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Spreading Cheer and Spending Cash
Posted on December 18th, 2009 Comments welcome Share/Save PrintSurvey indicates that Ukrainians’ New Year’s holiday spending will increase from last year, despite crisis.
by Adrian Erlinger, The PBN Company, Washington, DC
It would seem logical that the past 12 months of gruesome financial conditions (13% GDP contraction and 13% inflation) would force Ukrainians to economize. But according to an annual survey of European holiday consumer trends released by Deloitte, a consultancy, the average Ukrainian plans to spend 2,500 hryvnias ($313) on New Year’s revelry — 300 hryvnias more than last year.
While two-thirds of Ukrainian citizens complain that the economic downturn has affected their personal financial situation, up from 50% last year, Ukrainians will spend an average of 1,250 hryvnias on gifts. Approximately 53% of Ukrainians will do their shopping during the holidays – when prices reach their peak. Still, the majority of Ukrainians remain budget conscious and 10% of those surveyed will complete a New Year’s budget for the first time. Cash, computers and cosmetics ranked high on the wish list, says Komsomolskaya Pravda v Ukraine. With 2010 as the Year of the Tiger, orders of feline statuettes are in roaring demand.
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The Customs Union Officially Exists
Posted on December 3rd, 2009 Comments welcome Share/Save Print
By Amanda Lahan, The PBN Company, Washington, DC
The Customs Union between Russia, Belarus and Kazakhstan has been officially established. The leaders of the three countries signed a formal agreement creating a unified customs union at a November 27 meeting of the Eurasian Economic Community (EurAsEC) in Minsk. A unified system of external tariffs will be put in place by January 1, 2010, while the unified Customs Code, still in the draft stage, will take effect on July 1, 2010.
Approximately 92% of the new tariffs are identical to Russia’s existing tariff system, meaning that Russia won’t have to change much. Considering that Russia has a larger number of tariffs than either Belarus or Kazakhstan, these two countries will have to increase their duties on some goods or put brand new duties into place. Kazakhstan alone will have to raise tariffs on more than 5,000 goods. Once the tariffs are in place, any increase or decrease will have to be negotiated by the governments of all three countries, making any changes a complicated process.
Other tariffs are yet to be determined. Russia currently has much higher import duties on cars - especially used cars - than Belarus or Kazakhstan, and is concerned that lowering these duties will result in a flood of imported used cars from these two countries, especially Belarus. While Russia has export duties on oil in place, Kazakhstan does not. Both of these thorny issues are not expected to be resolved any time soon.
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