Concorde Capital’s Evgeniya Akhtyrko concludes:

Concorde Capital’s Evgeniya Akhtyrko concludes: “There is no improvement in the sentiments of the broader circle of market players regarding the risk level of UAH debt at the moment.”

Planes left Kyiv Sikorsky Airport half full last month

Planes left Kyiv Sikorsky Airport half full last month. In July, Kyiv’s right bank airport handled 1,314 flights — 48% the number of flights of one year earlier. But the number of passengers was only 52,400 – 20% the level of one year earlier. The most popular international destinations were: Warsaw; Tivat, Montenegro; London Luton; Minsk; Dalaman, Turkey; Wroclaw, Poland; Bodrum. Turkey; and Tirana, Albania.

SkyUp Airlines returned in July to 50% of its pre-coronavirus traffic levels.

SkyUp Airlines returned in July to 50% of its pre-coronavirus traffic levels. Operating 704 domestic and international flights from Kyiv Boryspil, the low cost airline carried 96,407 passengers in July.  Of its regularly scheduled foreign destinations, Albania was more popular than Bulgaria. For charters, Turkey was more popular than Egypt.

Air Astana resumes flights between Almaty and Kyiv Boryspil next Wednesday

Air Astana resumes flights between Almaty and Kyiv Boryspil next Wednesday. From Almaty, the Kazakh national carrier flies to 26 destinations, including Beijing and Delhi. Air Astana suspended flights to Ukraine five months ago.

The day after President Zelenskiy signed a law giving tax breaks to foreign film productions, Kyiv City officials announced a list of streets to be closed Aug. 12-25 for the filming of a Jean-Claude Van Damme film — ‘The Last Mercenary.’

The day after President Zelenskiy signed a law giving tax breaks to foreign film productions, Kyiv City officials announced a list of streets to be closed Aug. 12-25 for the filming of a Jean-Claude Van Damme film — ‘The Last Mercenary.’ Since most of this Netflix ‘comedy action movie’ takes place in France, it appears that Kyiv will be dressed up to look like a French city. Van Damme, a Belgian, is known to American fans as ‘The Muscles from

About 200 more state companies will be transferred to the State Property Fund for privatization,

About 200 more state companies will be transferred to the State Property Fund for privatization, the Cabinet of Ministers decided yesterday. The companies are either unprofitable or are used “for various shady schemes,” Economy Minister Ihor Petrashko told reporters after the meeting. At the same time, the government is cutting by one third – to 200 – the proposed list of state companies exempted from privatization, Prime Minister Shmygal said during the Cabinet Meeting.

Until the coronavirus pandemic started, several foreign investor groups had planned to come to Ukraine this summer to study state companies scheduled for sale.

Until the coronavirus pandemic started, several foreign investor groups had planned to come to Ukraine this summer to study state companies scheduled for sale. Dmytro Sennychenko, head of the Property Fund, estimates that about half of Ukraine’s 3,000 state companies are bankrupt and will be liquidated. The others will be sold at public, electronic auctions, largely as is. To help foreign investors, the Fund has set up a bilingual Ukrainian-English website with ‘data rooms’ on each property up for sale. To

Ukravtodor presented yesterday a project to build $3 billion, 150km, three quarter circle Kyiv ring road.

Ukravtodor presented yesterday a project to build $3 billion, 150km, three quarter circle Kyiv ring road. Designed to intercept traffic about 40 km outside capital, the bypass would link all major international highways that converge on Kyiv – from Kovel, Lviv, Odesa, Boryspil, Kharkiv and Chernihiv. Designed to carry 300,000 cars a day, the bypass road would include a new, 6 km bridge over the Dnipro, to be built south of Pivdenniy (South) Bridge. At the presentation, the national highway

A US company is negotiating with Mykolaiv regional authorities to build a $250 million waste recycling plant for the entire region

A US company is negotiating with Mykolaiv regional authorities to build a $250 million waste recycling plant for the entire region, Alexander Stadnik, regional head, tells NikVesti, a local news site.  For convenience, the plant would be located in Nova Odesa district, in the center of Mykolaiv oblast, reports Delo.ua. Stadnik did not identify the company, but said it is ready to start investing.

