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Due to active communication of Ukrainian-Lithuanian business communities trade and economic cooperation between the countries is actively growing. Last year, the trade turnover amounted to a record $ 2 billion (+ 49.5%). The war of Russia against Ukraine has somewhat hindered these processes, but the decline for 9 months of this year does not exceed 7%. This indicates the stability of business contacts with Lithuania.
This was emphasized by the participants of the meeting of the Ukraine-Lithuania Business Council. The event was organized by the Ukrainian League of Industrialists and Entrepreneurs (ULIE) and the Confederation of Lithuanian Industrialists.
President of the ULIE Anatoliy Kinakh thanked the partners for cooperation, noted the large-scale efforts of Lithuania in the international arena to organize support for Ukraine.
According to him, the business council has identified green energy projects, construction (also within the framework of the Ukraine Recovery Plan), support for refugees and relocated enterprises, and improvement of logistics chains for Ukrainian exports through Lithuania as priorities for the next year.
"The Confederation is involved in the coordination of support for Ukraine, we have direct contacts with the beneficiaries here, we have opened a special account to raise funds for food, equipment, medicines. For example, 13 trucks with food have already been sent. We provide financial support to Ukrainian NGOs that take care of women and children," Vidmantas Janulevicius, President of the Confederation of Lithuanian Industrialists, said.
He also emphasized that the Confederation advised ULIE on obtaining observer status in Business at OECD Association and continues to support the business union in the process of gaining membership in the largest EU business association Businesseurope.
Petro Beshta, Ambassador of Ukraine to Lithuania, elaborated in his speech on Lithuania's assistance in restoring Ukraine's damaged energy infrastructure. Only in the last week of November, the partners sent 11 trucks with 190 transformers of various capacities. Lithuania has allocated EUR 3 million for the needs of the energy sector of Ukraine.
His colleague - Ambassador of Lithuania to Ukraine Valdemaras Sarapinas emphasized that Ukrainian business was actively interested in opening offices / relocation to Lithuania. It is about the enterprises of fintech, defense industry, woodworking, etc. On the other hand, Lithuanian business, despite the war, continues to work in Ukraine and not only pays taxes here, but also performs social functions to support its employees, IDPs and those affected by Russian aggression.
"We urge Lithuanian business to be even more actively involved in such assistance to Ukraine," the Ambassador said.
The conditions for doing business by Ukrainians in Lithuania and pilot projects funded by Lithuania to restore the infrastructure of Ukraine were presented by
Karolis Žemaitis, Deputy Minister of Economy and Innovation of Lithuania.
"We have been communicating with the Ministry of Finance (of Lithuania - ed.) on the mechanism of how relocated Ukrainian enterprises can continue to pay taxes in Ukraine. Because there were many such appeals from your business," the Lithuanian official stressed.
He briefly outlined the reconstruction projects to which Lithuania has joined: they all concern the Kyiv region. The first is the construction of a mobile settlement in Borodyanka, with technical procedures expected to be finalized in January 2023. Lithuania also undertakes to restore a school in the same town and a kindergarten in Irpin. The fourth project was supposed to be the restoration of the bridge over the Trubezh River, but the Ukrainian military did it on their own.
As for the support of refugees and entrepreneurs who moved to Lithuania, there are several programs. The key points are the provision of a grant of $ 10 thousand for starting a business, $ 5 thousand for creating a new job, etc. As a result, according to Lithuanian statistics, 50% of Ukrainian refugees of working age have jobs.
The participants of the meeting of the business council also discussed the issues of transport logistics, in particular, for Ukrainian exports. They talked about the delivery of goods by road between Lithuania and Ukraine in the current situation, the activities and services of the railway company LTG Cargo Ukraine, digital solutions for customs and logistics.
Aivaras Karalius, Chairman of the Lithuanian-Ukrainian Business Council, Chairman of the Board of BT Invest Group of Companies, also noted some essential issues of Lithuanian enterprises on the conditions of doing business in Ukraine.
Most of them concern power outages and NBU restrictions on currency transactions.
So far, the Tax Service of Ukraine does not give appropriate explanations whether they will be fined for, for example, the lack of connection of the cash register to the fiscal systems for more than 72 hours, if the company objectively does not have electricity and a generator.
ULIE promises to engage in communication with the State Tax Service of Ukraine on these issues, as it has considerable experience in solving such problems.
The Ukrainian side presented projects on the construction of modular towns, biotechnology in construction, innovative eco-products, warning systems, etc.
"Ukrainian enterprises, despite the war, have something to offer and to interest the European market," the participants of the business council emphasized.
The work of the Business Council will continue next year, and working communications on existing projects and proposals continue on an ongoing basis.