Services that would be taxed include:

Services that would be taxed include: sale of images or texts, e-books; sale of audio, video, games, gambling; providing paid access to electronic resources; provision of cloud technologies for data placement; supply of software and updates to it; and, providing advertising services on the Internet.

Last week’s US entry ban on Ihor Kolomoisky and his immediate family “is the beginning,”

Last week’s US entry ban on Ihor Kolomoisky and his immediate family “is the beginning,” Iuliia Mendel, spokeswoman for President Zelenskiy, said in an interview posted yesterday on the YouTube channel of Olesya Batsman, editor-in-chief of Gordon. Last week in an article for Atlantic Council, Mendel wrote that Zelensky is prepared to take on the oligarchs “everywhere from the energy and banking sectors to politics and the media.”

German Chancellor Angela Merkel will address the fourth Ukrainian-German Economic Forum

German Chancellor Angela Merkel will address the fourth Ukrainian-German Economic Forum, an investment and trade conference that will take place on line on Friday, March 19. According to Ukraine’s Embassy in Germany, experts will discuss: discuss industrial development and digitalization, energy and renewable energy, food and agriculture, and logistics and infrastructure. Registration can be made here, on the site of one of the organizers, the German-Ukrainian Chamber of Commerce, or AHK Ukraine.

Kyiv plans to receive 5 to 7 container trains a month from China this year, which is double last year’s rate, reported Ukrzaliznytsia.

Kyiv plans to receive 5 to 7 container trains a month from China this year, which is double last year’s rate, reported Ukrzaliznytsia. The trains take about 15 days to travel from China and are unloaded at the Kiev-Lyski logistics terminal on the Left Bank.

Poland’s PCC Intermodal S.A. plans to triple container trains between Poland and Ukraine, to three per week this year

Poland’s PCC Intermodal S.A. plans to triple container trains between Poland and Ukraine, to three per week this year, according to the company’s website. Starting last year, the company picks up and delivers containers from Mostiska, the Lviv region border city where the European and Russian gauge rails meet. Across Ukraine, container traffic grew last year by 11% yoy, to 425,000 containers.

Ukraine should invest in achieving universal fluency in English among young people,

Ukraine should invest in achieving universal fluency in English among young people, Oleksiy Danilov, secretary of the National Security and Defense Council, said yesterday at a “Ukraine 30” forum on culture, media and tourism. “The English language should be used from kindergarten to the end of secondary schools,” Danilov said. “When the youth is fluent in English, that’s the precondition for the independence of this country.” In Scandinavian countries, about 60% of people under 35 are fluent in English. In

The sale of Ukrposhta’s iconic postwar headquarters at 22 Kreschatyk Street, Kyiv will take two years

The sale of Ukrposhta’s iconic postwar headquarters at 22 Kreschatyk Street, Kyiv will take two years, Ihor Smilyanskyi, director of the state postal system, said in a video. With Kyiv’s commercial real estate market soft, he said, now is a good time to start the obstacle course of permissions, audits, assessments leading up to a ProZorro auction. A buyer should be prepared to invest almost $4 million to upgrade the Stalin-era landmark. While the 1,000 employees will move with the

The Cabinet of Ministers last night banned travel on buses and trains to and from four regions listed as ‘red zones’ for coronavirus infections: Chernivtsi, Ivano-Frankivsk, Zakarpattia and Zhytomyr.

The Cabinet of Ministers last night banned travel on buses and trains to and from four regions listed as ‘red zones’ for coronavirus infections: Chernivtsi, Ivano-Frankivsk, Zakarpattia and Zhytomyr. Car travel is permitted. If the number of red zone regions rises to more than half – or 13 of the 24 – Ukraine may have to reimpose a national lockdown, Health Minister Maksym Stepanov warned in an interview with strana.ua. He also said that March and April will be difficult

Stepanov yesterday berated the vaccination program he leads.

Stepanov yesterday berated the vaccination program he leads. In the two weeks since 500,000 vaccines arrived from India, 20,000 people have been vaccinated and 190,000 are on waiting lists. “I’m not satisfied with these numbers,” Stepanov said, criticizing his own campaign. “We were supposed to be vaccinating 10,000 people a day by the end of last week. Today, I’m interfering.”

