In a symbolic step toward privatizing Ukraine’s state-dominated banking sector,

In a symbolic step toward privatizing Ukraine’s state-dominated banking sector, the World Bank’s International Finance Corporation is extending a €30 million euro loan to state-owned Ukrgasbank, which can be converted into the bank’s equity shares. Ukrgasbank is one of four state-controlled banks, a group that has 60% market share in Ukraine. Last September, Ukraine’s government approved a goal of cutting this market share to 25% in 2025. Andrii Kravets, Chairman of Ukrgasbank’s Board said: “This step comes as a key

Concorde Capital’s

Concorde Capital’s Alexander Paraschiy writes: “Taking into account that Ukrgazbank was best-prepared for an international financial institution entering into its equity, and that the negotiation process with IFC took more than three years and ended up in just a loan, we can conclude that the timing of a privatization, or an IFI entering into another state bank, will be quite long.”

The IMF has raised its world GDP growth forecast to 5.5% for this year

The IMF has raised its world GDP growth forecast to 5.5% for this year, according to its World Economic Outlook Update released yesterday. Growth is predicated on aggressive and successful global vaccination campaigns against coronavirus. Emerging market economies will rebound by 6.3% this year, the IMF predicts. Other IMF GDP growth forecasts are: India – 11.5%; China – 8.1%; Spain – 5.9%; France 5.5%; US – 5.1%; UK – 4.5%; Eurozone – 4.2%; Brazil – 3.6%; Germany – 3.5%, Japan

Ukraine wants to extend its $5.2 billion IMF loan program by another six months, to June 2022,

Ukraine wants to extend its $5.2 billion IMF loan program by another six months, to June 2022, reports LB.ua. Approved last June, the program was designed to release the money in five tranches through the end of this year. However, after an initial release of $2.1 billion, the program stalled due to the IMF’s perception that the Zelenskiy Administration strayed from the free market guidelines.

Concorde Capital’s Alexander Paraschiy wrote

Concorde Capital’s Alexander Paraschiy wrote: “The Fund will demand the full restoration of the recently damaged anti-corruption infrastructure. Therefore, the lb.ua allegations are in line with our assessment that the probability of Ukraine of securing next IMF tranche in 1Q21 is below 50%. A likely delay of the next tranche is not a big risk for Ukraine’s public finances as soon as there is still a high chance for renewed cooperation with the IMF in 1H21.”

The Finance Ministry lowered yields on three of four-hryvnia Government Bonds it offered at auction yesterday

The Finance Ministry lowered yields on three of four-hryvnia Government Bonds it offered at auction yesterday, the Ministry reported on Facebook. By squeezing the supply of 6-month bonds, it lowered the average yield by 87 basis points to 9.86%. For 1.5-year bonds, the yield dropped seven basis points to 11.68%, and for 2-year bonds, the yield dropped 13 basis points, to 11.81%. For 3-year bond, the yield was unchanged at 12.15%. The Ministry auctioned the equivalent of $268 million, about

The Finance Ministry sold last year the equivalent of $13.6 billion worth of bonds

The Finance Ministry sold last year the equivalent of $13.6 billion worth of bonds, reports the Ministry. About one third of the bonds were in foreign currency — $3.8 billion and €800 million. State banks led the list of top purchasers: Privatbank, Ukrgasbank, Oschadbank, OTP Bank, Ukreximbank, Citibank and Raiffeisen Bank Aval. Top dealers in the secondary market were: Citibank, OTP Bank, Ukrgasbank, FUIB, Raiffeisen Bank Aval, Alfa-Bank, Kredobank and Oschadbank. At the end of December, Ukrainian banks held 52%

With Argentina and Russia moving next month to curb corn exports, Ukraine is meeting domestic consumers half way, imposing an export quota of 24 million tons

With Argentina and Russia moving next month to curb corn exports, Ukraine is meeting domestic consumers half way, imposing an export quota of 24 million tons, 8% higher than what pig and poultry producers wanted. High world corn prices are pushing producing countries to make they keep enough at home for domestic needs. Halfway through the marketing year, Ukraine has exported about half of its new quota for corn, its largest export crop, reports the Economic Development, Trade and Agriculture

Ukraine’s food exports to the EU slipped by 11% last year, to €6.5 billion

Ukraine’s food exports to the EU slipped by 11% last year, to €6.5 billion, the Ukrainian Agribusiness Club reports on Facebook. Ukraine was tied with China as the third largest source of imported food for the EU. In terms of market share, the ranking was: Brazil – 9%; US – 8%; and China and Ukraine – 5%. Last year, Ukraine fully used its quotas for duty-free export to the EU for 11 product foods: honey, sugar, cereals and flour, starch,

