Change IKEA plans in Ukraine!
Licenses for business in a new way!
JSC “Ukrainian railways” insists on increasing tariffs for shipping!

Everything that happened last week in Ukraine and the world and is relevant for the furniture maker, read in our digest:

1. IKEA plans to open four stores in Kiev by the end of the year. According to the president of UTG consulting company, Vadim Neposedov, IKEA representatives turned to consultants to find four premises of about 500 square meters in Kiev. Shops will deal with the issuance of goods when ordering via the Internet. IKEA had previously planned to open a 6,000 square meter store in 2019 in the Ocean Mall shopping center. But developer Vagif Aliyev may not have time to open the Ocean Mall shopping center in 2019. But IKEA does not plan to terminate the contract with Aliyev.

2. According to Maxim Nefedov, First Deputy Minister of Economic Development and Trade of Ukraine, Ukrainian business faces licensing issues every day. Therefore, a large-scale reform of the enterprise licensing system is planned. It is proposed to cancel outdated licenses are provided not industry-specific, and industry laws. “We want to introduce a normal mechanism for appealing against decisions of licensing authorities if entrepreneurs believe that their rights have been violated,” explained Nefedov.

3. JSC “Ukrainian railways” reported that in dollar terms, tariffs for rail freight within Ukraine are much lower today than 6 years ago. And even the stipulated tariff indexation of 14.2% is not enough to at least reach the 2013 level. According to the director of strategic development and investment policy of JSC “Ukrzaliznytsia” Anton Sabolevsky, the tariffs are much lower than the European ones, therefore JSC “Ukrainian railways” actually subsidizes the Ukrainian producers, whose sales markets are in Europe. During 2019, JSC “Ukrainian railways” plans to raise the tariff for cargo transportation as a whole by 23%. And in the future, the company wants to raise tariffs automatically, as the price index of industrial producers grows.

4. Ukraine has developed a new concept of business audits. Over the past year, state inspection bodies conducted 73,271 business audits. The percentage of violations found varies by service. The fire service reveals violations in 97% of the verified enterprises. The second place in terms of the percentage of violations found is the service for geology and the subsoil (89%), the third place is the environmental service and the drug service (84% each).

5. According to the Acting Head of the State Property Fund of Ukraine, Vitaly Trubar, income from small privatization in January-February amounted to UAH 150 million. As Trubarov notes, this development demonstrates the effectiveness of the new law, the transparency of the SPFU actions and the confidence of investors. “The privatization that began last year is gaining momentum. For comparison, for the whole of 2016, UAH 171 million arrived, UAH 135 million in 2017, and UAH 215 million in 2018,” reports Vitaly Trubarov.

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