Inflation spiked up to 7.5% yoy in February, a jump from the 6.1% yoy increase in January

Inflation spiked up to 7.5% yoy in February, a jump from the 6.1% yoy increase in January, reported the State Statistics Service. Last month, the biggest factor was a 45% yoy increase in price of natural gas. The recent price hikes in world oil prices will be reflected in March inflation. Last week, the National Bank of Ukraine got a jump on the inflation rise, hiking the prime interest rate to 6.5%, from 6%. The central bank predicted that inflation

Adamant Capital last night wrote of the inflation spike:

Adamant Capital last night wrote of the inflation spike: “One of the reasons for this may be the sharp YoY increase in the money supply. Despite the fact that the NBU has already increased the key rate by 50bps to 6.5%, we expect the CPI to accelerate further in March to 8.0% YoY. Our end-of-year projection remains at 7.0%.”

The Finance Ministry managed to keep lowering rates for short term government bonds at yesterday’s weekly auction

The Finance Ministry managed to keep lowering rates for short term government bonds at yesterday’s weekly auction, the Ministry reported on Facebook. The all-hryvnia auction yielded the equivalent of $168 million, less than half the volume of last week. According to numbers posted on the Ministry’s website, short term bonds settled at these rates: 6-month, down 17 basis points, to 9.03%; 1-year bonds, down 5 basis points, to 10.62%; 1.5 year bonds down 8 basis points, to 10.96%. Staying unchanged

The Rada will soon vote on the final passage of the “Google” tax – a tax that would impose a 20% VAT tax on provision of Internet services by foreign companies to residents of Ukraine

The Rada will soon vote on the final passage of the “Google” tax – a tax that would impose a 20% VAT tax on provision of Internet services by foreign companies to residents of Ukraine. The law, which could render $100 million in annual tax payments to Ukraine, would apply to such foreign tech giants as: Apple, Google, Microsoft, Netflix, Wargaming Group, Bloomberg, Alibaba, and Booking.com. “These are large foreign international companies operating and earning money in Ukraine. They receive

Riding the e-commerce boom, Nova Poshta has launched a €14 million sorting center in Kyiv

Riding the e-commerce boom, Nova Poshta has launched a €14 million sorting center in Kyiv that can sort up to 50,000 packages an hour. Captured in a video, the sorting center is a maze of belts, chutes and conveyors. The machinery was supplied by Vanderlande, a Dutch logistics automation company.

Postal operators – Nova Poshta, Ukrposhta and Meest Express – account for almost half of the 364,000 square meters of warehouse and logistics space to be commissioned this year

Postal operators – Nova Poshta, Ukrposhta and Meest Express – account for almost half of the 364,000 square meters of warehouse and logistics space to be commissioned this year, according to a study by Alterra Group.  In terms of geography, 55% of the new space – or 200,000 square meters — is to open in Lviv. This includes four projects of about 40,000 square meters: expansion of the Protec warehouse in Zymova Voda; Lvivsilmash; Galileo Logistic and Port Lviv Logistic

With the warehouse market tightening, Dragon Capital Group sold Omega-2, a 32,731 square meter logistics complex in Brovary’s industrial zone

With the warehouse market tightening, Dragon Capital Group sold Omega-2, a 32,731 square meter logistics complex in Brovary’s industrial zone, facing the city’s bypass road. “This is our first closing of a commercial real estate sale deal after we made a bet on this segment in 2016, and it demonstrates that there are opportunities in this market not only for profitable investments, but also for exits,” said Volodymyr Tymochko, Dragon’s managing director for Private Equity.

Dragon plans to return this year to its pre-pandemic levels of investment

Dragon plans to return this year to its pre-pandemic levels of investment, Dragon Capital CEO, said last week at the Global Outlook meeting hosted by the European Business Association. “In the first half of the year, we plan to close five deals together with co-investors and Western funds for about $200 million,” said Fiala, who is also President of the EBA. “We hope to close them in the first half of the year, so we will return to the rates

Public works construction pulled the sector ahead last year for an overall increase of 4%, to $7.1 billion

Public works construction pulled the sector ahead last year for an overall increase of 4%, to $7.1 billion, the State Statistics Service reports. Road construction was up 142% in nominal terms, making up for a 53% drop in renewable energy facilities. Overall engineering structures was up 15% in real terms. Residential work was down 18.5%. Commercial was down 3%. By contrast, construction grew by 24% in 2019 over 2018. Last year, construction in Kyiv City was down 2%. But the

Starting March 1, the State Mortgage Institution will start to offer home mortgages at 7%

Starting March 1, the State Mortgage Institution will start to offer home mortgages at 7%, Prime Minister Shmyhal announced last week. For reference, Ukraine’s prime rate has been 6% since June 2020.