Poland, Slovakia and Hungary recruit heavily for Ukrzaliznytsia’s railway workers,

Poland, Slovakia and Hungary recruit heavily for Ukrzaliznytsia’s railway workers, leading to a growing labor shortage here, reports the Center for Transportation Strategies. “There are a huge number of job advertisements for railway workers in European countries, most of all in neighboring Poland, reports the story headlined: “How Ukrainian Railway Workers Leave the Country.” “The average age of people who quit and went to work abroad is 25-45 years,” a UZ union representative tells reporter Alina Kostyuchenko. Every year, about 5%

“Dmitri lokfuhrer,” or Dmitri, the locomotive engineer, is the poster boy for

“Dmitri lokfuhrer,” or Dmitri, the locomotive engineer, is the poster boy for Deutsche Bahn’s new Ukrainian language recruiting advertisement for Ukrainian train drivers. Featuring a video of Dmitri driving a late model DB passenger train, the announcement offers: assistance with relocation to Germany, up to 1 year training in Berlin or Leipzig, a compensation package, and an open-ended full-time employment contract with Deutsche Bahn. Requirements are higher education and B1, or intermediate, spoken German. Train engineer salaries in Germany are

Ukraine may place $1-1.5 billion worth Eurobonds this fall to cover the budget deficit and to buy back more GDP warrants

Ukraine may place $1-1.5 billion worth Eurobonds this fall to cover the budget deficit and to buy back more GDP warrants, predicts Bank of America Securities. This would follow July’s successful placement of $2 billion worth of 13-year Eurobonds. That deal, at 7.25%, was three times oversubscribed. Potentially chilling foreign interest, the IMF’s planned September review of the $5 billion Standby Agreement with Ukraine may be delayed, BofA warns.

Facing weak investor demand, the Finance Ministry sold on Tuesday only one third the volume of hryvnia bonds as at last week’s auction, and at slightly higher yields

Facing weak investor demand, the Finance Ministry sold on Tuesday only one third the volume of hryvnia bonds as at last week’s auction, and at slightly higher yields. In yesterday’s auction, the government sold the hryvnia equivalent of $35 million, one third for 1-year bonds and two thirds for 3-year bonds, the Ministry reported on Facebook. The weighted average yield for 1-year bonds was 9.28%, virtually unchanged. For 3-year securities, the yield was 10.46% – 46 basis points above the

Fitch, the ratings agency that most closely follows Ukraine, reaffirmed its ‘B’ rating for Ukraine last Friday

Fitch, the ratings agency that most closely follows Ukraine, reaffirmed its ‘B’ rating for Ukraine last Friday, with a stable outlook. Japan’s R&I upgraded Ukraine’s sovereign rating last week by one notch, from B to B+, outlook stable. Since March, Standard & Poor’s has given Ukraine a B stable rating. In June, Moody’s brought Ukraine up one notch to B3 stable.

Concorde Capital’s

Concorde Capital’s Alexander Paraschiy writes: Looking at the balance of possible positive and negative triggers for Ukraine’s rating, we see a low chance for Ukraine to get any better rating in the next year.

Ukraine’s international reserves grew to $29 billion in August, the highest level in eight years

Ukraine’s international reserves grew to $29 billion in August, the highest level in eight years, reports the National Bank of Ukraine. Boosting reserves, foreign travel by Ukrainians was down sharply due to the coronavirus restrictions and the nation enjoyed a trade surplus.

Ukraine is on track with the IMF,

Ukraine is on track with the IMF, Finance Minister Serhiy Marchenko said Monday on Inter TV’s Details of the Week program. He said: “We are in a dialogue with the IMF, and  hope to receive the next tranche. We have two more tranches planned by the end of the year for $700 million each, and  in the near future there will be an online conference, that is, it will not be a visit, it will be an online mission of

Timothy Ash retorts from London: “

Timothy Ash retorts from London: “The danger with this official line that things are fine on the IMF front is that politicians are lulled into a false sense of security, when the reality is that this Fund program is in serious trouble. Someone needs to read the riot act to the Zelenskiy Administration that unless they address the mounting list of issues related to the National Anti-Corruption Bureau, the anti-corruption agenda more generally, independent supervisory boards at state companies, PrivatBank

Domestic air flights were down the least of air travel in August, down only 17% yoy to 2,519

