Economy

Friday, May 23

The negative effects of Ukrainian exports are exaggerated and have a minimal impact on EU markets.

The negative effects of Ukrainian exports are exaggerated and have a minimal impact on EU markets. Ukrainian agricultural products, despite their quality and important role in Europe’s food security, remain hostage to political narratives, believes Oleh Khomenko, head of the UABC. He added th...

Ukraine is rapidly losing its export positions amid the ongoing crisis in the mining sector.

Ukraine is rapidly losing its export positions amid the ongoing crisis in the mining sector. After Ukraine’s remarkable recovery in iron ore exports in early 2024, boosted by the opening of the sea corridor, Ukraine’s MMC sector reached nearly 50% of its pre-war levels. However, t...

The Ukrainian land bank has been subleased a largest land plot to a private company.

The Ukrainian land bank has been subleased a largest land plot to a private company. The largest plot controlled by the State Land Bank, spanning 3,969 hectares in the Ustinivska community of the Kirovohrad region, has been subleased for 14 years with an annual payment of ₴78.6M ($1.9...

Ukraine could have earned over $2B from arms exports last year.

Ukraine could have earned over $2B from arms exports last year. Ukrainian gunmakers are prepared to export surplus products to partner countries, but they need permission from the state, said Kateryna Mykhalko, executive director of the Technological Forces of Ukr...

Vinnytsia is set to welcome a new industrial park, with investment reaching up to ₴6B.

Vinnytsia is set to welcome a new industrial park, with investment reaching up to ₴6B. The new Formatsia-Vinnytsia Industrial Park will cover an area of 175,000 square meters and plans to accommodate 50 companies and generate approximately 3,500 jobs. The project’s developer, Alte...

Thursday, May 22

The EBRD and IFC will examine investment opportunities to facilitate Ukrainian airport development.

The EBRD and IFC will examine investment opportunities to facilitate Ukrainian airport development. The EBRD along with the IFC have introduced a team of experts and a plan to conduct an extensive study to explore potential models for involving the private sector in the management and upkeep of airp...

A prototype battery made from domestic graphite has been tested in Ukraine.

A prototype battery made from domestic graphite has been tested in Ukraine. BGV Group successfully tested a prototype lithium-ion battery using Ukrainian graphite mined in the Kirovohrad region. As part of the pilot project, BGV Graphite developed and tested the anode materia...

Ukraine is set to discuss the abolition of tariffs on metallurgical products with the US.

Ukraine is set to discuss the abolition of tariffs on metallurgical products with the US. The Ministry of Economy of Ukraine is initiating conversations with US officials about removing tariffs on Ukrainian metal products, specifically those imposed during President Trump’s administr...

The end of the visa-free trade program between Ukraine and the EU will impact exports of 30 types of agricultural products.

The end of the visa-free trade program between Ukraine and the EU will impact exports of 30 types of agricultural products. The EU plans to revoke its preferential autonomous trade measures with Ukraine effective June 5, according to Poland’s Prime Minister Donald Tusk, whose country holds the EU presidency until Jul...

The domestic cement industry is poised to meet the increasing demand during the forthcoming reconstruction efforts.

The domestic cement industry is poised to meet the increasing demand during the forthcoming reconstruction efforts. According to Pavlo Kachur, Chairman of the Ukrcement Association, five major cement companies are currently operating in the Ukrainian market, collectively covering nearly the entire country. The tota...

The European Commission anticipates a gradual return of refugees to Ukraine this year.

The European Commission anticipates a gradual return of refugees to Ukraine this year. According to the EC, the number of beneficiaries of temporary protection in the EU as of January 2025 was about 4.3 million people. It is expected that the number of Ukrainians residing in the EU thro...

Wednesday, May 21

The EU and Britain have imposed new sanctions on Russia, as the US refrains.

The EU and Britain have imposed new sanctions on Russia, as the US refrains. The EU Council has approved its 17th package of sanctions against Russia, targeting nearly 200 ships in the shadow fleet. As a result, the total number of sanctioned vessels transporting Russian oil, ...

Zelenskyy will offer Trump a free trade agreement between Ukraine and the US,

Zelenskyy will offer Trump a free trade agreement between Ukraine and the US, said Ukrainian Trade Representative Taras Kachka. He indicated that this topic will be discussed in the next stage of bilateral talks. Kachka noted that the Ukrainian side is interested in such an agr...

Business lending in Ukraine is on the rise, propelled by farmers and builders.

