Economy

Friday, August 23

Ukraine is strengthening its trade ties with Europe with visa-free transport with Norway and an agreement with Britain on abolishing customs duties until 2029.

Ukraine is strengthening its trade ties with Europe with visa-free transport with Norway and an agreement with Britain on abolishing customs duties until 2029. Ukraine and Norway have extended until June 30, 2025, their agreement on bilateral and freight transit without additional permits. Transport visa-free with Norway will be valid for trucks of Euro-5 st...

Following the Slovenian model, Kyiv plans to build two thermal power plants that will produce electricity and heat from waste.

Following the Slovenian model, Kyiv plans to build two thermal power plants that will produce electricity and heat from waste. Deputy Head of the Kyiv City State Administration Petro Panteleev visited Slovenia and saw how the city of Cele’s thermal power plant converts waste into energy. This Slovenian station can provi...

Thursday, August 22

The IMF sees tax increases in Ukraine as an incentive for continued international support.

The IMF sees tax increases in Ukraine as an incentive for continued international support. Support from international partners, the restructuring of commercial debt, and an increase in taxes should be considered as a single package to eliminate Ukraine’s financing deficit. “Prog...

Ukrainian entrepreneurs can receive up to €20,000 from Germany to restart their business.

Ukrainian entrepreneurs can receive up to €20,000 from Germany to restart their business. Businesses, internally displaced persons, and Ukrainians who have returned home will be able to receive a portion of €20M in support from the Federal Ministry for Economic Cooperation of Germany (BMZ)...

Wednesday, August 21

Solar energy in the EU has overtaken hard coal as a source of electricity for the first time.

Solar energy in the EU has overtaken hard coal as a source of electricity for the first time. According to Eurostat, the share of solar power in the total volume of the EU’s electricity production in 2022 was 210,249 GWh compared to 205,693 GWh for hard coal. Poland and the Czech Republi...

Insurance costs for freight ships in Odesa ports are only 1.5% more expensive than pre-war prices.

Insurance costs for freight ships in Odesa ports are only 1.5% more expensive than pre-war prices. Head of the Ministry of Agrarian Policy Taras Vysotskyi said that the problem of insurance for ships entering the ports of Odesa has been solved, thanks to the creation of a joint Ukrainian-British in...

The ECA has supported exporters with ₴4.84B since the beginning of the year: Who has received the most assistance?

The ECA has supported exporters with ₴4.84B since the beginning of the year: Who has received the most assistance? In seven months, the Export Credit Agency (ECA) of Ukraine provided ₴4.84B in insurance and financial support for exporters. Each hryvnia in ECA-provided insurance liability was converted into more t...

Moldova’s inability to establish itself as a transit hub for Ukrainian goods has caused a significant decline in the country’s exports.

Moldova’s inability to establish itself as a transit hub for Ukrainian goods has caused a significant decline in the country’s exports. According to economists, Moldova’s exports have fallen for five consecutive quarters, hitting a three-year low in the second quarter at $859M, down 30% from the all-time high set in the correspo...

Ukraine’s top 1,000 largest companies earned almost ₴7.2T last year.

Ukraine’s top 1,000 largest companies earned almost ₴7.2T last year. The 1,000 largest Ukrainian enterprises generated nearly ₴7.2T in net income in 2023, 19.4% more than a year earlier. These companies sold 54% of Ukraine’s total production volume (52% in 2022)....

Vacancy in the capital’s shopping centers fell to 15% but may increase to 17%. What is the reason?

Vacancy in the capital’s shopping centers fell to 15% but may increase to 17%. What is the reason? Vacancy in Kyiv’s shopping and entertainment centers decreased from 16.3% last year to 15.2% at the end of the first half of 2024, UTG notes. At the same time, experts pointed to a tendency towa...

Tuesday, August 20

Indian Prime Minister Narendra Modi will visit Ukraine on August 23: What does this visit mean?

Indian Prime Minister Narendra Modi will visit Ukraine on August 23: What does this visit mean? “This is the first visit of the head of the Indian government to our country in the history of bilateral relations,” President Zelenskyy’s administration emphasized. Officials will d...

Analysts have updated the forecast for this year’s main Ukrainian macroeconomic indicators.