Domestic air flights were down the least of air travel in August, down only 17% yoy to 2,519, reports UkSATSE, Ukraine’s air traffic control agency. By contrast – international flights to and from Ukraine were down 50%, to 8,249, and transit flights through Ukraine’s air space were down 68%, to 5,922. After last spring’s collapse, air flights in Ukraine have steadily recovered:  2,372 flights in April; 3,237 in May; 4,584 in June; 12,195 in July; and 16,690 in August. Flights

By 2023, several key regional airports will be reopened under the ‘Big Construction’ program

By 2023, several key regional airports will be reopened under the ‘Big Construction’ program, President Zelenskiy promised last week on a visit to Poltava airport. “We will add all airports to the program,” he said, referring to second tier airports that have languished since the 1990s. Promising to start rebuilding Poltava’s runway next year, he said: “We will definitely make Poltava Airport part of our ‘Big Construction’ program.”

President Zelenskiy promised yesterday to rebuild the runway of Sumy airport, if the regional government finds an investor to rebuild the terminal.

President Zelenskiy promised yesterday to rebuild the runway of Sumy airport, if the regional government finds an investor to rebuild the terminal. “We are ready to build this strip in Sumy,if you have those who will build the terminal in parallel,” he told Roman Grishchenko, head of the regional administration, on a visit to the airport. Two years ago, the Infrastructure Ministry estimated that it would cost €25 million to rebuild the Soviet-era terminal and the 2,500-meter runway. Without scheduled

Zakarpattia will get an international standard airport with the construction in coming years of a $145 million airport in Mukachevo,

Zakarpattia will get an international standard airport with the construction in coming years of a $145 million airport in Mukachevo, Infrastructure Minister Vladyslav Krikliy promises on Facebook. Last month, the Cabinet of Minister approved spending $1 million to design an airport on the site of an abandoned Soviet-era air base south of the city. Under the plan, a private investor would build the terminal. The Infrastructure Ministry would build a 2,500-meter long runway, capable of handling B737 and A320 passenger

Zhytomyr regional authorities are talking with a private investor to build an air cargo hub at Zhytomyr airport, a 90-minute drive west of the Kyiv’s Ring Road.

Zhytomyr regional authorities are talking with a private investor to build an air cargo hub at Zhytomyr airport, a 90-minute drive west of the Kyiv’s Ring Road. Vitaly Bunechko, head of the regional government, tells Interfax-Ukraine that the airport first needs $13 million in government aid to expand the runway by 50%, to 2,500 meters. Opened in 1939, the airport provides maintenance for Yanair’s all-Boeing fleet of 737s and offers easy access to Sergei Pavlovich Korolyov Museum of Cosmonautics.

Corona virus infections, hospitalizations and deaths are running at double the levels of one month ago

Corona virus infections, hospitalizations and deaths are running at double the levels of one month ago, Ukraine Health Ministry figures show. On Monday morning, Health Minister Maksym Stepanov announced that 57 people died in the last 24 hours. At the same time, 2,411 new cases were announced, and almost 8,000 people are undergoing treatment in Ukrainian hospitals.

Mikheil Saakashvili was chosen yesterday to lead an 11-party opposition coalition in Georgia’s Oct. 31 parliamentary elections.

Mikheil Saakashvili was chosen yesterday to lead an 11-party opposition coalition in Georgia’s Oct. 31 parliamentary elections. If the coalition wins, the former Georgian president would become prime minister. If the coalition loses, Saakashvili presumably would return to his Kyiv job: chairman of Ukraine’s National Reform Council. Levan Varshalomidze, former governor of Batumi and a longtime ally of Saakashvili, also took a sabbatical last week from his Ukraine job, board chairman of UkraineInvest.

Traffic at Boryspil was down 60% yoy in August, to 656,029 passengers,

Traffic at Boryspil was down 60% yoy in August, to 656,029 passengers, reports the Center for Transportation Strategies. Traffic on charter flights was down by only 9%, indicating that Kyiv residents cling to their package tours to Egypt and Turkey. By contrast, traffic on regular flights – largely to the EU and North America – was down by 78%. Traffic is expected to be even worse in September because the government has closed Ukraine to most foreign visitors for the

A Chinese state company is discussing building a massive Black Sea grain terminal that could handle 5 million tons a year, the equivalent of 10% of Ukraine’s corn and wheat exports

A Chinese state company is discussing building a massive Black Sea grain terminal that could handle 5 million tons a year, the equivalent of 10% of Ukraine’s corn and wheat exports. Yesterday, representatives of China Road Construction Corporation International Investment met with executives of Pivdennyi port, Ukraine’s deepest and busiest port. The project would represent a big expansion for Pivdennyi, located 45 km east of Odesa. Last month, iron ore accounted for 86% of the 1.5 million tons of cargo

Chinese container trains now arrive at Kyiv at the pace of one a week

Chinese container trains now arrive at Kyiv at the pace of one a week, reports Ukrzaliznytsia. Traveling 9,000 km from Nanchang in 15 days, the latest train arrived Saturday at Kyiv’s left bank Liski freight depot. Its 41 containers carried mineral fertilizers, lamps, bulbs, medical cargo and chemical components for filtering water. With three more container trains due to arrive this month, Ukrzaliznytsia is booking return freight of Ukrainian goods for China.

