{"id":118500,"date":"2020-06-02T00:21:54","date_gmt":"2020-06-01T21:21:54","guid":{"rendered":"https:\/\/uacrisis.org\/?p=118500"},"modified":"2020-06-02T00:23:18","modified_gmt":"2020-06-01T21:23:18","slug":"weekly-update-on-ukraine-20-25-31-may","status":"publish","type":"post","link":"https:\/\/uacrisis.org\/en\/weekly-update-on-ukraine-20-25-31-may","title":{"rendered":"Economy, richest Ukrainians, Dovzhenko Center, language law and more \u2013 Weekly Update on Ukraine #20, 25 \u2013 31 May"},"content":{"rendered":"\n

Situation in the combat zone<\/strong><\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

In the area of responsibility of the operational-tactic command \u201cPivnich\u201d (North), Russia-backed militants fired from Minsk-proscribed weapons that were supposed to be long withdrawn from the contact line. <\/p>\n\n\n\n

In the evening of May 29 Russia\u2019s proxies deliberately fired from antitank grenade launchers upon the disengagement site no.2 in Zolote. On May 30 they used various infantry weapons outside Orikhove. Thus, they fired twice from grenade launchers, heavy machine guns and small arms. They also instigated attacks near Khutir Vilnyi.    <\/p>\n\n\n\n

On June 1 Russia-backed militants fired upon the Ukrainian troops\u2019 positions near Hnutove. One Ukrainian serviceman was wounded by shrapnel. <\/p>\n\n\n\n

\n\n\n\n

Economy: government puts forward a new plan to save the country<\/strong><\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Last week the government released an 86 page economic recovery program. According to Prime Minister Denys Shmyhal, at the heart of the program is moderate economic nationalism called to privilege domestic producers over imports. The program also sets the goal for Ukraine to become\u00a0a top 30 economy in the \u201cDoing Business\u201d ranking<\/a>.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/p>\n\n\n\n

Economy and COVID-19: half a billion hryvnia on scientific research. <\/strong>Tackling the coronavirus, the government plans to develop a new framework for businesses based on safe working conditions and social distancing. The program also suggests temporarily exempting from tax imported medical equipment and supplies used in countering COVID-19. Some UAH 500 million (approx. USD 18,6 million) is budgeted for scientific research and inventions called to prevent the spread of the virus.     <\/p>\n\n\n\n

Protection of domestic goods: monitoring and investigations.\u00a0As part of the domestic goods protection strategy, the government plans to cut \u201cunscrupulous imports\u201d by intensifying anti-dumping investigations and applying protective mechanisms foreseen by the World Trade Organization and international agreements. The program also introduces monitoring of the domestic market, exports and imports of agricultural products, medicines and medical equipment.\u00a0<\/p>\n\n\n\n

Industry: moratorium on tax increase.\u00a0To tackle the 16,2 per cent\u00a0drop in industrial production<\/a>\u00a0in April 2020 (against April 2019), the government plans to reduce tax and administrative burden on manufacturing companies. Top priority is the moratorium on increase of all tax rates.\u00a0\u00a0<\/p>\n\n\n\n

Transportation: tax incentives.\u00a0According to the government\u2019s projections, the impact of the coronavirus recession will be different on different kinds of transport. Airlines will be hit hardest, as passenger flights make up for 83 per cent of their income structure. Companies providing transportation services by rail, water and road will also be affected by declining demand on freight transportation.\u00a0<\/p>\n\n\n\n

One of the key initiatives promoted by the government to support the sector is extending loan repayment for 180+ days after the transportation ban is lifted. Its implementation starts in June.  <\/p>\n\n\n\n

The program also suggests waving lease and rent payments for passenger carriers during the lockdown and three months after it. Similarly, during the lockdown and three months after it\u2019s lifted, airports and \u201cUkraerorukh\u201d (Ukraine\u2019s State Air Traffic Service) will be exempt from land tax, while airlines will be exempt from VAT on domestic flights. <\/p>\n\n\n\n