Analysts have updated the forecast for this year’s main Ukrainian macroeconomic indicators. Ukraine’s economy will grow by 4% in 2024, inflation will accelerate to 8%, and the exchange rate is expected to be ₴42.6 to $1, according to an updated macro forecast from the ICU financial gro...

Last year, foreign business giants paid billions in taxes to the Russian Federation’s budget.

Last year, foreign business giants paid billions in taxes to the Russian Federation’s budget. In 2023, the ten largest international corporations and banks still remaining in Russia paid approximately $1.78B in income tax to the Russian Federation. Among them are Raiffeisen Bank, Chery Automob...

Low demand hampers the development of the hydrogen economy: Only 12% of plants have reliable orders.

Low demand hampers the development of the hydrogen economy: Only 12% of plants have reliable orders. Companies and governments worldwide plan to build almost 1,600 plants for hydrogen production, including green production. This year, Ukraine unveiled its Hydrogen strategy until 2050 legislation and ...

Food products will become more expensive in Ukraine due to the electricity shortage.

Food products will become more expensive in Ukraine due to the electricity shortage. Deputy Chairman of the All-Ukrainian Agrarian Council Denis Marchuk stated: “Blackouts are returning, and producers will use generators, which significantly increases production costs. The energ...

The redirection of export flows to the Black Sea ports has provoked a crisis in Ukraine’s river transport market.

The redirection of export flows to the Black Sea ports has provoked a crisis in Ukraine’s river transport market. In response to a crisis in the river transportation market, the Ukrainian Danube Shipping Company (UDP) is switching to reduced working hours and optimizing the number of staff, which currently consis...

Amidst the growing popularity of electric cars in Ukraine, a company with European backing is building charging infrastructure.

Amidst the growing popularity of electric cars in Ukraine, a company with European backing is building charging infrastructure. Following the increase in the number of electric vehicles on the roads of Ukraine, the electric vehicle infrastructure continues to grow. ECOSAT, a company with European investment and in cooperation ...

Monday, August 19

How did the largest retailers in Ukraine perform in the first half of the year?

How did the largest retailers in Ukraine perform in the first half of the year? According to a financial report, sales for almost all of Ukraine’s largest retailers increased from January to June, except for Auchan Ukraine. ATB’s sales increased by 14.3% to ₴97.5B. Th...

Businesses and housholds have been increasing the volume of loans in hryvnia for more than a year, and rates have decreased to 2019’s level.

Businesses and housholds have been increasing the volume of loans in hryvnia for more than a year, and rates have decreased to 2019’s level. In the second quarter, the net hryvnia commercial credit portfolio increased by 20.5% year-on-year, according to the National Bank. Business lending accelerated in all groups of banks, especially in t...

Friday, August 16

The parliament comments on the lowering of Ukraine’s credit rating to RD.

The parliament comments on the lowering of Ukraine’s credit rating to RD. Early this week, the Fitch rating agency downgraded Ukraine’s long-term credit rating from level C to RD. The $750M 2026 Eurobonds, on which Ukraine failed to make the August 1 coupon payment, w...

Financial analysts and businesses predict what will happen to prices and the dollar exchange rate in Ukraine.

Financial analysts and businesses predict what will happen to prices and the dollar exchange rate in Ukraine. Inflation in Ukraine will accelerate over the next 12 months but will not exceed 9%. Such is the forecast given by bankers, financial analysts, and heads of enterprises. In July, financial analysts pr...

A Ukrainian state bank records a 27% increase in card payment transactions: What are Ukrainians buying?

A Ukrainian state bank records a 27% increase in card payment transactions: What are Ukrainians buying? In the first half of the year, Ukrainians paid with cards through the PrivatBank network for 1.6 billion purchases worth ₴451B. This is 27.3% more than in the first half of last year. At that time, th...

Ukraine is negotiating with South Korea to purchase 20 Hyundai trains worth $400M for UZ.

Ukraine is negotiating with South Korea to purchase 20 Hyundai trains worth $400M for UZ. Ukrainian Railways (UZ) plans to expand its fleet of intercity high-speed trains with 20 more Hyundai Rotem models that will enable the transportation of up to six million passengers per year, said Ol...

One of the world’s largest food manufacturers is preparing to launch a $45M factory.

One of the world’s largest food manufacturers is preparing to launch a $45M factory. The Nestlé company will open its fourth Ukrainian factory in Smoligov, Volyn. While the construction process continues, the company has already hired over 100 workers and has the same number of vacanc...

