kyivukraine

Wednesday, July 15

Central bank governor, Yakiv Smoliy, resigned July 1, complaining of “systematic” political pressure from the President’s office. Central bank governor, Yakiv Smoliy, resigned July 1, complaining of “systematic” political pressure from the President’s office. His abrupt resignation forced the Finance Ministry to abort what was s...

After the IMF call, Zelenskiy tweeted that he will present “an independent technocrat” as a candidate for a Rada vote on Friday, After the IMF call, Zelenskiy tweeted that he will present “an independent technocrat” as a candidate for a Rada vote on Friday, the last day before parliament’s breaks for a 6-week summer vacation. “...

Tuesday, July 14

France is implementing projects in Ukraine that total €1.5 billion, France is implementing projects in Ukraine that total €1.5 billion, French Ambassador Etienne de Poncins told reporters yesterday in a tradition press conference in advance of July 14, the French Nati...

Highlights: Highlights:

The Rada is scheduled to vote the Green Energy bill this week on the second reading. Failure could carry a high price tag The Rada is scheduled to vote the Green Energy bill this week on the second reading. Failure could carry a high price tag, one North American investor warns the UBN. If the government fails to pay $62...

The current central bank team will resist President Zelenskiy’s demand to print more money to create an artificial economic boomlet, The current central bank team will resist President Zelenskiy’s demand to print more money to create an artificial economic boomlet, Kateryna Rozhkova, acting governor of the National Bank of Ukraine,...

Home mortgages at 10% a year is the goal of a new “mass mortgage lending program” to be launched this fall by the National Bank of Ukraine, Home mortgages at 10% a year is the goal of a new “mass mortgage lending program” to be launched this fall by the National Bank of Ukraine, acting central bank head Roshkova tells Interfax-Ukraine. “I...

Edward Cowan, former Washington economics editor for The New York Times Edward Cowan, former Washington economics editor for The New York Times, writes the UBN of Zelenskiy’s call for an 11% devaluation of the hryvnia and the Liga.net interview with IMF representative Goe...

A law capping government salaries at $1,750 a month will continue through the summer. A law capping government salaries at $1,750 a month will continue through the summer. Adopted three months ago, in solidarity with the corona lockdown, the cap increasingly was seen as an invitation t...

Zelenskiy’s effort last week to talk down the hryvnia has had little short term impact Zelenskiy’s effort last week to talk down the hryvnia has had little short term impact. Currently, the exchange rate is 27.10 hryvnia to the dollar, down 12 kopecks from 26.98, the rate last Wednesday...

Monster trucks figure on Metinvest’s $30 million shopping list for new equipment this year Monster trucks figure on Metinvest’s $30 million shopping list for new equipment this year at its Central Iron Ore Enrichment Works in Kryvyi Rih. The showpieces are BelAZ-75131 dump trucks. Considere...

On Oct. 1, Wizz Air plans to resume direct flights between Ukraine and the United Arab Emirates On Oct. 1, Wizz Air plans to resume direct flights between Ukraine and the United Arab Emirates, an air link it suspended several years ago. The low-cost carrier will fly twice a week between Odesa an...

Starting tomorrow, Starting tomorrow, Hungary bars entry from Ukraine and Romania, two neighbors classified as ‘red zone’s for coronavirus infections. Two weeks ago, Hungary and Ukraine opened four land border crossings...

Laboratories are to open at the airports of Kyiv and Lviv to test arriving passengers. Laboratories are to open at the airports of Kyiv and Lviv to test arriving passengers. Results are to be linked to the Diy Vdoma app, allowing visitors to cut short the 2-week self-isolation period.

Message du Redacteur Message du Redacteur: En ce jour du 14 juillet 2020, fête nationale française, je suis heureux d’annoncer que l’Ukraine Business News sera en français, grâce au travail sympathique de Loui...

Monday, July 13

The interview echoed last weekend through the western press The interview echoed last weekend through the western press, including the Financial Times, The New York Times, and The Washington Post. The Post version headlined: “Ukraine’s bank chief quit and rece...

The day after President Zelenskiy called for an 11% devaluation of the hryvnia, the IMF representative said: The day after President Zelenskiy called for an 11% devaluation of the hryvnia, the IMF representative said: “The current Stand-By Arrangement is premised on…a continuation of the economic polic...

As nervous investors pushed down the price of Ukraine’s government Eurobonds on Friday As nervous investors pushed down the price of Ukraine’s government Eurobonds on Friday, Ljungman, a Swedish economist with a decade of IMF work, gave a primer in classical economics: “We know that pru...

