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8:37 AM Thursday, October 19, 2017
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UBJ AM Sept. 19, 2017
Big demand for Ukraine bonds; New budget predicts econ stats; for 2018 Next year, a ‘Marshall Plan’ for Ukraine?
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

• In Ukraine’s first sovereign bond offering since the 2015 restructuring, Ukraine placed $3 billion worth of Eurobonds at 7.375% per annum with a 15-year maturity, President Petro Poroshenko said. Meeting investors in New York on Monday, he said: “Never before Ukraine attracted such a volume, never for a period of 15 years. This is an incredibly positive assessment by investors of the reforms that are taking place in Ukraine, when each investor votes with his dollar for the success of reforms."

• Half of the Eurobond raise will be used to purchase older Eurobonds with higher interest rates and maturities in 2019-2020. The deal was organized by BNP Paribas, Goldman Sachs and JP Morgan. A road show was held last week in London, Boston and New York. Demand was high with about 400 investors registering to buy almost $10 billion. In face of high demand, yields were cut from 7.75% to the final level of 7.375%.

• The economic shape of 2018: GDP growth at 3%, inflation at 7%, the hryvnia at 29.3 to the dollar, minimum wage up 16.3%, teacher salaries up 25%, general budget revenues up 15%,local budgets up 36%, and the budget deficit at 2.4% of GDP. Those are the figures in the 2018 draft budget approved by the Cabinet of Ministers. Concorde Capitals’s Alexander Paraschiy writes: “The numbers available so far are very close to our view, including the revenue target. We are more optimistic on GDP growth (3.5% yoy), the exchange rate (UAH 28.5/USD), as well as inflation tendencies (6.6% YTD in 2018).”

• Ukraine's GDP from April through June grew by 2.3%, compared the same time last year. This was down from 2.5% growth in the first quarter of 2017, the State Statistics Service reports.

• Andrius Kubilius, a two-time former prime minister of Lithuania, wants to hold a donor conference in February or March for a “Marshall Plan” for Ukraine. In a first step, Stepan Kubiv, Ukraine’s Minister of Economic Development and Trade, said a meeting of the Ukrainian-Lithuanian organizing commission will be held Sept. 25 to determine five key priorities.

• Westinghouse Electric Company has signed a contract with Energoatom to deliver monitoring instrumentation systems for four reactors of Zaporizhia nuclear power plant, the company's press service reports. The four year program is partially financed by the European Bank for Reconstruction and Development, or EBRD.

• Burisma Group, the largest independent natural gas producer in Ukraine, has put into operation the nation’s most powerful drilling rig -- a SK 3000 capable of drilling 10,000 meter deep wells. Manufactured by Service King Manufacturing, Inc., of the United States, the rig cost $38 million. This year, Burisma is investing $115 billion to drill 20 new wells.

• Ukrainian Startup Pavilion at TechCrunch Disrupt 2017, under way today and Wednesday in San Francisco, is showcasing 15 Ukrainian startups, a record number. Zhenya Rozinskiy, co-founder of the Pavilion, says: "From personalized DNA-based services to autonomous 3D printed houses, project management tools, travel, and cyber-security innovations, Ukrainian Startup Pavilion has a lot to offer.

• Winners of next Saturday’s HackIT 2017 international cyber forum in Kharkiv will be invited to help create Ukraine’s new NATO standard cyber security center, according to the website of Ukroboronprom’s Cyber Guard. On the discussion side of the forum, about 1,000 participants from 10 countries are to debate cyber weapons, cyber espionage techniques and cyber security threat prevention.

• Ukraine’s river transport could triple in three years with proper regulation and investment, according to a new study by the Better Regulation Delivery Office, under auspices of EU4Business FORBIZ project. Ukraine has 4,000 km of potential inland waterways, but uses less than 10% of its river freight transport capacity. Inland waterways account for less than 1% of total freight traffic, compared to a EU average of 7%. Taras Slobodyanyuk, BRDO’s head of Transport, said: “The river infrastructure is collapsing, the investment attractiveness of the industry is falling, the country's economy loses huge potential.”

• Foreign Languages, Law and Business Management are the three top areas of study for incoming university students, according to Ukraine’s Education and Science Ministry. Completing the top 10 fields are: Medicine, Computer Science, Tourism, Secondary Education, Psychology and Economics and Software Engineering. Without counting seminarians, the least popular field is Theology.

• Lannivsky Industrial Park, a one hour drive east of Poltava, has become the 27th industrial park registered by the Ministry of Economic Development and Trade. The initiator of the 31 hectare park is Lannivsky Sugar Plant. The managing company of the park, Lannivska MTS LLC, plans to build food processing factories that will employ 600 people.

• Astarta agricultural holding could invest as much as $80 million over the next three years, Zeljko Erceg, operations director, has told journalists in Poltava. Plans included irrigation, new crop production technologies, new elevators, new livestock complexes, and milk processing.

• Through July, Ukraine’s dairy exports total $23.6 million, five times the level for the same period last year, according to Ukraine’s Food Export Board.


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

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