Fighting to preserve a joint venture with a Chinese company to control Ukraine’s aircraft engine maker

Fighting to preserve a joint venture with a Chinese company to control Ukraine’s aircraft engine maker, Ukraine’s DCH conglomerate told Reuters and NV business news site yesterday that it has signed an agreement to buy “more that 25% of shares” in the company, Motor Sich.  Addressing fears that design and production would move to China, DCH, a Kharkiv-based group, told NV: “DCH will have the right to veto key business decisions.” NV speculated that joint venture idea was developed last

President Zelenskiy signed a law creating the legal and regulatory framework for 

President Zelenskiy signed a law creating the legal and regulatory framework for derivatives – the financial instrument that helps to provide hedging opportunities against prices, interest rates or currency rate movements. Scheduled to go into effect next July 1, the law would allow such derivatives as swaps, which will allow Ukrainian banks, farmers and manufacturers, to hedge their foreign exchange exposures. Required under the IMF’s current standby agreement with Ukraine, the law was drawn up by the National Securities and Stock Market

Timur Khromaev, head of the Commission, said of the derivatives law: “I

Timur Khromaev, head of the Commission, said of the derivatives law: “It represents a big step forward in creating the conditions in which our economy can move to a more sophisticated stage of development.” Matteo Patrone, EBRD’s regional Managing Director said: “The new law will contribute to the establishment of a derivatives market in Ukraine. This is a major step forward to putting Ukraine on investors’ radar screens.”

The day after President Zelenkiy signed the law legalizing gambling, Parimatch, the largest betting company in Ukraine, announced that it will bid for hotel casino licenses in Ukraine.

The day after President Zelenkiy signed the law legalizing gambling, Parimatch, the largest betting company in Ukraine, announced that it will bid for hotel casino licenses in Ukraine. Founded in Kyiv in 1994, Parimatch has moves largely online, accepting bets on sporting events, e-sports, elections, show business, Eurovision and the Nobel Prize. With 1,600 employees, the company largely operates in Ukraine, Belarus, Kazakhstan, Russia and Cyprus, where it has its headquarters.

The Finance Ministry raised the equivalent of $366 million in its weekly government bond auction Tuesday – virtually the same amount as one week earlier.

The Finance Ministry raised the equivalent of $366 million in its weekly government bond auction Tuesday – virtually the same amount as one week earlier. To keep, hryvnia rates from rising, the Ministry rejected the equivalent of $75 million worth of bids. Interest rates were little changed with 4-month bonds going for 7% and 2-year bonds going for 10%. By contrast, the Ministry satisfied 26 of 27 bidders for 1.5 month USD-denominated bonds at 3.6%.

Ukrainian farmers have harvested 33 million tons of grain and legumes, one third of this year’s forecast crop.

Ukrainian farmers have harvested 33 million tons of grain and legumes, one third of this year’s forecast crop. Farmers have threshed 23 million tons of wheat, 87% of the forecast crop, and 8 million tons of barley, 90% of the forecast crop.

Ukraine’s forecast bumper crop for corn may run into geopolitical barriers as the US makes record corn sales – totaling 3.7 million tons — to China

Ukraine’s forecast bumper crop for corn may run into geopolitical barriers as the US makes record corn sales – totaling 3.7 million tons — to China, warns AgWeek, the Fargo, North Dakota-based news site. China made the record buys of US corn to comply with a Trump Administration drive for more balanced US-China trade. Although Ukraine traditionally ships 3.8 million tons of corn to China every year, “that might not be the case this year,” warns AgWeek. China already has

Charges of “high treason” and a Presidential investigation surround a Chinese company’s attempt to assert 75% ownership of a Ukrainian company

Charges of “high treason” and a Presidential investigation surround a Chinese company’s attempt to assert 75% ownership of a Ukrainian company that once was the largest manufacturer of airplane engines in the Soviet Union. Triggering the controversy, Beijing’s Skyrizon announced last week that it has entered into a joint venture DCH Group, a powerful economic holding based Eastern Ukraine, to control Motor Sich. With the US government opposed to the Chinese purchase, Ukraine’s Antimonopoly Committee has started what could be

In a double barreled response,

In a double barreled response, Wang Jing, Board Chairman of Skyrizon, and Alexander Yaroslavsky, the owner president of DCH, issued statements denouncing the government interference in the transaction.

