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Amongst the deals agreed was the supply of 130 electric locomotives by Alstom for a total amount of up to €900mn, with a local comment of 35%; the supply of specialized rescue equipment for work on high-rise buildings, 370 ladders worth up to €300mn; improvement of water supply in Luhansk region for the amount of €70mn; improvement of water supply in Kyiv for the amount of €70mn, Interfax Ukraine reports.
"All projects provide for localization at Ukrainian enterprises from 30% and higher, which is quite consistent with our strategy for the development of national production," Shmyhal said.
Le Maire said that Ukraine has significant economic potential and opportunities, and added that Ukraine and France have a lot in common to work together for the future.
Despite the political problems and Russia’s interference in the economy, the investment climate in Ukraine is brightening, as bne IntelliNews featured in a recent feature “Ukraine poised for take off” as incomes have doubled in the last two years starting a virtuous circle of spending, profits, investment and rising wags.
At the same time Ukrainian president Volodymyr Zelenskiy has been touring the region and signing a slew of investment deals most recently with Turkey and Qatar, and now France.
6.0 Public Sector 6.1 Budget
On May 12 Russia's Prime Minister Mikhail Mishustin presented the results of the government’s work in 2020 to the State Duma, while focusing on the post-coronavirus (COVID-19) economic recovery.
Notably, while evoking the measures outlined by President Vladimir Putin in his recent annual address, PM Mishustin reiterated the need to “fine tune the tax regime” in reference the address.
As followed by bne IntelliNews, Russia is raising taxes for the first time in twenty years, with a progressive personal income tax introduced in 2020, and revisions of offshore double taxation treaties taking dividend tax to a 15% rate.
Echoing Putin's critique, Mishustin noted that authorities should disincentivise Russian companies from transferring profits earned by shareholders (in the form of dividends, royalties and interest) to offshore destinations, Sova Capital notes on May 13.
The government is considering a progressive net income tax scale, not just changes to dividend and interest taxation.
Mishustin estimated that companies paid out RUB4.3 trillion ($58.2bn) in passive income (dividends, royalties and interest) in 2019, with nearly RUB1.3 trillion sent to low-tax offshore jurisdictions such as the Netherlands, Cyprus, Malta and Luxembourg.
38 UKRAINE Country Report XXXX 2018 www.intellinews.com