newsfromukraine

Monday, July 13

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...

Friday, July 10

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...

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...

Thursday, July 9

Ukraine’s Foreign Ministry is asking airlines and travel agencies to stop selling tickets to countries that don’t allow Ukrainian tourists to enter Ukraine’s Foreign Ministry is asking airlines and travel agencies to stop selling tickets to countries that don’t allow Ukrainian tourists to enter. With Ukraine’s Covid infection rate well above the ...

Five Balkan nations, Albania, Croatia, Montenegro, North Macedonia, and Serbia — welcome Ukrainian tourists Five Balkan nations, Albania, Croatia, Montenegro, North Macedonia, and Serbia — welcome Ukrainian tourists. Visitors planning to fly to Croatia should fill out this Croatian Tourism Ministry fo...

Betting that air travel will normalize next year, Betting that air travel will normalize next year, Ryanair next summer will add five new routes between Lviv and five Italian cities: Bari, Naples, Palermo, Turin and Treviso (Venice). On Monday, Ryana...

Ukraine’s beach resorts – on the Black Sea and Azov Sea – are booming this summer Ukraine’s beach resorts – on the Black Sea and Azov Sea – are booming this summer, Vodaphone Ukraine reports citing movements of 4G users. “Judging by the increase in Internet traffic and the number o...

Shut off from the EU after three years of visa-free access, Ukrainians will discover that Ukrainian hotels and amenities modernized while they were away, Shut off from the EU after three years of visa-free access, Ukrainians will discover that Ukrainian hotels and amenities modernized while they were away, Peter Dickinson writes in an Atlantic Council ...

To answer foreigners’ questions about entering Ukraine, the government launched this week To answer foreigners’ questions about entering Ukraine, the government launched this week Visit Ukraine Today, an internet site that provides information on entry and exit requirements for foreign tra...

Ecolines resumes bus service from Kyiv to Moscow today and from Kyiv to St. Petersburg on Saturday. Ecolines resumes bus service from Kyiv to Moscow today and from Kyiv to St. Petersburg on Saturday. Rail service was suspended in late March due to the coronavirus epidemic. There have been no commerc...

Fresh from purging the leadership of the central bank, President Zelenskiy told business leaders yesterday that Ukraine’s exchange rate should match the rate in the national budget – 30 hryvnia to the dollar. Fresh from purging the leadership of the central bank, President Zelenskiy told business leaders yesterday that Ukraine’s exchange rate should match the rate in the national budget – 30 hryvnia to the...

“Companies lost millions and closed because of this rate – this is true,” “Companies lost millions and closed because of this rate – this is true,” he told business leaders in Chernivtsi, reports Interfax-Ukraine. “We have been fighting this since the very beginning of my t...

Zelenskiy took aim at Valeria Gontareva, former head of central bank Zelenskiy took aim at Valeria Gontareva, former head of central bank. From self-exile in London, she urged the IMF to ask for their money back if Ukraine’s president dilutes the independence of the ce...

The State Security Service, or SBU, took a more censorial tack The State Security Service, or SBU, took a more censorial tack, posting on Facebook that it “considers it inadmissible to declare statements that could harm the national security of the state, in part...

Tim Ash writes from London: “ Tim Ash writes from London: “SBU in effect telling Gontareva, Smoliy and Churiy to shut up as Zelensky and crew take over the NBU… Clear Zelensky wants a team at the NBU who will do his bidding,...

Ukraine’s foreign reserves hit $28.5 billion on July 1, the highest level in eight years, Ukraine’s foreign reserves hit $28.5 billion on July 1, the highest level in eight years, reports the National Bank of Ukraine. Boosting reserves 12% over the June 1 level, the IMF deposited its first...

“There likely won’t be any more [IMF] tranches distributed to Ukraine, unless the new NBU Governor is acceptable to the IMF and its conditions are met,” “There likely won’t be any more [IMF] tranches distributed to Ukraine, unless the new NBU Governor is acceptable to the IMF and its conditions are met,” Robert Homans writes in a bne IntelliNews artic...

