business

Monday, July 27

Privatbank says its former owners laundered $760 million in the US Privatbank says its former owners laundered $760 million in the US, according to an amended lawsuit filed last week in a Delaware court, reports RFE/RL. In the original lawsuit filed last year, the ne...

Skepticism about the Zelenskiy government’s ability to reform Ukraine Skepticism about the Zelenskiy government’s ability to reform Ukraine was the common theme of two articles in the Western press last weekend. “A hard road ahead for Zelenskiy in Ukraine: Sympathy for ...

Thursday, July 23

Justifying the 6% rate, Justifying the 6% rate, the central bank predicts inflation is growing again and will hit 4.7% at the end of this year. It says inflation will be driven by higher energy prices and “soft monetary and ...

Prices increase as the economy contracts Prices increase as the economy contracts. Yesterday, the central bank slightly worsened its forecast for the GDP fall in 2020 – to 6%. It also slightly trimmed its 2021 growth forecast, to 4%.

Due to the opening this year of Turkish Stream, a Russian gas line bypassing Ukraine, the volume of Russian gas transiting Ukraine fell by 45% during the first half of this year, Due to the opening this year of Turkish Stream, a Russian gas line bypassing Ukraine, the volume of Russian gas transiting Ukraine fell by 45% during the first half of this year, compared to January-J...

The buyer of Kyiv’s Dnipro Hotel plans to invest $20 million to make it “the world’s first Esports Ready Hotel,” The buyer of Kyiv’s Dnipro Hotel plans to invest $20 million to make it “the world’s first Esports Ready Hotel,” he tells ain.ua news site. Alexander Kokhanovsky in partnership with Smartland, won the...

UIA is starting regular flights from Kyiv Boryspil to three countries on the Adriatic – Albania, Croatia, and Montenegro. UIA is starting regular flights from Kyiv Boryspil to three countries on the Adriatic – Albania, Croatia, and Montenegro. All three countries have relaxed corona controls for Ukrainian tourists. Each ...

Ukraine placed $2 billion of Eurobonds at 7.25% yesterday – more money at a lower rate than at the frustrated bond placement of three weeks ago. Ukraine placed $2 billion of Eurobonds at 7.25% yesterday – more money at a lower rate than at the frustrated bond placement of three weeks ago. On July 1, investors committed to buy $1.75 billion at ...

Investors desperate for yield drove the success of the placement. Investors desperate for yield drove the success of the placement. In addition, Kyrylo Shevchenko, the new governor of the National Bank of Ukraine, worked hard over the last week to persuade investors...

EU and Ukrainian officials signed documents in Brussels yesterday for a €1.2 billion loan to Ukraine EU and Ukrainian officials signed documents in Brussels yesterday for a €1.2 billion loan to Ukraine – almost half of total emergency aid that the European Commission is extending to 10 countries in t...

Although billed as coronavirus relief, the aid is tied to quantifiable progress on free market reforms: Although billed as coronavirus relief, the aid is tied to quantifiable progress on free market reforms: improving courts, increasing transparency of medical procurement, and improving corporate govern...

Police are treating as arson a fire that yesterday burned down the house of Vitaliy Shabunin, head of the Anti-Corruption Action Center Police are treating as arson a fire that yesterday burned down the house of Vitaliy Shabunin, head of the Anti-Corruption Action Center, an influential NGO. No one was injured, as the only people at h...

The central bank has sold $350 million since Tuesday, easing pressure on the hryvnia, The central bank has sold $350 million since Tuesday, easing pressure on the hryvnia, Dmitry Sologub a deputy governor of the National Bank of Ukraine, told reporters yesterday. “For me, there is no o...

Ukraine’s international reserves should hit $30 billion at the end of this year Ukraine’s international reserves should hit $30 billion at the end of this year and $32-33 billion in coming years, central bank governor Shevchenko said yesterday. On July 1, reserves were $28....

After cutting Ukraine’s prime interest rate for eight straight meetings, the central bank put on the brakes yesterday, keeping the key rate at 6%. After cutting Ukraine’s prime interest rate for eight straight meetings, the central bank put on the brakes yesterday, keeping the key rate at 6%. The majorities of economists surveyed by Bloomberg an...

Indicating that Ukraine is emerging from a horseshoe-shaped recession Indicating that Ukraine is emerging from a horseshoe-shaped recession, June industrial production was 4.1% higher than in May, reports the Statistics Service. In year-over-year terms, the monthly decl...

Retail sales are up 3% yoy in real terms for the first half of this year, reports the State Statistics Service Retail sales are up 3% yoy in real terms for the first half of this year, reports the State Statistics Service. In June, sales were up 8.8% in real terms over May. For the first half of this year, the...

Concorde Capital’s Evgeniya Akhtyrko writes: Concorde Capital’s Evgeniya Akhtyrko writes: “It was encouraging to see that retail recovered right after the restriction on retail trade was removed. The positive trends in trade might serve as the s...

