With the nationwide ‘weekend lockdown’ starting after midnight tonight, there is scattered resistance. The leaders of Lviv, Rivne and Sloviansk say they will not follow the rules. Epicenter, one of the nation’s largest retailers, announced it is declaring a 72-hour Friday. Yesterday, Health Minister Maksym Stepanov announced a new peak of 11,057 new Covid cases – double the daily average of one month ago. Stepanov told reporters that Covid is spreading in Ukraine at a “hurricane rate.”
Upside of global warming: the shipping season on the Dnipro will be extended by two weeks this year, to Dec. 1, reports the State Maritime and River Transport Service. The four northernmost locks — Kyiv, Kaniv, Kremenchuk and Kamianske – had been scheduled to start closing Sunday. Closing the river involves pulling out hundreds of buoys in a north-south sequence. But Kyiv is not forecast to see prolonged cold weather until mid-December. Last winter, serious ice only formed in January.
Ukraine will invest $70 million next year to revive regular production of aircraft at Antonov and to “master the full production of helicopters,” Prime Minister Shmyhal told the Cabinet Tuesday. The money is to be part of a decade long, $1.4 billion investment to revive the portions of Ukraine’s aircraft industry seen as most profitable. Emerging from an import substitution phase prompted by the 2014 break with Russia, Antonov now is building an An-178 military cargo jet for Peru’s National
Russia has decided to its close trade missions in two of its Western neighbors, Ukraine and Lithuania, and to open a mission in Syria. Russia-Ukraine trade steadily dropped after 2014, the year Russia annexed Crimea and moved troops into Ukraine’s Donbass. Last year, China displaced Russia as Ukraine’s largest single nation trading partner. Through October, Ukraine’s trade with the EU this year was three times its trade with the Moscow-led Commonwealth of Independent States, according to figure released Tuesday by
Russia’s last trade office in the Baltics was in Lithuania. Trade during the first half of this year dropped by almost one third, compared to the first half of 2019. An official note accompanying the decree by Russian Prime Minister Mikhail Mishustin complains: “The foreign economic policy pursued by the leadership of the Republic of Lithuania does not contribute to building up trade relations with Russia.”
Wind and solar investments account for one quarter of the €49 billion of foreign direct investment in Ukraine since Independence in 1991. However, €660 million in unpaid electricity bills is forcing foreign investors to renegotiate bank loans, mull bankruptcy and to pursue international litigation against Ukraine, participants told an Energy Talk webinar organized last week by the European Business Association.
Carl Sturen, the Swedish managing director of wind power developer Vindkraft, said: “We are lagging behind on our payments and we definitely can’t wait.” Sergii Shakalov, CEO of Kness Group, a solar panel production plant launched in 2019 in Vinnytsia, says he has already lost $10 million due to non-payments. “One of the biggest problems of Ukraine is that it doesn’t comprehend that agreements should be fulfilled in any situation,” complained Shakalov, reports the Kyiv Post, a co-sponsor of the
The Government’s Guaranteed Buyer says it has paid all for renewable energy generated in August and for 93% of power produced in September. The press service of the Ministry of Energy reports that the green tariff reductions negotiated with renewable companies in July has saved consumers $53 million.
China’s Sinohydro Corporation Limited intends to file an international arbitration claim for Ukravtodor’s termination two weeks ago of its contract for construction of a bypass highway around Zhytomyr. Sinohydro was five months overdue on the project, delays the company blamed Covid disruptions and the tardy transfer of a key land plot by Ukraine’s state highway agency. The Chinese say that in September, a Dispute Resolution Council give them an extra three months to complete work by the end of this
Coming as Ukraine seeks public-private partnerships with foreign road construction companies, Sinohydro says its treatment should serve as a warning. “It is difficult for the company to understand why, over and over again, Ukravtodor similarly terminates agreements with contractors, including with other foreign companies,” the Chinese company said yesterday. “Sinohydro believes such actions of Ukravtodor will significantly weaken the desire of foreign contractors to participate in the construction projects of the state agency.”
The recent decision by Ukraine’s Constitutional Court to dismantle anti-corruption legislation is the biggest impediment to a restoration of IMF loans flows to Ukraine, Kyrylo Shevchenko, governor of the National Bank of Ukraine, told Voice of America in Washington after meeting with the IMF and World Bank. Other issues are: the mounting budget deficit and the work of the central bank after the summer changeover of leadership.
Concorde Capital’s Alexander Paraschiy reads between the lines of this “sobering statement” and concludes: “No IMF tranche in 2020, meaning IMF-related financing of Ukraine’s 2020 budget deficit (from the Fund, the EU and the World Bank) for a total amount of up to $2.5 billion won’t arrive this year. Therefore, the only viable way for Ukraine to try to fill its budget gap without such money is a massive issue of international Eurobonds. As soon as it becomes apparent to
In London, Timothy Ash polled his Twitter followers about Ukraine’s IMF prospects. He posted on @tashecon this breakdown of the 260 replies: IMF money this year – 15%; IMF money in Q1 – 27%; IMF money in Q2 – 15%; unclear as major problems – 43%.
Covid accomplishes what Zelenskiy cannot. Covid has paralyzed the Constitutional Court, with the majority of the 15-member court “either sick or awaiting test results because they have symptoms of coronavirus,” a ‘source’ tells Interfax-Ukraine. One judge, Ihor Slidenko, tells the news agency: “I am reliably aware of two cases of COVID-19 among judges of the Constitutional Court.”
Zelenskiy and his chief of staff, Andriy Yermak, are being treated for Covid at Feofania Clinic, the southern Kyiv hospital reserved for high level officials. Two ministers reported this week that they also have Covid: Finance Minister Serhiy Marchenko and Defense Minister Andriy Taran. Three presidential aides reportedly have recovered from Covid: Yulia Kovaliva, Roman Mashovets, and Serhiy Shefir.