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13:30 PM Monday, November 20, 2017
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UBJ AM Sept. 6, 2017
FT: Ukraine to issue first dollar bond in five years; Business up 26.6% this year; Grain exports to go up 3.4%
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

• Ukraine is preparing to issue its first dollar-denominated debt since the 2014 Russian annexation of Crimea, the Financial Times reports. The nation has mandated three banks – JP Morgan, BNP Paribas and Goldman Sachs – as book runners on the deal, according to people familiar with the situation. It will be the first time Ukraine goes to the markets since it raised a $3 billion bond in 2013. Kyiv defaulted on the deal two years later.

• Sales of goods and services in Ukraine were up 26.6 percent from January to July, compared to the same period last year, the State Statistics Service reports. The total was UAH 1.185 trillion or $46.5 billion.

• A better than expected national harvest has prompted UkrAgroConsult to raise Ukraine’s 2017/18 grain exports forecast by 3.4 percent to 42.06 million tons. The wheat harvest will be 26 million tons, virtually the same as last year.

• Ukrainian prosecutors have ended an inquiry into Finance Minister Oleksandr Danylyuk over alleged tax evasion after failing to find any evidence of wrongdoing. The investigation was launched in July at the request of an opposition lawmaker. Analysts said the Poroshenko administration wanted to clear up the accusations ahead of the IMF’s visit to Ukraine next week. The Finance Ministry is a key entity for talks with the IMF.

• IMF Deputy Director David Lipton will visit Ukraine next week, from Tuesday, Sept. 12 to Thursday, Sept.14, Ukrinform reports. Timothy Ash, of BlueBay Asset Management, wrote: “He will want to get assurance from Ukrainian officials where they are in terms of the IMF program… Land reform seems to have been stalled indefinitely again, with talk of the land moratorium being extended on land sales…Lipton will also want to ask why there is backtracking on energy sector liberalization.”

• PM Volodymyr Groysman expressed caution about a land market for Ukraine. In an interview with ICTV, he said: "As far as land is concerned, I would like very much to be very cautious with the land, because land is our greatest asset, especially its fertility, so it's important not to talk about the land market only, but we need to talk about tools that will allow the Ukrainian farmer.”

• Ukraine’s parliament, the Verkhovna Rada, convened Monday for its fall session. Speaker Andriy Parubiy identified priorities as approval of legislative reform packages -- medicine, education, judicial, and pension. Iryna Gerashchenko, the Deputy Speaker, said the Rada’s priorities will be to fulfill a legislative road map required of the Ukraine-EU Association Agreement, which took effect on Sept. 1. Zenon Zawada, of Concorde Capital, writes: “The parliament’s leaders don’t wish to highlight it, but in fact their main priority this session will be to approve legislation needed to secure the next IMF loan tranche, which could arrive as early as October.

• The Rada approved on Tuesday a draft law on education that adds expands to 12 years the current 11-year school program. This expansion will be phased in over the next five years.

• EBRD could arrange a EUR 350 million syndicated loan for ArcelorMittal in Kryvyi Rih. On Oct. 4, the EBRD board will consider the loan, which is part of a larger, $1.1 billion capital investment program at Ukraine’s largest steel maker.

• Legalization of crypto currencies would be a ‘quantum leap’ for Ukraine, expert believes. Timur Khromayev, Chairman of the National Securities and Stock Market Commission told FinClub: "Ukraine has an opportunity to take the lead and attract more resources to its financial market by introducing the revolutionary legislative changes." Government agencies are reviewing the currencies, such as bitcoin, this month.

• The National Bank of Ukraine has decided to liquidate the bank "Novii." Over the last year, the central bank has closed half of the nation’s banks, largely for fraudulent banking practices that left banks insolvent.

• A $20 million biogas station has started working at Rivne’s city dump, according to Zaxid.net. The plant is to produce 2.5 to 4 million cubic meters of biogas per year. Ivan Nadein, the investor company representative, said: "It will produce more than 4 million kWh of electricity.”

• Chinese investors want to build a waste recycling plant in the Kherson region. Disposing of garbage without pre-sorting, the plant would have two electricity generating turbines capable of burning 300 tons of waste a day. This project was discussed at a meeting between leaders of Kherson Regional State Administration and representatives of Western China Power Industrial Co., Ltd and Green Bond (HK) Investment Co., Ltd.

• Ukraine plans to produce 700 million cubic meters of gas more than last year, Prime Minister Volodymyr Groysman told ICTV. Ukraine has not imported Russian gas for use in Ukraine for almost two years.

• To modernize bus transport in the capital, Kyivpastrans, a city company, has announced a tender for equipment for electronic card payment of fares. The tender closes Sept. 18. The estimated price is $18 million.

• Buta Airways, an Azeri discount airline, inaugurated service on Tuesday between Baku and Kyiv Zhulyany. A subsidiary of Azerbaijani Airlines, Buta will fly the route two times a week, on Tuesdays and Wednesdays. The goal is generate enough traffic to make the flight daily.


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

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