37.2 million people currently live in Ukraine. This figure came as a shock when Cabinet Minister Dmytro Dubilet announced it on Jan. 23, because it means that the Ukrainian population has shrunk by almost 8 million people since the last census in 2001. The new census used data from Ukraine’s biggest mobile operators as well as the Pension Fund to count the real number of people who were physically in Ukraine on a specific date. The figure doesn’t include Ukrainians abroad, but takes into account foreigners who are present in Ukraine. The survey also did not include the residents of Crimea and the parts of Donbas controlled by Russia-backed militants. Kyiv is the most populous metropolitan area with 3.7 million people.
Ukraine’s Finance Ministry attracted 1.25 billion euros in eurobonds. Ukraine will repay the bonds in 2030 at a rate of 4.375% per year, the ministry announced on Jan . 23. The money will go into the state budget. Ukrainian Finance Minister Oksana Markarova said that the rate of 4.375% is the lowest in Ukraine’s financial history. This will allow Ukraine to save over $81,000 a day, which will be spent on socio-economic development programs, Honcharuk wrote on Facebook.
Ukraine’s industrial output fell by 2% in 2019. Manufacturing, mining and utilities production in Ukraine slightly decreased over the year, the State Statistics Service reported. Among the regions, the Zakarpattia and Khmelnytska oblasts lost the most industrial production in 2019 – 14% each. At the same time, industry grew in Vinnytsia Oblast by 13% and in Odesa Oblast by 7%.
Prime Minister Oleksiy Honcharuk has promised to protect and give tax perks to large investors in Ukraine. Speaking at a sideline event during the World Economic Forum in Davos, Honcharuk promised to provide direct government guarantees to each investor bringing more than $100 million into Ukraine. Moreover, investors who privatise Ukrainian enterprises worth more than $10 million will enjoy tax holidays for up to five years. Honcharuk’s statement echoes President Volodymyr Zelensky’s comments the previous day in Davos.
Honcharuk also announced that German railway operator Deutsche Bahn would take over the management of Ukrzaliznytsia for 10 years. He said the companies signed a preliminary agreement. However, in a comment to German broadcaster Deutsche Welle on Jan. 23, Deutsche Bahn denied it would take over the Ukrainian state-owned railway monopoly. Instead, the company said it would only “consult and support” its Ukrainian counterpart. The more detailed agreement will be signed in February 2020.
Ukraine’s tax code will changed in early spring 2020. Honcharuk, lawmakers and ministers suggest simplifying taxes for private individuals and uniting the income tax, social contributions and military levy into a single tax. Ekonomichna Pravda reported on Jan. 23 that Honcharuk said: “We need to review the taxation system and we understand this, we need to simplify it, make it more fair.”
The European Union has suspended imports of Ukrainian poultry, while eggs are still allowed. According to the Food Safety Agency of Ukraine, the decision is “stunningly unexpected” due to the positive results that Ukraine has received in compliance procedures and agreements obtained through negotiations. The EU decision came amid an outbreak of avian influenza in a Ukrainian factory called Khutir in Vinnytsia Oblast, as well as instances of other avian diseases in the world. It is unknown whether the EU decision is connected to the spread of the disease.
David Arakhamiya, head of the pro-presidential Servant of the People parliamentary faction, suggests to temporarily stop synching Ukraine’s legislation with the EU. Speaking at the World Economic Forum in Davos on Jan. 23, Arakhamiya said it’s not correct for Ukraine to fully align itself with EU legislation because the country first needs its own rules and laws to grow its economy using its competitive advantage, Ukrinform reported. “Investors will come (to Ukraine) to use our differences” from the EU, he said. Ukraine can later synchronize its laws with the EU.
Turkish construction company Onur wins tender from Ukraine’s national road operator Ukravtodor. The Turkish firm will reconstruct a portion of the Kyiv-Odesa M05 highway, Ukravtodor stated. The part of the road given to Onur for reconstruction is in Kyiv Oblast. It starts in Bila Tserkva and goes for 41 kilometers to town of Stavyshche.
