A Briefing & Networking Reception event will be held on 22 October 2019 at the Embassy of Ukraine in Brussels, where H.E. Ambassador Mykola Tochytskyi will give "further information about the current status of the business climate after the elections in Ukraine".
for more info contact: office.belgium@uito.eu
Newly appointed minister explains purpose of uniting Economy Ministry with Agrarian Policy Ministry
The merger of the Ministry of Economic Development and Trade with the Ministry of Agrarian Policy and Food is to accelerate the implementation of key reforms.
"The merger aims to accelerate the implementation of key reforms such as: privatization of state-owned enterprises, introduction of the agricultural land market, tackling shadow agricultural markets and land relations, liberalization of labor relations (increasing the number of legal jobs), expanding access to international markets, reloading vocational training, modernization of approaches to research and innovation in the agricultural sector,” Newly appointed Economic Development, Trade and Agriculture Minister of Ukraine Tymofiy Mylovanov posted on Facebook. A detailed description of the reform will be set out in the Government Program.
On August 5, 2019, International Bank Account Number is introduced in Ukraine.
“Starting from August 5, the banks will open new accounts in accordance with the requirements of IBAN standard. At the same time, the banks will change the effective account numbers in accordance with the requirements of this standard while maintaining the current number of analytical accounting. From November 1, 2019, the use of IBAN will become mandatory for customers of all banks in Ukraine during the transfer of funds in both national and foreign currencies, including cross-border transfers. That is, all transfers starting from November 1, 2019 will be made only using IBAN,” the press service of the National Bank of Ukraine reports.The introduction of IBAN will make it possible to harmonize the Ukrainian payment space with the European one, as well as to facilitate the further planned modernization of the National Bank's electronic payment system. In general, the use of the IBAN standard is expected to make the accounting documents easier to process thanks to a reduction in banking details.
President Zelensky: Ukraine to implement land reform by year-end
Ukraine will implement land reform by the end of the year to create a 40 million hectare land market starting from 2020. "This year, we will definitely carry out a land reform which next year will allow us creating a 40 million hectares land market. It will be one of the highest quality in the world," President of Ukraine Volodymyr Zelensky said at the Ukraine-Turkey Business Forum in Istanbul, an Ukrinform correspondent reports.
The President added that some Turkish companies already owned the land in Ukraine and expressed the hope that the number of such companies would grow.
"This especially concerns southern Ukraine, where there is a need to install and maintain reclamation systems. We are also looking for opportunities for public-private partnerships," the Head of State said.
Ukraine, Turkey may sign free trade agreement - Zelensky
Ukrainian President Volodymyr Zelensky has said he hopes that Ukraine and Turkey will sign a free trade agreement soon. He said this at a joint briefing with Turkish President Recep Tayyip Erdogan in Ankara on Wednesday, August 7, according to an Ukrinform correspondent. "Cooperation between our countries is extremely rich. We will hold the eighth meeting of the [Ukraine-Turkey] High-Level Strategic Council in Kyiv by the end of the year. We have agreed on the further expansion of trade, economic and investment cooperation. In 2018, our bilateral trade amounted to over $4 billion. I'm sure that's far from the limit of our potential. The implementation of joint projects and the liberalization of bilateral trade will help realize this potential," Zelensky said. He also said that Erdogan had assured him that trade between Ukraine and Turkey could reach $10 billion. "The conclusion of a free trade agreement will also facilitate this. I hope that our sides will be able to reach a compromise on this issue as soon as possible and prepare all the necessary documents," Zelensky said.
Draft program for Carpathian region development to be presented in Sept.
The Ministry of Regional Development, Construction, Housing and Utilities of Ukraine in September plans to submit for consideration by the Cabinet of Ministers a draft state program for the development of the Ukrainian Carpathian region for 2020-2022.
