Economy

Tuesday, March 19

Although its economy is very vulnerable, Moscow has no financial incentive to stop the war.

Although its economy is very vulnerable, Moscow has no financial incentive to stop the war. Russian President Vladimir Putin may reconsider his position on continuing the war against Ukraine if the West can squeeze Russian oil revenues, according to a Reuters study. Despite the sanctions and...

Ukraine is calling on its Western allies to finance its domestic arms production.

Ukraine is calling on its Western allies to finance its domestic arms production. According to the FT, Kyiv’s recently increased production capacity significantly exceeds the funds available to place orders. “The fastest way to start production is to do it in Ukraine. We are ...

Piraeus Bank executive in Kyiv: “The country’s best defense is economic growth.” How can the economy be developed during the war? While the financial sector has adjusted to operations under the harsh conditions of the full-scale war and has obtained strong profitability, banks are not lending actively, so they are not driving GD...

Energy leads the ranking of the best businesses in Ukraine by turnover.

Energy leads the ranking of the best businesses in Ukraine by turnover. The Opendatabot has published a new rating based on its index, which includes Ukrainian enterprises with the highest turnover and impeccable business reputations. The energy sector was recognized as t...

How did the largest players in grocery retail develop in 2023?

How did the largest players in grocery retail develop in 2023? Ukraine’s top ten FMCG operators in terms of the total number of stores remained almost unchanged. Only one new player appeared in the list of leaders – the Marketopt chain of stores, whic...

The victory over the Russian fleet has helped to overcome the collapse of grain exports by sea.

The victory over the Russian fleet has helped to overcome the collapse of grain exports by sea. Since August, Ukraine has launched a series of attacks on Russian military ships and naval facilities, destroying a fifth of the Russian Black Sea Fleet. This allowed Ukraine to close the Russian navy...

The state property fund will again try to sell the Bilhorod-Dnistrovsky seaport. What else is listed for privatization this week?

The state property fund will again try to sell the Bilhorod-Dnistrovsky seaport. What else is listed for privatization this week? During the current week, the State Property Fund (SPFU) plans to sell the Bilhorod-Dnistrovsky Sea trade port, the Rivne radio engineering plant, the Kamensk distillery, and the Kholminsky distillery....

Ukraine increased its imports from China. What other countries supplied us with goods in January?

Ukraine increased its imports from China. What other countries supplied us with goods in January? In January 2024, the share of Chinese goods in the structure of Ukrainian imports increased to 21.7%. The value of these imports is more than $1.1B; in 2023, this figure was 16%. Among the most import...

Germany and Norway are offering several grant programs to Ukrainian businesses.

Germany and Norway are offering several grant programs to Ukrainian businesses. The German government offers a financing tool aimed at existing companies with an annual turnover of at least €800,000 that want to invest in Ukraine or expand their activities at the local level. Eli...

The government has named five key sectors of Ukraine as future EU members.

The government has named five key sectors of Ukraine as future EU members. Prime Minister of Ukraine Denys Shmyhal singles out five sectors – defense, energy, agriculture, raw materials, and digital – in which Ukraine hopes to declare itself a future member of th...

Monday, March 18

Despite all the challenges, we continue to move towards the goal: Olha Stefanishyna on the progress and obstacles in European integration.

Despite all the challenges, we continue to move towards the goal: Olha Stefanishyna on the progress and obstacles in European integration. Within the framework of the second event of Ukraine Business Network, where outstanding speakers from both the private and public sectors presented global macroeconomic forecasts for 2024-2025, scenar...

The key rate in Ukraine has again decreased to 14.5%, and the National Bank predicts further weakening.

The key rate in Ukraine has again decreased to 14.5%, and the National Bank predicts further weakening. The National Bank’s board has decided to reduce the discount rate by 0.5 percentage point to 14.5% beginning March 15. In addition, the NBU reported that the rates on three-month deposit certificates ...

Ukraine is launching a mechanism to support large investors.

Ukraine is launching a mechanism to support large investors. The government has approved the latest regulatory document that is necessary to launch the state support mechanism for projects with significant investment. Investors will receive maximum assistance a...