Ukraine seeks Chinese investment in industrial parks specializing in processing, storing and transshipping food

Ukraine seeks Chinese investment in industrial parks specializing in processing, storing and transshipping food, Olga Stefanishyna, deputy prime minister for European and Euro-Atlantic Integration, yesterday told China’s new ambassador to Ukraine, Fan Xianrong. Ukraine wants to increase food exports to China, and to use Chinese free ports to export to Pacific Basin countries, she said, reports the Cabinet of Ministers website. “To intensify cooperation,” her Ministry is establishing a working group with the Chinese embassy.

Through August, Ukraine’s seaports handled 5% more cargo than during the same period last year

Through August, Ukraine’s seaports handled 5% more cargo than during the same period last year, reports the Ukrainian Sea Ports Authority. The 106 million tons of cargo breaks down as follows : exports +5.4%, to 81 million tons; imports +1%, to 16 million tons; transit +4.6%, to 7.3 million tons; cabotage +31%, to 1.6 million tons. The two main export product were nearly even: grain – 30.7 million tons; and metal ore – 30.2 million tons. Pig iron exports jumped

Ukraine’s top five ports handled 91.5% of the nation’s cargo during the first eight months of this year,

Ukraine’s top five ports handled 91.5% of the nation’s cargo during the first eight months of this year, reports the Sea Ports Authority. Pivdennyi once again was the most dynamic, with its cargo levels growing by 25% yoy, to handle 42 million tons, or 40% of the nation’s total. This growth was at the expense of Ukraine’s next three busiest ports: Mykolaiv -10%, to 19.2 million tons; Odesa -7%, to 15.6 million tons; and Chornomorsk -1%, to 15.4 million tons.

Ukraine’s exports are recovering from last spring’s corona-recession.

Ukraine’s exports are recovering from last spring’s corona-recession. August exports were down only 1.6% yoy, “which in the context of a pandemic sounds like fantasy,” Taras Kachka, deputy minister of Economic Development, Trade and Agriculture, writes on Facebook. “International trade is recovering at a much faster pace than after the 2008 crisis.”  For the first eight months of the year, exports are down 6.6%, to $31 billion. With imports down by 12.4%, the trade deficit through August is $1.3 billion,

Ukraine exports of corn, wheat, and barley will drop around 9% yoy, to 51 million tons

Ukraine exports of corn, wheat, and barley will drop around 9% yoy, to 51 million tons, in the current marketing season, predicts Grainmart, India’s first Grain Trading B2B online marketplace. Based near New Delhi, Grainmart draws on figures from the Ukrainian Grain Association.

Two years after Saudi investors bought Ukraine’s troubled

Two years after Saudi investors bought Ukraine’s troubled Mriya Agro Holding, a shipment of 60,000 tons of Ukrainian wheat is on its way to Saudi Arabia. In the first such shipment to Saudi Arabia in 12 years, a Panamax carrying Ukrainian grain from Chornomorsk arrives Sept. 17. In 2018, Saudi Agricultural Investment and Livestock Company, or Salic, bought Mriya and merged it with its existing Ukraine farms under an umbrella company, Ukrainian Continental Farmers Group. Georg von Nolcken, general director

Poisoned Russian opposition activist Alexei Navalny has improved, doctors treating him in Berlin say.

Poisoned Russian opposition activist Alexei Navalny has improved, doctors treating him in Berlin say. He is out of a medically-induced coma, is being weaned off a ventilator, and “is responding to verbal stimuli,” the doctors say at Charité, the Berlin hospital where he is being treated. Germany’s government has asked Russia’s government to explain why Navalny was poisoned with a military grade poison. Reaffirmed yesterday, Chancellor Angela Merkel’s position is that Kremlin noncompliance with an investigation could force Germany to

Germany May Not Even Need the Nord Stream Pipeline Right Now

Germany May Not Even Need the Nord Stream Pipeline Right Now, headlines a Bloomberg analysis from Berlin. “Europe is flooded with gas and demand is likely to remain stable,” reads the energy market analysis. “With storage sites in Europe almost full, the European benchmark contract has more than halved since its peak in 2018.” With the rise of wind and solar and increasing energy efficiencies, Europe’s gas demand is to remain flat for the next five years, predicts the International

“Has Vladimir Putin Poisoned His Pet Pipeline Project?”

