Economy

Friday, March 29

The EU has agreed on new terms for Ukraine’s trade benefits.

The EU has agreed on new terms for Ukraine’s trade benefits. Ambassadors from the EU member states reached a compromise on the issue of extending the preferential trade regime with Ukraine for another year. The agreement provides that the base period that will ...

Ukraine and Poland could not agree on unblocking the border; more time is needed.

Ukraine and Poland could not agree on unblocking the border; more time is needed. Minister of Agrarian Policy Mykola Solskyi commented on the meeting results in the tripartite format, Ukraine-Poland-EU. Negotiations on the issues of unblocking the border and finding common position...

How is Denmark helping to rebuild Ukraine?

How is Denmark helping to rebuild Ukraine? Recently, Denmark has become a leading provider of commercial support to Ukraine. The Danish government has done this through a fund that provides various commercial financing tools and reduces risk f...

How have Ukrainian businesses migrated during the war?

How have Ukrainian businesses migrated during the war? Since the beginning of the full-scale war, Ukrainian companies have changed their place of registration 18,944 times. It is noted that companies in wholesale trade move most often – 39.4% of the...

Ukraine’s partners provide tens of millions of euros in guarantees for Ukrainian business lending.

Ukraine’s partners provide tens of millions of euros in guarantees for Ukrainian business lending. The Polish bank BGK and Ukrainian Kredobank signed an addendum to an agreement. Kredobank will receive an additional €10M in EC guarantees for lending to Ukrainian entrepreneurs. These funds will incr...

Experts compare consumer purchasing attitudes in Ukraine, the EU, and the US; Ukrainians tighten their belts with technology and entertainment.

Experts compare consumer purchasing attitudes in Ukraine, the EU, and the US; Ukrainians tighten their belts with technology and entertainment. According to experts, in 2023 Ukrainians spent 66% of their monthly budget on food and other living expenses. On the other hand, in neighboring Poland only 36%, in Germany – 40%, and in the US &...

Thursday, March 28

While foreign brands plan to enter the Ukrainian market, retailers are focused on domestic manufacturers.

While foreign brands plan to enter the Ukrainian market, retailers are focused on domestic manufacturers. Despite the ongoing war, new global brands are entering the Ukrainian market. In April, Inditex brand stores (Zara, Stradivarius, Bershka, etc.) reopened, and Sinsay has been operating since the end o...

Moldova’s largest sunflower oil producer has stopped its plant due to a lack of Ukrainian raw materials.

Moldova’s largest sunflower oil producer has stopped its plant due to a lack of Ukrainian raw materials. The Floarea Soarelui company said that the plant has suspended operations because it cannot purchase enough sunflower seeds on the local market and cannot import them because the import licensing mech...

Several world-famous companies are interested in privatizing two hotels in the center of Kyiv.

Several world-famous companies are interested in privatizing two hotels in the center of Kyiv. According to Vitaliy Koval, head of the State Property Fund, state-owned hotels in the center of the capital can become flagships for privatization in 2024. “We see a lively market interest in the Koz...

A Ukrainian company plans to raise $8M to construct a processing plant for demolition waste.

A Ukrainian company plans to raise $8M to construct a processing plant for demolition waste. Agroholding KSG Agro has developed a project to construct a new plant for sorting, processing, and disposing of the consequences of destruction in the Kherson region. The planned implementation period...

Under a new duty-free trade project with the EU, Ukraine risks losing more than €330M.

Under a new duty-free trade project with the EU, Ukraine risks losing more than €330M. The Council of the EU has updated the draft agreement that extends duty-free trade with Ukraine. In particular, the demands of Poland and France, supported by Italy, Austria, and Hungary, have been co...

Wednesday, March 27

Russian strikes have affected operations at Odesa ports, but in return, Ukraine has disabled 10-12% of the aggressor’s oil refining capacity.

Russian strikes have affected operations at Odesa ports, but in return, Ukraine has disabled 10-12% of the aggressor’s oil refining capacity. As a result of Russian missile attacks on the energy infrastructure in southern Ukraine, interruptions in the port of Odesa’s power supply and to certain sections of the railway network were recorded....

Swedish businesses will expand their presence in Ukraine, and Finnish business agencies will open a representative office in Kyiv.

