sign production sharing agreements with winners of the competition for subsoil use.
The president also stated that in order to improve the business climate in the country, it was necessary to create conditions for commercial banks to reduce lending rates, the availability of mortgages and lending to business by October 1, 2019. At the same time, the head of state commissioned the Cabinet of Ministers to submit a bill on the Financial Investigation Service to the Verkhovna Rada by October 1. The Parliament was commissioned to adopt this document by December 1. The president stressed the importance of de-shadowing the economy. For this end, it is necessary to submit to the Parliament the draft laws on the legalization of gambling and amber production by October 1. These documents must be approved by December 1.
Government appoints three deputy economic development ministers
The Cabinet of Ministers of Ukraine has appointed three Deputy Ministers for Economic Development, Trade and Agriculture - Pavlo Kukhta, Taras Kachka and Taras Vysotskyi, according to the ministry’s press service. "On September 6, the Cabinet of Ministers of Ukraine appointed three economic development, trade and agriculture ministers of Ukraine,” reads the report. In particular, First Deputy Economic Development Minister Pavlo Kukhta will be responsible for the formation of state property policy, public procurement and the labor market. Deputy Economic Development Minister Taras Kachka will be trade representative of Ukraine. Deputy Economic Development Minister Taras Vysotskyi will be responsible for the agrarian policy.
Ukraine implemented 522 donor assistance projects worth $5.9 bln in H1 2019
In the first half of 2019, 522 donor assistance projects worth $5.9 billion were implemented in Ukraine, according to the Economic Development Ministry.
"In the first half of 2019, 522 International Technical Assistance projects for a total sum of $5.9 billion were implemented in Ukraine (including 10 projects worth $2.4 billion funded from the Chernobyl Shelter Fund and Nuclear Safety Account). For comparison, in the relevant period in 2018, 477 projects worth $4.9 billion were implemented in Ukraine," reads the report. In the first half of 2019, the largest donors for Ukraine were: the United States - over $2.2 billion, the EU - $ 470 million, Germany - $345 million, Canada - $141 million. As to the spheres of assistance projects, the largest funding was directed to: nuclear security - $2.6 billion (45%), national security and defense - $1.4 billion (24%), government and civil society - $447 million (8%), Donbas reconstruction and support for internally displaced persons - $364 million (6%). In addition, in the reporting period, three contracts were signed with the Government of China for the supply of medical equipment to seven hospitals, 50 rescue vehicles for the State Emergency Service and 200 million yuan (about $30 million); four agreements with the U.S. Government for $88 million; five agreements with the European Commission to finance programs worth EUR 126.9 million; one treaty with the International Bank for Reconstruction and Development (IBRD) for the sum of $350 thousand.
Finance Ministry intends to reduce cost of loans for farmers
The Finance Ministry is actively working on developing mechanisms for reducing the cost of loans for farmers, the ministry has written on Facebook page. "Now the loan rate offered by banks in the current economic situation and the refinancing rate set by the National Bank are too high. Therefore, our task is to find a way to reduce the cost of resources," said Finance Minister Oksana Markarova. According to her, experts are working on all possible mechanisms for cheapening loans, an analysis of government spending to find opportunities to change existing programs in support of farmers, including for the purchase of land. Also, the Finance Ministry is actively working on introducing additional financial instruments, such as loan repayment guarantees and others to support the financial capabilities of small farmers and medium-sized enterprises.
U.S. sends expert team to Ukraine to help develop winter action plan
The U.S. Department of Energy is sending an expert delegation to Ukraine to help develop a winter action plan to address critical needs for the 2019-2020 winter season.
The U.S. Embassy in Ukraine reported this on its Facebook page on Tuesday.
"The U.S. Department of Energy is committed to Ukraine’s energy security and is sending an expert delegation to Ukraine to assist in the development of a Winter Action Plan to address critical needs for the 2019-2020 winter season, as requested by President Zelensky’s Administration," the statement reads. According to the embassy, this team will help ensure that the Zelensky Administration and the Government of Ukraine are best equipped to ensure Ukraine is never again vulnerable to threats of supply disruption from Russia. The delegation will work side-by-side with Ukraine’s experts to assess the interdependencies in the generation, transmission and distribution of energy across all sectors, and provide a framework to improve coordinated responses to energy shortages.
PM Honcharuk: Government aims to strengthen public-private partnership in infrastructure
Prime Minister of Ukraine Oleksiy Honcharuk congratulates the Infrastructure Ministry on the beginning of the first competitions for port concession and notes that the Government is set to strengthen the practice of public-private partnership in infrastructure. "Today, the first competitions for the concession of Olvia (Mykolaiv) and Kherson seaports have started. I congratulate the team of the Ministry of Infrastructure of Ukraine led by Vladyslav Krykliy on this important pilot project for Ukraine. The competitions should be fair and transparent," Honcharuk posted on Facebook. According to the Prime Minister, the Government is serious about strengthening the practice of public-private partnership in the infrastructure. "We will further extend this practice to other big infrastructure facilities – roads, hospitals, bridges. So we look forward to working closely with large Ukrainian and international companies," Honcharuk added.
President promises personal guarantees of protection to foreign investors
President of Ukraine Volodymyr Zelensky calls on foreign investors to enter the Ukrainian market and promises them personal guarantees of protection. “Dear guests, there is a vacant seat at the table of our happy family. It’s for the world, for foreign partners, and we have something to offer you. If I may say so, we have something to treat you to at this table, namely to a series of projects. I invite the foreign business to join them under my personal guarantees of protection. These are energy, infrastructure, transparent land circulation projects. But we have a lot of ideas,” Zelensky said at the 16th Yalta European Strategy (YES) Annual Meeting in Kyiv on Friday, an Ukrinform correspondent reports.