“We are partners and strive to keep Motor Sich on Ukrainian soil,” wrote Wang, whose company is based in Beijing. “It is Chinese investment that sustains the company’s prosperity, saving thousands of jobs in the historic city…We are very sorry that, after five years, we have experienced only confusion and disappointment.” Adding that “DCH will own more than 25% of the company’s shares, which gives them the right to participate in the management of the Company and maintain its Ukrainian

For his part,

For his part, Yaroslavsky denounces as “state raiding” the government pressure on the investors in Motor Sich. From his base in Kharkiv, Yaroslavsky refutes press reports that key parts of the factory would be moved to China: “DCH Group is ready to use its experience and knowledge to ensure that Motor Sich develops and works for the benefit of Ukraine.”  He warns that if the government stymies the joint venture, the future would be “filing of multimillion-dollar lawsuits by the

Iran will not compensate UIA for its jet Tehran shot down Jan. 8 because the Boeing 737-800 was insured by European firms

Iran will not compensate UIA for its jet Tehran shot down Jan. 8 because the Boeing 737-800 was insured by European firms, the head of Iran’s Central Insurance Organisation said Monday, Reuters reports from Tehran. “The Ukrainian plane is insured by European companies in Ukraine and not by Iranian companies,” said Gholamreza Soleimani, according to the Young Journalists Club news website affiliated with state TV. “Therefore, compensation should be paid by those European companies.” A new Boeing 737-800 costs about

Ukrtelecom, the nation’s largest Internet service provider, plans to invest $110 million to lay 50,000 km of fiber optic cable to bring broad band to 2.6 million rural Ukrainians by the end of 2022.

Ukrtelecom, the nation’s largest Internet service provider, plans to invest $110 million to lay 50,000 km of fiber optic cable to bring broad band to 2.6 million rural Ukrainians by the end of 2022. The drive is part of a $200 million effort by Ministry of Digital Transformation to increase rural broadband connectivity from 65% today to 95% in 2024. Yuri Kurmaz, Ukrtelecom’s CEO, says 8,000 rural clinics and 16,000 schools do not have broadband connections, reports Broadband World News.

Vodafone Ukraine says that within two years its LTE 4G network should reach 90% of Ukraine’s population

Vodafone Ukraine says that within two years its LTE 4G network should reach 90% of Ukraine’s population. By the summer of 2024 Vodaphone high speed network should cover “roads of international and national importance.”

Kyivstar, plans to invest $180 million over the next two years to expand its 4G mobile Internet service to reach 90% of Ukraine’s population

Kyivstar, plans to invest $180 million over the next two years to expand its 4G mobile Internet service to reach 90% of Ukraine’s population, says Kyivstar President Oleksandr Komarov. In the last six week, Kyivstar has connected 765 settlements in western Ukraine, bringing 4G  Internet to 400,000 people.

To promote the economic revival of government-controlled Donetsk and Luhansk

To promote the economic revival of government-controlled Donetsk and Luhansk, the government is drawing up plans for a special status zone that would include major tax breaks and international arbitration for legal disputes. Prime Minister Shmygal tells RFE/RL the biggest incentives would be reserved for the “20-kilometer zone” to the west of the demarcation line. This line runs roughly 400 km northeast arc, from near Mariupol on the Sea of Azov, to the Luhansk border with Russia.

A “Donbas Economic Development Road Map” is to be submitted next month  to the Cabinet of Ministers, according to Oleksii Reznikov is deputy Prime Minister for the Reintegration of Temporarily Occupied Territories.

A “Donbas Economic Development Road Map” is to be submitted next month  to the Cabinet of Ministers, according to Oleksii Reznikov is deputy Prime Minister for the Reintegration of Temporarily Occupied Territories.  In a recent Atlantic Council Ukraine Alert Blog, he wrote  “Our objective is to create a special investment regime in the Ukrainian-controlled part of the Donbas.”“We see the extension of international commercial arbitration rules to the region as an integral part of these plans. Additionally, the Ukrainian state

 the cost to rebuild the Donbas under Russian control would be $10 billion.

 the cost to rebuild the Donbas under Russian control would be $10 billion. Speaking to  Radio Donbas.Realii, an RFE/RL unit, he said that this would include donor money. The UN has fell far short in recent years in its campaigns for humanitarian aid to both sides of the line. Increasingly, Western donors funnel money into government controlled Donbas: a €64 million French loan for clean drinking water for Mariupol; a €25 million contract with Germany’s KfW development bank for displaced

As rail freight volumes recover, Ukrzaliznytsia carried 25.2 million tons in July, only 3% less than the tonnage carried in July 2019,

As rail freight volumes recover, Ukrzaliznytsia carried 25.2 million tons in July, only 3% less than the tonnage carried in July 2019, reports Rail.Insider news site. Volumes have increased steadily since May, the month when cargo hit “bottom,” says Ivan Yuryk, acting CEO of the state railroad.

