Economy

Tuesday, July 9

The NBU has assessed the consequences of the continuing electricity shortage: The demand for workers is falling, the number of emigrants is increasing, and economic activity is weakening.

The NBU has assessed the consequences of the continuing electricity shortage: The demand for workers is falling, the number of emigrants is increasing, and economic activity is weakening. In Ukraine, economic activity weakened in June, and entrepreneurs worsened their business expectations, primarily due to prolonged power outages and a lack of workers in the labor market, according to...

The White House is in no hurry to increase pressure on the Russian shadow fleet due to a possible negative impact on the cost of energy carriers on the eve of the elections.

The White House is in no hurry to increase pressure on the Russian shadow fleet due to a possible negative impact on the cost of energy carriers on the eve of the elections. Officials at the US Treasury Department have proposed new restrictions designed to halt a fleet of aging oil tankers that help transport Russian oil in defiance of international sanctions. However, as...

Ukraine must continue to target Russian oil refineries in order to weaken the aggressor’s economy.

Ukraine must continue to target Russian oil refineries in order to weaken the aggressor’s economy. This year, Ukraine has struck at least 20 oil facilities in Russia with its drones. According to analysts, as of the end of March these strikes have reduced the production of light petroleum products ...

Famous international brands are slowly but steadily returning to Ukraine.

Famous international brands are slowly but steadily returning to Ukraine. The Danish company JYSK and the multi-brand company Argo were among the first to adapt to the new wartime realities of operating in Ukraine when they opened stores as early as March 2022. In April, th...

Half a million hectares were sold in three years. How much is the land worth?

Half a million hectares were sold in three years. How much is the land worth? After the opening of Ukraine’s land market, 567,322 hectares of agricultural land were sold. In total, 253,416 land plots were sold at an average price of ₴41,000 ($1,007 at the current exchange...

Monday, July 8

Due to debt repayment, Ukraine’s international reserves decreased by 2.9% to $37.9B.

Due to debt repayment, Ukraine’s international reserves decreased by 2.9% to $37.9B. As noted by the National Bank, June’s dynamics were caused by the NBU’s currency interventions to cover the market’s currency deficit and smooth out exchange rate fluctuations and th...

New industrial parks will create 4,500 jobs in three regions of Ukraine.

New industrial parks will create 4,500 jobs in three regions of Ukraine. Three new industrial parks will be constructed in the Volyn, Lviv, and Ivano-Frankivsk regions. Since the beginning of the year, 16 new industrial parks have already been included in the register. Thi...

The restoration of Mykolaiv’s ports will make logistics cheaper and increase Ukrainian exports.

The restoration of Mykolaiv’s ports will make logistics cheaper and increase Ukrainian exports. Since the beginning of the full-scale invasion, the ports of Mykolaiv have remained blocked: the enemy is close to the Dnipro–Bug estuary and controls access to the sea. Restoring the entire operation...

Friday, July 5

Ukraine paralyzed the work of a Russian metallurgical plant that is critical for its defense industry.

Ukraine paralyzed the work of a Russian metallurgical plant that is critical for its defense industry. On the night of July 1, the Main Directorate of Intelligence and the Foreign Intelligence Service, paralyzed operations at the Oskol Electrometallurgical Plant (OEMK). This plant is the only full-cycl...

The government predicts an acceleration of inflation in the coming months.

The government predicts an acceleration of inflation in the coming months. As noted by the Ministry of Economy, in January through May the trend of slowing inflation continued; consumer inflation was the lowest in recent years – 2% since the beginning of the year. Annual inf...

The war has helped Russia move up in the ranks of countries with a high-income level.

The war has helped Russia move up in the ranks of countries with a high-income level. For two years, the Russian economy ignored the sanctions levied against it and grew steadily, which has led the World Bank to raise the Russian Federation’s income level rating from an “ab...

Closure of individual enterprises in Ukraine increased by 54% and companies by 15%, but the registration of new businesses is also growing.

Closure of individual enterprises in Ukraine increased by 54% and companies by 15%, but the registration of new businesses is also growing. According to analysts, almost 92,000 individual entrepreneurs (FOP) ceased their activities in Ukraine in the first half of the year, which is 54% more than in the same period last year. The most sign...

