Economy

Wednesday, September 18

Ukraine has started accepting applications for business support within the Ukraine Facility program, which could bring €40B in investment to the economy.

Ukraine has started accepting applications for business support within the Ukraine Facility program, which could bring €40B in investment to the economy. In September, Ukraine officially began accepting applications from businesses to participate in the Ukraine Investment Framework program – a preferential lending and investment attraction tool, said E...

The West finances the Russian military by increasing its purchases of fuel derived from Russian oil.

The West finances the Russian military by increasing its purchases of fuel derived from Russian oil. In the first half of the year, the EU, the US, Britain, and other countries that support Ukraine bought fuel produced from Russian crude worth about $2B from Turkish refineries. Meanwhile, Turkey bene...

Why are Ukrainian gunsmiths considering transferring their production facilities abroad?

Why are Ukrainian gunsmiths considering transferring their production facilities abroad? According to Tech Force of Ukraine, 85% of Ukrainian arms manufacturers are considering relocating abroad or had already done so. Among weapons and military equipment manufacturers, 73% do not see any...

The Bilhorod-Dnistrovskyy seaport fails to sell for the tenth time. Why are investors refusing to buy it?

The Bilhorod-Dnistrovskyy seaport fails to sell for the tenth time. Why are investors refusing to buy it? The latest auction of the Bilhorod-Dnistrovskyy Seaport scheduled for September 16 did not take place due to a lack of bidders. If no applications are received by September 24, the State Property Fund...

The volume of new housing construction in Ukraine fell by 8%.

The volume of new housing construction in Ukraine fell by 8%. According to the State Statistics Service, the total area of residential buildings for which construction permits were issued (new construction) decreased by 7.7% in January-June 2024 compared to th...

Tuesday, September 17

UZ risks losing up to 25% of its cargo transportation after opening the market for private operators.

UZ risks losing up to 25% of its cargo transportation after opening the market for private operators. The deputy chairman of the parliament’s Transport Committee recalls that, under the association agreement with the EU, our state undertook to reform the transport sector, particularly the railwa...

Odesa is actively working on the creation of two multi-disciplinary industrial parks.

Odesa is actively working on the creation of two multi-disciplinary industrial parks. Despite the full-scale war, Odesa city authorities are actively working to create two industrial parks, said the mayor of Odesa, Gennady Trukhanov. The first park (Odesa Innovation Park) will be locat...

Odesa remains Ukraine’s leading export gate, both at sea and on land.

Odesa remains Ukraine’s leading export gate, both at sea and on land. During a meeting of the Moldova-Romania-Ukraine Regional Customs Coordination Group on cargo flow optimization organized by EUBAM (the EU Border Assistance Mission to Moldova and Ukraine), the head of...

The share of housing purchased through the subsidized mortgage program will double by the end of the year.

The share of housing purchased through the subsidized mortgage program will double by the end of the year. According to forecasts, penetration of the primary market by the popular preferential mortgage program eOselya will increase significantly in 2024. According to bankers, the share of housing on the pr...

The Russian Central Bank is sounding the alarm over an economy inflated by military spending.

The Russian Central Bank is sounding the alarm over an economy inflated by military spending. On September 13, the Russian Central Bank raised the key policy rate to 19% per annum for the eighth time. This level has been achieved only once in the last 20 years – in the first weeks of the full-...

Monday, September 16

Warsaw offers Kyiv more than €100M in loans to repair military equipment, will contribute to the Czech initiative, and will work on transferring fighter jets.

Warsaw offers Kyiv more than €100M in loans to repair military equipment, will contribute to the Czech initiative, and will work on transferring fighter jets. The Polish government has offered Ukraine an intergovernmental loan of more than €100M for the purchase and repair of Polish equipment used by the Ukrainian military at Polish defense plants, the head...

Ukraine will use interest from Russian assets to strengthen its defense capabilities. The EC proposes freezing the Russian central bank’s assets for five years in exchange for a $50B loan.

Ukraine will use interest from Russian assets to strengthen its defense capabilities. The EC proposes freezing the Russian central bank’s assets for five years in exchange for a $50B loan. “The Ministry of Defense of Ukraine plans to use these funds to purchase the necessary resources and means of protection that will help strengthen national security”, said Deputy Defense M...

After Russia attacked a ship in the Black Sea, world prices for wheat rose sharply, but Ukraine continues to export.

