Open financial reporting, automatic recording of violations of driving regulations, Foponomics, and debtors. Major 2020 trends

State

Financial reporting will be open

The financial reporting of companies will become open. Such clause appeared in Draft Resolution No. 835 of the Cabinet of Ministers on open data. The State Statistics Service and the SFS were designated responsible for the publication.

Opening of financial reporting will help Ukrainian business to increase the transparency of signing agreements with contractors, assess the development of their company, and reduce the risks of working with shell companies.

Officials’ declarations almost became closed

One of the most influential tools for controlling corruption offenses in recent years has been the electronic declarations of officials and their immediate circle.

On October 27, the Constitutional Court repealed Article No. 366-1 of the Criminal Code on punishment for false declarations and certain provisions of the Law On Preventing Corruption. In fact, it put on hold the work of NACP, the main anti-corruption body.

The Draft Law on Restoration of Public Confidence in Constitutional Proceedings is now available on the Verkhovna Rada website. However, this draft law has not yet been signed by the President.

Generally, the number of people who filed declarations has decreased by 20% over the past four years: from about 1 million in 2016 to 870 thousand in 2019. For Ukrainians to continue following the civil servants’ wealth, we added monitoring of declarations in Opendatabot.

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Number of civil servants who filed their declaration

Year	2016	2017	2018	2019
Number of civil servants	1,098,450	956,813	942,260	873,198

Automatic recording helped Kyiv reduce the number of road traffic accidents

On June 1, an automatic recording system of violations of driving regulations was launched in Kyiv. Car owners got the opportunity to pay their fines automatically.

According to the police, the number of road traffic accidents in Kyiv has dropped by 5% this year, and the road death rate has decreased by 20%. In general, the number of road traffic accidents throughout Ukraine increased by 3.8%.

So, we can assume that automatic recording has had a positive effect on statistics. Open data on violations allowed Ukrainians to pay fines on time.

Business

The number of companies increased by 3% over the year

The number of companies increased by 3% over the year. The largest number of new businesses opened in the field of wholesale (+9,000 companies) and IT (+1,300 companies).

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New business registrations

Date	1 January 2020	8 Jan	15 Jan	22 Jan	29 Jan	5 Feb	12 Feb	19 Feb	26 Feb	4 Mar	11 Mar	18 Mar	25 Mar	1 Apr	8 Apr	15 Apr	22 Apr	29 Apr	6 May	13 May	20 May	27 May	3 Jun	10 Jun	17 Jun	24 Jun	1 Jul	8 Jul	15 Jul	22 Jul	29 Jul	5 Aug	12 Aug	19 Aug	26 Aug	2 Sep	9 Sep	16 Sep	23 Sep	30 Sep	7 Oct	14 Oct	21 Oct	28 Oct	4 Nov	11 Nov	18 Nov	25 Nov	2 Dec	9 Dec	16 Dec	23 Dec
Companies	276	759	1,041	1,128	1,225	1,717	1,210	1,263	1,255	1,487	1,040	869	435	514	681	450	469	537	867	499	669	905	1,120	894	989	986	887	1,258	1,019	1,070	1,415	1,180	84	1,099	1,143	1,940	1,499	1,302	1,071	1,081	1,093	852	1,160	906	975	1,150	1,198	1,005	1,069	1,300	1,462	1,182
Private Entrepreneurs(PEs)	2,756	5,136	6,599	7,013	7,864	16,115	9,677	8,511	7,863	11,394	6,860	3,953	2,475	2,596	2,571	2,337	2,121	3,039	5,207	5,239	6,335	6,991	9,260	6,463	7,213	6,578	7,619	7,333	6,433	6,281	6,139	6,706	307	4,065	5,432	7,510	7,655	6,110	7,775	8,421	6,780	6,217	6,298	5,237	6,773	5,052	4,960	4,719	5,700	4,427	3,881	2,819

The influence of PEs on the Ukrainian economy is increasing

Currently, 1.9 million Private Entrepreneurs(PEs) are registered in Ukraine. The number of PEs increases by an average of 7,000 per month: about 20,000 start and about 13,000 close their business.

