Polish Briefing 25 July, 2017 9:00 am   
COMMENTS: Mateusz Gibała

Polish Briefing: The Zloty got stronger after the veto. Germany wants additional sanctions against Russia

What goes on in Poland on the 25th of July

Germans want additional sanctions against Russia

The scandal regarding the turbines from Siemens may worsen the German-Russian relations and lead to new sanctions against Russia. According to Reuters, Germany wants to expand the list of people and companies encompassed by sanctions.

Reuters sources are saying that Germans were trying to convince the European Union to add to the sanctions list four Russian citizens and companies that might be linked to the scandal caused by the fact that Siemens’s turbines were delivered to Crimea.

The European Union introduced an embargo on cooperation with Crimea, which has been occupied by Russia since 2014. Siemens stated it had evidence that its four turbines, which were supposed to be used in the Taman power plant in southern Russia, were illegally delivered to the peninsula. The devices were produced by a joint venture Siemens Gas Turbines Technologies (Siemens has 65% and Russia’s Silovye Mashiny has 35% ).

A diplomat told Reuters that sanctions could apply to the officials of the Russian Energy Ministry and the company that was responsible for delivering the turbines.

A different source from Brussels said that already on Wednesday representatives of 28 Member States may discuss sanctions. The countries will have to be unanimous on this issue.

The Zloty got stronger after the veto

Polish assets have increased their value after President Andrzej Duda vetoed the bill on the Supreme Court and the State Judicial Council. A moment after 10 o’clock the Polish Zloty gained over 2 grosz (cents) in relation to the Euro and Dollar and the profitability of ten-year bonds dropped by 5 pb.

On Monday the Zloty lost a lot because of the recent turmoil, EUR/PLN increased by over 5 grosz (1.3%) up to 4.72; the USD/PLN exchange rate at the end of the week was 3.66 (+ 1%). “A moment ago President Andrzej Duda announced he would veto the bills on the Supreme Court and the State Judicial Council. Złoty ‘felt a relief’ after the decision and in a matter of minutes gained 0.7% in relation to the most important currencies,” wrote Maciej Morawski, an analyst of financial markets at DM TMS Brokers S.A., in a commentary for

Over 200 km of new roads

The General Directorate for National Roads and Motorways stated that this year it would open an additional 207.196 km of roads. The majority will be expressways, but there will also be new sections of national roads.

By the end of 2017 five sections of the S8 expressway between Warsaw and Białystok will be opened. This means that to make the expressway complete only two more sections are needed, one between Poręba and Ostrów Mazowiecka and from Ostrów Mazowiecka to the voyvodship’s border.

Changes in donations

The Ministry of Finance prepared changes on PIT and CIT. Those encompass, e.g. the usage of cars. The PIT and CIT changes also apply to donations to closest family members.

The wealth donated from the closest family members, for instance a car, will not be applicable to wear and tear. Since it will not be included in costs, taxes will increase. This applies mostly to small companies and people who run sole proprietorships.