After Russia attacked a ship in the Black Sea, world prices for wheat rose sharply, but Ukraine continues to export. Wheat futures increased by 2.2% after Ukraine announced that a Russian missile hit a grain tanker in the Black Sea. Wheat futures rose to $5.9175 per bushel, the highest price since July 2024. 68.6 mi...

Friday, September 13

Negotiations between Ukraine and Bulgaria to purchase Russian nuclear reactors will continue for another six months.

Negotiations between Ukraine and Bulgaria to purchase Russian nuclear reactors will continue for another six months. Bulgaria’s parliament extended the discussion period for the sale of two Russian nuclear reactors to Ukraine by six months. Authorities in Sofia received reactors from Russian supplier Atomstroy...

Spain prevents Hungary from buying a railway company because of its importance to Ukraine.

Spain prevents Hungary from buying a railway company because of its importance to Ukraine. Spain has blocked the purchase by a Hungarian company of a Madrid-based train manufacturer. As the FT writes, Madrid vetoed the €619M purchase of Talgo because of the company’s ability to help r...

National Bank: inflation will grow at a higher rate than predicted.

National Bank: inflation will grow at a higher rate than predicted. Last week, the State Statistics Service announced that consumer inflation accelerated to 7.5% annually in August from 5.4% in July. In monthly terms, prices increased by 0.6%. However, the NBU noted t...

The yield on deposits in Ukraine is falling, and loans are becoming cheaper.

The yield on deposits in Ukraine is falling, and loans are becoming cheaper. The average bank interest rates on new hryvnia consumer deposits in August amounted to 10.6% per annum, which is 0.1 percentage point lower than a month ago, NBU data shows. Interest rates on new cons...

An Italian shipbuilder is preparing to reconstruct the Odesa port facilities.

An Italian shipbuilder is preparing to reconstruct the Odesa port facilities. Fincantieri, Europe’s largest shipbuilder based in Trieste, Italy, is working to transform Ukraine’s defunct state-owned shipyards in the port of Odesa into a state-of-the-art production c...

Thursday, September 12

Ukraine loses $11.2B annually due to mined territories; experts suggest raising funds for demining through bonds.

Ukraine loses $11.2B annually due to mined territories; experts suggest raising funds for demining through bonds. According to a study by the Anthony Blair Institute, the safe demining of Ukraine will require $34.6B and extraordinary innovation. At the same time, at the current funding level and with the use of t...

The IMF has worsened its GDP growth and inflation forecasts for Ukraine.

The IMF has worsened its GDP growth and inflation forecasts for Ukraine. The IMF predicts the growth of Ukraine’s real GDP at 3% in 2024 with inflation at 9%, the National Bank reported following the IMF mission. The IMF emphasized that Ukrainian fiscal policy, high ...

MoF: Ukraine can officially start exporting biomethane.

MoF: Ukraine can officially start exporting biomethane. The Ministry of Finance published an order defining the customs clearance procedure for biomethane transported by pipeline, allowing the export of biomethane to begin. The Gas Transmission System Oper...

Ukraine’s allies introduce new sanctions in response to Russia’s acquisition of Iranian missiles.

Ukraine’s allies introduce new sanctions in response to Russia’s acquisition of Iranian missiles. Iran’s military support for Russia, including the recent delivery of Fath-360 ballistic missiles, has led the US to impose sanctions on ten individuals and six entities, located in Iran and Russ...

The free trade agreement between Ukraine and Turkey will contribute to attracting investment and reconstruction.

The free trade agreement between Ukraine and Turkey will contribute to attracting investment and reconstruction. The Ukrainian Ambassador to Turkey, Vasyl Bodnar, said that because of the free trade agreement with Turkey, Ukrainian manufacturers will have access to the Turkish market, which tends to be more clos...

Wednesday, September 11

The Russian economy is cratering: Imports are falling, coal companies are going bankrupt, oil prices are falling, and the ruble is weakening.

The Russian economy is cratering: Imports are falling, coal companies are going bankrupt, oil prices are falling, and the ruble is weakening. Mass refusals by banks in Turkey, China, the Middle East, and the countries of the former USSR to make payments for Russian companies has impacted imported supplies to Russia. According to results fro...

Kyiv commissioned 23,400 sq m of warehouse capacity this year, and another 205,000 sq m will be added.

Kyiv commissioned 23,400 sq m of warehouse capacity this year, and another 205,000 sq m will be added. The capital’s warehouse real estate market expanded by 23,400 square meters in January-June 2024 after the launch of the first phase of the Dudarkiv logistics complex, reported CBRE. In the seco...

