Investments

Tuesday, June 1

UDP developers are moving ahead with three ‘IT cities’ – in Lviv, Kharkiv and Kyiv, said the company vice president, Vitaliy Melnyk. In September, the company will open its 18,000 square meter ‘business campus’ at LvivTech.City. With a total planned buildout of 110,000 square meters,...

UNIT.City Kharkiv is to be twice as big, with 250,000 square meters of space, Melnyk told the press office of UFuture, the parent company. On this 9-hectare site, 3,000 square meters of school and office premises have opened.

At Kyiv’s UNIT.City, 100,000 square meters of office and residential space are under construction or completed . In coming weeks, Japanese-Dutch architect Hiroki Matsuura plans to open his Main Plaza, a 5,500 square meter central square for UNIT.City.

Ukraine made it first payment – $41 million – for GDP warrants issued as part of the public debt restructuring in 2015. The trigger for yesterday’s repayment was Ukraine’s GDP growth of 3.2% in 2019. Last summer, seeing the 3% barrier falling, the Finance Ministry bought back $330 million of the warrants, about 11% of ...

Winner Group, the US-owner car importer, has been awarded a €20 million loan from the EBRD to move into electric vehicles and to build Renault and Volvo dealerships. The low interest loan comes on the heels of Winner adding MG last month to ...

Monday, May 31

DTEK’s Tiligulska wind power project, with a capacity of 126 MW, is under construction this summer and should produce power next year , DTEK reports. Located in southwest Mykolaiv, the project is largely financed with money from a green Eurobond that DTEK issued in the fall of 2019. If the government catches up with overdue payments...

Friday, May 28

Apartment prices in Kyiv could nearly double – to $2,000 per square meter — by the end of 2023, predicts Serhiy Pylypenko, general director of Kovalska construction and construction materials company. Driving prices up 15-20% this year will be the rising cost of building materials, he told the C...

Budhouse Group, one of Ukraine’s largest developers, plans to invest €314 million in three projects over the next three years, Anatoliy Shkribliak, company founder and shareholder, tells Interfax-Ukraine. In Odesa, the group is spending €12 million to complete work on Yessa shopping and entertainment center, aiming for openin...

To promote private investment in Ukraine’s sea ports, the Ukrainian Sea Ports Authority plans to focus on dredging and allow companies build and maintain berths through concessions. With each berth costing $20-50 million to build, the state-owned authority does not have the capital to meet demand, Andriy Gaydutsky, chair of the Authority’s supervisory board, told the Ukrainian Po...

Thursday, May 27

Dragon Capital is expanding its media holdings acquiring Ukrainska Pravda, the 21-year-old news site. Dragon already owns NV, a leading business news site. “Same as with our existing media project, NV, we will maintain the practice of non-interference by th...

Dragon increased its Kyiv warehouse holdings by 50% last week by buying a 100,208 square meter office and logistics complex in Bilogorogoda, six km from the Kyiv ring road, between the Odesa and Zhytomyr highways. With the purchase of Amtel Logistics Complex, Dr...

The European Investment Bank is providing an additional €7 million grant to top up last year’s €340 million program to rebuild infrastructure in eastern Ukraine. Designed to benefit almost 14 million people, the program focuses on hospitals, schools, sewage systems and transport. The new funding was announced yesterday by the Ministry of Community and Territor...

Two regional entrepreneurs – Andriy Stavnitser, co-owner of the TiS port in Yuzhny, and Yuriy Fylyuk, who is recycling a massive Soviet-era gas meter factory in Ivano-Frankivsk – are profiled by Melinda Haring in a National Interest story headlined: “Ukraine’s Future in Being Made Outside Kyiv.” Her conclusion: “The big picture in Ukraine, viewed solely from Kyiv, often look...

Wednesday, May 26

The Finance Ministry raised $217 million in hryvnia at yesterday’s bond auction, less than half the amount raised last week. In the auction for five bonds, yields were virtually unchanged, the Ministry reported on Facebook. The biggest sellers were 1-year bonds, at 11.2%, and 3-year bonds, at 12.3%.

Monday, May 24

By turning Kyiv’s central rail station over to private operators through a concession agreement, the station could attract $100 million in investment, Vladyslav Krikliy said in an interview given to the Kyiv Post before he stepped down last week as Infrastructure Minister. Looking at station candidates for concessions — Kyiv, Kharkiv, Dnipro, ...

The government hopes to increase foreign investment from $420 million last year, to $3 billion this year, to $15 billion by 2025, according to the National Economic Strategy 2030 posted last week on the government’s website. Other goals for 2030 are: double the economy; triple exports to $150 billion; nearly triple labor product...