A significant part of Ukrainian businesses is considering investment despite the war,

A significant part of Ukrainian businesses is considering investment despite the war, according to data from the Institute of Economic Research. In 2023, 45% of surveyed companies invested in their development or restoration, and 44% were ready to invest in 2024. These are some of the ...

Thursday, March 14

Ukrainians have increased bank deposits by 14%; the majority trust the banking system despite turbulence.

Ukrainians have increased bank deposits by 14%; the majority trust the banking system despite turbulence. From February 2023 to February 2024, the volume of funds in consumer bank accounts increased by 14% (by ₴133B) thanks to hryvnia funds, said the top manager of the National Anti-Corruption Bureau of U...

What industries in Ukraine do investors consider promising during the war?

What industries in Ukraine do investors consider promising during the war? In the conditions of Russian aggression, Ukraine is attractive for investors who work with so-called distressed assets. These investors are willing to buy risky assets very cheaply, expecting potentia...

How many Ukrainian refugees remain abroad, and how could this affect Ukraine’s economy?

How many Ukrainian refugees remain abroad, and how could this affect Ukraine’s economy? As of the end of January 2024, 4.9 million Ukrainians were living abroad due to the war. Most refugees are women (the largest share is women aged 35-44 – 13%) and children. The largest shares of...

Wednesday, March 13

Businesses in Ukraine expect revenue growth in 2024.

Businesses in Ukraine expect revenue growth in 2024. In 2024, top managers of Ukrainian companies predict mostly positive or stable dynamics of change in their incomes. According to an EBA survey, 41% of CEOs expect an increase in revenues in dollar ter...

Ukraine and Poland are close to signing an agreement on joint customs control and are discussing mutual licensing of agricultural product exports.

Ukraine and Poland are close to signing an agreement on joint customs control and are discussing mutual licensing of agricultural product exports. Deputy Minister of Infrastructure Serhiy Derkach said, following the ninth Polish-Ukrainian intergovernmental commission meeting, that Ukraine and Poland are finalizing a draft of the agreement on joi...

Experts name the conditions that will ensure a 5-10% increase in the export of Ukrainian IT services.

Experts name the conditions that will ensure a 5-10% increase in the export of Ukrainian IT services. The director of the Lviv IT Cluster, Stepan Veselovsky, believes that the IT industry can increase export revenue by 5-10% in a year if effective and transparent mechanisms for booking key employees a...

Tuesday, March 12

The EC calls the problems on the Ukrainian-Polish border temporary and explains their causes.

The EC calls the problems on the Ukrainian-Polish border temporary and explains their causes. The Vice-President of the EC, Valdis Dombrovskis, explains that the problems on Ukraine’s border with Poland are a short-term consequence of the Russian war. More precisely, they are echoes from...

Ukraine discusses the resumption of air transport with the US and the EU.

Ukraine discusses the resumption of air transport with the US and the EU. The Minister of Infrastructure, Oleksandr Kubrakov, said that Ukraine is officially starting negotiations with US and EU regulators regarding the resumption of passenger air transport. The Ukrainian s...

The restoration of Ukraine will cost $1T, and private businesses are braced for it.

The restoration of Ukraine will cost $1T, and private businesses are braced for it. According to EIB estimates, more than $1T in public and private capital may be spent restoring Ukraine. However, there is already an approximate plan of action. The Turkish Onur Group repairs blown-up...

Monday, March 11

Ukraine’s goods turnover at the beginning of the year increased by 2%.

Ukraine’s goods turnover at the beginning of the year increased by 2%. Ukraine’s merchandise turnover reached $16.8B in the first two months of the year, 2% more than in the first two months of last year, reported the State Customs Service. During January-February ...

The logistics cost of exporting agricultural products to the ports of Odesa has decreased by 33%.

The logistics cost of exporting agricultural products to the ports of Odesa has decreased by 33%. Logistics costs for the export of farm products through the ports of Odesa in 2023 decreased by 33% compared to 2022, and shipping through the Romanian port of Constanta via the Danube ports by 40%, a...

S&P has worsened its forecast for Ukraine’s GDP growth; the long-term sovereign FC rating outlook is negative.

S&P has worsened its forecast for Ukraine’s GDP growth; the long-term sovereign FC rating outlook is negative. Economic growth in Ukraine will continue in 2024 because of the expansion of domestic demand and the further recovery of sea exports, but it will decrease to 3.9% from about 5.5% last year, according ...