First Deputy Minister of Regional Development, Construction, Housing and Utilities of Ukraine Vyacheslav Nehoda said this during a round table on the prospects for further development of the Ukrainian Carpathians, which took place in Uzhhorod on August 12, the Decentralization portal reported. "In a month we plan to submit to the government a draft state program for the development of the Ukrainian Carpathian region for 2020-2022," he said. The first deputy minister added that the Government approved the Concept for the Development of Mountain Territories of the Ukrainian Carpathians in April 2019. "While developing this concept, we used the best European experience - Austria, Slovenia, France, Sweden, Italy, and Spain. The future state program will be based on most of our developments," he said. As reported, on July 22, President of Ukraine Volodymyr Zelensky signed the Decree "On the Development of the Carpathian Region of Ukraine". The document is aimed at promoting social and economic development, increasing investment attractiveness, developing recreational, tourism and ethnocultural potential of the Carpathian region.
At least $20 bln to be invested in Ukrainian infrastructure in 5 years – Zelensky
In the next five years, at least USD 20 billion will be invested in the infrastructure of Ukraine. President of Ukraine Volodymyr Zelensky said this at the Ukraine-Turkey Business Forum in Istanbul on Thursday, August 8, an Ukrinform correspondent reports.
"Over the next five years, the country will change dramatically, our economy will grow at 5-7% per year, and I invite Turkish business to join us. During this time, we will invest at least USD 20 billion in our infrastructure to build 24,000 kilometers of our roads, increase the number of working airports to 15, ensure the development of 5 seaports in order to significantly increase their capacity, and triple the capacity of our military and industrial complex," the head of state stressed.
He added that the Verkhovna Rada would pass a concession law in the autumn, which would allow the state to cooperate safely with private companies.
Mykolaiv seaport increased cargo transshipment by 23.3% in the first seven months of 2019
"Mykolaiv seaport transshipped almost 18.2 million tonnes of cargo over the first seven months of 2019, or 23.3% more than in the same period last year. Some 1,011 vessels were handled," the report reads. Bread cargo and ore were the leaders in terms of growth in cargo transshipment in January-July 2019. Mykolaiv seaport became the second port in Ukraine to show the biggest growth in cargo transshipment over this period. Last year, Mykolaiv seaport transshipped over 29 million tonnes of cargo, which was 24% more than in 2017. In 2018, it climbed to second place in the rating of Ukrainian seaports, retaining the leadership in the transshipment of vegetable oil, petroleum products and grain.
Bloomberg: Ukrainian economy grows despite slowdown across Europe
The Ukrainian economy surged in the second quarter of 2019 despite U.S.-China trade tensions and slowdown across Europe.“Data this week showed expansion in the former Soviet republic [Ukraine] surged last quarter, even as U.S.-China trade tensions and a wider global slowdown weighed on most of the continent,” Bloomberg reports.
The pace - 4.6% -was unexpectedly quick, the agency notes.
Earlier, the World Bank had warned that if growth didn’t top the rate of recent years it would take half a century to bring income up to the levels of neighboring Poland.
Bloomberg notes that President Volodymyr Zelensky, who won control of parliament last month, has set his sights on expansion of 5% or more in the coming years. A reform plan is fueling optimism among investors and has made the hryvnia this year’s best-performing currency. “The initial signs are encouraging,” said Viktor Szabo, investment director at Aberdeen Asset Management PLC in London. For Zsolt Papp, an emerging-market debt-investment specialist at JPMorgan Asset Management, boosting Ukraine’s GDP growth in a sustainable way remains a challenge.
IMPORT-EXPORT Ukraine has exported goods and services worth $29.5 bln this year
“For six months of 2019, Ukraine exported goods and services to the tune of $29.5 billion, up 5.9% compared to the same period last year. At the same time, the export of goods for the specified period amounted to $24.4 billion. The foreign trade operations were carried out with partners from 214 world countries and territories," the press service of the Economic Development and Trade Ministry of Ukraine posted on Facebook.
In the first half of 2019, Ukraine’s top exports were base metals and base metal products (amounting to $5.6 billion), plant products ($5.5 billion), fats and oils ($2.3 billion), vehicles, equipment and mechanisms ($2.1 billion). The European Union remains the main trading partner, accounting for 42% in the overall Ukrainian exports for January-June 2019.