Swedish businesses will expand their presence in Ukraine, and Finnish business agencies will open a representative office in Kyiv. The Swedish business community is interested in increasing its presence in Ukraine and developing cooperation with Ukrainian companies in high-tech industries, energy, telecommunications, and cyber se...

The return of foreign brands to Ukraine has provoked an increase in rental rates for retail space by 8-10%.

The return of foreign brands to Ukraine has provoked an increase in rental rates for retail space by 8-10%. According to CBRE Ukraine, in 2023 four new retailers entered the Kyiv market – the Italian premium clothing brand EA7, American household electronics brand KitchenAid, Polish clothing brand Hal...

Kyiv plans to build a cutting-edge defense enterprise to produce drones.

Kyiv plans to build a cutting-edge defense enterprise to produce drones. A facility will be built in the Ukrainian capital – a utility company that will be subordinate to the Kyiv City Administration and be engaged in drone production. The company’s authorized ...

Liberalizing the land market will move Ukraine $20B toward restoring its agricultural sector.

Liberalizing the land market will move Ukraine $20B toward restoring its agricultural sector. Liberalization of the agricultural land market and increased transparency can bring $35B to Ukraine’s budget. This could close the current deficit of more than $20B in agricultural recovery fina...

Additional restrictions on the import of Ukrainian food products to the EU may prolong the war.

Additional restrictions on the import of Ukrainian food products to the EU may prolong the war. The Minister of Agricultural Policy, Mykola Solsky, believes that attempts by France and Poland to expand restrictions on importing Ukrainian products to the EU “will increase the chances for th...

The international financial aid deficit next year may reach $15B.

The international financial aid deficit next year may reach $15B. As Deputy Chairman of the Finance Committee Yaroslav Zheleznyak said, the lack of financial aid from international partners next year may amount to $10-15B, and the hidden additional state budget defi...

Lithuanian companies are modernizing Ukraine’s logistics infrastructure and will open a single logistics center this year.

Lithuanian companies are modernizing Ukraine’s logistics infrastructure and will open a single logistics center this year. Representatives from Lithuanian railway operators – the transport and cargo companies LTG Cargo and BGS Rail Holdings – are expanding their presence in Ukraine. The companies are involved ...

Metinvest plans to invest in Ukraine’s reconstruction, but there are obstacles.

Metinvest plans to invest in Ukraine’s reconstruction, but there are obstacles. The general director of the Metinvest group, Yuriy Ryzhenkov, says the expansion of logistics capabilities, currency liberalization, and transparent rules for booking employees are important condition...

Tuesday, March 26

The key policy rate in Ukraine may drop to 11-12% by the end of the year.

The key policy rate in Ukraine may drop to 11-12% by the end of the year. Some members of the Monetary Policy Committee of the National Bank have not ruled out a lowering of the key policy rate to 11%–12% this year. This rate will be consistent with expected moderate inflat...

The EU has postponed approval of the trade agreement with Ukraine, while discussions are ongoing.

The EU has postponed approval of the trade agreement with Ukraine, while discussions are ongoing. The Belgian presidency of the Council of the EU postponed approval of the trade agreement with Ukraine by the ambassadors of 27 countries to March 27. France and Poland, with the support of countries ...

Ukrainian metallurgists plan to increase production by 15% this year.

Ukrainian metallurgists plan to increase production by 15% this year. Oleksandr Kalenkov, President of the Ukrmetalurgprom association, said: “We hope that the volume of steel smelting in 2024 will not be lower than last year, and taking into account the plans of ...

How business tax increases and economic reservations from mobilization will affect Ukraine’s budget.

How business tax increases and economic reservations from mobilization will affect Ukraine’s budget. Ukraine needs to find new sources of income for the state budget because raising taxes for businesses will lead to a decline in the country’s defense capabilities, according to Deputy Chairman o...

Ukraine plans to increase the excise duty on cigarettes, alcohol, and fuel to harmonize with EU norms.

Ukraine plans to increase the excise duty on cigarettes, alcohol, and fuel to harmonize with EU norms. A schedule of annual rate increases until 2028 has been established for all excise goods. In particular, the excise tax on tobacco products will be equated to the euro, the tax rate will gradually inc...

Ukraine and Poland are moving toward resolution of the trade dispute.

