On March 30, 2020, representatives of the shopping malls development market sent a collective open letter to the authorities with an urgent need to start a dialogue on consolidation of actions. This letter combines two relevant areas - preventing the spread of coronavirus and taking measures aimed at reviving business activities for the sake of the economic welfare of the state after the end of the quarantine. Shopping and entertainment centers and businesses that are represented in the shopping malls are among the largest taxpayers. However, today they suffer most from the consequences of the quarantine, because, while understanding the responsibility and seriousness of the situation, the access of the visitors to the shopping mall is limited. Developers implemented faithfully and promptly the decision of the Cabinet of Ministers of Ukraine Resolution No. 211 dated 11.03.2020 "On preventing the spread of coronavirus in the territory of Ukraine".
In the letter, the developers pay attention to seven areas for cooperation: to harmonize the content of local protocols of the Permanent Commissions on Technogenic Environmental Safety and Emergencies to the Resolution of the Cabinet of Ministers of Ukraine; to allow the sale of textile bandages in the shopping malls; to enable the use of public transport for employees of the allowed groups of tenants; to reduce the amount of VAT and suspend the payment of income tax for three months after the end of quarantine; to exempt from land fees, tax on real estate and income tax; to confirm "vacation" for bank loans; to retain tenants' mandatory payments for malls' services.
A collective letter, which is addressed to the President of Ukraine, Verkhovna Rada of Ukraine, the National Bank of Ukraine, Kyiv city State Administration, Association of Lawyers of Ukraine, European Business Association, was signed by: Hanna Koriahina, Operations Leader at "CEETRUS Ukraine", Nataliia Kravets, Commercial Director of Dragon Capital Property Management, Anna Chubotina, Chief Executive Officer of Arricano, Maksym Havriushyn, Operating Director of Budhouse Group, Andrii Brynzylo, General Director of "Novi Bisnes Pohliady" (Riviera Shopping City in Odesa), Mykhailo Ibrahimov "Terkurii-2" (Podoliany mall in Ternopil), Larysa Pervinenko, Operating Director of "Davento Ukraine" (Ekvator mall network), Ruslan Zemlianskyi, Director of "Smena" (Hollywood mall in Chernihiv), Liudmyla Vilishchuk, Commercial Director at the Urban Oasis Center.
"Development companies have carefully approached the signing of the collective letter. The arguments were the impact of Ukrainian legislation and changes made to it, analytical materials and forecasts of anti- crisis experts, the experience of government decisions made in other countries of the world. This is an association of players in the same industry to work together with the authorities to overcome difficulties, restore quality work after quarantine, pay taxes again, develop the business of the shopping mall and provide consumers with goods and services," said Anna Chubotina, CEO of Arricano.
"Payment of service charges during quarantine is a crucial condition for ensuring the safe and properly organized operation of facilities, as well as the preservation of property. Ceetrus Ukraine supports the collective initiative of developers and operators of commercial real estate and notes its importance for the early recovery of the industry, " said Hanna Koriahina, Operations Leader at Ceetrus Ukraine.
"It is crucial for us to find a formula for mutually beneficial cooperation with tenants in this difficult time in order to mutually preserve the business of both the tenant and the lessor. Therefore, we are appealing to the authorities, expecting assistance in solving such important issues as paying for the maintenance of the shopping mall, tax benefits and explanations of newly adopted laws," commented Nataliia Kravets, Commercial Director of Dragon Capital Property Management.