“Has Vladimir Putin Poisoned His Pet Pipeline Project?” Diane Francis, an opponent of the gas line, asks in an Atlantic Council Ukraine blog.

Ukraine’s natural gas imports jumped 67% yoy in August, as EU gas traders filled Ukraine’s gas storage reservoirs to a record 84% of capacity.

Ukraine’s natural gas imports jumped 67% yoy in August, as EU gas traders filled Ukraine’s gas storage reservoirs to a record 84% of capacity. Traders store their gas in Ukraine, waiting for the traditional autumn rise in prices as Europe prepares for winter. For its own use, Ukraine’s Naftogaz had 26 billion cubic meters in storage on Saturday, 39% more than one year earlier.

At stake is a $9.5 billion, 1,222 km, trans-Baltic pipeline designed to take gas directly from Russia to Germany.

At stake is a $9.5 billion, 1,222 km, trans-Baltic pipeline designed to take gas directly from Russia to Germany. Capable of carrying 55 billion cubic meters of gas a year, this is designed to end Russia’s dependence on Ukraine’s Gas Transportation System. From 2021 to 2024, Gazprom is contracted send 40 bcm year through Ukraine, earning Ukraine about $1.5 billion a year.

The central bank “expects an IMF [review] mission in the near future and plans to receive more money from the IMF by the end of the year,”

The central bank “expects an IMF [review] mission in the near future and plans to receive more money from the IMF by the end of the year,” Shevchenko, the Bank Governor told reporters yesterday. Ash reacted: “Very optimistic in my view given backtracking on banking reform and anti-corruption agenda. I cannot see an IMF mission before local elections in October.”

With Navalny lying in an induced coma in Berlin’s Charité Hospital

With Navalny lying in an induced coma in Berlin’s Charité Hospital, a 10-minute walk from the Bundestag, the mood inside Germany’s parliament building has turned sharply against the Kremlin.

The Finance Ministry sold the Hryvnia equivalent of $102 million in bonds at this week’s auction – three times the borrowings of last week.

The Finance Ministry sold the Hryvnia equivalent of $102 million in bonds at this week’s auction – three times the borrowings of last week. The only bill that sold – a 13-month bond – went with a weighted average interest rate of 9.29%.

“The EU should jointly decide to stop Nord Stream,”

“The EU should jointly decide to stop Nord Stream,” tweeted Norbert Roettgen, Head of the Bundestag’s Foreign Affairs Committee and a candidate to head Merkel’s Christian Democratic party. “The only language that Putin understands is the language of natural gas.”

UIA is scheduling a direct Kyiv Boryspil – New York JFK – Kyiv Boryspil flight next Wednesday

UIA is scheduling a direct Kyiv Boryspil – New York JFK – Kyiv Boryspil flight next Wednesday. With a one-way fare of $482, the Boeing leaves Kyiv at noon on Sept. 9. After a 2-hour turnaround in New York, the plane takes off again for Ukraine, leaving at 5:45 pm New York time. Tickets can only be bought through the UIA site.

Nils Schmid, foreign policy spokesman for the SPD

Nils Schmid, foreign policy spokesman for the SPD, a junior partner in the Merkel coalition, said: “We need to make it clear that all talk of a strategic partnership with Russia is now over.”

Three months after the end of Kyiv’s full corona lockdown, daily metro ridership is about one million, down by one third from the pre-lockdown volume 1.5 million.

Three months after the end of Kyiv’s full corona lockdown, daily metro ridership is about one million, down by one third from the pre-lockdown volume 1.5 million. Normally, the Kyiv’s subway system earns $10 million a month. Due to the spring lockdown and today’s week ridership, the Metro may run out of money to pay salaries next month, the transit system reports in an appeal to the Kyiv City Council for more money.

Christian Lindner, leader of the liberal FDP party, said

Christian Lindner, leader of the liberal FDP party, said: “A regime that organizes murders by poisoning is no partner for big cooperative projects — and that includes pipeline projects.”

Katrin Göring-Eckardt, leader of the Greens in parliament

Katrin Göring-Eckardt, leader of the Greens in parliament, said: “Nord Stream 2 is no longer something we, together with Russia, can press ahead with.”