Finance Ministry: Deficit of national budget totals Hr 23.5 billion in January–April. That deficit, roughly $870 million in U.S. dollars, corresponds to the budget plan for 2020, the Finance Ministry has reported. In April, Ukraine generated Hr 90 billion ($3.3 billion) in revenue, with Hr 43 billion ($1.6 billion) coming from the National Bank alone.
Revenues from the social security tax have decreased for the first time since 2016. In April 2020, Ukraine’s revenues from the social tax dropped by 3.8% compared to April 2019. The country collected $840 million in this tax, $32 million less than last April, the State Treasury Service reported. Only two months ago, in January, revenues grew by 15%.
Over 65% of Ukraine’s cafes and restaurants have either entirely suspended their activities or closed down for good because of the coronavirus lockdown as of April 30, according to a report by Poster, the developer of a high-tech inventory system for restaurants. Those still providing takeout and delivery earn 50% less.
Ukraine’s unemployed rises by 156,000 amid the pandemic. Ukraine has registered nearly 460,000 unemployed citizens as of May 4, an increase of 48% since the previous year, the State Employment Service has reported. Since the beginning of the coronavirus quarantine, the agency has registered 156,000 people as newly unemployed. Unofficially, the total number of unemployed is estimated at 2.8 million people, about 15% of working-age Ukrainians.
The Ukrainian government will ease quarantine measures for small- and medium-sized businesses. Starting on May 11, outdoor restaurants can resume their operations, provided they follow sanitary and anti-epidemic requirements. Notaries, lawyers and auditors, dental clinics and other enterprises can open up again, too.
Wizz Air has invested $100 million in a new base in Ukraine. Wizz Air, a Hungarian low-cost airline, is investing in its base at Lviv International Airport in western Ukraine, as the airline readies to focus on expansion here. The base is expected to open on July 1, Wizz Air’s chief commercial officer, George Michalopoulos, said. “When we usually open a new base, this is mainly a large investment. Thus, opening the base is a good investment for the local economy. It will take several years to get them back,” he told Interfax-Ukraine.
Kyiv airport has pleaded for state support during the quarantine. Kyiv Sikorsky International Airport, better known as Zhuliany, has asked Ukraine’s government to help keep it afloat during the economic lockdown. The airport executives asked for Hr 22 million ($815,700) a month to pay salaries and keep the airfield in working conditions. They also asked the government to remove restrictions on their airport performing business aviation and evacuation flights, which are currently all going through Kyiv Boryspil International Airport.
Before the pandemic: Net profit of Nova Poshta rose by 28% in 2019. Ukraine’s largest private parcel service made Hr 13.4 billion (nearly $500 million) in net income, which is 28% more than in 2018. Nova Poshta delivered over 210 million parcels in 2019, 22% more than in 2018.
The number of orders from AliExpress via Nova Poshta increased by 28% in April. Compared to last April, Nova Poshta Global delivered 28% more orders from the Chinese online retailer. In January-March, the Ukrainian firm delivered over 1,000 tons of goods from China and the United States by air. Phone cases, cables, chargers, clothes, shoes, underwear and dietary supplements are the most popular categories of goods. The average cost of an order is $11.60. “AliExpress continues to be a favorite foreign online store among Ukrainians,” Nova Poshta reported.
Food delivery service Uber Eats will end its operations in Ukraine in June. U.S. high-tech giant Uber will pull its food delivery service Uber Eats from the Ukrainian market on June 3, the company announced on April 4. The service has been bringing in insufficient revenue and does not have enough users in Ukraine. However, Uber will continue its transportation services in Ukraine and will continue to invest in this segment.
The volume of all construction work in Ukraine has decreased by 5.5% in 2020. In money equivalent, construction operations in Ukraine generated Hr 26.1 billion ($967.8 million) over January–April, which is 5.5% less when compared to the same period in 2019.
The United States is sending Ukraine $14.5 million to fight COVID-19. The U.S. has increased its aid for Ukraine to $14.5 million, the U.S. Embassy in Ukraine reported. It includes $12.1 million in humanitarian assistance to improve the ability of local health care institutions to care for the sick and $2.4 million to support vulnerable populations during the pandemic. “These funds will also mitigate secondary impacts such as loss of livelihoods and public services to vulnerable populations,” the U.S. Embassy stated.