Business lending in Ukraine is on the rise, propelled by farmers and builders. The Banking Sector Review for Q1 2025 shows that banks are increasing the pace of business lending while also extending loans to the consumers. As a result, the growth of the net commercial hryvnia lo...

Ukraine is steadily shifting from exporting raw materials to providing foreign markets with higher value-added products.

Ukraine is steadily shifting from exporting raw materials to providing foreign markets with higher value-added products. Minister of Agricultural Policy Vitaly Koval mentioned that the agro-processing sector demonstrated growth last year. The most significant increase was seen in fruit and vegetable processing (over 27%...

The Bilhorod-Dnistrovskyy port will be connected by rail to Romania, enhancing the movement of goods from Asia to the EU.

The Bilhorod-Dnistrovskyy port will be connected by rail to Romania, enhancing the movement of goods from Asia to the EU. By the end of the year, the port in the Odesa region intends to facilitate the transit of goods from Asia to EU nations. The route from Bilhorod-Dnistrovskyy to Galati covers 320 kilometers in total: ...

Poland is once again demanding a nearly 50% reduction in imports of Ukrainian cement.

Poland is once again demanding a nearly 50% reduction in imports of Ukrainian cement. The Polish Cement Producers Association (SPC) is asking the EC to restrict imports of Ukrainian cement under the EU trade agreement with Ukraine. The proposed quota for Ukrainian cement is set at 360,...

Tuesday, May 20

The EU has approved a €150B rearmament fund aimed at enhancing support for Ukraine.

The EU has approved a €150B rearmament fund aimed at enhancing support for Ukraine. As reported by Reuters, the EU nations have come to a preliminary agreement on establishing a new credit mechanism for rearmament purposes entitled the Security Action For Europe (SAFE), which is valu...

The EU plans to propose reducing the price cap on Russian oil to the G7 nations as part of its 18th sanctions package.

The EU plans to propose reducing the price cap on Russian oil to the G7 nations as part of its 18th sanctions package. European Commissioner for Economic Affairs Valdis Dombrovskis did not specify the proposed reduction, but may suggest lowering the cap from the current $60 to $50 per barrel. Dombrovskis intends to fo...

Ukraine’s subsoil agreement with the US: How many dormant licenses are there in Ukraine, and what resources can be extracted?

Ukraine’s subsoil agreement with the US: How many dormant licenses are there in Ukraine, and what resources can be extracted? As reported by the State Service of Geology and Subsoil, of the special permits for subsoil use issued in Ukraine, 154 are deemed dormant – indicating that less than 1% of the mineral reserves’ ...

Due to the war, Dragon Capital’s real estate portfolio was reduced by 200,000 square meters, with losses amounting to nearly $65M.

Due to the war, Dragon Capital’s real estate portfolio was reduced by 200,000 square meters, with losses amounting to nearly $65M. The largest investment company in Ukraine currently holds approximately 600,000 square meters in its real estate portfolio, down from its peak of 800,000 square meters, said Tomasz Fiala, the founder ...

The European Commission has revised its economic forecast for Ukraine, lowering its GDP growth prediction for 2025 from 2.8% in November to 2%.

The European Commission has revised its economic forecast for Ukraine, lowering its GDP growth prediction for 2025 from 2.8% in November to 2%. This adjustment is attributed to ongoing war pressures that severely impact production capacity and business confidence. For 2026, the GDP growth forecast has been decreased from 5.9% to 4.7%. A decli...

Experts predict an upcoming surge of mutual investment between Ukraine’s agriculture sector and that of the EU.

Experts predict an upcoming surge of mutual investment between Ukraine’s agriculture sector and that of the EU. Emphasizing the Ukrainian agricultural focus on European markets, Alex Lissitza, president of the Ukrainian Agrarian Business Club, observed that Ukrainian farmers are collaborating on joint projects ...

Ukraine’s top construction companies’ revenue increased by 41% last year, while profit rose by 60%.

Ukraine’s top construction companies’ revenue increased by 41% last year, while profit rose by 60%. The top ten companies in the construction sector generated over ₴49B in revenue in 2024, which is 41% more than in 2023. The combined profit of the industry leaders surged by 60%, reaching ₴3.09B ($74...

Monday, May 19

Ukraine’s allies increase their defense support for Ukraine; Americans are set to manufacture Ukrainian naval drones.