As Ukrainians shifted rapidly to cashless transactions,

As Ukrainians shifted rapidly to cashless transactions, the number of cash transactions with cards – largely withdrawals from ATM machines – dropped by 12% during the first half of this year.

During the first half, the number of point of sale terminal increased by 5%.

During the first half, the number of point of sale terminal increased by 5%. The number of issued cards also increased by 5%, to 71.7 million, or two for every Ukrainian.

Increasingly popular are contactless and tokenized cards

Increasingly popular are contactless and tokenized cards. In June, almost 10 million contactless cards were used, up 25.6% since January. In June, 2.7 million tokenized cards were in use, up 22.5% from January.

Ukraine is moving to introduce green finance standards in the country, with a focus on green bonds.

Ukraine is moving to introduce green finance standards in the country, with a focus on green bonds. The World Bank’s IFC signed a cooperation agreement on green finance Friday with Ukraine’s National Securities and Stock Market Commission. Timur Khromaev, the Commission Chairman, said: “The Ukrainian capital market should become part of the global capital markets and our work aims to help develop this potential. Together with our international partners, we will work on policies to introduce green finance standards in

Jason Pellmar, IFC’s Regional Manager, said:

Jason Pellmar, IFC’s Regional Manager, said: “IFC’s extensive global experience has proven that investments providing environmental benefits are not only more ecologically sustainable but also more commercially sound. The development of green finance is gaining momentum throughout the world.”

Ukraine’s Commission recently joined the Sustainable Banking Network — a group of regulatory agencies and banking associations from 40 emerging markets committed to advancing sustainable finance.

Ukraine’s Commission recently joined the Sustainable Banking Network — a group of regulatory agencies and banking associations from 40 emerging markets committed to advancing sustainable finance. The Network represents 40 countries and $43 trillion, or 86% of total banking assets in emerging markets. With Ukraine owing almost $1 billion in unpaid electricity fees to solar and wind producers, green bonds increasingly are seen as a way out.

UIA only plans to return to regularly scheduled flights to New York, Toronto and Delhi in April,

UIA only plans to return to regularly scheduled flights to New York, Toronto and Delhi in April, according to Evgeny Dykhne, president of Ukraine’s largest airline. He says: “As governmental restrictions begin to ease, UIA plans to return to the hub model in April 2021 and restore the route network by at least 80% and will include long-haul flights to New York, Toronto and Delhi.” UIA has Kyiv Boryspil-Toronto flights scheduled for Aug. 15 and 29, and Kyiv-New York flights

Kyiv Boryspil passenger traffic was down 80% yoy in July,

Kyiv Boryspil passenger traffic was down 80% yoy in July, to 328,667, from 1.6 million in July 2019. Hubbing, a key component of UIA’s model, was wiped out. Last month, the airport recorded 3,146 transfer passengers, less than 1% of the 358,746 passengers handled in July 2019. Thanks to a strong first quarter, Boryspil’s air traffic is down by only two thirds for the January-July, to 2.85 million people. Until anti-virus restrictions were imposed worldwide in mid-March, Boryspil was handling

US criminal charges against Ihor Kolomoisky could follow last week’s civil forfeiture complaints by the US Department of Justice

US criminal charges against Ihor Kolomoisky could follow last week’s civil forfeiture complaints by the US Department of Justice, speculate Concorde Capital and the Kyiv Post. “Given that they [Kolomoisky and Gennadiy Bogolyubov] have already been accused by the U.S. Justice Department of money laundering and embezzlement (among other crimes), criminal charges are likely in the pipeline,” writes Concorde’s Zenon Zawada. “Though Kolomoisky can fight the forfeitures without being in court, criminal charges will likely require that he appear. That

Ukrzaliznytsia is doubling the frequency of Kyiv’s ‘train-to-the-plane’, the Boryspil Express.

Ukrzaliznytsia is doubling the frequency of Kyiv’s ‘train-to-the-plane’, the Boryspil Express. The train now travels 12 times a day between central Kyiv and Ukraine’s largest airport. The ride takes 40 minutes, with stops at Darnytsia, the left bank commuter rail station, and Vydubychi, the new right bank connection to the Green Line and buses to Odesa. Under the new schedule, trains leave Kyiv-Passenger station at 00:04, 03:00, 05:43, 06:30, 08:23, 10:00, 12:00, 14:00, 16:56, 17: 50, 20:14 and 22:01. As

Igor Kolomoisky rejects

Igor Kolomoisky rejects US Justice Department allegations that he and his partners bought office buildings and steel mills in the US property as part of a “conspiracy to launder money embezzled and fraudulently obtained” from PrivatBank, reports the Financial Times. “All investments in the USA were made from personal funds received in 2007-2008” from the sale of Ukraine-based steel industry assets and “from the income of other businesses” with accounts at PrivatBank, he tells the FT. “Everything else is categorically

The US moves seem to come partly in response to last month’s purge of bank reformers from the National Bank of Ukraine

The US moves seem to come partly in response to last month’s purge of bank reformers from the National Bank of Ukraine. In 2016, faced with a $5.5 billion hole at Kolomoisky’s bank, PrivatBank, the Central Bank nationalized the bank.