Thursday, July 4

The first project with significant investment within the framework of the “Made in Ukraine” platform received its initial evaluation.

The first project with significant investment within the framework of the “Made in Ukraine” platform received its initial evaluation. According to Minister of Economy Yulia Svyrydenko, in April the government approved a procedure for using funds to support projects with significant investment within the framework of the Made in Ukra...

Ukraine’s exports to the EU have decreased by almost 10%.

Ukraine’s exports to the EU have decreased by almost 10%. In January-June, Ukraine exported $10.97B worth of goods to the EU, which is 9.7% less than the same period last year, the Ministry of Economy reported. EU exports decreased the most to neighboring st...

The Russian Federation’s economy is still far from a crisis, but if oil prices fall significantly, it will begin.

The Russian Federation’s economy is still far from a crisis, but if oil prices fall significantly, it will begin. This opinion was expressed by the Vice President of the Kyiv School of Economics, Elina Rybakova, who added that the Russian economy is overheated, but it is difficult to achieve a crisis if the West ...

€8B has been allocated to develop local businesses.

€8B has been allocated to develop local businesses. The head of the parliamentary committee on regional development, Olena Shulyak, said that every community will find advantages for itself in each component of the Ukraine Facility program, under which...

Ukrainian businesses will start insuring elevators against war risks.

Ukrainian businesses will start insuring elevators against war risks. Elevator equipment manufacturer KMZ Industries concluded a partnership agreement with the leading insurance company in Ukraine, ARX, regarding the provision of insurance services for elevator complexe...

Wednesday, July 3

The Ukrainian government predicts a reduction in the gap between exports and imports in the next three years.

The Ukrainian government predicts a reduction in the gap between exports and imports in the next three years. In 2025-2027, Ukraine is expected to accelerate the growth of its export of goods and services against moderate growth rates in imports. This should reduce the negative trade balance of goods and serv...

In six months, Ukraine exported $19.5B of goods; volumes increased, but sales have yet to.

In six months, Ukraine exported $19.5B of goods; volumes increased, but sales have yet to. Ukrainian exports for six months of the year amounted to $19.5B and are identical to the figure for the first half of 2023. Physical export volumes increased by 35% and totaled 71 million tons. Howeve...

DTEK Renewables will pledge the largest solar plant in Ukraine as €325M in Eurobond collateral.

DTEK Renewables will pledge the largest solar plant in Ukraine as €325M in Eurobond collateral. DTEK Renewables Finance B.V., a member of the DTEK group, is asking Eurobond owners for €325M to postpone their repayment for three years (until November 12, 2027), the company reported on the Irish S...

Ukraine makes new offers to creditors to reach an agreement on debt restructuring.

Ukraine makes new offers to creditors to reach an agreement on debt restructuring. Ukraine plans to include GDP warrants in a proposal to restructure international bonds worth about $20B. This is a new attempt by Kyiv to establish contact with investors after formal negotiations thu...

The EBRD identified the state and problems of Ukrainian business.

The EBRD identified the state and problems of Ukrainian business. After two years of full-scale war, most Ukrainian small and medium-sized enterprises (SMEs) managed to stabilize their activities, indicating their high adaptability to war conditions, the EBRD notes ...

The NBU’s currency restrictions threaten defaults in the corporate sector and an increase in the cost of loans to the state.

The NBU’s currency restrictions threaten defaults in the corporate sector and an increase in the cost of loans to the state. Oleksandr Vodoviz, the top manager of the Metinvest group, noted: “The largest easing package was introduced in May 2024: businesses were allowed to take foreign currency abroad to pay loans and...

The World Bank moved Ukraine to the category of countries with higher-than-average incomes.

The World Bank moved Ukraine to the category of countries with higher-than-average incomes. The country’s income is estimated by the World Bank at $5,070 per capita. The World Bank generally divides the world’s economies into four income groups: low, lower than average, higher th...

Tuesday, July 2

Another dependence on the Russian Federation appeared in the EU, which threatens food security.

Another dependence on the Russian Federation appeared in the EU, which threatens food security. A flow of cheap Russian fertilizers could drive European producers out of business, threatening long-term global food security. In particular, 33% of urea imports, the cheapest form of nitrogen fertil...