A global building materials manufacturer has announced its readiness to buy two cement factories in Ukraine.

A global building materials manufacturer has announced its readiness to buy two cement factories in Ukraine. CRH Ukraine announced on the National Securities Commission website its intention to acquire a 99.9775% stake in the authorized capital of Dyckerhoff Cement Ukraine, which owns two cement factories in...

Transcarpathia has launched a dry port with an investment of ₴282M and has plans for scaling.

Transcarpathia has launched a dry port with an investment of ₴282M and has plans for scaling. A new enterprise, Chornotysiv Terminal, which functions as a new multimodal terminal (dry port), has started work in the Beregovo district of the Transcarpathia region. This terminal is a large logist...

Ukrainian IT export volumes fell by 5% in six months.

Ukrainian IT export volumes fell by 5% in six months. This is a difference of $170M compared to the first half of last year. Experts predict that the decline will continue even under an optimistic scenario, according to industry experts. “The trend...

Thursday, August 15

Fitch Ratings lowers Ukraine’s credit rating to limited default.

Fitch Ratings lowers Ukraine’s credit rating to limited default. In particular, the issuer’s long-term foreign currency default rating was downgraded from C to RD (restricted default), Fitch Ratings said in a statement. This rating level means that the issuer...

Over the first half of the year, banks increased their profits by 17%.

Over the first half of the year, banks increased their profits by 17%. In the first six months of the year, solvent banks earned ₴79B in net profit, 17% more than the ₴67.6B profit obtained in the same period last year. Only seven small banks out of 62 solvent financial ...

Ukrainian businesses have begun to develop distributed generation; this provide for their needs and additional capacities for the power system.

Ukrainian businesses have begun to develop distributed generation; this provide for their needs and additional capacities for the power system. Ukrainian company Energo-Plus plans to purchase a closed thermal power plant with a capacity of 60 MW in a neighboring country and transport it to Ukraine. The project will cost approximately €50M. Th...

The export of sugar from Ukraine has been critically reduced due to European tariffs, and prices will fall.

The export of sugar from Ukraine has been critically reduced due to European tariffs, and prices will fall. In the first half of August, Ukraine exported 3,000-4,000 tons of sugar, while two months ago this indicator reached 100,000 tons, analysts from the All-Ukrainian Agrarian Council reported. “The...

Most Ukrainians state that the economic situation is worsening, but the population works more and has higher income.

Most Ukrainians state that the economic situation is worsening, but the population works more and has higher income. The majority of Ukrainians (83%) believe that the economic situation in Ukraine has worsened over the past year, according to a study by the Rating group. Another 10% saw no change, and 2% saw an impr...

Wednesday, August 14

Ukraine is trying to attract American investment in its mineral development.

Ukraine is trying to attract American investment in its mineral development. Ukraine and the US discussed deepening cooperation in critical materials to encourage American businesses to enter Ukraine and invest in mineral extraction and processing. Implementation of joint inve...

The volume of foreign exchange earnings by exporters increased by 16%, but up to $8B still must be returned to Ukraine.

The volume of foreign exchange earnings by exporters increased by 16%, but up to $8B still must be returned to Ukraine. According to the NBU, the amount of export earnings received in Ukraine for January-June 2024 exceeded the result for the same period in 2023 by 15.9%, or $3.3B, while the amount of unreturned foreign...

A large chain of supermarkets has invested more than ₴70M in energy efficiency and seeks $15M more for its further plans.

A large chain of supermarkets has invested more than ₴70M in energy efficiency and seeks $15M more for its further plans. Top manager of the Novus network, Dainius Tumėnas, said that Novus has already invested more than ₴70M in its energy efficiency program. Diesel generators are installed at 98% of facilities. One of th...

Tuesday, August 13

The Russian economy will not withstand the cessation of the war and will sink into a crisis.

The Russian economy will not withstand the cessation of the war and will sink into a crisis. As Welt writes, the Russian economy has proven that it can perform better than expected despite economic sanctions, but its current growth stems from the military industry. Economists predict Russia w...

Ukraine is working on the possibility of weapons exportation.

Ukraine is working on the possibility of weapons exportation. Ukraine has created a working group that will deal with the development of a mechanism for exporting military equipment from domestic factories. Technological Forces of Ukraine, a MilTech association,...