Labor market: \u201cinexpensive\u201d jobs.\u00a0The major advantage that the government promotes for the labor market is the program \u201cBig Construction\u201d that is expected to create about\u00a0170 thousand jobs in road construction<\/a>\u00a0and 150 thousand jobs in adjacent sectors. State-run job centers are now able to cover 10 per cent of the official demand \u2013 jobs for 500 thousand unemployed in Ukraine.<\/p>\n\n\n\n

In addition to construction, the government has committed itself to creating more jobs in social work, forestry (countering wildfires), e-archiving and urban planning. The Prime Minister earlier unveiled the plans to create a large number of \u201cinexpensive\u201d jobs that foresee\u00a0monthly salaries of<\/a>\u00a0UAH 6.000-8.000 (USD 223-298).\u00a0<\/p>\n\n\n\n

Investment: e-residency.\u00a0The government does not reject the idea of amnesty of capital that the President\u00a0promised to introduce already this year<\/a>. Amnesty rate is now subject to discussion, it was earlier planned as five per cent for both the money and real estate. It also suggests replacing the corporate tax with exit capital tax.<\/p>\n\n\n\n

In June the government plans to develop actual e-residency tools for foreign entrepreneurs wishing to start a business in Ukraine. In an interview\u00a0to Liga.net<\/a>, Deputy Minister of Digital Transformation Oleksandr Bornyakov explained that first e-residents will be welcomed in a few months. E-residents will be issued a tax ID, digital signature and will be able to open a bank account. In autumn, after the legislation is amended, they will be able to start their businesses online.<\/p>\n\n\n\n

\n\n\n\n

Richest Ukrainians: Forbes releases its ranking of wealthiest businessmen for the first time since 2016<\/strong><\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

In its first issue after the re-launch, Forbes Ukraine released the ranking of Ukraine\u2019s 100 wealthiest businessmen. Their total assets are worth USD 31.4 billion.<\/p>\n\n\n\n

Oligarch Rinat Akhmetov ranks first with some USD 2.8 billion, Viktor Pinchuk (USD 1.4 billion) is listed second, Petro Poroshenko (USD 1.4 billion) comes third. Other billionaires shortlisted by Forbes are Oleksandr and Halyna Hereh (USD 1.3 billion), Hennadiy Boholyubov (USD 1.2 billion), Yuriy Kosyuk (USD 1.1 billion), Kostyantyn Zhevaho (USD 1.1 billion) and Ihor Kolomoyskyi (USD one billion).<\/p>\n\n\n\n

Compared to 2013, when Akhmetov\u2019s assets peaked, his present fortune has declined almost six times. Poroshenko re-entered the billionaires\u2019 list after five-year absence. After the first issue of Forbes Ukraine was out, the US edition updated the information on Ukrainian billionaires in their world ranking, but there are still discrepancies. Thus, Akmetov\u2019s fortune is estimated at USD three billion, Zhevaho\u2019s \u2013 USD 1.3 billion. The Hereh family is missing from the list.<\/p>\n\n\n\n

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Culture: Dovzhenko Center on the brink of insolvency<\/strong><\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

On May 28, Ukraine\u2019s largest film archive Oleksandr Dovzhenko National Center declared insolvency. The Center claims it has not received appropriate state funding. Its staff was not paid in months, as salaries are state-financed by 70 per cent.     <\/p>\n\n\n\n

\u201cStarting from the end of May the Center is unable to pay taxes and its obligations under agreements (\u2026). The Center\u2019s administration has made each and every effort to contain the catastrophic situation created due to the absence of public financing and the total loss of income due to lockdown restrictions that was covering the Center\u2019s operation for five months. Unfortunately, the Center\u2019s resources are completely exhausted,\u201d the Center\u2019s\u00a0press statement<\/a>\u00a0reads.<\/p>\n\n\n\n

To remind, Dovzhenko Center is Ukraine\u2019s largest, internationally renowned film archive that stores over 6.000 live-action, documentary and animated films, both Ukrainian and international as well as thousands items of archive documents recreating the history of Ukrainian cinema.  <\/p>\n\n\n\n