Turkey hopes 100,000 Ukrainians will visit Antalya this month, Turkey hopes 100,000 Ukrainians will visit Antalya this month, down from 145,000 in July 2019, Interfax-Ukraine reports from Antalya Airport. Ukrainian groups go to Turkish hotels that follow Covid co...

Wednesday, July 8

The Finance Ministry sold $11.7 million worth of hryvnia government bonds yesterday’s weekly auction, the lowest amount since late May. The Finance Ministry sold $11.7 million worth of hryvnia government bonds yesterday’s weekly auction, the lowest amount since late May. The main seller yesterday – $10.8 million worth — wa...

On Monday, Air France resumes regular flights between Paris Charles de Gaulle and Kyiv Boryspil On Monday, Air France resumes regular flights between Paris Charles de Gaulle and Kyiv Boryspil. The flights will be twice a week through Aug. 24. After that the frequency becomes three times a week.

In June Boryspil handled 48,398 passengers, down 97% yoy from the June 2019 volume — 1,532,580. In June Boryspil handled 48,398 passengers, down 97% yoy from the June 2019 volume — 1,532,580. Scheduled air service only re-started on June 15.

The 23 countries accepting tourists from Ukraine include The 23 countries accepting tourists from Ukraine include: Britain, US, South Korea, Albania, Croatia, Montenegro, North Macedonia, Serbia, Egypt, Turkey, Dubai, Iraq, Iran, Belarus and Ethiopia. Sever...

After 12 Ryanair passengers from Kyiv Boryspil were detained at Athens airport for three days After 12 Ryanair passengers from Kyiv Boryspil were detained at Athens airport for three days, Ryanair now asks that all passengers flying out of Ukraine confirm that they have read Ryanair’s Flight a...

The EU allows entry of Ukrainians for study, business, work, health care, diplomacy, transit, and trucking The EU allows entry of Ukrainians for study, business, work, health care, diplomacy, transit, and trucking, according to Dmytro Kuleba, Ukraine’s Foreign Minister Documented proof of need to enter is ...

On Ukraine’s northern border, Ukraine has opened six border checkpoints with Belarus. On Ukraine’s northern border, Ukraine has opened six border checkpoints with Belarus. Two of these are open for cars as well as pedestrians and cars – Dolsk, Volyn Oblast and Polessy, Kyiv Oblast. To ...

Yakiv Smoliy’s resignation as head of Ukraine’s central bank last week came after nine months of pressure from President Zelenskiy to cut interest rates and to print more money. Yakiv Smoliy’s resignation as head of Ukraine’s central bank last week came after nine months of pressure from President Zelenskiy to cut interest rates and to print more money. “I realized I ha...

A summer travel survey of online users of Rozetka Travel finds: 45% plan to vacation in Ukraine, 24% plan a foreign vacation, and 17% plan to go to the dacha or visit relatives A summer travel survey of online users of Rozetka Travel finds: 45% plan to vacation in Ukraine, 24% plan a foreign vacation, and 17% plan to go to the dacha or visit relatives. Of the overseas group,...

Asked about timing – now or in the fall – Zelenskiy, responded ‘now,’ Asked about timing – now or in the fall – Zelenskiy, responded ‘now,’ Smoliy said Saturday in a 6,800-word interview conducted Saturday at the National Bank of Ukraine office he occupied for two years...

The timing ruined the Finance Ministry’s placement of $1.75 billion in Eurobonds The timing ruined the Finance Ministry’s placement of $1.75 billion in Eurobonds. Before the offering was yanked Thursday, the bonds were four times oversubscribed and yields had dropped 50 basis poin...

A theme running through the interview is that Zelenskiy wants his own appointee as central bank governor A theme running through the interview is that Zelenskiy wants his own appointee as central bank governor, an official who will respond favorably to telephone calls from the president’s office. “How ma...

To keep on track with the IMF and Western lenders, Smoliy said the central bank remain independent from pressure from the President and the Rada. To keep on track with the IMF and Western lenders, Smoliy said the central bank remain independent from pressure from the President and the Rada. “Neither the IMF, nor the World Bank, nor any corporat...