Ukraine is increasing its national debt, but its value has decreased by 10.3% since the beginning of the year.

Ukraine is increasing its national debt, but its value has decreased by 10.3% since the beginning of the year. As of June 30, the state and state-guaranteed debt of Ukraine amounted to ₴6.16T ($152.2B), including external debt – ₴4.45T ($109.9B), internal debt – ₴1.71T ($42.2B), the Ministry of Finance s...

Ukrainian companies, with sufficient investment, can produce 90% of the building materials that will be needed for reconstructing Ukraine.

Ukrainian companies, with sufficient investment, can produce 90% of the building materials that will be needed for reconstructing Ukraine. According to the KSE, Ukrainian manufacturers can potentially produce 90% of the building materials needed to rebuild the country. About $65B will be needed for these building materials. Currently, th...

During the war, foreigners have opened more than 3,000 companies in Ukraine.

During the war, foreigners have opened more than 3,000 companies in Ukraine. Since the beginning of the full-scale war, foreigners from 101 countries have opened 3,075 companies in Ukraine. Most often, citizens of Turkey opened businesses in Ukraine – 396 companies or 12.9% of...

The grain corridor’s operation has allowed Ukraine to start a new grain export season with an increase of 59%.

The grain corridor’s operation has allowed Ukraine to start a new grain export season with an increase of 59%. Since July 2024, when the new marketing season began, Ukraine exported 4.96 million tons of grain, which is 58.9% more than in the same period last year (3.12 million tons). This includes 1.26 million...

Unemployment is increasing in Ukraine, and job seeker activity remains consistently low.

Unemployment is increasing in Ukraine, and job seeker activity remains consistently low. The number of new vacancies in the employment market during July practically did not change and remained at about 90% of the average level in 2021, according to data from the Center for Economic Strat...

Monday, August 12

The prolonged invasion has started to significantly impact the Russian economy negatively.

The prolonged invasion has started to significantly impact the Russian economy negatively. According to Bloomberg, Russia’s overheated economy may begin to cool, based on Russian government statistics. While Russia’s GDP jumped more than 4% year-on-year in the second quarter, gr...

Ukraine needs to reduce the size of its shadow economy to continue receiving help from Western partners.

Ukraine needs to reduce the size of its shadow economy to continue receiving help from Western partners. As FT writes, Ukrainian authorities are trying to improve the country’s financial condition by implementing several scenarios simultaneously, which can be called a mixture of debt restructuring,...

Ukrainian small and medium-sized businesses will receive €7B in international aid.

Ukrainian small and medium-sized businesses will receive €7B in international aid. Last week, the first meeting of the Small and Medium Business (SME) Sustainability Alliance, created in June during URC-2024 with the participation of Ukraine, 12 other countries and 17 development in...

Ukraine increased its turnover by $9B.

Ukraine increased its turnover by $9B. Ukraine’s seven-month turnover amounted to $61.7B (+$9B). Imports to Ukraine increased to $39.1B (+$5.9B for July). Exports from Ukraine are up to $22.6B (+$3.1B). The countries with the most im...

Entrepreneurs note a satisfactory business climate only in the west of Ukraine.

Entrepreneurs note a satisfactory business climate only in the west of Ukraine. Business conditions in other regions of Ukraine are assessed by companies as difficult, and only in the Western region do most entrepreneurs consider them satisfactory, according to a survey by the Eu...

Friday, August 9

The National Bank predicts a slowdown in inflation next year.

The National Bank predicts a slowdown in inflation next year. The NBU will allow exchange rate fluctuations that will make it possible to maintain control over inflation expectations and achieve the 5% inflation target, said National Bank Chairman Andriy Pyshnyi...

Because of sanctions, Russia and China are returning to barter exchange of goods for the first time in 30 years.

Because of sanctions, Russia and China are returning to barter exchange of goods for the first time in 30 years. Russia and China are discussing barter trade agreements that will help bypass the US-controlled SWIFT international banking system and limit currency risks; the first such transaction could take place...

What is happening in the Ukrainian office real estate market in the third year of the war?

What is happening in the Ukrainian office real estate market in the third year of the war? The market for office space continues to decline, continuing the trend that began after the beginning of the pandemic in 2020. The supply of new locations in the market is growing, and demand is decre...

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