Ukraine and Poland are moving toward resolution of the trade dispute. The parties have made great progress on the issue of market regulation, and negotiation might finish this week, Polish Development Minister Krzysztof Hetman said. The Economic Committee of the Ukraini...

How the state supports the agricultural sector in 2024: a list of programs.

How the state supports the agricultural sector in 2024: a list of programs. This year, the government expanded the list of programs designed to support farmers who have been working in conditions of war for the third year in a row and, despite these difficulties, continue to ...

How has the war transformed the labor market in Ukraine?

How has the war transformed the labor market in Ukraine? During 2023, employers informed employment centers about 329,000 vacancies. The structure of these vacancies is as follows: 18% of vacancies – at processing industry enterprises 16% – in w...

Monday, March 25

The International Monetary Fund has updated its macro forecast for Ukraine.

The International Monetary Fund has updated its macro forecast for Ukraine. According to the IMF, the expectation for nominal GDP in 2024 has increased to ₴7.75T from the ₴7.64T predicted in December last year’ However, 2025’s forecast remains almost unchanged at ₴8.86T. At t...

IMF: Due to the intensification of the war, the shock to Ukraine’s economy will begin in the second quarter.

IMF: Due to the intensification of the war, the shock to Ukraine’s economy will begin in the second quarter. According to the IMF, in a negative scenario, the war will end by the end of 2025 and not at the end of 2024 as in the base scenario. At the same time, “the shock will begin in the second quarte...

An international company invests €20M in a factory to produce consumer goods.

An international company invests €20M in a factory to produce consumer goods. As reported by the Kyiv administration, the international company Unilever has started constructing a new factory in the Bila Tserkva industrial park in the Kyiv region. The factory will produce perso...

Ukraine has agreed on favorable insurance terms for container transportation by sea.

Ukraine has agreed on favorable insurance terms for container transportation by sea. According to Yuriy Vaskov, the Deputy Minister of Infrastructure, Ukraine has increased its indicators for goods turnover through seaports to about 75% of the pre-war level through the use of the Blac...

Friday, March 22

The indissoluble link between business and war: UBN held a second event in Kyiv

The indissoluble link between business and war: UBN held a second event in Kyiv On a still cool but already spring day, amid a tangle of bad news and public concerns about the future hanging in the air of Kyiv’s streets, a circle of selected business investors, entrepreneur...

Over the year, Ukraine’s gross foreign debt increased by almost 25%. How does this threaten the financial system?

Over the year, Ukraine’s gross foreign debt increased by almost 25%. How does this threaten the financial system? Ukraine’s gross foreign debt at the end of 2023 amounted to $161.5B. That is, it increased by almost 25% (+$30.6B). This debt includes the external debt from the government, the central bank, commerci...

The Netherlands allocates €350M for F-16 ammunition and drones for Ukraine.

The Netherlands allocates €350M for F-16 ammunition and drones for Ukraine. The Netherlands has allocated €150M for air-to-ground munitions for F-16 fighters and €200M for ISR drones for Ukraine, said the country’s Minister of Defense, Kajsa Ollongren, in Kyiv. The Neth...

A Ukrainian animal feed producer increased sales abroad and invested €6.55M to expand production in Ukraine and Lithuania.

A Ukrainian animal feed producer increased sales abroad and invested €6.55M to expand production in Ukraine and Lithuania. Kormotech, a pet food company, ended last year with a turnover of $152M, exceeding sales plans by $2M. Sales volume reached 77,400 tons, up 15.7% from 2022. The company’s sales grew most dynamic...

Due to export issues with the EU, Ukraine is reorienting its sugar exports: 20% was purchased by three African countries.

Due to export issues with the EU, Ukraine is reorienting its sugar exports: 20% was purchased by three African countries. Since the beginning of March, Ukrainian sugar producers began actively selling their products on the African continent. This alternative direction appeared following active lobbying to ban the sale of...

Only 8% of employers plan to expand their staff, large businesses need the most workers.

Only 8% of employers plan to expand their staff, large businesses need the most workers. Most Ukrainian enterprises do not intend to increase their staff numbers in 2024; only 8% will hire additional employees, and only 2% indicated they are confident in implementing their plans. In 2023,...