Thursday, May 20

China’s Ambassador to Ukraine Fan Xianrong said that Chinese companies should invest in farming and processing food in Ukraine, Xinhua reports from an online forum held Tuesday: “Ukraine-China: The Future of Trade, Pulses, Grains, Oilseeds.” Fan notes that Ukraine’s food exports to China jumped 84% yoy, accounting for 45% of U...

Wednesday, May 19

Betting on strong Chinese demand for iron, Ferrexpo plans to spend $2 billion in capital investments to double its production of iron pellets by 2030 , reports Interfax-Ukraine. This year, the LSE-listed company is increasing production by 14%, to 12 million tons. A combination of strong Chinese demand and the Biden Administration’s planned infrast...

Interpipe, the steel pipe and Wheel Company, successfully returned to international capital markets last week, completing the placement of $300 million worth of Eurobonds, maturing in 2026. The coupon rate is 8.375% per annum. Fadi Hraibi, director general of the company, said that the bonds, now listed on the...

The privatization drive is “irreversible, ” Kyrylo Tymoshenko, Deputy Presidential Chief of Staff, wrote on Facebook after President Zelenskiy chaired an inter-agency Zoom call Monday on the campaign. Over the next six weeks, there are to be ...

Auctions of state or communal farm land will now take place openly through electronic auctions conducted on the Internet, under a bill adopted yesterday by the Rada. “Anyone with a computer and Internet access will be able to take part in the auction,” (Interfax-Ukraine). “According to the ministry, the winners of the bi...

The Finance Ministry raised $513 million – in dollars, euros and hryvnia – in its weekly government bond auction yesterday. The Ministry reported on Facebook that hryvnia bonds, annual yields were virtually unchanged: 3-month at 8.5%; 1-year at 11.2%; 18-month at 11.3%; and 2-year at 12.05%. Investors bought $63 million wo...

Tuesday, May 18

Kyiv’s Sikorsky airport is embarking on a 3-year, $100 million investment program to allow long haul jets to land by the end of 2023. The asphalt concrete runway is to be rebuilt with concrete and extended by 20%, to 2,770 meters. Often restricted by fog, the airport will receive a Category II ILS instrumental landing system. This w...

Monday, May 17

Mexico’s Grupo Bimbo plans to invest $30 million to build a bakery in the Kyiv region, probably in Fastiv, said Ihor Mariash, General Manager of Bimbo QSR Ukraine, at an investment conference last Friday. In 2017, the company bought the East Bolt Ukraine bakery in Dnipro which produces ...

In its first year of operation in Ukraine, IKEA’s online store has received 2.5 million visitors and 148,000 online orders, said Florian Melle, the head of IKEA in Ukraine (Interfax Ukraine). After the first physical store opened in Kyiv’s Blockbuster Mall on February 1st, the store received almost 400,000 visitors in one ...

Bitcoin mining consumes as much electricity as Ukraine. Bitcoin consumes almost 150 TeraWatt hours, according to the Bitcoin Electricity Consumption Index run Cambridge University’s Centre for Alternative Finance. By contrast, Ukraine generated 150 TeraWat...

Ukrposhta has posted on ProZorro a tender for a partner in construction of a $50 million modern sorting center in Kyiv. This will be the first such construction by the state postal operator in 42 years, Ukrposhta director Igor Smelyansky wrote on Facebook. Ukrposhta is undertaking a decade long logistic renovation prog...

Friday, May 14

France’s Finance and Economy Minister Bruno Le Maire was in Kyiv yesterday, and presided over the signing of for agreements totaling €1.3 billion for the purchase of French goods and services. For comparison, France-Ukraine trade during 2020 was valued at €1.6 billion.

In a €880 million deal, Alstom is to supply 130 electric locomotives to Ukrzaliznytsia . France is financing 85% of the sale, through a €350 French Treasury loan and €400 million in loan guarantees from BPI Assurance Export. French authorities raised the level of localization – value ad...

Two €70 million transactions will assist in the rebuilding drinking water supply facilities to one quarter of Kyiv’s population and to 20 frontline districts centered on Popasna, Luhansk. French companies are to supply 70% of goods and services.

“These projects will help improve the living conditions of Ukrainians,” Le Maire told Interfax-Ukraine. “We are talking about drinking water, mobility, security and civil protection.” The Economy Minister noted that 160 French companies in Ukraine employ 30,000 people. Bertrand Barrier, President of the...

Thursday, May 13

Rights to mine Lithium, titanium and gold deposits coming up for auction in Ukraine this year have prompted reports in International Mining, Hellenic Shipping News and S&P Global Platts . Investor interest is heightened by a forward-looking report published last week by the International Energy Association: “The Role of Critical Minerals in Clean Energy Transitions.”

Noting “Ukraine has some of Europe’s biggest lithium reserves, but doesn’t currently produce the light metal,” S&P stresses Ukraine’s proximity to the EU and the free trade pact. Referring to a presentation by Roman Opimakh, head of Ukraine’s State Geological Service, S&P reports: “Three projects are now set to being auctioned: Kruta Balka with lithium oxide content ...

