Affordable Loans program to allow starting own business or expanding it - Honcharuk
Prime Minister Oleksiy Honcharuk has stated that the state program “Affordable Loans at 5-7-9%" is needed to give Ukrainians an opportunity to start own business or expand it.
"This is an important government program that has been developed by the government following the instructions of the President of Ukraine. It is aimed at providing access to cheap resources for people who want to start or develop their own business, that is, entrepreneurs," Honcharuk said on Ukraine TV channel on Sunday evening, an Ukrinform correspondent reported. According to the prime minister, the state support program will provide an opportunity for entrepreneurs to receive loans at lower interest rates for opening or expanding their business. As Ukrinform reported, Prime Minister Oleksiy Honcharuk on February 3 would represent the state program “Affordable Loans at 5-7-9%".
Exports of Ukrainian goods increased by 6.4% in 2019
In 2019, exports of Ukrainian goods increased by 6.4% and amounted to USD 46.1 billion, according to data of the National Bank of Ukraine (NBU). “In 2019, exports of goods increased by 6.4% (by 9.2% in 2018) and amounted to USD 46.1 billion. The growth occurred due to an increase in food exports by 19.0% (by 4.8% in 2018) and high grain exports (+33.1%)," the report reads. In nominal terms, exports of Ukrainian goods increased to Asian countries (by USD 1.5 billion, or 11.0%), and their share grew to 33.0% (31.6% in 2018). Exports also increased to Africa (by USD 911 million, or 22.5%) and EU countries (by USD 834 million, or 5.1%). As for imports of goods, in 2019, it grew by 7.1% (by 13.6% in 2018) and amounted to USD 60.1 billion. The growth was due to non-energy imports by 11.8% (by 13.3% in 2018), mainly due to imports of mechanical engineering (by 21.0%). Geographically, in nominal terms, imports grew from Asian countries (by USD 2.7 billion, or 21.2%) and EU countries (by USD 2.1 billion, or 10.3%).
President announces large-scale road construction project in Ukraine
Road construction is a priority for the Ukrainian authorities, that is why the implementation of the Great Construction project begins on March 1, 2020, Ukrainian President Volodymyr Zelensky has said. "We want to connect all corners of our country with high-quality road communications. We have to strengthen cultural and social ties and make important social facilities accessible,” the head of state said during the Knit Ukraine Together: Security, Construction, Financing event at the State Agency of Automobile Roads of Ukraine on Tuesday, according to the president’s press service.
The government plans to upgrade 4,000 kilometers of roads of national significance in 2020. Unprecedented funds (more than UAH 85 billion) are provided for that.
“These funds include UAH 31 billion from the State Road Fund, more than UAH 19 billion from banks under state guarantees, and part of the funds that Naftogaz of Ukraine received from Gazprom following the results of the Stockholm Arbitration,” the president said. In addition, the head of state stressed the importance of building local roads. “We plan to build 2,500 kilometers of local roads this year. A record amount of UAH 22.2 billion has been allocated for that. This is 70% more than in 2019,” Zelensky emphasized.
The president noted that large-scale construction of roads would help create about 12,000 new jobs in Ukraine. "The government must adopt all the necessary decisions shortly to start work as soon as possible and efficiently use these funds," Zelensky stressed.
EU will pay attention to increasing trade with Ukraine - EU commissioner
The European Union will pay close attention to issues related to increasing trade with Ukraine, EU Commissioner for Neighborhood and Enlargement Oliver Varhelyi has said.He said this at a joint briefing with Ukrainian Prime Minister Oleksiy Honcharuk in Kyiv on Tuesday, February 11, according to an Ukrinform correspondent."We are open to facilitate as much as we can trade between the EU and Ukraine. And therefore we agree that it is a priority to establish the ACAA - basically the synchronization of technical standards for industrial products so that we can facilitate trade. Our people will start working on this as a priority. And we will look at this issue very closely together and we will hopefully be in a position to make big progress, still this year, by starting the actual negotiations," Varhelyi said.He also said that Ukraine and the EU should work on all areas "where we can bring growth and jobs back to Ukraine, especially when it comes to connectivity, when it comes to the Green Deal, energy, transport, education, everything that can contribute to making a strong economy in Ukraine."Honcharuk, in turn, noted that the Ukrainian government and European partners are creating favorable conditions for Ukrainian exporters."Our priority is an 'industrial visa-free regime' with the European Union. That is, signing the Agreement on Conformity Assessment and Acceptance of Industrial Products. We expect the arrival of a preliminary assessment mission to start the negotiations," he said.According to Honcharuk, Ukraine's latest task to start negotiations on the "industrial visa-free regime" was the adopted law on market surveillance authorities reducing pressure on businesses.
President says he doing everything to make Ukraine more attractive to investors
President of Ukraine Volodymyr Zelensky met with representatives of the country's leading business associations and urged them to join government programs for large investors, the president’s press service has reported. "My team and I personally are ready to fight for each of you, for every kopeck you invest in Ukraine," the president said and thanked the business representatives for their active participation in the life of the country.
