Ukraine

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15:18 PM Thursday, September 21, 2017
Tech
UBJ AM Sept. 5, 2017
James Brooke
​Electricity rates lowest in Europe; New car sales up 29 percent; US is largest aid donor to Ukraine; First ‘cryptomats’ open in Kyiv
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

• Electricity tariffs in Ukraine are the lowest in Europe, Dmitry Vovk, chairman of the national commission for state regulation energy and utilities, told Novoye Vremya. On average, he said, EU electricity tariffs are 4.3 times higher than in Ukraine. The average tariff in the EU is about 20 euro cents / kWh, or 6 UAH / kWh. In Ukraine, the tariff is 1.6 UAH / kWh.

• New car purchases in Ukraine grew by 29% from January to August, compared to the same period last year -- 49,000 cars. According to Auto-Consulting, the growth rate has tailed down, from 35 percent for the first six months of the year. The company wrote: "The market maintains a positive trend all the months of 2017, but the dynamics of growth began to fade."

• Over the last 25 years, the World Bank has invested $11.6 billion dollars in Ukraine, according to Finance Minister Alekander Danylyuk. The Minister briefed the Cabinet of Ministers on the 25th anniversary of Ukraine’s membership in the World Bank.

• Ukraine’s sixth IMF program should be fully implemented and should be its last, Finance Minister Danylyuk wrote on Facebook. Danylyuk noted that between 1994 and 2013, Ukraine had five IMF programs. “None was brought to completion. Each time, [Ukraine received] several tranches at the beginning, and then it was all over, because the authorities did not want or could not fulfill undertaken commitments…I want our sixth program with the IMF to be fully realized and become the last one, Ukraine with its potential can and should become economically and financially self-sufficient.”

• The US is the largest donor of international technical aid to Ukraine, financing 104 projects for $1.5 billion in the first half of this year, reports Ukraine's Economic Development and Trade Ministry. Overall, a total of 415 technical aid projects for $5.32 billion are underway in Ukraine, slightly up from last year. The largest donors are: the EBRD - $671 million for 39 projects; the EU - $326 million for 139 projects; Germany - $207 million for 26 projects; Canada -- $150.3 million for 20 projects; and Japan -- $20.9 million for seven projects. This year, the new donors are Norway and Poland. The three biggest areas are: defense - 21%, nuclear safety - 21%, and civil society - 13%.

• Moody's upgraded the City of Kyiv's long-term issuer rating to Caa3 from Ca and the City of Kharkiv's issuer rating to Caa2 from Caa3. In the Monday announcement, Moody’s also changed the ratings’ outlook to positive from stable. It noted that Kyiv improved its operating surpluses to 37% of operating revenue in 2016, from 28% in 2015 and 15% in 2014. This was driven by rapid tax revenue growth. In Kharkiv, the nation’s second largest city, operating surpluses averaged at 23% of operating revenue over the last two years, compared with 9% in 2014.

• Ukraine’s first “cryptomats” have been installed in Kyiv. Three of the bright orange terminals have been placed near Metro stations -- Klovska, Palats Ukrayina, and Obolon. Two others are in Solomenka and Troyeschina. Two more are to be placed in Kharkiv, according to KUNA Bitcoin Agency. There are applications for more than 150 terminals throughout Ukraine.

• Milan-based Ernest Airlines plans to launch flights in early December from Kyiv Zhulyany to Naples and Bergamo (Milan). From Lviv, the airline is to start flying to Bergamo next month and to Venice and Naples on Dec. 8. Most flights will be twice a week. Founded two years ago, the discount airline largely offers flights within Italy and to Albania. Initial fares will be as low as EUR50.

• In August, 193,500 Ukrainians traveled by road to Crimea, up 11 percent from July, according to Ministry for Temporary Occupied Territories and Internally Displaced Persons. The most used checkpoint was Chonhar, followed by Kalanchak and then Chaplynka. First Deputy Minister Yusuf Kurkchi told the Ministry’s press service: "Many people in Ukraine have property in Crimea, and it is natural that the people want to check what condition it is in during their vacations.”

• During the first seven months of this year, Ukraine exported 3.8 million tons of vegetable oils for $2.8 billion, according to UkrAgroConsult, citing the State Fiscal Service. Sunflower, safflower and cotton oils accounted for 97 percent of the exports. India, the largest customer, bought one third of the exported cooking oils. Spain followed with 10 percent of purchases. China came in third, with 8 percent.

• Ukraine’s coal production was down 9.4% January-August year over year, to 23 million tons, the Energy and Coal Industry Ministry told Interfax-Ukraine.

• Kyiv City’s Investment Forum will be held on Tuesday, Sept. 26, at the Parkovy Park Congress and Exhibition Center. In addition to presenting city-owned buildings up for sale, the forum will highlight “the potential of cooperation in the field of the film industry, business tourism and other areas of urban tourism infrastructure development,” the Kyiv City State Administration reports. Last year, the forum presented 60 projects with a value of nearly $4 billion.


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

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