Ukraine has a month to avoid default.

Ukraine has a month to avoid default. According to The Economist, Ukraine is facing a looming financial crisis, because the two-year deferral of debt service payments that the country’s creditors agreed to is about to expire. The de...

The largest developing countries support the Russian initiative to create its grain exchange.

The largest developing countries support the Russian initiative to create its grain exchange. Representatives of the ministries of agriculture from BRICS (Brazil, Russia, India, China, South Africa), an international organization of the largest developing countries in terms of area and populat...

The IMF published a pessimistic scenario for Ukraine’s economy the war becomes protracted.

The IMF published a pessimistic scenario for Ukraine’s economy the war becomes protracted. The IMF’s negative scenario assumes that the war will end by the end of 2025 (compared to the end of 2024 in the baseline scenario) and that the shock will start in the third quarter of 2024. Th...

Business expectations in Ukraine worsened for the second month in a row.

Business expectations in Ukraine worsened for the second month in a row. In June, businesses again negatively evaluated the results of their activity. According to the NBU, index of expectations of business activity decreased to 43.6 from 48 in May. Rising costs due to ele...

At the IMF’s request, Ukraine will work on creating a postal bank.

At the IMF’s request, Ukraine will work on creating a postal bank. Ukraine’s memorandum with the IMF says that the Ukrainian authorities plan to create a specialized bank to ensure access to financial services for residents in remote settlements, de-occupied te...

Monday, July 1

Construction in Ukraine grew by 40%, and investors are ready to invest $500M in the industry.

Construction in Ukraine grew by 40%, and investors are ready to invest $500M in the industry. In the first quarter, the volume of construction work increased by 40.3% year-on-year, according to the State Statistics Service. Growth in January was 18.1%; in February, it accelerated to 20.7%; in ...

Ukraine is among the top ten countries in terms of essential mineral deposits, and Russia is fighting for them.

Ukraine is among the top ten countries in terms of essential mineral deposits, and Russia is fighting for them. According to the director of the National Association of Extractive Industries of Ukraine, Ksenia Orynchak, these deposits include titanium ores, kaolin, iron ore, and graphite, and Russia started thi...

The IMF has worsened expectations for Ukraine’s economy and predicts an electricity shortage until 2026.

The IMF has worsened expectations for Ukraine’s economy and predicts an electricity shortage until 2026. The IMF has downgraded Ukraine’s economic growth forecast for 2024 and 2025 due to the consequences from Russian shelling of energy infrastructure. The revised forecast states that Ukraine’...

In Ukraine, the price of land increased by 8.2% in May, which is a new record.

In Ukraine, the price of land increased by 8.2% in May, which is a new record. Agricultural land purchases and sale prices in May increased significantly compared to April and are currently the highest in the history of Ukraine’s land market: the weighted average price per...

IT exports in May exceeded the April figure by $15M.

IT exports in May exceeded the April figure by $15M. In May, IT exports from Ukraine amounted to $560M, which is $15M more than in April 2024. At the same time, in May 2023 this indicator was one of the highest for the entire year, with $590M. In additi...

Friday, June 28

NBU: Life insurance is a potential source of long-term funds for Ukraine’s economy.

NBU: Life insurance is a potential source of long-term funds for Ukraine’s economy. In Ukraine, there is a significant potential for the development of life insurance, which can become a source of long-term funds for the economy, said the deputy head of the NBU, Kateryna Rozhkova. Th...

Ukrainians in the EU earn more than €1,100 per month, while 13% of families in Ukraine lack money for food.

Ukrainians in the EU earn more than €1,100 per month, while 13% of families in Ukraine lack money for food. According to the EWL Migration Platform research, Ukrainians in Germany earn €1,334 per month on average. This is approximately 300% higher than the average salary in Ukraine. In the Netherlands, the ...

Ukraine seeks a common ground with bondholders and tries to avoid default.

Ukraine seeks a common ground with bondholders and tries to avoid default. As Bloomberg explains, Ukraine is trying to reduce debt payments in wartime, but Kyiv needs to maintain good relations with creditors to restore the economy after the war. The Ukrainian government ins...