A step before a single digital market with the EU: The EU assessment mission launched its work in Ukraine
In the Office of the President of Ukraine, Advisor to the Head of State Mykhailo Fedorov had a meeting with the European Union assessment mission with the participation of the European Commission’s DG Connect representatives. The purpose of the mission is to assess the readiness of Ukraine's telecommunications sector to integrate with the EU Digital Single Market (DSM). “The President's team clearly understands that further acceleration of economic and social development is possible only in the case of digital transformation. We are willing to fulfill all the conditions quickly to become part of the EU initiative to create a single digital market. These are powerful digital and economic prospects for Ukraine,” Mykhailo Fedorov emphasized. The DSM strategy is now being successfully implemented in Europe. According to European experts, a single digital market can bring € 415 billion annually to a united Europe and create hundreds of thousands of jobs.The strategy is based on the European values of fair and open competition, open and secure Internet that ensures a free flow of information. Particular attention was paid to data protection, privacy and cybersecurity issues, including the issue of Internet management. Today, the DSM is regarded as Europe's main asset aimed at adapting European society and business environment to new conditions of doing business in the international arena.
World Bank allocates Ukraine $200 mln for agricultural development project
The World Bank and the Finance Ministry of Ukraine signed an agreement to raise a loan in the amount of USD 200 million to Program-for-Results (PforR) on Accelerating Private Investment in Agriculture. "Ukrainian Finance Minister Oksana Markarova and World Bank Country Director for Belarus, Moldova and Ukraine Satu Kahkonen signed a loan agreement between Ukraine and the International Bank for Reconstruction and Development (IBRD) on Program-for-Results (PforR) on Accelerating Private Investment in Agriculture in the amount of USD 200 million," the press service of the Finance Ministry reports. The program aims to increase agricultural sector competitiveness, diversification, and growth by enhancing the efficiency and targeting of sectoral support policies, improving transparency and efficiency of use in the state agricultural land, and improving agribusiness SMEs’ access to export markets. All of these are key preconditions for the successful development of the agriculture sector. The program is also expected to enhance sector policies to increase access to key agricultural inputs by improving efficiency and targeting of the current agriculture state support programs; enhance transparency in land lease markets; complete the registration of all state land; and strengthen land rights protection by improving owners’ and users’ awareness and enforcement of their rights. The project will be implemented as part of the Strategy on Attracting Private Investment in Agriculture for the period until 2023, approved by the Cabinet of Ministers on July 5, 2019. The strategy aims to support the efforts of the Government of Ukraine, in particular, the Agrarian Policy Ministry, the Regional Development Ministry and the Justice Ministry, to create favourable conditions for private investments, including small and medium enterprises, in the agriculture sector.
Capital investments into Ukraine’s economy grew by 13% in H1 2019
In the first half of 2019, the growth of capital investments into the Ukrainian economy made up 13%, compared with the relevant period last year, according to the data provided by the State Statistics Service. In particular, in January-June 2019, capital investments into the Ukrainian economy amounted to almost UAH 234 billion (which is 13.1% more year-over-year), of which UAH 94.3 billion (an increase of 31.6%) was attracted into industry, UAH 25.3 billion (an increase of 12.8% into construction), UAH 23.3 billion (a decrease of 11.7% in the agriculture sector, hunting and related services), UAH 18.5 billion (an increase of 7.7%) in the wholesale and retail trade. Over the reporting period, machinery and equipment investments made up 35.3% of total capital investments, engineering sector investments - 19.8%, investments into non-residential buildings - 13.3%, vehicles - 12.4%, residential buildings - 10.5%, software and databases - 1.9%, commercial designations, industrial property rights, copyright and related rights, patents, licenses, concessions - 1.7%, long-term biological plants’ and livestock assets - 0.8%, land - 0.4%, other tangible and intangible assets - 3.9%. Almost three-quarters of capital investments (73.3%) attracted in the first half of 2019 accounted for the own funds of enterprises and organizations, 7.7% - bank loans and other loans, 6.6% - household funds, 6.4% - local budgets, 2.6% - state budget funds, 0.8% - foreign investors' funds, 2.6% - other sources of financing. As reported, according to the State Statistics Service, in the first half of 2018, Ukraine’s economy received UAH 206.9 billion in capital investments, which is 33.4% more than in the first half of 2017.
