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As reported by Kateryna Rozhkova, Deputy Head of the National Bank, it is expected that bank loan portfolios will grow by approximately 20-25% this year, which would balance investments in government bonds. “From the point of view of business credit metrics, such as business solvency, debt-to-income ratio, and debt service expenses-to-income ratio, the vast majority of enterprises are in good shape,” she stated. According to the banker, this indicates that businesses have managed to adapt and recover. Therefore, most enterprises

This is a significant change, as Ukrainian law had prevented individuals from holding citizenship from more than one country, which forced Ukrainians to renounce their citizenship in order to acquire a foreign passport, and required foreigners to do the same to hold a Ukrainian passport. This new law will allow Ukrainians to legally receive a passport from another country without renouncing their Ukrainian citizenship and enable foreigners to obtain Ukrainian citizenship without relinquishing their native countries’ passports. The Ukrainian Parliament’s

On June 17, Russia carried out a barbaric airstrike, targeting civilian infrastructure in Kyiv, Odesa, and eight other areas. Damage occurred to apartment buildings, dormitories, and kindergartens, with a residential building in Kyiv partially destroyed, and left 1,148 homes without electricity. Transport infrastructure in Kyiv, including rail facilities and grain wagons, suffered damage. 27 people were killed, including a US citizen, and around 150 were injured. The attack affected clothing producer Fahrenheit and manufacturer Danaya, along with the Zaporizhzhia Non-Ferrous

Slovak Prime Minister Robert Fico has backed Ukraine’s EU membership, emphasizing that all conditions must be satisfied. “The Slovak government wishes Ukraine European development. If Ukraine wants to join the EU, this is its sovereign decision, and we support this decision,” he stressed. Fico added that Slovakia has already received €101M from the EU to implement projects in Ukraine, primarily in energy infrastructure. The funds are available to Slovak companies as loans guaranteed by European institutions. The prime minister mentioned

The Ukrainian government has taken the first practical step toward implementing agreements with the US on cooperation in critical raw materials. This entails preparations to open the Dobra lithium deposit in the Kirovohrad region to private investors. The Dobra deposit, located near Dobrovelychkivka, is regarded as one of Ukraine’s most promising in terms of lithium reserves, a vital component for battery production. Approximately 1.2 million tons of lithium ore with an estimated Li2O content of 1.1-1.4% are concentrated in two

Last week, the European Commission included a proposal in the draft of its Russian sanctions package to lower the price cap on oil from the current $60 per barrel to $45. Some member states that support the cap are worried that the proposal may lack the necessary unanimous backing from EU governments without support from the US. A group of EU countries voiced concerns about the price cut during a meeting of ambassadors in Brussels. Several countries also highlighted the

The German government does not intend to restart the Nord Stream 1 gas pipeline, used to transport Russian gas, or to launch Nord Stream 2, said Deputy Government Spokesperson Sebastian Hille. This statement followed reports that the pipeline operator’s debt, Nord Stream 2 AG (a subsidiary of the Russian Gazprom), was said to be repaid by American investor Stephen Lynch. He is interested in purchasing and repairing both Nord Stream pipeline networks and launching them under a US license. Lynch

According to the World Bank, the flow of foreign direct investment to developing countries has decreased due to an increase in global trade barriers. “What we are seeing is the result of government policy. It is no coincidence that foreign direct investment is falling to new lows at the same time as record high public debt,” economists believe. Experts note that in recent years, world governments have been focused on creating barriers to investment and trade rather than removing them.

Under favorable economic conditions, rates on auto loans, loans for small and medium-sized businesses, and mortgages may align with the 2024 level: They are expected to decrease by an average of one percentage point to 17-18% per annum, noted Serhiy Mamedov, VP of the Association of Ukrainian Banks. He believes that with economic development and a decrease in inflation to 9% per annum, the National Bank may reconsider its monetary strategy. It’s possible that by the end of the year,

The European Commission has approved a legislative proposal that outlines a gradual phase-out of Russian gas and oil imports into the EU by the end of 2027, with the goal of enhancing the bloc’s energy independence and competitiveness. The regulation entails a gradual reduction in imports of pipeline gas and LNG from Russia, as well as a total cessation of Russian oil imports by the end of 2027. EU countries are required to develop diversification plans with clear measures and