The EU plans to ban the import of Russian agricultural products.

The EU plans to ban the import of Russian agricultural products. The EC is currently assessing the possibility and impact of blocking the import of farm products from the Russian Federation, the executive vice-president of the EC, Valdis Dombrovskis, said. He added...

Finnish energy and construction companies will join Ukraine’s recovery, and Lithuania will allocate €5M to reconstruct social infrastructure.

Finnish energy and construction companies will join Ukraine’s recovery, and Lithuania will allocate €5M to reconstruct social infrastructure. As reported by the Ministry of Infrastructure, during a meeting of government officials from Ukraine and Finland with Finnish businesses, discussions were held regarding cooperation in energy security...

Friday, March 8

The European Parliament supports a one-year extension of trade liberalization for Ukraine.

The European Parliament supports a one-year extension of trade liberalization for Ukraine. On March 7, members of the Committee on International Trade of the European Parliament approved the continuation of trade liberalization measures to support Ukraine and Moldova. Accordingly, from June...

Because of the war, the shadow labor market in Ukraine has grown to four million people, and the number of new vacancies exceeds pre-war figures.

Because of the war, the shadow labor market in Ukraine has grown to four million people, and the number of new vacancies exceeds pre-war figures. Over the past year and a half, approximately 1.5 million workers have left Ukraine’s official labor market due to the required military registration, so the state needs to find a middle ground regardi...

How will Poland’s total embargo on Ukrainian farm imports affect Ukraine?

How will Poland’s total embargo on Ukrainian farm imports affect Ukraine? Poland is confidently moving toward a complete, indefinite embargo on Ukrainian food. The NBU reports that exports of food products to Poland last year amounted to $1.8B, or 8% of total food exports. ...

Ukraine needs $9.5B in financing for priority recovery items; Ukraine’s partners are already working on mechanisms.

Ukraine needs $9.5B in financing for priority recovery items; Ukraine’s partners are already working on mechanisms. The government has said that Ukraine needs $9.5B in external funding for priority recovery needs in 2024. To that end, the US State Department and the German Marshall Fund (GMF) have announced the cre...

Ukraine is exporting more and more by sea as rail transportation of grain across the western borders falls by 23%.

Ukraine is exporting more and more by sea as rail transportation of grain across the western borders falls by 23%. Almost 30 million tons of goods were exported through the Ukrainian sea corridor in seven months. According to the Minister of Infrastructure Oleksandr Kubrakov, the volume of goods shipped through th...

Thursday, March 7

A German entrepreneur buys an amber deposit in the Rivne region, and Concorde Capital purchases a limestone deposit in the Dnipropetrovsk region.

A German entrepreneur buys an amber deposit in the Rivne region, and Concorde Capital purchases a limestone deposit in the Dnipropetrovsk region. A license to mine amber at the Kryuchkova site, with an area of almost 40 hectares in the Rivne region, was sold at auction for ₴3.48M ($92,000). The auction winner was a Kyiv company; the ultimate be...

The government is seeking a buyer for a packaging factory confiscated from a Russian oligarch.

The government is seeking a buyer for a packaging factory confiscated from a Russian oligarch. The State Property Fund (SPFU) is preparing to privatize the PentoPak plant, which Ukraine confiscated from Russian-Greek oligarch Ivan Savvidi for supporting Russian aggression. “I am sure that...

Ukraine is ready for EU trade restrictions on the condition that imports from Russia stop.

Ukraine is ready for EU trade restrictions on the condition that imports from Russia stop. Ukraine is prepared to accept restrictions on trade with the EU to defuse a sharp political dispute with Poland. At the same time, Kyiv calls on the bloc to ban the import of Russian agricultural prod...

Wednesday, March 6

Ukraine will open five joint defense enterprises with Western manufacturers.

Ukraine will open five joint defense enterprises with Western manufacturers. According to Prime Minister Denys Shmyhal, “We are cooperating very fruitfully with the leaders of the world’s arms production. We can already talk about five signed contracts and five joi...

The EU is preparing to transfer its economy to military rails.

The EU is preparing to transfer its economy to military rails. The EC will propose ways to intensify the work of the European defense industry to respond more effectively to Ukraine’s war needs and future security challenges. This refers to proposals that EU coun...