Ukrgazbank, a state-owned bank, reports that since July it has made $16 million worth of low interest mortgages to 548 people.

Ukrgazbank, a state-owned bank, reports that since July it has made $16 million worth of low interest mortgages to 548 people. Half of the mortgages are for under 10%. For dachas, or secondary homes, the bank offers 20-year loans under these conditions: fixed for the first two years at 9.9%, then fixed for the next 18 years at 12.99%.

Despite tight border controls imposed during last spring’s coronavirus lockdown, remittances from Ukrainians working outside the country increased by 2% last year, to $12.1 billion,

Despite tight border controls imposed during last spring’s coronavirus lockdown, remittances from Ukrainians working outside the country increased by 2% last year, to $12.1 billion, according to data from the National Bank of Ukraine. Transfers through banks increased by 24%, to $4.7 billion. Another $2.7 billion came in through international payment systems. Informal channels – through relatives, friends and bus drivers – decreased, probably due to difficulties crossing borders.

Worker migration remains strong to Poland, a country that suffered one of the EU’s smallest GDP drops in 2020 — an estimated 2.7%.

Worker migration remains strong to Poland, a country that suffered one of the EU’s smallest GDP drops in 2020 — an estimated 2.7%. During 2020, the number of foreigners officially working in Poland increased by 8%, to 725,000, according to Poland’s Social Insurance Institution, or ZUS. Of these, Ukrainians account for 73%. In an international appeal Monday, Poland’s Education Ministry listed the five most needed professions: roofer, locksmith, road worker, software engineer and automation specialist. An article on the appeal

Ukraine’s economy will rebound sharply to 10% growth yoy in the second quarter of 2021, breaking five successive quarters of decline

Ukraine’s economy will rebound sharply to 10% growth yoy in the second quarter of 2021, breaking five successive quarters of decline, according to a Reuters poll of 12 Ukrainian analysts. The median forecast of analysts has the GDP shrinking by 0.5% yoy in January-March, but then growing by 10.2% in April-June. The sharp rebound comes from a low base: in the second quarter of last year, strict coronavirus controls forced the economy to shrink by 11.4%. If the government does

Ukraine aims to vaccinate against Covid-19 the most vulnerable half of its population over the next year,

Ukraine aims to vaccinate against Covid-19 the most vulnerable half of its population over the next year, President Zelenskiy told a forum in Kyiv yesterday, “Ukraine 30. Coronavirus: Challenges and Responses.” “We have agreed to supply vaccines to Ukraine from Pfizer, Sinovac, AstraZeneca and Novavax companies,” the President said.  “The first stage of vaccination will begin this month,” he said, adding that one million vaccines are to arrive from Pfizer in coming days.

The European Investment Bank is loaning €50 million to Ukraine to help pay for vaccines, refrigeration equipment and logistics

The European Investment Bank is loaning €50 million to Ukraine to help pay for vaccines, refrigeration equipment and logistics, Ihor Ivaschenko, Deputy Health Minister, told reporters at the forum. Zelenskiy said the number of new infections reported daily has dropped by two thirds in recent weeks.

People who are vaccinated or who have recovered from Covid will be exempt from quarantine restrictions,

People who are vaccinated or who have recovered from Covid will be exempt from quarantine restrictions, Zelenskiy said, without elaborating.  “Lack of faith in vaccination, refusal to vaccinate by a significant part of the population” is “very serious issue,” Zelenskiy said. He said he would lead by example by taking the jab on TV.

China-Europe freight trains were up 66% yoy in January, to 1,165

China-Europe freight trains were up 66% yoy in January, to 1,165, reported China State Railway Corporation. The number of containers grew 75%, to 109,000 for the month. At this pace, one 94-container Chinese train passes into the EU every 40 minutes. With the overwhelming majority of this rail traffic passing through Belarus to Poland, Ukraine seeks to get more traffic, providing a path to southern and central Europe markets through rail hubs in Slovakia and Hungary.

A second private company has won permission to run freight trains on the tracks of Ukrzaliznytsia, the state railroad

A second private company has won permission to run freight trains on the tracks of Ukrzaliznytsia, the state railroad. Promvagontrans LLC was won permission to run freight trains on four routes in central Ukraine. The owner of 400 grain hopper cars, Promvagontrans is a unit of Ukrainian Agrarian Holding. In December, the first agreement was signed with Ukrainian Locomotive Company, a Lviv company. It can haul freight on 10 routes largely in Western Ukraine. This pilot program is expected to run