The President also called on foreign business to join the project of development of a new resort on the Black Sea coast. According to him, it should be a brand new Ukrainian city built from scratch. In addition, the Head of State urged to invest in projects of new ski resorts, in particular, in Slavske and Borzhava, as well as in "a large amusement park for guests of Eastern and Central Europe." He also told about the projects on land irrigation in southern Ukraine, an inter-university IT cluster in Kharkiv, film production and so on
Zelensky reminded that an investment forum was planned to be held in Mariupol in October and invited international guests to attend it.
Economy minister outlines priorities: labor market, investment, land market and export
Reforming the labor market, attracting investment in the Ukrainian economy, opening the land market, developing exports and increasing international trade are the main priorities of the Ministry of Economic Development, Trade and Agriculture of Ukraine. Minister Tymofiy Mylovanov announced this at a meeting with members of the parliamentary committee on economic development, the press service of the Economic Development Ministry posted on Facebook. " Tymofiy Mylovanov outlined the main priorities for further work and told about the planned reforms, in particular, reforming the labor market, attracting investment in the Ukrainian economy, opening the land market, developing exports and increasing international trade," the statement reads. It is noted that the meeting participants discussed common goals and directions of work, as well as the bills of the economic bloc which are now under consideration in the Verkhovna Rada. “These key directions should be the driver of further economic growth. At the same time, we must ensure constant public control, we must be honest and transparent so that every Ukrainian understands we work for them,” Mylovanov said.
PM Honcharuk: Land market to open from October 1, 2020The land market in Ukraine will open starting from October 1, 2020.
"The model we currently offer provides for opening the land market on October 1 next year," Prime Minister of Ukraine Oleksiy Honcharuk said at a conference on land management reform “Land as a factor in the development of Ukrainian village,” an Ukrinform correspondent reports. He noted that it would open gradually as experts advise.
"We open the land market not right away. We thought to do it starting from July 1 next year. However, then we had consultations and decided that doing it in summer was not a good idea," the Prime Minister explained. He assured that Ukrainian lessees would have a prior right to buy the land. "Of course, we will guarantee the rights of those who currently have a lease on the land to buy it first. This is absolutely necessary. We do not want those, who are cultivating the land, to lose an opportunity to cultivate it further," Honcharuk said. As the PM noted, the foreign companies are currently operating on Ukrainian land. "And now I see no reason to expel a foreign investor," the Head of Government added. Earlier on Thursday, President Volodymyr Zelensky said that the proposed land market model envisaged that only Ukrainians and Ukrainian companies would have the right to buy and sell land.
IMF mission completes work in Ukraine
A mission from the International Monetary Fund (IMF) completes its work in Ukraine on Thursday, September 26, and a statement on the results of its work in the country is to be published on September 27, the IMF Resident Representative Office in Ukraine has told Ukrinform. "Today is the final day of the mission's work. A statement on the results of the work is expected tomorrow," the office said. An IMF mission arrived in Kyiv in mid-September to discuss cooperation. Ukrainian President Volodymyr Zelensky said at a meeting with IMF First Deputy Managing Director David Lipton in Toronto in early July that cooperation with the IMF remains a priority for the Ukrainian authorities. The National Bank of Ukraine (NBU) said that Ukraine should sign a new long-term program of cooperation with the IMF for a total amount of $5-10 billion. The first tranche under the new IMF program, according to NBU forecasts, may be transferred by the end of 2019. The NBU expects it to be about $2 billion. The IMF's previous 14-month Stand-By Arrangement for Ukraine was approved at the end of 2018. It provided for the allocation of three tranches. Ukraine received the first and only IMF tranche under this program on December 21, 2018.
Government intends to attract $50 bln in investments by 2024
The Government of Ukraine plans to achieve 40% economic growth and attract $50 billion in investment over the next five years. "Ukraine needs to grow by 5-7% a year. This will allow us to develop at a normal pace and improve people's lives. The next few years are going to be difficult. We will pay off record high debts, every third hryvnia next year will be sent for settling debts," Prime Minister of Ukraine Oleksiy Honcharuk said during the presentation of the Government's Action Plan, an Ukrinform correspondent reports.
According to him, "it is quite possible to achieve 40% economic growth and attract $50 billion in investment" over the next five years. "The Government's Action Plan is a large document unlike those adopted by previous governments. It is primarily about goals. How does a government in a civilized country work? It is elected by parliament and some measurable goals are set, i.e. what should be achieved within a specific period. The Parliament regularly monitors the achievements," Honcharuk said. According to the Ukrainian Prime Minister, the goals set in the action plan are "human-centered."
"We do not set abstract goals simply to gain positions in any rankings. Our goals refer to people in different life situations," Honcharuk added. On September 29, the Cabinet of Ministers of Ukraine approved the Government's Action Plan.
Honcharuk: Government has no plans to raise taxes
Prime Minister of Ukraine Oleksiy Honcharuk has stated that the Cabinet of Ministers does not intend to raise taxes. "We, the government, do not plan to raise taxes, this is the wrong way. The state should not increase the amount of resources that it passes through itself," he stated during the talk show Svoboda Slova. According to him, the government should create incentives for business and citizens so that they be not afraid to work with it, "so that they can invest their money in their business and develop Ukraine," Honcharuk stressed.