Sanctions are starting to have an effect: contractors are severing ties with the Russian Federation.

Sanctions are starting to have an effect: contractors are severing ties with the Russian Federation. Turkey’s Dertyol terminal, which received record volumes of Russian oil last year, will no longer accept cargo from Russia due to increased US sanctions. Global Terminal Services (GTS), which ma...

The European Commission proposes to extend Ukraine’s transport visa-free status with certain conditions.

The European Commission proposes to extend Ukraine’s transport visa-free status with certain conditions. The EC sent a proposal to the Council of Europe to extend the agreement with Ukraine and Moldova on the liberalization of road freight transport for 2025. The conditions offered are the following: Mak...

Ukraine plans to reach the pre-war agricultural product export indicators; the main trade route is the Black Sea.

Ukraine plans to reach the pre-war agricultural product export indicators; the main trade route is the Black Sea. In February, Ukraine exported more than five million tons of agricultural products via the Black Sea, Deputy Chairman of the All-Ukrainian Agrarian Council Denys Marchuk said. He clarified that, befor...

Rents on the warehouse real estate market are becoming more expensive in Ukraine: Rates have increased by 10%, and this trend will continue.

Rents on the warehouse real estate market are becoming more expensive in Ukraine: Rates have increased by 10%, and this trend will continue. Renting commercial warehouses in Ukraine is becoming more costly due to a lack of space. The shortage in the logistics market is because, during the war, the construction of new complexes has stopped,...

Tuesday, March 5

In January, Ukraine increased its exports by 12% and reduced imports of goods.

In January, Ukraine increased its exports by 12% and reduced imports of goods. The export of goods in January increased by 12.3% compared to the corresponding period last year, while imports decreased by 1.1%, the National Bank reports. Ukraine supplied $3.3B worth of goods to f...

Investments in distilleries during privatization brings ₴4B to the budget.

Investments in distilleries during privatization brings ₴4B to the budget. Since distilleries began to be sold, the State Property Fund of Ukraine has organized 115 online auctions. Privatization of these assets ensured the receipt of ₴4B ($105M) to Ukraine’s budget, said he...

Analysts predict the creation of a record amount of Ukrainian warehouse space within two years.

Analysts predict the creation of a record amount of Ukrainian warehouse space within two years. The warehouse market is experiencing difficult times due to a shortage of facilities. However, the problem could be solved by new projects announced in the next two years, particularly in the Kyiv reg...

Two new factories will be constructed for ₴1B in the Ternopil region to process secondary raw materials and produce reinforced concrete structures.

Two new factories will be constructed for ₴1B in the Ternopil region to process secondary raw materials and produce reinforced concrete structures. In the Ternopil region, in the Zborivsky district, the Meritt Group Ukraine company (Meritt Group Polska, Green Petrol) plans to build a plant for the processing of secondary raw materials, the head o...

Analysts have studied the state of the M&A market in Ukraine based on 2023’s results.

Analysts have studied the state of the M&A market in Ukraine based on 2023’s results. 47 M&A deals (mergers and acquisitions) were announced last year, as the Ukrainian M&A market grew by almost 70% compared to 2022. The average value of M&A deals in Ukraine has also increa...

Ukrainian businesses are offered grants worth thousands of dollars from several projects.

Ukrainian businesses are offered grants worth thousands of dollars from several projects. USAID announced it will begin accepting grant applications within the Building the Future of Ukrainian Logistics and Exports project framework. The grant financing is intended to achieve important goa...

Monday, March 4

Ukraine’s losses from the border blockade have reached ₴20B: Though the EP will continue free trade with Ukraine, the EU is tightening export controls.

Ukraine’s losses from the border blockade have reached ₴20B: Though the EP will continue free trade with Ukraine, the EU is tightening export controls. The profile committee of the European Parliament plans to continue the free trade zone with Ukraine this week, said Deputy Minister of Agricultural Policy of Ukraine Taras Vysotskyy. He added this is ...

Business activity expectations have improved, and companies are looking for new employees.

Business activity expectations have improved, and companies are looking for new employees. According to the NBU, the index of business activity expectations rose to 47.5 from 41 in January. Trade enterprises are the only ones among the surveyed sectors to assess their business activity posi...

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