Zelensky noted that there is great potential for development and growth in Ukraine now, as there are many reforms ahead, including judicial reform. And until it is completed, the state is ready to stand up for investors. "Why do we come up with investment programs? To make you feel safe in Ukraine right now, so that your business is protected,” the head of state said. The president also stressed that he and his team were open to cooperation with business and were ready to listen to all proposals, in particular, on legislative changes that would improve the business climate and would be aimed at the growth of economy and welfare of citizens. “Every day we do everything to make the country more attractive. More attractive for business. We are doing everything right now - we are doing things that the president and government do not do in a modern European country. Now we "clean" Ukraine from all the dirt, and there is too much dirt. However, you can help us by opening new offices and projects,” Zelensky said. The president also suggested holding such meetings on a monthly basis.
Economic Development Ministry planning to attract about $5 bln in FDI this year
The Ministry of Economic Development, Trade and Agriculture of Ukraine aims to attract about $5 billion in foreign direct investment (FDI) in the country's economy in 2020.
“We have two scenarios [based on the main economic and social development targets for 2020-2022] that were approved in October 2019, and now we work on changing them. If we talk about the baseline scenario, this is an increase in foreign investment inflow up to $3-3.5 billion. According to our target scenario, we would like to bring this level to $5 billion a year,” Deputy Economic Development, Trade and Agriculture Minister of Ukraine Serhiy Nikolaychuk said during the presentation of the economic growth strategy, an Ukrinform correspondent reports. In 2019, the inflow of foreign direct investment (FDI) to Ukraine totaled $2.5 billion.
Government intends to sell 300 small-scale privatization entities, five large enterprises
In 2020, the Government of Ukraine plans to sell more than 300 entities within small-scale privatization and five large enterprises. This is stated in the government's "Economic Strategy: Growth through Investment," the press service of the Ministry of Economic Development, Trade and Agriculture of Ukraine reports. "The next area of private investment attraction is the privatization of state-owned enterprises and banks. Already this year, the Government plans to sell more than 300 entities within small-scale privatization and five large enterprises through the State Property Fund," the statement reads. For the latter, the investors are offered tax holiday — a 5-year income tax exemption for investments worth from $10 million. At the same time, an investor should fulfill the investment conditions: to keep the specialization of the enterprises included in the high-tech added value chains. According to Prime Minister Oleksiy Honcharuk, large and small-scale privatizations should increase the state budget in 2020 by UAH 6 billion each.
Ukraine’s grain and sunflower yield increases significantly since 2014 – report
During the period from 2014 to 2019, grain yield in Ukraine increased from 63.9 million tonnes to 75.1 million tonnes, while sunflower yield grew from 10.1 million tonnes to 15.3 million tonnes. This is stated in a report on the implementation of the program of activities of the Cabinet of Ministers of Ukraine, the Government portal reports. According to the State Statistics Service, Ukraine’s grain yield in 2019 increased to 75.1 million tonnes, compared with 70.1 million tonnes in 2018 and 61.9 million tonnes in 2017 (63.9 million tonnes in 2014, 60.1 million tonnes in 2015, and 66.1 million tonnes in 2017). Also, sunflower crop in 2019 grew to 15.3 million tonnes, compared with 14.2 million tonnes in 2018, 12.2 million tonnes in 2017 (10.1 million tonnes in 2014, 11.2 million tonnes in 2015, 13.6 million tonnes in 2016). On February 12, the Government at a meeting decided to approve and submit to the Verkhovna Rada of Ukraine a report on the progress and results of the implementation of the program of activities of the Cabinet of Ministers of Ukraine in 2019. On February 17, Chairman of the Verkhovna Rada Dmytro Razumkov said that he had received the document. MPs plan to hear the report on Friday, February 21.
Additional one mln jobs to be created in Ukraine in next five years – Mylovanov
An additional one million legal jobs will be created in Ukraine in the next five years, Minister of Economic Development, Trade and Agriculture of Ukraine Tymofiy Mylovanov has said. “The government is ready to legalize labor in Ukraine. We look at neighboring countries, where each industry has its own rules, for example, official hourly wages. The government set a goal to create another 1 million legal jobs for Ukrainians in the next five years ... We have a clear action plan. From improving legislation and creating all conditions to well-paid jobs," he wrote on his Facebook page. According to him, the bill on labor will allow working legally and as much as people want for a decent wage. "This year, in real terms, we expect an approximate increase in wages by 8-9%," Mylovanov said.
Gas prices for industrial consumers to fall by 12-15% in March – Naftogaz
In March 2020, industrial consumers will pay UAH 3,981-4,606 per 1,000 cubic meters of natural gas, which is 12-15% less compared to the February price, the press service of NJSC Naftogaz of Ukraine reports. "NJSC Naftogaz of Ukraine has published natural gas price quotations that will be in effect for industrial consumers and other business entities from March 1, 2020," the statement reads. Depending on the volume of purchases and payment terms, NJSC Naftogaz of Ukraine offers natural gas at the price of UAH 3,981–4,606 per 1,000 cubic meters (excluding VAT, main and distribution pipeline transportation costs). "Compared to gas prices in February, the price of natural gas in March will decrease by 12-15% based on delivery conditions," the company notes.