Thursday, March 21

In January, the volume of mortgage loans issued increased by 100% to ₴1.1B.

In January, the volume of mortgage loans issued increased by 100% to ₴1.1B. In January, Ukrainian banks issued 676 mortgage loans for a total amount of ₴1.1B, the National Bank reported. The volume of consumer mortgage loans granted decreased by 33% compared to December, whil...

Ukraine is unable to pay its bond owners $4.5B, so it is starting debt restructuring negotiations.

Ukraine is unable to pay its bond owners $4.5B, so it is starting debt restructuring negotiations. Beginning in August, Ukraine must pay Eurobond holders $4.5B to service its debt. In 2024, Ukraine is scheduled to pay $910M that will be applied to the principle and $3.61B in interest. However, this...

One of the largest metallurgical plants in Ukraine exported 3.1 million tons of products and is increasing production.

One of the largest metallurgical plants in Ukraine exported 3.1 million tons of products and is increasing production. During the two years of the full-scale war, the Zaporizhstal metallurgical plant has exported 3.1 million tons of iron and rolled steel. The plant’s products are shipped to 38 countries around t...

The EIB has increased investment in Ukraine by 700% and plans to allocate €100M for the restoration of hydropower.

The EIB has increased investment in Ukraine by 700% and plans to allocate €100M for the restoration of hydropower. In 2023, the European Investment Bank increased project financing in Ukraine by 700% compared to the previous year, up to €262M. The main direction for this financing was €133M to restore damaged crit...

The EU has already agreed to extend the preferential trade regime with Ukraine, but is still considering European farmers’ interests.

The EU has already agreed to extend the preferential trade regime with Ukraine, but is still considering European farmers’ interests. The Parliament and the Council of the EU reached a preliminary agreement on continuing trade liberalization measures for Ukraine. The temporary suspension of import duties and quotas to export Ukraini...

In February, Ukraine reduced the deficit in foreign trade in goods by $130M.

In February, Ukraine reduced the deficit in foreign trade in goods by $130M. In February, Ukraine exported $3.4B worth of goods, which is equal to January’s result and almost 2% more than in February last year. Compared to January, the import of goods decreased by 2.3% t...

The largest shopping center will be built in the Kyiv region.

The largest shopping center will be built in the Kyiv region. A new shopping and entertainment center, the Bucha Gallery, will be built in Bucha, Kyiv. It will be built on the site of the Epicentr hypermarket destroyed by the invaders, said the mayor of Bucha, A...

Wednesday, March 20

About 75% of the Ukraine Business Compact platform’s participants have already invested in Ukraine or may soon do so.

About 75% of the Ukraine Business Compact platform’s participants have already invested in Ukraine or may soon do so. The Ministry of Economy, together with hundreds of companies from Ukraine and around the world, have started work to implement investment projects in promising sectors of the Ukrainian economy and dis...

Oschadbank will join in the construction of a 520 MW wind power plant in western Ukraine.

Oschadbank will join in the construction of a 520 MW wind power plant in western Ukraine. The state bank will take part in implementing a project from the Friendly Wind Technology company to construct a wind farm with a capacity of 520 MW in the west of Ukraine, said the deputy chairman of...

The government is simultaneously preparing two new financial support mechanisms for Ukrainian arms manufacturers.

The government is simultaneously preparing two new financial support mechanisms for Ukrainian arms manufacturers. Ukraine’s military-industrial complex currently consists of 500 defense companies, 80% of which are private. Before the full-scale war began, private companies occupied 20% of the market. In 2023, Ukr...

A relocated enterprise that produces construction materials has built a new factory in the Ivano-Frankivsk region.

A relocated enterprise that produces construction materials has built a new factory in the Ivano-Frankivsk region. As reported by the Kalush city council, the Aquaizol company relocated to Kalush from Kharkiv in the first weeks following the Russian Federation’s full-scale invasion into Ukraine. 70 wagons of produ...

Experts have named the most attractive industries for investment in Ukraine and identified the barriers that should be removed.

Experts have named the most attractive industries for investment in Ukraine and identified the barriers that should be removed. As Andrii Dlygach, the Director of the Advanter Group of Companies, pointed out, given its present course of European integration, Ukraine has huge opportunities in everything related to the green tra...

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