A ten-year Ukrainian telecom deal: A French billionaire has bought Lifecell and Datagrup-Volia.

A ten-year Ukrainian telecom deal: A French billionaire has bought Lifecell and Datagrup-Volia. Investment company NJJ Holding, owned by French billionaire Xavier Niel, has completed its acquisition of Ukrainian mobile operator Lifecell and fixed internet provider Datagroup-Volia. This acquisiti...

One of the oldest players in the Ukrainian fast-food market is investing $6M to expand its network.

One of the oldest players in the Ukrainian fast-food market is investing $6M to expand its network. After a pause of almost 2.5 years, Puzata Hata has resumed the expansion of its chain of restaurants. During 2024, it will grow by at least six facilities, investing $1M in each. The Ukrainian restaur...

The management of the Bilhorod-Dnistrovskyi port has named potential investors within the privatization framework.

The management of the Bilhorod-Dnistrovskyi port has named potential investors within the privatization framework. The port director, Oksana Kiktenko, said the following companies are interested in acquiring the Bilhorod-Dnistrovskyi Sea Trade Port: MSP Nika-Tera company, Potoky, and agricultural holding Nibulon. ...

Tuesday, September 10

Ukraine is building underground factories to produce weapons and developing cheap means of combating drones.

Ukraine is building underground factories to produce weapons and developing cheap means of combating drones. President Zelenskyy said that Ukraine is creating underground weapon production plants that will be able to provide the Armed Forces in the event of a delay in military aid from Western partners. At t...

The National Bank eased currency restrictions for businesses starting September 10.

The National Bank eased currency restrictions for businesses starting September 10. Beginning on September 10, Ukrainian businesses will be able to: Purchase and transfer foreign currency to cover carbon dioxide emissions. State-owned enterprises can buy currency and transfer it to ...

The Vinnytsia region has opened a newly developed dry port to improve railway logistics between the center of Ukraine and seaports.

The Vinnytsia region has opened a newly developed dry port to improve railway logistics between the center of Ukraine and seaports. In Vinnytsia, the $15M dry port received its first cargoes. It is a railway container terminal built by the Lemtrans group. The logistics center will provide an alternative in addition to the ports of...

Grant support for businesses: What is being offered to light industry and eco-startups?

Grant support for businesses: What is being offered to light industry and eco-startups? To strengthen the competitiveness of Ukrainian enterprises and develop the economy, the USAID Program will provide enterprises in the textile industry with equipment to expand production. Businesses m...

Despite circumventing sanctions and increasing its oil sales, Russia has failed to increase profits.

Despite circumventing sanctions and increasing its oil sales, Russia has failed to increase profits. Russia, due to the introduction of a complex of sanctions targeting trading companies and the shadow tanker fleet, and despite an increase in sales by 15-20%, cannot increase the profits generated fro...

During the year, another 400,000 citizens have left Ukraine; Ukrainian war refugees are now approaching seven million.

During the year, another 400,000 citizens have left Ukraine; Ukrainian war refugees are now approaching seven million. From the beginning of January to August 19, the number of Ukrainian migrants abroad increased by almost 400,000 people and reaches 6.7 million people, reports the National Bank. The largest number of ...

Monday, September 9

The NBU explains why Ukraine’s price growth accelerated in the summer.

The NBU explains why Ukraine’s price growth accelerated in the summer. In July, consumer inflation in Ukraine accelerated to 5.4% annually compared to 4.8% in June. According to the NBU’s estimates, the tendency toward accelerated consumer inflation continued in Au...

After Ukraine’s successful debt restructuring, the Fitch agency raised the country’s hryvnia rating.

After Ukraine’s successful debt restructuring, the Fitch agency raised the country’s hryvnia rating. The rating agency Fitch Ratings, after the completion of Eurobond debt restructuring, raised the long-term issuer default rating (IDR) of Ukraine in local currency to CCC+ from CCC- and confirmed the ...

The situation in the Ukrainian labor market increases business costs and the price dynamics for goods and services.

The situation in the Ukrainian labor market increases business costs and the price dynamics for goods and services. According to the September review by the National Bank of Ukraine, the improvement of Ukraine’s energy situation in August contributed to an increase in demand for labor and the number of employees. I...

In the first half of the year, Ukrainian retail improved its main indicators.