Ukraine sets record for grain exports – Institute of Agrarian Economics
Ukraine has set a record for grain exports over the past 10 years. In 2019, it exported 56.7 million tonnes of grain crops, which is four times higher than in 2010, Deputy Director of the National Research Center ‘Institute of Agrarian Economics’ Mykola Puhachov has stated. "Ukraine over the past decade has significantly increased grain export volumes. Last year, another record was set: 56.7 million tonnes of domestic grain crops were exported to foreign markets. This is four times higher than in 2010 and 36% more than in 2018," Puhachov said. He noted that the overall growth in grain exports led to its high cost in the history of Ukraine – USD 9.6 billion. The largest buyers of domestic grain in 2019, as before, were the countries of Asia, Africa and Europe. A characteristic feature of 2019 was a significant update of the top 10 exporters of Ukrainian grain. Turkey, Bangladesh and Israel joined the list. In the current marketing year, there is also an increase in domestic grain exports. In the first half of the 2019/2020 marketing year, Ukraine exported about 30.5 million tonnes of wheat, Puhachov summed up.
EBRD allocates EUR 52.5 mln to Odesa company for retail expansion
The European Bank for Reconstruction and Development (EBRD) has allocated EUR 52.5 million for the expansion of retail trade in Odesa, including the Riviera shopping center, the EBRD's press service has told Ukrinform. According to the report, the EUR 52.5 million financing package organized by the bank for Novi Biznes Pohliady Ltd, a special project company that owns and manages Riviera, will help expand the existing total lease space by 18,131 square meters by the end of 2022. Hundreds of young women and men will be able to undergo specialized training in IT, foreign languages, sales, marketing and other disciplines as part of this investment program, the report said.
This investment will increase the availability of modern retail space in Odesa, which now lags behind most Eastern European cities with a current lease rate of only about 250 square meters per 1,000 inhabitants, the EBRD said. The EBRD is the largest international financial investor in Ukraine. Since the start of its operations in the country in 1993, the Bank has made a cumulative commitment of more than EUR 14.5 billion through 460 projects in Ukraine.
Digital Transformation Ministry, Ericsson sign memorandum of advisory support
The Ministry of Digital Transformation of Ukraine and Ericsson company have signed a memorandum of advisory support for fixed and mobile 4G (LTE-Advanced) and 5G networks. "The Ministry of Digital Transformation and Ericsson have agreed on advisory support for fixed and mobile 4G (LTE-Advanced) and 5G networks. The memorandum was signed by Deputy Digital Transformation Minister Oleksandr Shelest and General Manager of Ericsson in Ukraine Yaroslav Nitsak," the Ministry posted on its Facebook page. The Ministry added that a joint working group was being set up to work on technical expertise in mobile and fixed Internet development and provide advisory and information support to the Ministry on the evolution of mobile communications, frequency strategy and licensing policies. As reported, the Ministry of Digital Transformation and Kyivstar signed a memorandum of cooperation in digital literacy.
Govnt appoints deputy economic development minister
Newly appointed Deputy Minister of Economic Development and Trade and Agriculture of Ukraine Serhiy Hlushchenko will be responsible for coordinating activities in the agricultural sector of the economy. Minister of Economic Development, Trade and Agriculture of Ukraine Tymofiy Mylovanov wrote about this on his Facebook page.
“On February 26, 2020, the Cabinet of Ministers appointed Serhiy Hlushchenko to the post of Deputy Minister of Economic Development, Trade and Agriculture of Ukraine. At the Economic Development Ministry, together with Taras Vysotsky, Serhiy Hlushchenko will be responsible for promoting and coordinating activities in the agricultural sector,” Mylovanov wrote. He added that a detailed list of powers will be published after Hlushchenko’s approval at the post.
IMF experts make good progress in discussions in Ukraine
The International Monetary Fund says it has made good progress in negotiations with the Ukrainian authorities and that the discussions will continue in the coming days.
This is stated in a statement by IMF Resident Representative in Ukraine Goesta Ljungman. “The IMF staff team that visited Kyiv has made very good progress in discussions on legislation to support growth and ensure stability, and the discussions will continue in the coming days,” the statement reads. On February 20, a team of IMF experts, led by Mr. Ron van Rooden, began its work in Kyiv. On January 18, 2020, IMF Managing Director Kristalina Georgieva said that Ukraine should fulfill preliminary requirements for the launch of a new Extended Fund Facility (EFF) program worth $5.5 billion. According to her, Ukraine and the IMF have reached a staff-level agreement that stipulates the fulfillment of certain preliminary requirements.
In December 2019, the IMF agreed with the Ukrainian government on a new three-year EFF program for 4 billion Special Drawing Rights (SDRs), or about $5.52 billion.
BECOME A MEMBER OF THE UKRAINE INVEST & TRADE OFFICE
The principle activities of the UITO include representing the general interest of the business community, providing information and advice to members, EU support programs, promoting economic and cultural development, providing market information and economic statistics. Encouraging foreign investment, facilitating international trade
and bringing business people together.
"TOGETHER WE ARE STRONG"
Become a member
