Farmers Owning Small and Medium-Sized Businesses to Obtain Soft Loans

farmers

On September 20, 2016, Ukraine ratified the Financial Agreement signed between Ukraine and the European Investment Bank on December 28, 2015 in Kyiv (Draft titled “Primary Loan of Agricultural Industry – Ukraine”).

Pursuant to this Agreement, Ukraine represented by the Ministry of Finance of Ukraine is a recipient of the loan and with contribution from the Ministry of Agrarian Policy and Food of Ukraine and in cooperation with Ukreximbank PJSC will provide financial resources to commercial banks.

On a short-term horizon, the banks will be selected which will then be followed by conclusion of contracts therewith.

It is expected that implementation of the Agreement will allow bringing UAH 400 million of loan for the farmers of small and medium-sized businesses. The funds will be used for the projects aimed at grain and oil crop growing, modernization of fish farms and aquaculture in Ukraine.

Reforming Ukraine’s Intellectual Property Protection System

reformingIn the light of introduced amendments to the Law of Ukraine “On Judicial System and Status of Judges” which provides for establishment of the Supreme Court on Intellectual Property as the court of primary jurisdiction, provisions of the Concept for Reforming the State System of Intellectual Property Protection in Ukraine, Strategy for Sustainable Development “Ukraine 2020” and EU-Ukraine Association Agreement, Ukraine faced with an urgent need to reform its intellectual property protection system. 

To accomplish defined goals and objectives, the Ministry of Economic Development and Trade of Ukraine, the Scientific and Research Institute of Intellectual Property and the National Academy of Legal Sciences of Ukraine have jointly drafted the Bill “On National System of Intellectual Property Protection in Ukraine.”

The draft bill makes provisions for development and implementation of national policy in the field of intellectual property, creation of favorable conditions for development of intellectual, artistic, as well as scientific and technical potential of the nation, encouraging the use of intellectual property in innovative activities, promoting respect for intellectual property and meeting the needs of society and the state regarding development of innovation-based economy.

The reform will include establishment of the National Council on Intellectual Property of Ukraine at the premises of the State-Owned Company “Ukrainian Institute of Intellectual Property” – Ukrpatent – and the State Intellectual Property Service of Ukraine. The newly-formed institution will be subject to the Ministry of Economic Development and Trade of Ukraine. 

In addition, this document provides for encouragement of the use of intellectual property by the state through introduction of special tax treatments and insurance of activities carried out by the innovative companies, and also provision of easy-term loans to holders of intellectual property rights.

For the time being, the draft bill is under discussion.

Minimum Salary Raised Since December 1st

salaryOn December 1, 2016, the minimum salary and the minimum living wage were raised.

The minimum salary is now UAH 1,600 with an hourly rate being UAH 9.59. The minimum monthly living wage per person is now as follows:

  • one person – UAH 1,544;
  • children up to 6 years old – UAH 1,355;
  • children aged 6 to 18 – UAH 1,689;
  • able-bodied persons – UAH 1,600;
  • persons who have lost their working ability – UAH 1,247.

It should be noted that the change in minimum salary and the minimum living wage does not really affect the indicators which are set depending on the size of the minimum salary as of January 1 of taxation year under report.

It is to be recalled that employers who pay their workers a salary which is less than UAH 1,600 are obliged to raise it or else they risk to incur liability in accordance with applicable Ukrainian legislation.