fbpx
Size of letters 1x
Site color
Image
Additionally
Line height
Letter spacing
Font
Embedded items (videos, maps, etc.)
 

Ukraine expects the full resumption of economic ties with Europe and the United States in two months

12/ 03/ 2021
  Yesterday, March 11, Ihor Petrashko, Minister of Economic Development, Trade and Agriculture of Ukraine, shared some positive forecasts during a meeting with the European Business Association. Thus, he expects that international trade will be soon resumed since the pandemic control campaign is nearing its completion in European countries and the United States. At the end of April, a significant part of the population of Ukraines partner countries, which form the world economy, will be vaccinated against coronavirus disease. Successful vaccination at the international and national levels will accelerate the opening of borders and the restoration of pre-crisis economic ties, which in turn will have a positive impact on business expectations. In the second quarter of 2021, the Mineconomy forecasts GDP growth of 7-10%. At the same time, Mr. Petrashko explained the decline in the first quarter of this year by the introduction of strict quarantine restrictions earlier in January. However, he noted some positive trends in the current reporting period, namely, the growth of industrial production in Ukraine by 26% and improved consumer sentiment. Meanwhile, for this year the Ministry set the goal of stimulating the development of the countrys economy in the medium and long term, which also includes the expansion of existing business programs. In particular, Mr. Petrashko announced a planned double increase in the amount of maximum state aid under the program Affordable Loans 5-7-9% - from 400 thousand to 800 thousand euros. Other initiatives include the launch of the Export Credit Agency (ECA), which aims at insuring the risks of exporting companies. At the moment, the institution is still undergoing the recapitalization procedure, but the Supervisory Board has already been formed. According to the preliminary plan, ECA should annually issue a portfolio of products worth UAH 20 billion. First of all, the agency will offer the most popular services for the market: risk insurance for exports to a third country, lending to Ukrainian businesses for production in a third country, as well as lending to foreign buyers when purchasing Ukrainian goods. During the conversation, business representatives had the opportunity to ask Mr. Minister and his team about the current status of some decisions expected by the community. The business was especially interested in the situation with the draft law on consumer protection. Mr. Petrashko assured that the draft law would be submitted to the Verkhovna Rada of Ukraine in June this year. Besides, we discussed the equivalence of the feed additives registration systems of the EU and Ukraine. The Ministry plans to simplify the procedure for the registration of feed additives through the recognition of the registration system on a reciprocal basis with the EU. It is expected that the work on harmonization of standards and requirements by Ukraine will be completed by the end of May. In the context of EU cooperation, there was also the discussion of the prospects of signing the ACAA Agreement. The Mineconomy representatives said that the European partners considered the national quality infrastructure of Ukraine to be feasible, so there is no threat to the Agreement, despite the possible introduction of a moratorium on market surveillance inspections of private individuals. The business also received feedback on their suggestions regarding some regulatory issues. Thus, the Ministry acknowledged the problem of delaying the issuance of licenses to companies necessary for the import/export of goods containing fluorinated greenhouse gases. According to the Ministry, only 34 licenses out of 238 applications were issued. Therefore, the Ministry will initiate the work in the following direction to solve the issue: reduction of the consideration term of documents for obtaining licenses, digitalization of the application procedure, revision of the interaction format between the Ministry of Environment and the Mineconomy. Regarding the exclusion of whole milk from the list of agricultural products, for which the VAT rate is reduced from 20 to 14%, Mr. Petrashko asked business representatives to provide the Ministry with analytics and specific economic indicators to determine the feasibility of such a modification. On behalf of the European Business Association, we sincerely thank Mr. Petrashko and his team for the professional discussion! We hope that the forecasts for a prompt recovery will be proved true.   Be the first to learn about the latest EBA news with our Telegram-channel – EBAUkraine.

Yesterday, March 11, Ihor Petrashko, Minister of Economic Development, Trade and Agriculture of Ukraine, shared some positive forecasts during a meeting with the European Business Association.

Thus, he expects that international trade will be soon resumed since the pandemic control campaign is nearing its completion in European countries and the United States. At the end of April, a significant part of the population of Ukraine’s partner countries, which form the world economy, will be vaccinated against coronavirus disease. Successful vaccination at the international and national levels will accelerate the opening of borders and the restoration of pre-crisis economic ties, which in turn will have a positive impact on business expectations. In the second quarter of 2021, the Mineconomy forecasts GDP growth of 7-10%. At the same time, Mr. Petrashko explained the decline in the first quarter of this year by the introduction of strict quarantine restrictions earlier in January. However, he noted some positive trends in the current reporting period, namely, the growth of industrial production in Ukraine by 26% and improved consumer sentiment.

Meanwhile, for this year the Ministry set the goal of stimulating the development of the country’s economy in the medium and long term, which also includes the expansion of existing business programs. In particular, Mr. Petrashko announced a planned double increase in the amount of maximum state aid under the program “Affordable Loans 5-7-9%” – from 400 thousand to 800 thousand euros. Other initiatives include the launch of the Export Credit Agency (ECA), which aims at insuring the risks of exporting companies. At the moment, the institution is still undergoing the recapitalization procedure, but the Supervisory Board has already been formed. According to the preliminary plan, ECA should annually issue a portfolio of products worth UAH 20 billion. First of all, the agency will offer the most popular services for the market: risk insurance for exports to a third country, lending to Ukrainian businesses for production in a third country, as well as lending to foreign buyers when purchasing Ukrainian goods.

During the conversation, business representatives had the opportunity to ask Mr. Minister and his team about the current status of some decisions expected by the community. The business was especially interested in the situation with the draft law on consumer protection. Mr. Petrashko assured that the draft law would be submitted to the Verkhovna Rada of Ukraine in June this year.

Besides, we discussed the equivalence of the feed additives registration systems of the EU and Ukraine. The Ministry plans to simplify the procedure for the registration of feed additives through the recognition of the registration system on a reciprocal basis with the EU. It is expected that the work on harmonization of standards and requirements by Ukraine will be completed by the end of May.

In the context of EU cooperation, there was also the discussion of the prospects of signing the ACAA Agreement. The Mineconomy representatives said that the European partners considered the national quality infrastructure of Ukraine to be feasible, so there is no threat to the Agreement, despite the possible introduction of a moratorium on market surveillance inspections of private individuals.

The business also received feedback on their suggestions regarding some regulatory issues. Thus, the Ministry acknowledged the problem of delaying the issuance of licenses to companies necessary for the import/export of goods containing fluorinated greenhouse gases. According to the Ministry, only 34 licenses out of 238 applications were issued. Therefore, the Ministry will initiate the work in the following direction to solve the issue: reduction of the consideration term of documents for obtaining licenses, digitalization of the application procedure, revision of the interaction format between the Ministry of Environment and the Mineconomy.

Regarding the exclusion of whole milk from the list of agricultural products, for which the VAT rate is reduced from 20 to 14%, Mr. Petrashko asked business representatives to provide the Ministry with analytics and specific economic indicators to determine the feasibility of such a modification.

On behalf of the European Business Association, we sincerely thank Mr. Petrashko and his team for the professional discussion! We hope that the forecasts for a prompt recovery will be proved true.

 

Be the first to learn about the latest EBA news with our Telegram-channel EBAUkraine.

If you have found a spelling error, please, notify us by selecting that text and pressing Ctrl+Enter.

Start
in the Telegram bot
Read articles. Share in social networks
0 Shares

Spelling error report

The following text will be sent to our editors: