The Business Week for the week of April 6 – 12, 2020

The Business Week for the week of April 6 – 12, 2020


Since April 6, 2020, the new restrictive measures adopted by the Resolution No. 211 “On prevention of the spread of COVID-19 acute respiratory disease caused by the SARS-CoV-2 coronavirus in Ukraine” came into force.

Tax novelties according to Law #540-IX

We want you to know about any changes related to your business amid COVID-19. Our team has updated the information with the tax novelties according to Law #540-IX: exemption from taxation of goods used to combat COVID-19; changes to excise tax administration; changes to corporate income tax; exemption from land charge, real property tax and more.


Ukraine has $24.9 billion in international reserves

As of April 1, 2020, Ukraine held $24.9 billion in international reserves, a 7.8% decline compared to the same period in March. The decrease is due to the National Bank of Ukraine currency interventions, aimed at smoothing out excessive exchange rate fluctuations and keeping under control the inflation. To defend hryvnia and meet the demand from businesses and public, the NBU generated $2.1 billion in net FX sales. At the end of March, the FX market conditions were back to normal, since then, the central bank has bought $576 million. “International reserves now cover 3.7 months of future imports, which is sufficient for Ukraine to meet its obligations, and for the government and the NBU to make their current transactions.” – reports NBU. 


Ukraine increased the production of sunflower oil in January-February 2020

According to the State Statistic Service, Ukraine increased the volumes of the production of crude sunflower oil to 1.1 million tonnes, a 15.7% increase compared to the same period last year. In February 2020 alone, Ukraine produced 558 thousand tonnes of sunflower oil which is 16.5% up compared to the same month of 2019. Ukraine is #1 in the production and export of sunflower oil in the global food market. Ukraine exported 6 million tonnes of sunflower oil in crop season in 2018-19, reports the Ukrainian Sunoil Producers Association. As the country implements new technology and becomes more efficient, its agricultural output will only grow keeping it among the global agricultural powerhouses.


In March 2020, sea trade port Yuzhny set an ultimate cargo freight record

Ukraine’s ports are confidently increasing its cargo handling capacities as well as modernizing its operations. In March 2020, sea trade port Yuzhny handled 1.7 million tonnes of cargo. The company states it’s ahead of the schedule by 58%. The export volume has been doubled to 1.3 million tonnes, compared to 713 thousand tonnes in the same period last year.  The bulk of the total export cargo (91%) was iron ore. Since the beginning of 2020, the port has handled over 4.5 million tonnes of cargo. Altogether, the port handled 53.9 million tons of cargo in 2019, a 26.1% increase compared to the previous year. “Port “Yuzhny” is efficiently increasing its cargo turnover. Today our activities are characterized by high tempo, remarkable records and large-scale projects. Our chief task is cargo diversification.” – states company.

The Ministry of Infrastructure of Ukraine in cooperation with the European Investment Bank to launch a new project on Urban Transport in 2020

A new project “Urban Public Transport of Ukraine 2020” has been initiated by the Ministry of Infrastructure of Ukraine with the support of EIB (European Investment Bank), reported Natalia Forsiuk, a Deputy Infrastructure Minister for European Integration. The initiative envisages supply of the Ukrainian cities with modern ecological transport infrastructure, including the renewal of parks for trams, trolleybuses, electric buses and subway cars. The cost of the project is EUR 400 million, half of which – funds from the EIB. Proposals from local governments have been already submitted to EIB for consideration and some Ukrainian cities would receive financing for infrastructure objects reconstruction in the upcoming months. 


UberEats arrives in Vinnytsia as food delivery service keeps expanding in Ukraine

Food delivery service UberEats has launched in Vinnytsia as it continues to gradually expand across Ukraine. Vinnytsia becomes the fifth Ukrainian city to host the service. UberEats entered the Ukrainian market via the capital city Kyiv in February 2019, before expanding to western Ukraine’s culinary capital Lviv. UberEats is one of a number of Uber services currently available in Ukraine. The digital transport company first appeared in Ukraine in 2016 with its trademark taxi service and has since added electric car and shuttle bus options. The main UberEats competitor in Ukraine is Spain’s Glovo service, which currently operates in 17 Ukrainian cities. As the quarantine measures amid COVID-19 deepen, e-commerce and online food delivery services are booming. 


18 new subsoil lots have been put up at e-auction

The State Service of Geology and Subsoil of Ukraine has put up at e-auction 18 new subsoil lots with deposits of oil and gas, amber, sand, groundwater, granites, clay and kaolin. The e-auctions will take place through public trading platform Prozorro and the bidding will start in 50 and 90 days. There are about 134  investment proposals in the Investment Atlas for Subsoil Users, which is a part of the government’s open-door policy aimed at attracting investors, including foreign ones, in order to enlarge and expand Ukraine’s resource potential.

Ukraine as Eurasian supply chain nexus

Countries around the world are facing unprecedented challenges amid the COVID-19 pandemic. It’s high time to start thinking about the restoration of the global supply chains.  What will be Ukraine’s place in the post-COVID-19 world? What opportunities does Ukraine have to offer in the new 21st century global supply chain economy? Read about these and more in the new article “Ukraine as Eurasian supply chain nexus” by the former Head of UkraineInvest Daniel Bilak.