Planning a series of license auctions for this year, Ukraine has prepared an Investment Atlas with approximately 30 critical mineral assets , including titanium, lithium, nickel, cobalt, chrome, tantalum, niobium, beryllium, zirconium, scandium, molybdenum, gold and graphite, Opimakh said to S&P. Five gold blocks are to auctioned. “Uk...

Separately, in July, Ukraine’s State Property Fund plans to auction state-owned United Mining and Chemical Company, Europe’s largest miner of ilmenite, the main source for titanium oxide. Ukraine produces 6% of global titanium ore and its proven reserves are among the world’s 10 largest. The first of this year’s ‘Big Privatizations,” the company is Europe’s only miner of rutile a...

Wednesday, May 12

The World Bank has approved a $200 million loan to modernize Ukraine’s universities and to upgrade their “relevance to labor market needs, ” the Bank reported after Board Meeting on May 5. The money will fund a 5-year program to develop “modern digital infrastructure” and to improve transparency in university administration. Arup Banerji...

Tuesday, May 11

Cargill Metals has agreed to invest US$75 million in a Canadian major iron mining project in Kriviy Rih. In the deal Cargill, a major international iron ore trader, has agreed to take 4 million tons of iron ore from the Shymanivske mine, reports Black Iron Inc. “We are very pleased to help finance Black ...

Today through Wednesday, 65 speakers will talk about Ukraine’s business climate, problems and opportunities at the U.S.-Ukraine Foundation’s annual Business Expo. Hosted in Washington, the virtual conference brings together American and Ukrainian participants and observers of Ukraine’s contemporary business...

To open up northern Moldova to Ukrainian trade and tourism , a tender is underway for construction of what would be the second bridge on the 267 km Dniester River border between the two countries. Expected to cost $120 million, the bridge and seven kilometers...

Thursday, May 6

Estonian shareholders of Arricano Real Estate Plc registered in Cyprus, the management company and developer of a number of shopping and entertainment in Ukraine, have demanded $750 million in compensation for what they say is the illegal seizure of Sky Mall in Kyiv. “According to the press service of Arricano, after filing the notification, the parties have six months to settle the dispute before arbitration. If the parties fail to agree within the specified peri...

Wednesday, May 5

Aerospace firm Firefly, owned by Ukrainian businessman Max Polyakov, raised $200 million in investments as the result of the first round of venture funding. The company’s value has exceeded $1 billion, according to a press release from Firefly.

Major Firefly shareholders includes Dada Holdings, Astera, Canon Ball, Reuben Brothers SMS Capital Investments . Astera spokesman Jed McCaleb will now join Firefly’s Board of Directors.

The company says that by the end of 2021 it hopes to raise another $300 million. They want to start a new round of attracting investments after the launch of the Alpha rocket, which is planned for July 2021.

Tuesday, May 4

The National Bank has simplified regulations for Ukrainian companies seeking to issue debt securities on the international market, the NBU said. The following amendments were introduced: “transactions to distribute income on and redeem Eurobonds as well as other issuer transactions for the purpose of placing such securities were ...

Metinvest’s desired acquisition of the Dnipro Metallurigcal Plant is drawing attention from Ukraine’s antimonopoly regulator. “The Committee is considering the case of concentration in the form of indirect acquisition by Metinvest BV Netherlands of assets in the form of an integral property complex, which together prov...

Monday, May 3

Ukraine has successfully completed a $1.25 billion Eurobond placement at 6.875% maturing in 2029 , the Ministry of Finance announced on Friday. Joint Book runners included BNP Paribas, Deutsche Bank, Goldman Sachs International and JP Morgan. “The funds were transferred to the account of the Stat...

Reflecting high demand for Ukraine assets among global investors, the offering attracted over $3.3 billion from 223 investors . The investor base included asset management firms which accounted for 84% of the issue, followed by hedge funds at 9%, insurance and pension funds at 5% and banks at 2%.

Investors from the United Kingdom, the United States and the EU comprised the bulk of demand for the offering – 42%, 34% and 21%, respectively. Investors from Asia and MENA accounted for 3%.

Friday, April 30

President Zelenskiy yesterday signed a law allowing resumption of sales of large state companies, a privatization process that was suspended one year ago due to the coronavirus pandemic. All sales are to go through electronic auctions. Zelenskiy said: ““Despite the coronavirus crisis, our goal of ...

Australia’s Volt Resources Limited is paying $7.6 million to buy control of Ukraine’s Zavalivsky Graphite LLC, one of the 10 largest producers of natural graphite in the world. Volt says it is buying 70% of the company to become a producer of graphite for li-ion batteries. With a production capacity of 30,000 tons a year, Zavalivsky Graphite has been mining the deposit in Ki...