Ukraine

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8:37 AM Thursday, October 19, 2017
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UBJ AM Sept. 20, 2017
​Ukraine plans to place $3 billion in Eurobonds in 2018; Travel to Europe up 10 percent this summer; Ukrainians working in Poland send home almost $3 billion a year
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 2018, Ukraine seeks to place $3 billion in 10- and 15-year Eurobonds, Interfax reports.

• Alexander Paraschiy of Concorde Capital analyzes Ukraine’s placement Monday of $3 billion in Eurobonds at 7.375%: “This was the first market placement of Ukraine’s sovereign Eurobond since April 2013 and the longest one in Ukraine’s history. Also, its rate was the lowest since mid-2011, so we can claim the placement was successful.”

• Ukraine’s Finance Ministry has received offers to buy $1.161 billion in 2019 Eurobonds and $415 million in 2020 Eurobonds and is going to satisfy all of them. The purchase price of the 2019 and 2020 notes was set at 106.00% of par and 106.75% of par, respectively. Alexander Paraschiy writes: “This is the first time in Ukraine’s history that the government is offering an early repayment on part of its debt.”

• Retail trade is up 8.7 percent for the first eight months of this year, compared to the same period last year, reports the State Statistics Service, Gosstat. The fastest growing regions are: Transcarpathian (up 23.3%); Vinnytsia (up 18.1%); Odessa (up 13.5%); Lviv (up 11.8%); Mykolaiv (up 11.3%); and Sumy (up 10.3%).

• Behind the 2.3% second quarter GDP growth, the main drivers were private consumption -- up 6.6% year over year -- and gross capital accumulation – up 23.7% year over year. Exports fell 2.1% yoy, while imports rose 4.6% yoy. Elena Belan, chief economist at Dragon Capital, writes: “A key driver of the economic recovery is still domestic demand. The rapid growth of investment and consumption helped to completely neutralize the negative impact of the severance of economic relations with non-controlled territories of Donbass.»

• Prime Minister Volodymyr Groysman believes the nation’s road network will be restored within five years. He noted on his Facebook page that $1.4 billion is budgeted for road repair and reconstruction next year.

• The Rada should approve the government’s pension changes by Oct. 1, Rada Speaker Andriy Parubiy told Espreso TV. He said: "This issue refers not only to our obligations to the IMF. It is the commitment to Ukrainian pensioners. We want the Ukrainian pensioners to get increased pensions starting from October 1."

• The last independent members of the Naftogaz supervisory board want to resign, the state gas company’s press service reports. The company said: "Paul Warwick and Marcus Richards link their decision with rolling back reforms by the government.”

• Ukrainian businessman and politician Sergiy Tigipko has bought Building Invest Group, developer of Podol Mall, a three-story shopping and entertainment center built in 2015 near Kyiv’s Tarasa Shevchenko metro station.

• Tigipko, who also owns TAScombank and Universal Bank, intends to buy VS Bank (Lviv) from Sberbank of Russia, the press service of TAScombank told Interfax-Ukraine. As of July 1, the bank ranked 28th among Ukraine’s 88 banks, with the hryvnia equivalent of about $140 million in assets, according to the National Bank of Ukraine.

• During the first 100 days of visa-free travel to Europe, Ukrainian travel to the EU was up by 10% year over year, the EU mission here reports. But only a small minority – 4 percent – took advantage of the new visa free regime. According to Ukraine’s State Border Service, 5.8 million Ukrainians – about 15 percent of the population – visited the EU this summer. Of these, only 235,795 traveled to the EU carrying biometric passports, without visas. Of this group, only 61 Ukrainians were denied entry.

• Poland-Ukraine trade increased by 30% during the first quarter of 2017, Bartosz Cichocki, a Polish deputy foreign minister said in Kyiv. He added that the 1.2 million Ukrainians working in Poland annually send home 8 billion zloty, $2.8 billion. He said: "This is over 3% of the Ukrainian GDP, which means that significant support comes from Poland.”

• Ukraine International Airlines is expected to add in 2018 a second US destination, after New York, according to a new report by CAPA. The airline aviation analysis group notes that UIA is buying Boeing 777s and plans to double its long haul destinations next year, adding Delhi, Shanghai and Toronto. Currently, Ukraine’s flagship carrier has four long haul destinations: Bangkok, Beijing, Colombo and New York’s JFK.

• Over the next seven years, the Cabinet proposes to increase the excise tax on cigarettes fivefold, hitting an EU minimum of EUR 90 per 1,000 cigarettes by 2025.

• In a bet that Ukraine’s economy is back and that expat tourists and investors are coming back, “What’s On” -- ‘Kyiv's definitive English-language lifestyle and entertainment magazine’ -- returns this week to hotels and bars in the capital. The monthly guide suspended publication in Feb. 2014, at the height of the Revolution of Dignity. Lana Niland, publisher of What’s On, writes of the publication, now in print and online: “As Ukraine's economic recovery continues, the owners of the magazine feel confident that bringing the magazine back at this time would be financially viable.”


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

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