Ukraine’s allies increase their defense support for Ukraine; Americans are set to manufacture Ukrainian naval drones. Red Cat Holdings will start producing Magura V7 Ukrainian drones in the US by the third quarter of 2025, marking a significant breakthrough in exporting Ukrainian naval drone technology. This entry in...

Investments in land, an elevator, and a plant: What does OKKO Group’s agricultural portfolio include?

Investments in land, an elevator, and a plant: What does OKKO Group’s agricultural portfolio include? OKKO Group, which is known for the largest gas station network in Ukraine, has started expanding its agricultural assets. “This year, we finalized a deal for 17,000 hectares in northern Ternopil...

Ukraine paid $770M upfront to foreign weapon suppliers for products that were never delivered.

Ukraine paid $770M upfront to foreign weapon suppliers for products that were never delivered. Since the beginning of the full-scale Russian invasion, Ukraine has paid approximately $770M to foreign intermediaries for arms and ammunition that have never been delivered. Notably, the specialized ...

With help from the Swiss, the Rivne region has launched a factory for freezing berries.

With help from the Swiss, the Rivne region has launched a factory for freezing berries. Located in the village of Ozhenyn, the new facility was set up in a previously abandoned fruit cannery. The enterprise will create 20 jobs and can process 140 tons of high-standard products each year....

Ukraine needs over $17B for reconstruction this year alone.

Ukraine needs over $17B for reconstruction this year alone. According to updated estimates, the total requirement for financing Ukraine’s recovery is $524B, with $17.3B needed for 2025 alone. Among the priorities are housing, critical infrastructure, energy, a...

A Ukrainian rare earth element deposit with confirmed reserves needs around $300M for development.

A Ukrainian rare earth element deposit with confirmed reserves needs around $300M for development. Researchers from the Institute of Economics and Forecasting at the National Academy of Sciences of Ukraine indicate that while the country possesses certain reserves of rare earth elements (REE), most...

Ukraine’s largest hemp processing facility has begun operations in the Zhytomyr region.

Ukraine’s largest hemp processing facility has begun operations in the Zhytomyr region. Ukraine’s largest enterprise for the primary processing of industrial hemp has launched in the Ma’Rijany industrial park in the Zhytomyr region. The Ma’Rijany Hemp Company has built ...

Friday, May 16

The EBRD will facilitate €60M in loans to Ukrainian businesses to enhance energy production, storage, and efficiency.

The EBRD will facilitate €60M in loans to Ukrainian businesses to enhance energy production, storage, and efficiency. Through a risk-sharing arrangement, EBRD will back the issuance of new loans by ProCredit Bank to small and medium-sized enterprises in Ukraine. With EBRD’s assistance, the bank anticipates providing ...

The largest logistics deal concluded during the war to date: A global container giant entered Ukrainian market.

The largest logistics deal concluded during the war to date: A global container giant entered Ukrainian market. Swiss company Medlog SA, the logistics division of one of the world’s largest container operators – Mediterranean Shipping Company (MSC), officially entered the Ukrainian market. In May, the com...

Hungary and Slovakia have alternatives to Russian oil and gas, but they are increasing their dependency.

Hungary and Slovakia have alternatives to Russian oil and gas, but they are increasing their dependency. Since Russia began its full-scale invasion of Ukraine, Hungary and Slovakia have sent €5.4B to Moscow for crude oil alone, a sum sufficient to fund 1,800 Iskander-M missiles. Despite sanctions exempti...

The IFC may allocate €5M to the Flyer One Ventures investment fund for projects in Ukraine.

The IFC may allocate €5M to the Flyer One Ventures investment fund for projects in Ukraine. The International Finance Corporation (IFC) from the World Bank Group may contribute €5M to the Flyer One Ventures (F1V) Fund to invest in technology companies in Ukraine, as well as in Central and Ea...

In Ukraine, only 3,500 out of the 20,000 identified mineral deposits are currently being developed.

In Ukraine, only 3,500 out of the 20,000 identified mineral deposits are currently being developed. The signing of the Agreement on the Establishment of the American-Ukrainian Reconstruction Investment Fund has sparked optimism that tangible investment will finally reach Ukraine’s geological e...

Ukraine maintains a leading position in agricultural exports to the EU.

Ukraine maintains a leading position in agricultural exports to the EU. In 2024, Ukraine entered the top three of the largest exporters of agricultural products to the EU, ranking third with an export volume of €13.1B, which accounts for 6.7% of total agricultural imports...

The cost of electricity for industry is rising, causing some enterprises to lose competitiveness and remain idle.

