Ukraine

Business

Journal

8:39 AM Thursday, October 19, 2017
Free Articles
UBJ AM Oct.3, 2017
​FDI running at double last year’s level; Three rockets to go up with Ukrainian engines; New car sales up 36%; Construction up 25%; Gas transit at highest level in almost a decade; Steel down 13.5%
image/svg+xml Kyiv Lutsk Rivne Zhytomyr Lviv Ternopil Khmelnytskyi Uzhgorod Chernivtsi Vinnytsia Chernigiv Sumy Kharkiv Poltava Cherkasy Kirovohrad Lugansk Dnipropetrovsk Donetsk Zaporizhzhia Mykolaiv Odesa Kherson Simferopol Sevastopol Ivano- Frankivsk

• Foreign direct investment to Ukraine is running at almost double the level of last year, according to the National Bank of Ukraine. Through August, Ukraine has received $1.2 billion, compared to $700 million last year. The central bank reported that 85% of the $194 million invested in Ukraine in August went to the ‘real sector’ of the economy. Despite this growth, levels are considered low for a country of 43 million people.

• Since the beginning of the year, EU countries have invested nearly $600 million in Ukraine The top countries were: Cyprus at $287 million and Britain at $160 million. Cyprus money is often Ukrainian or Russian in origin. Similarly, Ukrainian investors have $5.9 billion invested in Cyprus – about 97% of Ukrainians’ declared investments in the EU. The figures come from the website of the Ministry of Economic Development and Trade

• Three rockets are to launched next month with major parts built in Ukraine. According to Spaceflight Now, they are: a Vega launch vehicle with an Earth Observation Satellite for Morocco, from France’s Guiana Space Center; Antares booster rocket for the Cygnus, carrying cargo to the International Space Station, from the Wallops Flight Facility, in Virginia, US; and a Ukrainian Zenith rocket carrying Angola’s first communications satellite, from Russia’s Baikonur cosmodrome in Kazakhstan.

• The Economy Ministry has set 2018 duties for cars imported from the EU. Depending on engine size, they are: 7.3%, 6.3% and 5%. The All-Ukrainian Association of Automobile Importers and Dealers is asking the Rada to abolish all import duties now, abandoning a scheduled seven year phase out. The government is negotiating with foreign car makers to build plants in Ukraine.

• Sales of new cars in Ukraine increased by 36% in September, putting the nation on track to buy 100,000 new cars this year. The sales leader was Japan’s Toyota, followed by Germany’s Volkswagen, and France’s Renault. Last year, sales of new cars increased by 41 percent, hitting 65,600.

• Trade between Ukraine and Australia increased by 56% through July, to $113 million, Prime Minister Groysman said. On Monday Groysman met in Kyiv with Stephen Parry, visiting President of Australia’s Senate and with Australia’s new Ambassador to Ukraine, Melissa O’Rourke. Groysman urged Australians “to invest more actively in Ukraine.”

Dragon Capital is continuing its investment drive with the purchase of a minority stake in ShipNext an independent online platform for maritime shipping. Bryan Best, Dragon’s Managing Director, said the website is designed to take the $380 billion global maritime shipping industry out of “the format of ordinary electronic mail.”

• Electricity exports will increase 60% this year compared to last year, predicts Energy Minister Ihor Nasalyk. "It will be a growth of about 60%. I think that's a lot," Nasalik told UNIAN. Last year, exports were up 11%. Ukraine exports to his western land neighbors: Hungary, Moldova, Poland, Slovakia, and Romania.

• Ukraine’s gas imports are up 70 percent this year, to 10.7 billion cubic meters of gas through September. Ukraine now only imports from neighboring EU nations. Suppliers are: Slovakia - 9.1 billion cubic meters; Hungary - 1 billion cubic meters; and Poland - 1 billion cubic meters.

• Despite Russia’s stated ambition to bypass Ukraine, gas transit through Ukraine is running at the highest level in almost a decade -- 70.4 billion cubic meters for the first nine months of this year. Due in part to Russia closing Nord Stream in September for maintenance, Ukraine has handled 23.5% more gas than the same period last year, according to a Ukrtransgaz posting on Facebook.

• Construction is the fastest growing sector of the economy in 2017, the Economy Ministry reports. This building boom includes road construction and renovation of factories. Through August, construction is up by 25.4%. From the government side, budget spending on construction projects is up by 44.5%.

• Work vacancies are growing fastest in IT, design, sport, insurance and jurisprudence, according to a National Bank of Ukraine survey of private job sites and the State Employment Service. This year, wages are growing the fastest in economy’s hottest sectors: agriculture, construction, pipeline transport and industry.

• Ukraine's state debt hit $76.6 billion at the end of Aug 31, the Finance Ministry reports. Through August, state and state guaranteed debt grew by 7.9% in the dollar terms.

• Ukraine's current account deficit narrowed to $226 million in August from $597 million, the National Bank of Ukraine reports. Exports were up 15.3% year over year in August, while imports were up 8.5% year over year. Through August, the current account deficit was $2.1 billion, compared to $1.8 billion deficit last year.

• Ukraine's steel output is down 13.5% through September to 15.8 million tons, according to Uaprom, citing the steel producers union. Last year, steel production rose 5.5 percent to 24.2 million tons.

• A total of $1.7 billion has been confiscated from the accounts of former president of Ukraine Viktor Yanukovych and his entourage, Prosecutor General Yuri Lutsenko told TSN’s Tyzhden program. He said: “The losses caused by the Yanukovych regime to the Ukrainian state total $40 billion, which is one year’s state budget... Therefore, $1.5 billion, which we managed to return back to the state budget through special confiscation, is only part of the funds stolen by the organized criminal group of Yanukovych.”


The UBJ is now free access. Please relay our link to friends and business partners who want clear, reliable business information about Ukraine: www.theubj.com


For comments and story tips, email UBJ Editor in Chief James Brooke at james.brooke@theubj.com

We recommend
Air traffic up by almost one third; Railroad carri...
James Brooke Oct 19, 2017
Ukraine’s trade deficit doubles; Trade with Russia...
James Brooke Oct 18, 2017
World Bank President to visit Ukraine next month;...
James Brooke Oct 16, 2017
--> --> -->