The Business Week for the week of August 31-September 6, 2020

The Business Week for the week of August 31-September 6, 2020


Ukraine improved its positions in the Global Innovation Index 2020

Ukraine is constantly improving its position in the Global Innovation Index. This year the country climbed up 2 positions and currently occupies the 45th place among the 131 countries globally. In top-3 innovation economies by lower-middle-income group Ukraine takes the second place leaving behind India, while Vietnam occupies the first place.  The top-5 countries of this year’s innovation index are Switzerland, Sweden, the USA, the UK, and the Netherlands. Full report


Japan R&I upgrades Ukraine from B to B+

Japan Rating and Investment Information (R&I) agency upgraded Ukraine’s foreign currency issuer rating from B to B+, rating outlook – stable. R&I took into consideration approved financial support from the international financial institutions, improved political and social stability as well as fiscal consolidation efforts and enhanced resilience to external shocks. It is expected that Ukraine’s economic and fiscal conditions will recover in 2021 and the economy will likely improve with 4% real GDP growth for 2021.

Fitch rating affirms Ukraine at B, outlook stable

A leading credit rating agency Fitch has affirmed Ukraine’s Long-Term Foreign-Currency (LTFC) Issuer Default Rating (IDR) at ‘B’ with a Stable Outlook. The ratings of Ukraine reflect its credible macroeconomic policy framework that had lowered inflation and narrowed fiscal deficits prior to the coronavirus shock, and a record of multilateral support reads Fitch press release. Read more

The key interest rate remains at 6%

The National Bank of Ukraine decided to keep its key policy rate at 6% per annum, taking into consideration the balance of risks and a steady trend towards recovery in consumer demand. According to the central bank, maintaining a loose monetary policy will support economic recovery amid moderate inflation and elevated uncertainty over how the pandemic is going to spread in Ukraine and the world.


Ukraine is on its way to create favorable conditions for IT development

The President of Ukraine entrusted the Government to draft and submit to the Ukrainian Parliament bills aimed at developing the IT industry in Ukraine. 
In particular, the future bills envisage:
🌀 the liberalization of the labor relations between IT specialists and IT companies; 
🌀 establishing an effective level of the tax burden for IT specialists in order to deal with shadow incomes and increase the competitiveness of domestic IT companies; 
🌀 enhancing the procedural actions during the course of criminal procedures in order to prevent unjustified interaction with IT company activities.
👉 Additionally, the Government should improve and liberalize the procedures of obtaining the immigration permit for foreigners and stateless persons and ease the procedure of getting the work permit for foreigners willing to work for IT companies in Ukraine.

Ukrainian Yuzhmash is developing engines for the Vega launch vehicle that injected 53 micro and nanosatellites to orbit

Ukraine is well-positioned and has all the necessary expertise to become a part of foreign aerospace companies’ value chain. On September 3, a European Vega light-weight launch vehicle was successfully launched from Kourou spaceport in French Guiana for the 15th time. The main engine assembly operated at the Vega LV fourth stage liquid propulsion system, was developed by Yuzhnoye SDO and its batch production is being performed by SE PA Yuzhmash, reads Yuzhmash press release. Ukraine is one of the few nations with developed aerospace industry, involving a full cycle of design, production and operation of advanced civil, military and cargo aircraft, as well as supplying space technology. Read Ukraine’s aerospace industry overview.  

Ukrainian seaports increased cargo handling in January-August 2020

Ukrainian seaports keep increasing its cargo handling. During the first eight months of 2020, seaports scaled up its cargo handling capacity by 5% compared to the same period last year, reaching over 105 million tonnes. 
⚓️ Grain, ore and iron became the major cargo being transshipped;
⚓️ Transshipment of exported cargo increased by 5.4% and reached 80.8 million tonnes, while imports exceeded last year’s results by 0.9% and reached 16 million tonnes.

Impressive results of the Canada-Ukraine FTA

It has been three years since the Canada-Ukraine Free Trade Agreement (CUFTA) came into force, already showing impressive results in targeted sectors. The Agreement eliminated tariffs and provided non‑tariff measures such as trade facilitation, access to public procurement opportunities, protection and enforcement of intellectual property rights, environmental standards, and digital trade. 86% of Ukraine’s imports from Canada became duty-free, with the remaining tariff advantages to be implemented by January 1, 2024. While Canada eliminated tariffs on 99.9% of imports from Ukraine. Read more

Ukraine made progress in anti-money laundering and countering the financing of terrorism 

Moneyval reports Ukraine’s progress in improving its efforts in anti-money laundering and countering the financing of terrorism. Moneyval reviewed a range of legislative, regulatory and institutional measures implemented by Ukraine. Moneyval assigned Ukraine higher international compliance ratings which have been re-rated from “partially compliant” to “largely compliant”.  Read more

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