Estonian govt approves financial cooperation with Ukrainian govt

  • 2020-11-12
  • BNS/TBT Staff

TALLINN – The Estonian government at its sitting on Thursday approved a draft agreement on technical and financial cooperation between the governments of Estonia and Ukraine.

The agreement promotes technical and financial cooperation between the two countries in order to ensure the feasibility of Estonian-Ukrainian technical cooperation projects in Ukraine, government spokespeople said.

According to the agreement, technical assistance includes, among other things, the transfer of know-how, mentoring, consultations, the supply of equipment and materials, as well as assistance related to the introduction of new technologies.

Among other things, financial assistance includes grants to finance the supply of goods, equipment and materials, and works and services required for the implementation of cooperation projects.

Upon concluding the agreement, cooperation projects and persons participating in them who are not citizens of Ukraine will be granted tax exemption in Ukraine on imported goods, as well as on the personal property of experts.

In addition, Ukraine will provide Estonian experts with, among other things, exemption from income tax, other direct taxes and fees on salaries and fees paid in the framework of cooperation projects.

The conclusion of the agreement does not involve any costs from the state budget. The tax exemptions provided for in the agreement in cooperation projects will have a positive effect on Estonian companies, supporting the entry of Estonian companies into the Ukrainian market.

The agreement does not need to be ratified by the Riigikogu. The agreement shall enter into force on the date of receipt of the last written notification through diplomatic channels by which the parties notify each other of the completion of the internal legal procedures necessary for its entry into force.

The agreement must be signed by the prime ministers of both countries.