Ukraine

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11:00 AM Saturday, November 17, 2018
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Exports to Canada soar; Canadians invest $160m; Kyiv ranked 173rd most expensive capital; EU representative takes stock; Nebulon to invest in Egypt; DTEK buys GE electricity systems; Antonov secure a major transport contract with Siemens.
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’s exports to Canada rose 74.4% in 2017 (or USD 21.5 million) and amounted to USD 50.4 million, the press service of the Economic Development and Trade Ministry reports. The free trade agreement between Canada and Ukraine was signed in July 2016 and canceled 98% of tariffs for Ukrainian goods to be sold to Canada. 72% of tariffs were canceled for Canadian goods, and in the next seven years duty free exports will grow to 98%, Ukrinform reports.

Canadian Brookfield Business Partners lead a $160 million investment consortium. The consortium will finance the construction of phase 1 of the Lviv IT Cluster. As reported in the UBJ Opportunity Reports IT the development is due of completion by the end of 2020, the first phase of the project will include 160,000 square meters of Class A office space with workplaces for dozens of IT companies and up to 14,000 IT professionals. The cluster of six 8-story buildings will also provide a new home for the Catholic University, a hotel, and parking spaces for some 3000 cars.

Ukraine recognizes Canadian investment. In parallel with the annual Canada Day celebration the Government of Ukraine held the first ever Canada-Ukraine Investment Awards Ceremony at the Canada House in Lviv to recognize Canadian investors in Ukraine. The legacy investor award went to Fairfax Financial Holdings Limited and Refraction Asset Management. Brookfield Asset Management won the “New Investor” award, whilst the "Inspirational Canadian investor” of the year was presented to Lenna Koszarny, Founding Partner and Chief Executive Officer of Horizon Capital. UkraineInvest Director Daniel Bilak presented winners with awards designed by Lviv sculptor Volodymyr Tsisaryk that symbolize the ease and attraction of doing business in Ukraine. UkraineInvest developed the nomination criteria jointly with the Embassy of Canada in Ukraine. Source: Ukraineinvest

Kyiv ranks 173rd in 24th Annual Cost of Living Survey. In the 24th annual survey ranking the most expensive cities in the world for expats, Kyiv now ranks 173rd out of 209. The survey, carried out by the international advisory firm Mercer, ranked Hong Kong as the most expensive place in the world for expats and Tashkent as the least expensive. The survey examined the cost of 200 items in each location from accommodation to a cup of coffee. Kyiv fell 10 places compared to 2017, Moscow at 17th fell 4 places. The most expensive place to live in Europe is Zurich ranked at number 3.

EU Ambassador provides Ukrainian parliament with status update. At a meeting of the leadership of the parliament with the ambassadors of the EU Member States the EU Ambassador to Ukraine, Hugues Mingaralli, emphasized that future of relations between Ukraine and the EU Member States depends on implementation of the EU-Ukraine Association Agreement by Kyiv. Ukrinform reports. Mingaralli recognized that legislation on competition, transport, customs and taxation had already been brought into line with the European laws, but pointed out that many issues still remain. In his view, a list of priorities from among the requirements of the Agreement should be defined and the relevant ministries instructed to effectively prepare the bills in order for Ukraine to fully comply with the agreement.

Nebulon to invest in Egyptian grain project. Ukrainian grain trading company Nebulon is to invest USD 2 billion to build new grain silos and transportation barges in Egypt’s Nile Delta region, Reuters reported. The silos will be erected on two sites near the ports of Alexandria and Damietta, and 20 barges, with a capacity to transport 2,000 tonnes of grain will be built. The first phase of the investment will begin within the next two years.

General Electric to supply electricity infrastructure to DTEK. It is to supply high-voltage equipment for the 150 kV central power distribution station and two 150/35/10 kV substations, which will ensure the transmission of electricity from the first stage of Prymorska wind farm (Zaporizhia region) to the Ukrainian power grid, the press service of DTEK has reported. GE Renewable Energy will supply 26 wind turbines with a capacity of 3 MW each for the first stage of Prymorska wind farm and maintain them after the delivery. The turbines will be delivered to Ukraine and installed in 2018.

Antonov Airlines transport Siemens power equipment to Bolivia. Antonov Airlines, the world-leading operator of the An-225 Mriya supercarrier, with a capacity of 250 tonnes, has secured a contract to transport 2,000 tonnes of energy equipment for new thermal power plants being built in Bolivia by German giant Siemens, Interfax-Ukraine reports.

Electricity production up, coal production down. In June 2018, Ukraine produced 11.655 billion kWh of electricity, which is 2.2% more than in June 2017, the Ministry of Energy and Coal Industry of Ukraine. 56% of the total volume was generated by Energoatom," 34% - by thermal generation, 7% - HPP, and 3% - other sources. The ministry noted a decrease in coal production of 3.5% in June 2018 y-o-y. State owned mines reduced production by 15.3%, and private enterprises - by 1.7%.

Ukraine to become energy independent by 2020.Ukraine can become an energy independent country by 2020 both in terms of the production capacity of Ukrgazvydobuvannya and private extraction companies and the application of energy efficiency technologies, Prime Minister Volodymyr Groysman said in an interview with the Obozrevatel newspaper. "We set the task of increasing production to 20 billion cubic metres of gas by 2020. Last year we consumed 33 billion cubic meters. Therefore we need to produce more and consume less".

State budget recovers UAH 70 billion from thwarted smuggling schemes. The Prime Minister has reaffirmed his commitment to combat smuggling and the various "schemes" connected with it, he said in an interview with the Obozrevatel newspaper. The tools and mechanism already exist and inter-agency cooperation has been enhanced to thwart smuggling schemes, particularly at the customs. “I see it as my mission to prevent smugglers lining their pockets from customs and to direct this money to the State Budget", he said.

President receives CEO of Unilever. The CEO of Unilever Paul Polman met President Petro Poroshenko to discuss the investment climate in Ukraine and the changes in the tax legislation to attract foreign investment, the president’s press service reports. Unilever are one of the world’s major producers of food and fast moving consumer goods. They also touched upon the replacement of income tax with a tax on distributed profits, which has been positively perceived by the business environment. Both sides noted the improvement of the investment climate in Ukraine in during the last few years

Russia extends restrictions on transit of Ukrainian goods to Kazakhstan and Kyrgyzstan. Russia has extended restrictions on the transit of goods from Ukraine to Kazakhstan and Kyrgyzstan for another six months. Since 1 January 2016, Russia has banned the transit of Ukrainian exports through Russian territory. According to the Economic Development Ministry of Ukraine, the volume of transit amounted to about USD 1.8 billion a year. On 2 January of the same year, Ukraine imposed import duties on a wide range of Russian goods and commodity groups in the amount of 1.5% to 19%.

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