You're reading: Business Update – March 2: PM Honcharuk under threat, coronavirus, Javelin missiles

Ukrainian President Volodymyr Zelensky has called an emergency parliament meeting on March 4, allegedly to replace Prime Minister Oleksiy Honcharuk and some members of the Cabinet.

Constitutional Court will consider canceling a law that bans top officials who served the Moscow-backed ex-President Viktor Yanukovych from holding government jobs, including the office of prime minister. Several sources told the Kyiv Post that President Zelensky is considering replacing incumbent PM Honcharuk with Serhiy Tigipko, a banker and controversial Yanukovych-era lawmaker.

Valeria Gontareva, the former head of the central bank, believes Honcharuk is being ousted for opposing oligarch Ihor Kolomoisky, who’s allegedly an ally of Zelensky. “We can observe right now an incredible intimidation campaign against (Honcharuk) and other pro-reform members of government,” Gontareva told the Kyiv Post. Honcharuk has been defending state-owned PrivatBank, which was formerly owned by Kolomoisky but nationalized in 2016. It faced collapse and had a $5.5 billion hole in its balance sheets due to alleged insider lending.

Civil society activists and anti-corruption campaigners have sounded the alarm over the upcoming parliament session. They warn that the toxic influence of oligarchs such as Kolomoisky may be swaying the president, and that Zelensky’s term and his trajectory in office may well be defined by the court hearing and parliament session’s outcome. 

They also warn that Ukraine’s cooperation with the International Monetary Fund, which Kolomoisky and his allies in parliament oppose, is under threat. “This week will define whether Ukraine continues the pro-Western path or turns into the hands of the Kremlin,” writes Daria Kaleniuk, executive director of the Anti-Corruption Action Center in Ukraine. “A set of decisions could be taken in favor of the oligarch Kolomoisky,” she warned. 

The futures of two top law enforcement officials are also under threat this week, observers have said. Artem Sytnyk, director of the National Anti-Corruption Bureau of Ukraine (NABU), and Prosecutor General Ruslan Riaboshapka face a fight for their professional survival due to a no-confidence vote in the Rada. “If (they) are dismissed while (Interior Minister Arsen) Avakov, and (Head of the State Security Service Ivan) Bakanov… remain in power plus if Honcharuk is out and people like Tigipko are in… it will be the end of Ukraine cooperation with the IMF, which is the ultimate goal of oligarch Kolomoisky,” wrote Kaleniuk. 

With five of its citizens hospitalized abroad, Ukraine is getting ready for the first cases of coronavirus inside the country. The Ukrainian state railway, Ukrzaliznytsia, has been checking inbound passengers for heightened temperatures and says it has opened isolation rooms at some of its busiest railway hubs. The country’s airports and some airlines have also been checking passengers for symptoms. Most of Ukraine’s bordering countries have already reported multiple cases of the deadly infection that has already killed over 2,800 people globally.

Ukraine is following World Health Organization guidelines and taking measures to counteract the spread of coronavirus, top officials said, Interfax-Ukraine reported. Part of the plans, according to Mykhailo Radutsky, the head of the parliamentary committee on health, include designating major hospitals as infectious disease centers. Public transport infrastructure is also undergoing regular disinfection.

Global markets plunged last week as traders experienced one of their worst weeks since the 2008 financial crisis. The effect is also being felt in Ukraine, where Ukrainian government securities have fallen slightly in value, according to Interfax-Ukraine.

Demand for Ukrainian antibacterial products has increased in Europe over the last week. Ukrainian Biosphere Corporation told Interfax-Ukraine it had noted a sharp increase in demand from European countries for its TM Smile antibacterial wipes due to the rapid expansion of the coronavirus epidemic.

Tourism in the EU is on track to lose over $1.5 billion per month if things don’t improve, experts say. The EU tourism sector is already losing 1 billion euros per month due to the coronavirus epidemic, according to European Commissioner for Domestic Markets Thierry Breton, as reported by The New York Times. According to Breton, tourists from China have not come to Europe for two months, which is reflected in the earnings.

The U.S. Department of Defense has placed orders for its next batch of Javelin weapon systems for Ukraine and other partner countries, the Pentagon stated. The total cost of the contract exceeds $18 million, according to the Pentagon, and the batch of missiles are headed for its partner countries, including Australia, Estonia, Georgia, Indonesia, Ireland, Jordan, Lithuania, Turkey, Ukraine and the United Arab Emirates.

Anticipating legalized gambling, the Hilton in Kyiv plans to open two casinos. Boris Fuchsman, the co-owner of the hotel’s Ukrainian branch, who also co-founded the 1+1 Media Group, plans to invest $30 million in the project, he told the Ukrainian media outlet The Page.

Ukraine has suspended the import of electricity from Russia and Belarus on Feb. 29, LIGA.net reported.

Starting March 1, Ukrainians will need an international passport to travel to Russia. The new measure will limit travel for many Ukrainians who only have their domestic IDs.

The company Vitmark has started plant-based milk production and sales in Ukraine. The non-dairy milk industry promises to reach a value of $40 billion globally by 2024, according to various estimates. However, until recently, there was just one Ukrainian producer of plant-based milk. Now, the second domestic producer has appeared on the market.

More Ukrainians are purchasing new cars, UNIAN reports. Sales of new cars in Ukraine in February grew by 21%. According to the Ukrainian Automobile Manufacturers Association, Renault was the most popular last month, with 1,223 units sold, which is almost 68% more than in February 2019. Toyota and Kia are next, followed by Skoda. All having increased their sales tally.