A new Law “On State Support of Investment Projects with Significant Investments” was adopted. The Law provides for a state agency to be entrusted with the intensive supervision of particularly large investment projects in Ukraine. Earlier in 2020 President Zelenskiy somewhat mockingly referred to this agency as “investment nanny”. However, this is only a small part of the investment promotion.
For some years now, tensions in international trade relations have become more apparent. The pandemic has also created new challenges for companies in their international supply chains. More and more companies are working to make their supply chains more robust. One way of doing this is to bring production closer to their own market, also geographically. The “Made in Europe” label is also already a positive feature among consumers, even though consumers are now looking to regional or even local production, especially for food. And even if consumers are increasingly willing to pay a premium for regional or local production, there are “pain thresholds” here too. Not every product is suitable for regional production. Especially in the area of labour-intensive production and low automation, Ukraine is in the spotlight as a production location.
Upon lifting of the quarantine rules, many companies start to resume their activity. All of them intend to renew activities with minimum expenses and maximum comfort for their employees. Many companies will look for optimisation options. Below the INTEGRITES team summarises the main solutions available under the effective laws of Ukraine.
Quarantine restrictions implemented by the Ukrainian Government due to the COVID-19 pandemic had a sensible impact on the business in Ukraine, which can’t disappear without any trace. A lot of companies tried or are still trying to find a reasonable solution in order to reduce expenses on staff, as well to optimize their business processes and revise organizational structures.
The quarantine which followed the spread of the COVID-19 in Ukraine has fundamentally changed conditions for doing business in Ukraine. Some companies suspend their work, others reduce staff and/or employees' salaries to keep operations going in crisis times. To comply with Ukrainian law, it is important to formalise labour relationships correctly. What are the options for business in Ukraine during quarantine?
“The Russian Government has been very active in addressing concerns of business regarding inadequate regulatory control that has been increasing over last years,” says Andrey Ryabinin, Partner at Integrites in Moscow. “Several declarations have been made in this respect. As part of the reform known as 'regulatory guillotine' the Government is expected to eliminate in 2020-2021 several thousand outdated and excessive regulations in various industries regarding technical standards and requirements in business practice, most of which date back all the way to the Soviet times.”