COVID-19 quarantine restrictions are extended until the end of August, the Cabinet of Ministers decided yesterday. COVID-19 quarantine restrictions are extended until the end of August, the Cabinet of Ministers decided yesterday. Despite four months of restrictions of varying intensity, the number of newly identif...

With a new central bank governor in place, Ukraine returns today to the Eurobond market. With a new central bank governor in place, Ukraine returns today to the Eurobond market. Goldman Sachs International and J.P. Morgan led a global investment call yesterday for a 12-year bond. Three we...

Starting Aug. 1, Ukraine will be divided according to corona infection rates into four zones: green, yellow, orange and red. Starting Aug. 1, Ukraine will be divided according to corona infection rates into four zones: green, yellow, orange and red. In the coveted green zone, people will be able to: go to cinemas or theater...

Today, the two banks will help Ukraine launch an accelerated switch tender offer on Ukraine’s 2021 and 2022 notes for up to US$750 million. Today, the two banks will help Ukraine launch an accelerated switch tender offer on Ukraine’s 2021 and 2022 notes for up to US$750 million. In this offer, Goldman and J.P. Morgan act as Dealer Manager...

Bulgaria’s low cost carrier Voyage Air is starting flights between Ukraine and Varna, Bulgaria’s Black Sea resort Bulgaria’s low cost carrier Voyage Air is starting flights between Ukraine and Varna, Bulgaria’s Black Sea resort. On Friday, flights start from Kyiv Boryspil and on Monday from Lviv. SkyUp is droppin...

This morning, Ukraine’s central bank is expected to cut its key interest rate from 6%, according to a Reuters poll of 17 Ukrainian analysts. This morning, Ukraine’s central bank is expected to cut its key interest rate from 6%, according to a Reuters poll of 17 Ukrainian analysts. Of the analysts, seven expect a rate cut to 5.5%; four see ...

By this weekend, Ukrainians can fly domestically from Kyiv Boryspil, Kherson, Lviv and Odesa by showing their digital passports in their Diya app. By this weekend, Ukrainians can fly domestically from Kyiv Boryspil, Kherson, Lviv and Odesa by showing their digital passports in their Diya app. “Show the smartphone screen at the air security contr...

In the last 48 hours, Shevchenko has held a marathon of meetings in Kyiv — with the national press, foreign investors, G7 ambassadors In the last 48 hours, Shevchenko has held a marathon of meetings in Kyiv — with the national press, foreign investors, G7 ambassadors, the EBRD, the World Bank and the IMF. In each meeting, Shev...

Starting Aug. 1, citizens of Australia, New Zealand, Saudi Arabia, Bahrain, Kuwait and Oman can enter Ukraine without visas and stay for 90 days Starting Aug. 1, citizens of Australia, New Zealand, Saudi Arabia, Bahrain, Kuwait and Oman can enter Ukraine without visas and stay for 90 days. Australia and Saudi Arabia have embassies in Kyiv.

Yuriy Geletiy, a former deputy finance minister, succeeds Oleh Churiy today as Deputy Governor of the National Bank of Ukraine. Yuriy Geletiy, a former deputy finance minister, succeeds Oleh Churiy today as Deputy Governor of the National Bank of Ukraine. A lifelong civil servant, Geletiy worked at the central bank from 2003 t...

Churiy steps down at the end of his five-year term. Churiy steps down at the end of his five-year term. The bank credits him with: moving Ukraine to a floating foreign exchange rate; liberalizing foreign exchange by abolishing 40 restrictions; establis...

Today’s central bank exchange rate is 27.78 hryvnia / dollar. Today’s central bank exchange rate is 27.78 hryvnia / dollar. Over the last 10 days, the hryvnia has lost 3% of its value against the dollar. Two weeks ago, President Zelenskiy said he believes the ex...

Zelenskiy yesterday authorized central bank head Shevchenko and Finance Minister Serhiy Marchenko to sign a loan agreement with the European Union to borrow €1.2 billion Zelenskiy yesterday authorized central bank head Shevchenko and Finance Minister Serhiy Marchenko to sign a loan agreement with the European Union to borrow €1.2 billion. In May, the EU approved this ...

Honeywell and DTEK are joining forces to develop Ukraine’s first grid-scale energy storage system Honeywell and DTEK are joining forces to develop Ukraine’s first grid-scale energy storage system. In a pilot program, the US company will supply its 1 MW lithium-ion energy storage batteries for DTEK...

DTEK, Ukraine’s largest investor in renewable energy, faces a growing challenge of balancing energy supply and demand. DTEK, Ukraine’s largest investor in renewable energy, faces a growing challenge of balancing energy supply and demand. Emanuele Volpe, DTEK’s chief innovation officer, said yesterday: “The future of e...