Dovzhenko Center was founded in 1994, taking over from the film printing factory established in 1948, Ukraine\u2019s biggest factory of a kind. <\/p>\n\n\n\n

\n\n\n\n

The future of the language law<\/strong><\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Head of the Parliament Dmytro Razumkov said the Law \u201cOn ensuring the functioning of Ukrainian as the state language\u201d needs to be changed. Why and in what way?<\/p>\n\n\n\n

\u201cForeign partners\u201d. <\/strong>Motivating the need to amend the language law, Razumkov kept mentioning \u201cforeign partners\u201d, possibly referring to the Venice Commission. \u201cCertain issues need to make everyone happy, including our foreign partners,\u201d Head of the Parliament said at the press briefing that followed the sitting of the inter-faction parliamentary council. <\/p>\n\n\n\n

\u201cRegaining control of the territories\u201d. <\/strong>The changes announced by the Speaker may concern the return of the occupied territories. \u201cChanges are needed: there are issues that everyone should be happy with. It is not an economic issue that either large enterprises or small businesses will benefit from. (\u2026) If we take a language issue, a humanitarian issue, the return of the territories \u2013 all positions need to be taken into account,\u201d Razumkov said.<\/p>\n\n\n\n

Elections: \u201cdon\u2019t split the society\u201d. <\/strong>Razumkov also recalled language in election campaigning. He said \u201cServant of the People\u201d (Sluha Narodu) was the only political force not to bring up the argument that would split the voters. \u201cAs elections are now nearing, some political forces see it as a chance to preserve or increase their score. However issues that split the society should not be voiced by politicians,\u201d Head of the Parliament said.   <\/p>\n\n\n\n

At the same time he emphasized that Ukrainian as the only state language is unquestionable. <\/p>\n\n\n\n

He said respective draft laws were registered in the Parliament but were not included in the agenda of next weeks\u2019 sittings.<\/p>\n\n\n\n

\n\n\n\n

How Ukraine is fighting COVID-19 <\/strong><\/strong><\/p>\n\n\n\n

On May 31, 341 Ukrainians were diagnosed with COVID-19, 10 deaths were recorded, 152 patients recovered, 496 persons suspected to have the coronavirus are waiting for a diagnosis.    <\/p>\n\n\n\n

Ukraine has recorded a total of 24.012 cases, 1.725 children and 4.621 medics got infected with COVID-19; 9.690 persons recovered, 718 deaths were recorded.<\/p>\n\n\n\n

On June 1 the majority of Ukraine\u2019s regions entered the third phase of lockdown easing. Gyms, fitness centers, schools, domestic bus and railway passenger transport reopened.  <\/p>\n\n\n\n

The Ministry of Infrastructure is working to restart international flights to \u201cmost popular destinations\u201d on June 15. The destinations include Turkey, Greece, Cyprus, Montenegro, Croatia and Georgia. <\/p>\n","protected":false},"excerpt":{"rendered":"

Situation in the combat zone In the area of responsibility of the operational-tactic command \u201cPivnich\u201d (North), Russia-backed militants fired from Minsk-proscribed weapons that were supposed to be long withdrawn from the contact line.  In the evening of May 29 Russia\u2019s proxies deliberately fired from antitank grenade launchers upon the disengagement site no.2 in Zolote. On […] More<\/a><\/p>\n","protected":false},"author":19,"featured_media":118531,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[765],"tags":[],"section":[743],"form":[],"yoast_head":"\nEconomy, richest Ukrainians, Dovzhenko Center, language law and more \u2013 Weekly Update on Ukraine #20, 25 \u2013 31 May | UACRISIS.ORG<\/title>\n<meta name=\"description\" content=\"Situation in the combat zone In the area of responsibility of the operational-tactic command \u201cPivnich\u201d (North), Russia-backed militants fired from | Uacrisis.org\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/uacrisis.org\/en\/weekly-update-on-ukraine-20-25-31-may\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Economy, 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