Ukraine presented the first programs within the Ukraine Investment Framework.

Ukraine presented the first programs within the Ukraine Investment Framework. The Ministry of Economy presented an overview of the IFI programs for €1.4B, which will be implemented within the Ukraine Investment Framework (UIF). The programs of the first stage were approved by t...

Spain provides a €50M soft loan to support the private sector of Ukraine and will help UZ to adapt its trains to EU standards.

Spain provides a €50M soft loan to support the private sector of Ukraine and will help UZ to adapt its trains to EU standards. Spain will allocate a soft loan for €50M and an additional grant of €1M in partnership with the IFC to support the stability of the private sector of Ukraine, the Minister of Economy of Spain Carlos C...

Thursday, June 27

How do Ukraine’s strikes on refineries affect the aggressor’s oil refining capacity and budget?

How do Ukraine’s strikes on refineries affect the aggressor’s oil refining capacity and budget? In May, the Russian government’s subsidies to its gasoline producers increased to ₽202B ($2.5B), and the amount keeps growing. Russian authorities are forced to pay these costs to curb the rise ...

Ukraine has a significant imbalance between exports and imports, how does this affect the dollar exchange rate?

Ukraine has a significant imbalance between exports and imports, how does this affect the dollar exchange rate? Oleh Hetman, the Economic Expert Platform’s coordinator of expert groups, notes that because the exchange rate is not free-floating but in in a state of controlled flexibility, the national bank...

Foreign investors entering Ukraine’s reconstruction market will bring their own specialists; this will increase the cost of projects.

Foreign investors entering Ukraine’s reconstruction market will bring their own specialists; this will increase the cost of projects. The Ukrainian construction industry suffers from a shortage of personnel, so developers have started to raise salaries. Experts note that “attracting migrants was and still is standard practice,...

Wednesday, June 26

The Ukrainian economy grew by 6.5% in the first quarter, reaching almost 82% of its pre-war level.

The Ukrainian economy grew by 6.5% in the first quarter, reaching almost 82% of its pre-war level. According to the results from the first quarter of 2024, Ukraine’s real GDP increased by 6.5% compared to the same period last year, according to the State Statistical Service. A year earlier, a...

Earnings from Ukrainian enterprises reached a 10-year record of $19.8B.

Earnings from Ukrainian enterprises reached a 10-year record of $19.8B. The cumulative financial result of Ukrainian enterprises for 2023 amounted to more than ₴863.8B (about $19.8B). This is the best indicator in the last 10 years, said Danylo Hetmantsev, Head of the par...

The CES provides a forecast for key macro indicators through the end of the year.

The CES provides a forecast for key macro indicators through the end of the year. The Ukrainian economy will grow by 3-4% by the end of 2024, which is less than 2023, according to the macro forecast from the Center for Economic Strategy (CES). As experts explain, the pessimism rega...

Next season, Ukraine will export more than 60% of its agricultural products. Currently, exports are 3% higher than last year.

Next season, Ukraine will export more than 60% of its agricultural products. Currently, exports are 3% higher than last year. In the 2024-2025 marketing year (July-June), Ukraine will be able to export more than 60% of the agricultural products it produces, despite constant shelling of critical infrastructure and problems wi...

Tuesday, June 25

Ukrainian small and medium-sized businesses strive to develop abroad to maintain efficiency.

Ukrainian small and medium-sized businesses strive to develop abroad to maintain efficiency. Faced with an increasing number of macroeconomic challenges, small and medium-sized businesses (SMEs) in Ukraine are resorting to using artificial intelligence technologies, supplier diversification, ...

Ukrainian mining industry leaders increase their income by 13%.

Ukrainian mining industry leaders increase their income by 13%. Last year, the 10 leaders in the extractive industry earned ₴365.26B, which is 11% more than before the start of full-scale war and 13% more than in 2022. The group is led by Ukrnafta, which increased...

In the first quarter, real estate developers started construction on a record low number of new buildings.

In the first quarter, real estate developers started construction on a record low number of new buildings. In Ukraine during the first quarter of 2024, real estate developers started constructing only 9,900 new apartments, reported the State Statistics Service. The rate of new construction is lower than ev...

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