The Cabinet of Ministers decided yesterday to create a Ministry for Strategic Industries. The Cabinet of Ministers decided yesterday to create a Ministry for Strategic Industries. The Minister will be Oleg Urusky. Last week, he was appointed deputy prime minister for Strategic Industries. ...

Ukraine’s industrial production dropped by 8.3% in the first half of this year Ukraine’s industrial production dropped by 8.3% in the first half of this year, compared to January-June 2019. The State Statistics Service reports that the biggest drops were: coal – 23%; ceramic bri...

Wednesday, July 22

Ferrexpo’s main unit, Poltava mining and processing plant, has inaugurated a 4-year, $100 million upgrade of its iron ore concentrating plants. Ferrexpo’s main unit, Poltava mining and processing plant, has inaugurated a 4-year, $100 million upgrade of its iron ore concentrating plants. Largely based on equipment from Finland’s Metso Outotec,...

With the goal of attracting 5,000 foreign IT specialists to Ukraine by the end of this year With the goal of attracting 5,000 foreign IT specialists to Ukraine by the end of this year, the State Migration Service starts this week a program of simplifying paperwork — at Ukrainian consul...

Ending a one-year impasse between the green energy industry and the Zelenskiy government, the Rada approved yesterday the ‘voluntary’ tariff cuts agreed last month with the sector: Ending a one-year impasse between the green energy industry and the Zelenskiy government, the Rada approved yesterday the ‘voluntary’ tariff cuts agreed last month with the sector: a 7.5% drop for win...

Switzerland-based IWG, owner of Regus and Spaces, will open its 10th workspace in Kyiv. Switzerland-based IWG, owner of Regus and Spaces, will open its 10th workspace in Kyiv. A Regus, the 1,700 square meter space will be in the new Avenue 53 business center, at 53 Peremohy Avenue. The w...

The new law includes a repayment schedule for what is growing toward $1 billion in unpaid electricity bills. The new law includes a repayment schedule for what is growing toward $1 billion in unpaid electricity bills. Under the new law, all these unpaid debts are to be paid in full by the end of next year. T...

In the three weeks since flights resumed between Ukraine and Antalya, about 20,000 Ukrainian tourists have visited the southern Turkey resort on the Mediterranean In the three weeks since flights resumed between Ukraine and Antalya, about 20,000 Ukrainian tourists have visited the southern Turkey resort on the Mediterranean, reports Ukrinform, citing Vyacheslav...

These unpaid bills, plus slow-moving talks between industry and government, led to a freeze this year of billions of dollars of green energy constructions projects. These unpaid bills, plus slow-moving talks between industry and government, led to a freeze this year of billions of dollars of green energy constructions projects. In 2018 and 2019, renewable energy ...

“On the upside, after more than three quarters of non-payments, “On the upside, after more than three quarters of non-payments, the industry can now expect the government’s Guaranteed Buyer to begin repaying some its debt before the end of the year, which will hel...

The down side, Kozakevych wrote, is that the Rada rejected a two-year prolongation of power purchases agreements The down side, Kozakevych wrote, is that the Rada rejected a two-year prolongation of power purchases agreements. Green energy producers literally took these documents to banks to win financing. He wr...

The The installed capacity of renewable energy facilities today is 7 GW. This figure excludes large hydroelectric power plants, renewable energy facilities in the Russia-controlled parts of Ukraine —...

The Finance Ministry sold $422 million worth of bonds at auction yesterday. The Finance Ministry sold $422 million worth of bonds at auction yesterday. Yields were little changed. Six-month dollar bonds accounted for 40% of the total. The average yield was 3.39%, unchanged si...

Foreign holdings of Ukraine government hryvnia bonds have dropped by 35% since mid-February, Foreign holdings of Ukraine government hryvnia bonds have dropped by 35% since mid-February, when they peaked at $5.2 billion, reports ICU, citing central bank figures. Since then, this figure has dro...

The new governor of Ukraine’s central bank promised foreign investors yesterday to maintain the bank policy of blocking any return of PrivatBank to its former owners, led by Igor Kolomoisky The new governor of Ukraine’s central bank promised foreign investors yesterday to maintain the bank policy of blocking any return of PrivatBank to its former owners, led by Igor Kolomoisky. “On Priva...

Tomorrow, Ukraine’s central bank board is expected to trim Ukraine’s prime rate from its current level of 6%, Tomorrow, Ukraine’s central bank board is expected to trim Ukraine’s prime rate from its current level of 6%, a record low for independent Ukraine.

Concorde Capital’s Evgeniya Akhtyrko warns this could be pushing on a string: Concorde Capital’s Evgeniya Akhtyrko warns this could be pushing on a string: “The extremely weak current conditions of Ukraine’s economy make the environment highly risky for lending. And we don’t be...