Biznews
Banking & Finance
Mastercard to conduct cryptocurrency payments
The Mastercard payment system has been granted a patent to carry out transactions in cryptocurrencies via plastic cards. The corresponding patent on “method and system for linking assets between blockchain and fiat currency accounts” was published by the US Patent and Trademark Office. The technology patented by the company will enable the management of “fractional reserves of blockchain based currencies”, that is, cryptocurrencies. Use of these technologies may speed up cryptocurrency transactions. Meanwhile, Mastercard has said nothing about how it intends to apply this patent in real life.
Sanctions
Draft on sanctions against Nord Stream 2 introduced to US Congress
The draft, entitled The Countering Russian Power Plays Law, states that sanctions against the gas pipeline will allow NATO member countries to avoid coercion and political manipulation by Russia.
Earlier, US President Donald Trump also criticized Nord Stream 2 and claimed that Germany has become a hostage to Russia.
As is known, the Nord Stream 2 gas transmission corridor should annually transport about 55 billion cubic meters of Russian gas from the Russian Federation to Germany via the Baltic Sea from the end of 2019.
Opponents of the project, including Poland, the Baltic countries, Ukraine, Moldova, the USA and Denmark, claim that Nord Stream 2 will increase the EU’s dependence on Gazprom, which already supplies about a third of all gas volumes transmitted to the EU.
Transportation
Antonov to be engaged in unmanned air taxi production
SE Antonov and Swiss company AIR-ION Technologies SA have signed a memorandum on partnership regarding development, testing, certification and production of hybrid and electric unmanned aerial vehicles.
Aerial vehicles will be produced on the basis of the modular unified multi-functional development platform of the AIR-ION Technologies SA company, and it is intended to perform various civil and military tasks. It is pre-planned to produce four types of unmanned aerial vehicles (UAV) with a maximum take-off weight of 1,500 kg and cruising speed of 185 km/h.
SE Antonov will participate in developing the air frame for these vehicles, in prototype production, testing, certification thereof, and it is planned to launch UAV full-scale production at SE production facilities in the long term.
The world market of civil UAV used as electric air taxis, for guarding state borders, patrolling, security tasks by emergency services, logistics and others will grow from USD 17.8 billion in 2017 to forecast figure of USD 48.8 billion in 2023.
Electric cars
Electric vehicles market resumed growth in Ukraine
In January — June 2018 1,788 electric motor cars were registered in Ukraine, which is 7% more than over the same period of last year, according to the Federation of Employers of Automotive Industry with reference to the data of the Ministry of Internal Affairs.
After the recession in the first quarter, when for the first time in a long period the market posted negative growth, the second quarter was record breaking — 1,173 registered cars (+91% on first quarter figures and +26% on last year’s figures).
The rating of Ukrainians' preferences is topped by Nissan, which, despite a fall in the number of registrations, remains the undisputed leader (covers 62% of the market). At the same time, Tesla and BMW improved their results threefold (+16.7% and + 202% growth, respectively, as compared to the first half of 2017).
Renault jumped to fourth place — 94 units. (5% of market), and the list top-5 of electric vehicles market is closed by Mercedes-Benz — 54 units. (3% of market). At the same time, Ford, which ranked second in the first half of 2017, lost its top spot.
Competition
EUR 4.3 billion fine imposed on Google
The European Commission has imposed a fine of EUR 4.3 billion on the Google corporation for violating antitrust legislation in a case connected with the Android operating system. This is the largest antitrust fine that European competition authorities have ever charged from one company.
The European Commission believes that Google used Android, which is a free operating system and is installed on three quarters of all European smartphones, to unfairly increase its prevalence in online search area over competitors.
It is also noted that the company’s relations with some of the world's largest phone manufacturers, including contracts with requirements to pre-install search engine and web browser Google, also interfered with consumer choice and undermined competition.
Google has repeatedly denied that Android violates competition legislation claiming that any company can use open source software, and companies themselves make a choice.
The decision regarding Android is the most important of the trio of antitrust cases against Google. The European Commission also believes it to be unfair that the company can advertise its ads in new programs for smartphones more often than any other competitor.
Tax
Central Bank of Cyprus announced strict requirements for business relations with foreign companies
On 14 June 2018 the Central Bank of Cyprus sent to all banks of the Republic the Circular Note on the issue of the so-called “Shell Companies and Letter box companies”.
The Central Bank informs banks via the letter about the coming revision of the Directive on Anti-Money Laundering and Countering the Financing of Terrorism: it will include official definition and criteria of shell companies. These will include legal entities that are characterized by at least one of the following four characteristics: the company does not have a physical presence in the country of incorporation (only the mailing address); the company has no established economic activity, it has low or no “independent economic value”; it is incorporated in a jurisdiction where companies are not required to submit to regulators financial statements verified by an independent auditor; the company is a tax resident in a jurisdiction recognized as a “tax haven”.
If the company has at least one characteristic of the above-mentioned list, it will be considered a “shell company”. Cypriot credit institutions will be obliged to avoid business relations with “shell companies”. At the same time, exceptions can be made for a number of companies. For example, for companies established for the purpose of owning shares/corporate rights or other assets, as well as for companies facilitating currency trading.
E-Commerce
Walmart and Microsoft team up against Amazon
Walmart has begun a strategic partnership with Microsoft to beat competitors. The companies have signed a five year deal that includes the full-scale use of Microsoft cloud technologies and artificial intelligence, which are designed to make the purchasing process faster and easier for customers. Walmart also noted that it is going to double its activities in the e-commerce market to compete with Amazon more easily. It will also be assisted by Microsoft in this area.
Trade Policy
WTO partially satisfied Russia's claims in ammonium nitrate import case to Ukraine
The World Trade Organization (WTO) has partially satisfied Russia's claims in the case against Ukraine on ammonium nitrate (NH4NO3) import. The organization has established that Ukraine didn't comply with requirements for the application of anti-dumping measures to the EuroChem group of companies. In 2008, Ukraine introduced anti-dumping duties on Russian ammonium nitrate at the level of 11.91% for a period of five years for all enterprises, except for Dorogobuzh and EuroChem, which were established at 9.76% and 10.78%, respectively. Through the court action, EuroChem succeeded in revoking the duty in 2010.
In July 2014, as part of an interim review of anti-dumping duties for ammonium nitrate of Russian origin, Ukraine increased the rate on them threefold — from 11.91% to 36.03% — and extended their validity period by five years. For Dorogobuzh, the duty was increased from 9.76% to 20.51%, for EuroChem the same rate of duties as for other Russian manufacturers was set — 36.03% (previously 10.78%).