“However, irresponsible central bank policies ultimately lead to high inflation, exchange rate volatility, financial sector problems, low economic growth, and high unemployment, as we have seen during past crises in Ukraine “However, irresponsible central bank policies ultimately lead to high inflation, exchange rate volatility, financial sector problems, low economic growth, and high unemployment, as we have seen during...

Ljungman did not say that Ukraine is in violation of the IMF agreement. Ljungman did not say that Ukraine is in violation of the IMF agreement. He also did not put forward any name for a successor to Smoliy. The Rada breaks Friday evening for a 6-week recess. It is unclea...

With Smoliy and his deputy, Oleh Churiy, out, the 7-member central bank board now risks losing its free market majority With Smoliy and his deputy, Oleh Churiy, out, the 7-member central bank board now risks losing its free market majority The Zelenskiy “administration’s plan [is] to remove all current members of the N...

As part of Zelenskiy’s push to drive down interest rates, the new state program “Affordable Loans 5-7-9%” has received applications from entrepreneurs for loans totaling $300 million As part of Zelenskiy’s push to drive down interest rates, the new state program “Affordable Loans 5-7-9%” has received applications from entrepreneurs for loans totaling $300 million. Zele...

Public opinion polls show majorities of Ukrainians are skeptical or hostile to IMF programs. Public opinion polls show majorities of Ukrainians are skeptical or hostile to IMF programs. Anti-IMF feeling is whipped up by pro-Russian TV stations – about half of Ukraine’s media market. Ihor Kolo...

No cash please, we’re Ukrainian. No cash please, we’re Ukrainian. Non-cash payments during the quarantine jumped to 87% in May, from 82% in January, National Bank of Ukraine reports on its Facebook page. In terms of volumes of money,...

Deflating these statistics Deflating these statistics, Smoliy, the former central bank governor, said in an interview last week with LB.ua: “According to the Ministry of Economy, 30% of businesses are in the shadows. I think it...

As the Rada prepares to debate this week two bills offering tax breaks for the production of electric cars, As the Rada prepares to debate this week two bills offering tax breaks for the production of electric cars, Robert Horvat, a deputy representing the Zakarpattia district with Eurocar, says the plant p...

Four months after the corona quarantine started, Ukrzaliznytsia is running only one third of its suburban and long distance trains Four months after the corona quarantine started, Ukrzaliznytsia is running only one third of its suburban and long distance trains, Ivan Yurik, acting CEO of the state railroad says. If the corona pan...

UIA restarts its North America flights this Sunday with a weekly B767-300(ER) flight between Kyiv Boryspil and Toronto Pearson UIA restarts its North America flights this Sunday with a weekly B767-300(ER) flight between Kyiv Boryspil and Toronto Pearson. UIA has not announced plans to restart service between Kyiv and New York...

The EBRD is extending a €25 million loan to UkSATSE to help the air traffic control agency survive the collapse in air traffic. The EBRD is extending a €25 million loan to UkSATSE to help the air traffic control agency survive the collapse in air traffic. The agency earns its money by guiding planes through Ukraine’s air space...

Some of the money is to help Ukraine enter the EU open skies agreement. Some of the money is to help Ukraine enter the EU open skies agreement. Ukraine hopes to finally sign the common aviation area agreement on Oct.1, at the upcoming EU-Ukraine summit. Ukraine’s admissio...

Ukraine must preserve the independence of the central bank under the next governor as part of the $5 billion IMF deal, Ukraine must preserve the independence of the central bank under the next governor as part of the $5 billion IMF deal, the IMF’s country representative said in the first public comments since Na...

Human error was behind the Jan. 9 missile strike that down the UIA flight shortly after it left Tehran airport, killing all 176 aboard. Human error was behind the Jan. 9 missile strike that down the UIA flight shortly after it left Tehran airport, killing all 176 aboard. At an air defense unit, an operator foorgot re-adjust the north ...

Friday, July 10

The Economy Ministry estimates that Ukraine’s GDP contracted by 5.9% from January to May, the height of the Covid lockdown period. The Economy Ministry estimates that Ukraine’s GDP contracted by 5.9% from January to May, the height of the Covid lockdown period. With the economy starting to recover, estimates of the year end GDP p...

Eurozone GDP will decline by 8.7% this year, then grow by 6.1% in 2021, Eurozone GDP will decline by 8.7% this year, then grow by 6.1% in 2021, according to a forecast this week of the European Commission. Among the major economies: Germany -6.3% in 2020, then +5.3% in 20...

Ukraine’s electricity consumption fell during the first half of this year by 5% compared to the first half of last year Ukraine’s electricity consumption fell during the first half of this year by 5% compared to the first half of last year, reports Ukrenergo, the state-owned electricity transmission system operator. Ho...