The cost of electricity for industry is rising, causing some enterprises to lose competitiveness and remain idle. Retail prices for electricity for industrial enterprises in Ukraine increased by an average of 20% in the first ten days of May compared to the average price in April, reported former Energy Minister ...

Thursday, May 15

The Ukrainian Parliament supports allowing arms exports, emphasizing the need for increased governmental support for exporters.

The Ukrainian Parliament supports allowing arms exports, emphasizing the need for increased governmental support for exporters. Danylo Hetmantsev, the head of the parliamentary finance committee, argues that resuming military product exports would achieve four objectives: Attract additional financial resources from foreign cli...

Ukraine has finalized all of the steps that are necessary to establish the US-Ukraine Reconstruction Investment Fund.

Ukraine has finalized all of the steps that are necessary to establish the US-Ukraine Reconstruction Investment Fund. Recently, the Ukrainian Agency for Public-Private Partnerships (PPP) and the US International Development Finance Corporation (DFC) signed two more agreements related to the fund’s launch. These...

The largest Ukrainian mineral water producer has launched its first solar power plant. How much will it save?

The largest Ukrainian mineral water producer has launched its first solar power plant. How much will it save? IDS Ukraine Group has initiated its own solar power generation. A 1.4 MW solar power plant is now operational at the Myrhorod Mineral Water Plant, generating up to 600 kWh even in cloudy weather. This...

Ukrainian businesses remain positive about their long-term perspectives.

Ukrainian businesses remain positive about their long-term perspectives. Despite geopolitical instability, long-term economic forecasts for Ukrainian businesses have improved. The optimism index rose from 0.11 to 0.15 points, based on a monthly survey of business leaders b...

EU ambassadors have approved a new sanctions package targeting Russia.

EU ambassadors have approved a new sanctions package targeting Russia. In response to Russia’s refusal to agree to a ceasefire, Europeans are set to impose a tough 17th package of EU sanctions. However, it may be weaker than expected. The package has already receiv...

The EU intends to increase tariffs on Ukrainian imports and has suggested an interim solution until a trade agreement is updated.

The EU intends to increase tariffs on Ukrainian imports and has suggested an interim solution until a trade agreement is updated. The EU aims to impose higher tariffs on Ukrainian products entering its market after June 5, when the current duty-free trade arrangement will end. The Ukrainian government estimates that reverting to...

Kyiv’s elite real estate market is beginning to recover after a prolonged downturn.

Kyiv’s elite real estate market is beginning to recover after a prolonged downturn. Since 2022, elite properties in Ukraine have undergone significant changes. The severe downturn at the onset of the war resulted in stagnation for several years. However, last year marked the first si...

The cost of building shopping malls in Ukraine has increased by 20% during the war.

The cost of building shopping malls in Ukraine has increased by 20% during the war. The construction of shopping malls is actively progressing in Ukraine. After 2022, 56 shopping malls have been launched or restored with almost one million square meters of retail space. By 2025, it i...

Wednesday, May 14

The Minerals Deal: A Critical Step in Ukraine’s Path Towards Independence

The Minerals Deal: A Critical Step in Ukraine’s Path Towards Independence In his infamous 2021 essay, “On the Historical Unity of Russians and Ukrainians”, published just 7 months before the full-scale invasion, President Putin insisted that the “true sovereignty of Ukraine...

Trump has thwarted the EU’s plan for sanctions against Russia, so now Ukraine’s allies are waiting for the results of the Istanbul meeting.

Trump has thwarted the EU’s plan for sanctions against Russia, so now Ukraine’s allies are waiting for the results of the Istanbul meeting. European leaders’ attempts to compel the US to impose new sanctions on Russia were thwarted by US President Donald Trump’s intervention, as he publicly called on Ukraine to “immediately” s...

Mining of minerals in Ukraine under the deal with the US won’t commence until after 2040.

Mining of minerals in Ukraine under the deal with the US won’t commence until after 2040. According to industry sources, the subsoil agreement forged by US President Donald Trump with Ukraine is unlikely to generate substantial returns for at least a decade, and it will necessitate conside...

Dragon Capital has updated its macroeconomic forecast to reflect a potential peace agreement.

Dragon Capital has updated its macroeconomic forecast to reflect a potential peace agreement. Ukraine’s real GDP growth in 2025 could accelerate to 3.5-5.5% if Ukraine and Russia reach an agreement on a long-term ceasefire. If the war continues, Ukraine’s economic growth will slow ...

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