In the first half of the year, Ukrainian retail improved its main indicators. The index of retail well-being is gradually improving, and vacancy in shopping centers is decreasing, but no significant changes in attendance have yet been observed. The situation’s improvement occur...

Ukrainian banks increased their profits by 22%, with one of them accounting for 40% of the total amount.

Ukrainian banks increased their profits by 22%, with one of them accounting for 40% of the total amount. The total profit generated by Ukrainian banks for the first seven months of the year is ₴119.44B, which is 22% more than in the same period last year. Along with earnings, income tax increased by 80% ...

Transcarpathia is turning into an economic hub; what makes the region attractive for businesses?

Transcarpathia is turning into an economic hub; what makes the region attractive for businesses? As of July, more than 80,000 entrepreneurs worked in Zakarpattia Oblast. During the war, the number of entrepreneurs has increased by more than 6,000, which indicates favorable conditions for economic...

Friday, September 6

Despite widespread blackouts, GDP growth accelerates in Ukraine.

Despite widespread blackouts, GDP growth accelerates in Ukraine. In July, Ukraine’s GDP growth accelerated to 2.7% after rising 1.6% in June in response to early harvesting. For January-July, growth is estimated at 4% [±1%], which generally corresponds with t...

At the request of the World Bank, Ukraine changed the conditions for the sale of state-owned banks: The state’s share in the sector must decrease.

At the request of the World Bank, Ukraine changed the conditions for the sale of state-owned banks: The state’s share in the sector must decrease. The Parliament of Ukraine adopted a draft law on the peculiarities of the sale of state-owned shares in the authorized capital of banks. The draft law modifies the rules for the sale of state banks, a...

One of Ukraine’s largest woodworking enterprises exports products for French winemakers and has continued to develop during the war.

One of Ukraine’s largest woodworking enterprises exports products for French winemakers and has continued to develop during the war. Wood International from Khust (Transcarpathia region) manufactures oak rivets (a barrel fastening component) and alternative products for aging wine, spirits, and beer. The primary sales market for th...

No major investor has left the Zhytomyr region during the war; a Polish company is preparing to invest ₴15M in the mining industry.

No major investor has left the Zhytomyr region during the war; a Polish company is preparing to invest ₴15M in the mining industry. As reported by Vitaliy Bunechko, the head of Zhytomyr OVA, Polish company Cersanit, which has a large sanitary wares production plant in Zvyagel (Ukraine), plans to invest ₴15M in the kaolin clay depo...

The business community offers an alternative to increasing taxes in Ukraine.

The business community offers an alternative to increasing taxes in Ukraine. Members of the European Business Association hope that instead of drafting laws to raise taxes for businesses, the government can find other solutions to fund the budget, as the entire burden of the p...

Thursday, September 5

In August, Ukraine held 500 auctions for state and communal property, attracting over ₴160M.

In August, Ukraine held 500 auctions for state and communal property, attracting over ₴160M. According to Prozorro.Sale, more than 500 August online auctions has generated almost ₴161.7M for Ukrainian budgets at all levels. The most expensive lot of the month became the property of the automo...

Ukraine completed its $20.5B Eurobond restructuring, reducing the national debt by $9B.

Ukraine completed its $20.5B Eurobond restructuring, reducing the national debt by $9B. The restructuring process included the exchange of 13 series of government Eurobonds and one series of state-guaranteed Ukravtodor Eurobonds worth about $20.5B, approximately $24B including capitalize...

The IMF pushes Ukraine to raise taxes and depreciate the hryvnia, with $1.1B in new financial aid at stake.

The IMF pushes Ukraine to raise taxes and depreciate the hryvnia, with $1.1B in new financial aid at stake. Ukrainian officials expect the IMF this week to push the country toward faster currency devaluation, lower interest rates, and to increase tax collection efforts to close the country’s budget de...

In eight months, Ukraine’s seaports have exceeded last year’s transshipment volume.

In eight months, Ukraine’s seaports have exceeded last year’s transshipment volume. The Ukrainian maritime corridor’s operation has allowed Ukrainian seaports to record a cargo turnover of 66.8 million tons in January-August 2024, exceeding the previous year’s figure, when the transs...

This fall, the prices of products in Ukraine will increase by 30%.

This fall, the prices of products in Ukraine will increase by 30%. A short-term seasonal decrease in vegetable prices will be replaced by an increase in autumn, especially for high quality goods. Entrepreneurs complain that they have run out of security, and consumer...

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