The largest number of PEs this year started their business in the field of IT and information services (+23,000, which is +15% of the increase). The number of PE couriers also increased 2.8 times.

PEs dealing with warehouses, trade, radio and television, aviation, and HoReCa closed their business.

In recent years, revenues from entrepreneurs have increased fivefold. Foponomics brings Ukraine more than 1 billion dollars per year.

The number of vacancies in Ukraine resumed after the lockdown

The job market recovered after the spring recession. Work.ua job search website currently offers 54,000 vacancies.

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Vacancies on Work.ua

Month	March 2020	April	May	June	July	August	September	October	November	December
Number of vacancies	54,072	37,413	26,303	39,547	43,838	49,765	53,022	56,075	48,653	54,385

«This is 15–20% less than over the same period last year; however, this is a great figure for the challenging 2020. Given the activity of our employers and their willingness to cope with any conditions and difficulties, we have room for optimism», 

— says Artur Mikhno, CEO at Work.ua.

The largest number of vacancies is currently offered for such job categories as «Sales and Procurement», «Trade and Production», and «Administration and Middle Management».

«IT, Computers, and the Internet», «Medicine and Pharmacy», «Construction and Architecture», «Design and Creativity», «Real Estate», «Agriculture and Agribusiness» are also gaining momentum.

Society

The number of debtors is growing rapidly in Ukraine

More than 2 million Ukrainians are in the register of debtors. Their number increased by 18% during the year. So another 300 thousand people became debtors.

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Individuals in the Unified Register of Debtors

Month	December 2019	January 2020	February	March	April	May	June	July	August	September	October	November	December
Number of unique full names	1,692,679	1,688,266	1,716,614	1,760,080	1,790,561	1,834,264	1,861,090	1,864,103	1,894,860	1,916,393	1,942,240	1,972,880	2,000,340

Most debts accumulated for utilities, loans, fines for road traffic violations, as well as penalties for administrative offenses.

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Top categories of recovery in the register of debtors

Collection of money	759,862	28.0%
Collection of money in favor of the state	629,532	23.2%
Collection of fines in the field of road-traffic safety	543,651	20.0%
Collection of penalties under cases of administrative offenses	402,748	14.8%
Recovery of outstanding utility bills	214,358	7.9%
Recovery of child-support payments	167,933	6.2%

Movement and transport

Booking tickets for trains and planes has started to resume.

If you take the beginning of 2020 as a starting point, you will see that bookings increased from 50% in November to 74% in December. Booking train tickets increased from 50% in November to 89% in December.

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Booking tickets for trains and planes

Date	15 March 2020	22 Mar	29 Mar	5 Apr	12 Apr	19 Apr	26 Apr	3 May	10 May	17 May	24 May	31 May	7 Jun	14 Jun	21 Jun	28 Jun	5 Jul	12 Jul	19 Jul	26 Jul	2 Aug	9 Aug	16 Aug	23 Aug	30 Aug	6 Sep	13 Sep	20 Sep	27 Sep	4 Oct	11 Oct	18 Oct	25 Oct	1 Nov	8 Nov	15 Nov	22 Nov	29 Nov	6 Dec	13 Dec	20 Dec
Booking tickets on Aviasales.ua	100	30	20	8	5	4	5	6	6	9	11	15	20	28	43	51	65	70	74	85	90	95	110	102	95	92	94	88	87	89	79	79	57	60	53	53	62	70	74	74	74
Buying train tickets on Railwaybot.com	100	23	0	0	0	0	0	0	0	0	0	35	46	35	38	48	71	77	122	119	109	115	104	106	88	91	82	71	64	65	65	68	51	50	52	62	70	66	69	86	89