During the second quarter, Ukrainian banks permanently closed 304 bank branches, or 4% of the Q1 total of 7,884 During the second quarter, Ukrainian banks permanently closed 304 bank branches, or 4% of the Q1 total of 7,884, reports the central bank. State-owned Oschadbank closed 8% of its branches, ending June...

Annual inflation in June was 2.4%, slightly higher than 1.7% in May. Annual inflation in June was 2.4%, slightly higher than 1.7% in May. Last year, inflation was 4.1%, less than half the 9.8% recorded in 2018. President Zelenskiy told former central bank governor Yaki...

The European Investment Bank may issue a €340 million low interest loan to Ukraine for restoring public buildings The European Investment Bank may issue a €340 million low interest loan to Ukraine for restoring public buildings – schools, hospitals, roads and water systems – in eastern Ukraine, largely government...

Presidential chief of staff Andriy Yermak discussed with the World Bank’s new vice president for Europe and Central Asia Anna Bjerde a $350 million loan to Ukraine Presidential chief of staff Andriy Yermak discussed with the World Bank’s new vice president for Europe and Central Asia Anna Bjerde a $350 million loan to Ukraine. The money would go to buildin...

In a big setback for corporate governance, ‘temporary’ Covid-era salary cuts may be permanent for independent supervisory boards In a big setback for corporate governance, ‘temporary’ Covid-era salary cuts may be permanent for independent supervisory boards set up during the Poroshenko era for state companies — Naftogaz, ...

Concorde Capital’s Alexander Paraschiy writes on Zelenskiy’s stated desire to weaken the hryvnia, print more money and to hike annual inflation from 2% to 10%: Concorde Capital’s Alexander Paraschiy writes on Zelenskiy’s stated desire to weaken the hryvnia, print more money and to hike annual inflation from 2% to 10%: “In the mid-term, such a review of targe...

Paraschiy writes on the State Security Service’s request that ‘former officials’ refrain from commenting on the nation’s finances: Paraschiy writes on the State Security Service’s request that ‘former officials’ refrain from commenting on the nation’s finances: “The SBU’s comments on [Valeria] Gontareva might look funny to intern...

Quote of the Day: Yakiv Smoliy, former governor of the National Bank of Ukraine, Quote of the Day: Yakiv Smoliy, former governor of the National Bank of Ukraine, told LB.ua Saturday about TV commentators urging Ukraine to go it alone without low interests loans and aid from the IM...

Halloween in July? Halloween in July? Coffins and funeral wreaths were left Wednesday night at the entrance to the gated residence of Smoliy. Defiant, the National Bank of Ukraine press service called this kind of haras...

Bureaucratic rule changes highlight a booming business: the monthly import of 10,000 lightly damaged cars from the US and EU for repair and use in Ukraine. Bureaucratic rule changes highlight a booming business: the monthly import of 10,000 lightly damaged cars from the US and EU for repair and use in Ukraine. Columb, a major vehicle broker, says repairs...

South Korea’s Caris has signed a 3-year, $850 million deal with Dnipro’s Yuzhmash to produce 5,000 electric buses and 7,800 charging stations South Korea’s Caris has signed a 3-year, $850 million deal with Dnipro’s Yuzhmash to produce 5,000 electric buses and 7,800 charging stations, the Ukrainian machine building plant reports on Facebook....

Air traffic out of Kyiv is growing gradually, with today’s scheduled flight departures totaling 44 from Kyiv Boryspil and 14 from Kyiv Sikorskiy Air traffic out of Kyiv is growing gradually, with today’s scheduled flight departures totaling 44 from Kyiv Boryspil and 14 from Kyiv Sikorskiy. The two airports expect to handle a total of 200,000 p...

Norway’s NBT continues planning for a €1.2 billion project in Zaporizhia Oblast that could be Europe’s largest onshore wind farm. Norway’s NBT continues planning for a €1.2 billion project in Zaporizhia Oblast that could be Europe’s largest onshore wind farm. Designed to generate 792MW, the Zophia farm would place 160 turbines a...

Ukrainian tourists no longer have to take Covid tests to enter Montenegro, Ukrainian tourists no longer have to take Covid tests to enter Montenegro, reports that Adriatic nation’s Public Health Institute. SkyUp and Windrose fly from Kyiv Boryspil to Tivat, Montenegro’s larg...

Reversing five years of modest foreign direct investment inflows, Ukraine recorded a net outflow of $1.5 billion in foreign investment during the first five months of this year Reversing five years of modest foreign direct investment inflows, Ukraine recorded a net outflow of $1.5 billion in foreign investment during the first five months of this year. Last year, Ukraine att...