Green Investment Fund to be established in Ukraine
The State Agency on Energy Efficiency and Energy Saving of Ukraine in cooperation with NEFCO and experts of the Finland Ukraine Trust Fund is working on the establishment of the Green Investment Fund in Ukraine.
"The State Agency on Energy Efficiency and Energy Saving of Ukraine in cooperation with NEFCO and experts of the Finland Ukraine Trust Fund initiates the elaboration of the concept of a new financial instrument in Ukraine - the Green Investment Fund (GIF UA). The establishment of the Fund will become another priority area of the already successful partnership between the Ministry of Foreign Affairs of Finland and the State Agency on Energy Efficiency and Energy Saving of Ukraine,” Chairman of the State Agency on Energy Efficiency and Energy Saving of Ukraine Serhiy Savchuk posted on Facebook.
The GIF UA aims to provide co-financing for new green energy projects and to remove the main barriers in the implementation of these projects.
It is assumed that domestic and international financial institutions will be able to participate in the activities of the fund.
“Our goal is to establish in Ukraine a reliable financial instrument for funding projects by the example of the Green Investment Group in the UK, the DEG in Germany,” Savchuk noted.
Parliament approves new Cabinet of Ministers
The Verkhovna Rada of Ukraine of the ninth convocation has approved a new composition of the Cabinet of Ministers.
A total of 281 MPs voted in favor of the new composition of the Cabinet of Ministers at the first meeting of the first session of the Verkhovna Rada of the ninth convocation on Thursday, August 29, an Ukrinform correspondent reports. At the suggestion of Prime Minister of Ukraine Oleksiy Honcharuk the Cabinet of Ministers includes the following ministers:
Vice Prime Minister for European and Euro-Atlantic Integration of Ukraine Dmytro Kuleba;
Vice Prime Minister of Ukraine - Minister of Digital Transformation Mykhailo Fedorov;
Minister of the Cabinet of Ministers of Ukraine Dmytro Dubilet;
Minister of Economic Development, Trade and Agriculture of Ukraine Tymofiy Mylovanov;
Minister of Justice of Ukraine Denys Malyuska;
Minister of Finance of Ukraine Oksana Markarova;
Minister of Energy and Coal Industry of Ukraine Oleksiy Orzhel;
Minister of Infrastructure of Ukraine Vladyslav Krykliy;
Minister of Development of Communities and Territories of Ukraine Olena Babak;
Minister of Education and Science of Ukraine Hanna Novosad;
Minister of Health of Ukraine Zoryana Skaletska;
Minister of Culture, Youth and Sports of Ukraine Volodymyr Borodyansky;
Minister of Social Policy of Ukraine Yulia Sokolovska;
Minister of Internal Affairs of Ukraine Arsen Avakov;
Minister for Veterans, Temporarily Occupied Territories and Internally Displaced Persons of Ukraine Oksana Kolyada.
In the new government, some ministries have been merged. In particular, the Ministry of Economic Affairs and the Ministry of Agrarian Policy and Food; the Ministry of Energy and the Ministry of Ecology; the Ministry of Veterans and the Ministry of Temporarily Occupied Territories; the Ministry of Culture and the Ministry of Youth and Sports. However, the government does not have the Ministry of Information Policy.
As reported, the Verkhovna Rada of Ukraine appointed Oleksiy Honcharuk as Prime Minister of Ukraine, Vadym Prystaiko as Minister of Foreign Affairs of Ukraine, and Andriy Zahorodniuk as Defense Minister of Ukraine.
Newly appointed minister explains purpose of uniting Economy Ministry with Agrarian Policy Ministry
The merger of the Ministry of Economic Development and Trade with the Ministry of Agrarian Policy and Food is to accelerate the implementation of key reforms.
"The merger aims to accelerate the implementation of key reforms such as: privatization of state-owned enterprises, introduction of the agricultural land market, tackling shadow agricultural markets and land relations, liberalization of labor relations (increasing the number of legal jobs), expanding access to international markets, reloading vocational training, modernization of approaches to research and innovation in the agricultural sector,” Newly appointed Economic Development, Trade and Agriculture Minister of Ukraine Tymofiy Mylovanov posted on Facebook. A detailed description of the reform will be set out in the Government Program.