Ukrainian government representatives and the World Bank have discussed a new housing support program for internally displaced individuals. Presently, the HOPE housing repair project, jointly undertaken with the World Bank, is a key component of the government’s housing restoration policy. Expanding the program will enable internally displaced persons from temporarily occupied areas to acquire housing to replace what they have lost. Housing vouchers are planned to be issued, which can be used for purchasing homes, making down payments on mortgages,

In the first five months of 2025, Ukraine received close to $18B in foreign aid through concessional loans and grants, according to an NBU report. By the end of the year, this amount could rise to $55B, primarily due to the expedited receipt of aid tranches under the ERA mechanism and the planned support from the EU through the Ukraine Facility program. This requires the timely and complete fulfillment of obligations to partners, especially under the IMF program and the

At present, more than 70% of Ukrainian businesses are experiencing a notable personnel shortage. Contributing factors include not just the mobilization of conscripts but also internal migration and the labor outflow abroad. Analysts indicate that this gap is driving companies to consider new employment models. Businesses are being forced to invest in salary increases (88%), employee development (46%), and shorter work hours. To retain their staff, employers are designing social packages that encompass medical insurance, bonuses, psychological support, and even

“I appeal once again to those in power in the Kremlin to end this illegal war and start serious, honest negotiations. Mr. President Zelenskyy has assured us once again today that Ukraine is ready for this,” Austrian President Alexander van der Bellen emphasized on June 16 in Vienna during a press conference with President Zelenskyy. Van der Bellen added that the international community within the UN has spoken “for a just, comprehensive and sustainable peace for Ukraine.” “But such a

Analysts from the ISW believe that Russia may leverage the rise in oil prices following Israel’s strikes on Iran to sustain a prolonged conflict in Ukraine. Oil and gas revenues make up about 30% of Russia’s budget, playing a crucial role in financing its activities. Therefore, if oil prices remain high, for example, above $60 per barrel, Russia might navigate its economic challenges in funding an extended war in Ukraine more effectively. Iraq has indicated that the confrontation between Iran

War in Ukraine will be discussed on June 17, with Ukrainian President Volodymyr Zelenskyy set to meet with US President Donald Trump, as confirmed by a White House official to Axios. The two leaders last met during Pope Francis’s funeral in April. This G7 summit commenced on June 15, amid escalating Middle Eastern tensions and ongoing tariff disputes. The leaders of the G7 countries will try to persuade the White House against imposing tariffs, which raises concerns that the event

At a meeting in Kyiv, Ukraine’s Minister of Economy, Yulia Svyrydenko, discussed the opportunities that are currently available to investors with the Polish delegation led by Poland’s Minister of Development, Krzysztof Paszyk. “More than 3,000 Polish companies are already participating in Ukraine’s reconstruction projects, and the country is interested in greater involvement of private Polish business in working with Ukrainian manufacturers and in Polish investment in our economy,” Svyrydenko emphasized. The meeting also addressed the practical aspects of attracting investment

Members of the Monetary Policy Committee of the National Bank are considering the possibility of easing the interest rate policy in the second half of 2025. However, given the balance of risks, they are inclined to take more cautious steps than previously expected, according to the results of a discussion among the committee members. Experts anticipate the resumption of a cycle of reducing the NBU discount rate after the price surge ends and the risk of high inflation diminishes. However,

According to the NBU, in the first quarter of 2025 the banking sector reported ₴40B ($955M) in profit, with state-owned banks, including PrivatBank, generating 65.7% of this amount. Last year, banks achieved ₴103.7B ($2.55B) in net profit, driven by increased volumes of loans and investment in government bonds, which represents a 25% increase compared to 2023. Loan profitability stabilized in 2024, while lending volumes continued to grow. Over the year, the net hryvnia loan portfolio for businesses increased by 21%,

According to the Institute for Economic Research, the business activity recovery index in Ukraine in May was unchanged from April, remaining at 0.13. However, analysts observed the following trends: The highest uncertainty over the next three months is reported among exporters, with 20.7% uncertain about their export dynamics in the coming 3-4 months. The proportion of enterprises planning to reduce their activities in the two-year outlook has risen to 5%, but 95% of businesses neither foresee a decline nor forecast