Changes that may affect business in Ukraine and Norway
Although these challenging times NUCC keeps working and supporting our members. Both Norway and Ukraine in line with other countries responded to the spread of COVID-19. Below you will find a short overview of the most important government’s response that has an impact on running a business between our countries, as of March 23rd.
Both for Ukraine and Norway:
- direct flights between Ukraine and Norway are currently on hold until further notice.
- Ukraine and Norway closed its borders for foreign citizens.
- foreigners with temporary or permanent residency permits are allowed to enter the countries.
(General) Measurements to stop the spread of COVID-19 issued by the Norwegian government:
- Retail and grocery stores are open.
- The transport sector operates as normal, but people are encouraged to avoid travel unless strictly necessary.
- Travel activity between cities is reduced but is still open.
- All educational institutions are closed until further notice.
- Some restaurants remain open, bars are closed. Cultural events, sporting events are canceled. Swimming pools and gyms are closed.
(Business) The Norwegian government has proposed several measures to secure economic stability:
- State loan guarantees for new loans to small and medium-sized enterprises (NOK 50 billion)
- Employer’s mandatory salary in the event of layoffs is reduced to 2 days, the State pays the rest
- Full pay (up to 6G) for a minimum of 20 days from the first day of lay off (an increase from 15 days)
(General) Ukraine has introduced several temporary (until 3rd of April) restrictions in order to prevent the spread of COVID-19:
- Ban on all the public transport in Kyiv from Monday, 23rd of March.
- Other big cities have also introduced the number of restrictions on using public transport.
- All train, bus and flight connections inside Ukraine are stopped. Though, traveling by personal transport is allowed.
- All cultural and mass events are canceled until the end of March.
- Restaurants, shopping malls, cafes are closed.
(Business) Measures proposed by the Ukrainian government to support/sustain economy:
- Canceled penalties for violation of tax legislation in the period from March to May 2020
- Moratorium on tax audits for the period March 18 – May 31, 2020
- Private entrepreneurs get canceled payment of Single Social Contribution for the period March 1 – April 30
- 2-month exemption from land tax (to support for heavy industry, mining, power production)
- 2-month exemption from real estate tax on non-residential property (to support office centers, hotels, shopping malls)
- Option to postpone social tax payment on employees’ salaries due for March and April;
Also, the National Bank of Ukraine (NBU) has lowered its interest rates from 11% to an annual rate of 10% and plans to go down to 7% till the end of the year. NBU assured that there are no plans to apply any limits on capital withdrawal or restrictions on the currency at the same time as the international reserves of the NBU are enough to maintain the hryvnia exchange rate fluctuations.