Zawada writes:

Zawada writes: “These accusations offer added insurance that Kolomoisky will not regain control over Privatbank. We believe they mark the peak of Kolomoisky’s influence in Ukraine, which will wane once criminal charges are filed in the U.S.”

Timothy Ash writes from London:

Timothy Ash writes from London: “With recent moves against the reform team at the NBU, the US Government might have reached the conclusion that if they don’t move now, then the risk is the whole domestically driven legal push on Privatbank collapses, and with it I guess hopes for sustaining the 2015-17 bank reforms and bank clean up program…things are now moving so fast in Ukraine from the forces acting against banking reform et al, that the US decided that

Oleksiy Shaban has been named a Deputy Governor of the National Bank of Ukraine

Oleksiy Shaban has been named a Deputy Governor of the National Bank of Ukraine, giving Kyrylo Shevchenko, the new Governor, a majority on the central bank board. Shaban worked as director of the bank’s payment systems department.

Timothy Ash writes from London:

Timothy Ash writes from London: “The new Governor Shevchenko is now fully in charge at the NBU…The IMF is signaling they will want to take some time to assess the changes at the NBU and give Shevchenko some time to prove himself…This likely means delay to IMF reviews and also IMF disbursements…I struggle to see further IMF credit disbursements this year.”

The use of payment cards jumped 17% yoy during the first half of this year in Ukraine,

The use of payment cards jumped 17% yoy during the first half of this year in Ukraine, to 2.74 billion transactions, reports the National Bank of Ukraine. The size of the average transaction edged up 7%, to $15.

Oleg Pendzin, a financial analyst, tells UNIAN

Oleg Pendzin, a financial analyst, tells UNIAN: “Surely we will see a certain rollback of the dollar, a drop in the hryvnia. At least to the level of 27 hryvnias per dollar, since this figure is actually in the budget of 2020.” Another financial analyst, Alexander Savchenko, forecasts a more modest weakening of the hryvnia: “I expect the dollar to strengthen around January, insignificantly, to the level of 24-25 hryvnias per dollar.”

By contrast, experts interviewed by Interfax-Ukraine predict that the hryvnia will continue to strengthen in the New Year.

By contrast, experts interviewed by Interfax-Ukraine predict that the hryvnia will continue to strengthen in the New Year. Oleg Kurinnoy, Credit Dnepr Bank’s Treasury Director, says: “With the continued demand for government bonds from non-residents, the rate can not only stabilize but also begin to strengthen.”

Natalia Shishatskaya, Forward Bank’s Head of Treasury, agrees

Natalia Shishatskaya, Forward Bank’s Head of Treasury, agrees, saying: “Given the budget deficit, the Ministry of Finance is likely to continue to place OVDPs [government bonds] at auctions next year, which means that the inflow of currency from non-residents for the purchase of government securities will remain one of the main factors affecting the strengthening of the hryvnia.”

Ukraine is preparing 530 state companies for privatization, with auctions to take place on ProZorro in 2020

Ukraine is preparing 530 state companies for privatization, with auctions to take place on ProZorro in 2020, Prime Minister Honacharuk wrote Friday on his Telegram account. With the sales expected to draw about $500 million, these companies are between the ‘small privatizations’ — $10,000 – and the big multi-million dollar privatizations that are expected to draw political resistance. Ukraine has about 3,500 state companies.

With Brexit expected to take place in 2020, a UK-Ukraine free trade deal is “75% ready,”

With Brexit expected to take place in 2020, a UK-Ukraine free trade deal is “75% ready,” Ukraine’s Ambassador to the UK, Natalia Galibarenko, tells Ukrinform. “This is a matter of several months,” she said of a document that would regulate trade between the two nations through the 2020s. Some negotiations revolve around extending British visa-free access to Ukraine, which expires next December with the end of Britain’s transition period. In the spirit of reciprocity, the ambassador wants visa liberalization for