Office of the National Investment Council of Ukraine presents weekly reports as handy tools to keep track of the key news in business and investment climate in Ukraine and the world. The following report covers events dated July1-8, 2019

1. WEEKLY REPORT
July 01st → July 08th, 2019

2. The Cabinet of Ministers of Ukraine on July 5 approved the results of tenders for signing
production sharing agreements (PSA) on nine hydrocarbon fields. This will allow the country to
realize the strategic goal of abandoning gas imports with full reorientation towards domestic
gas consumption
WEEKLY REPORT July 01st → July 08th, 2019
Business climate in Ukraine
Oil
Coal
Natural
Gas
Iron Ore
Copper
Corn
Wheat
USD/bbl
USD/ton
USD/MWh
USD/ton USD/bushel
Macroeconomic indicators
Source: Ukrstat, NBU
64.23
54.05
12.08
117.10
USD/ton
USD/bushel
5890.25
4.42
5.15
The European Union is ready to provide Ukraine with the next tranche under the fourth program
of Macro-Financial Assistance (MFA) in the amount of EUR 500 million after the necessary
conditions are fulfilled
The Cabinet of Ministers of Ukraine at a meeting on July 5 supported four draft agreements
between Ukraine and the EU to attract additional financing of the social and economic sphere
for EUR 86.9 million. Funds will be attracted for the social and economic renewal of Luhansk
and Donetsk regions
Ukrzaliznytsia places five-year eurobonds for USD 500 million at 8.25% per annum, which is
significantly lower than the expected level. The demand was 5 times higher than the offer and
reached USD 2.5 billion
Ukraine has high hopes for the reform of the State Fiscal Service (SFS) by dividing it into the
State Tax and Customs Service (STS and SCS) and focuses on the fight against money
laundering and other violations, in particular, by creating for the first time an efficient transfer
pricing unit
Ukrainian President Volodymyr Zelensky has invited foreign investors to a forum on Donbas
restoration. According to tentative estimates, Donbas restoration will cost over EUR 10 billion
GDP growth +2.5%
Export $16,364
Import $18,457
Industrial output 0.9%
CPI 9.0%
1Q 2019, y-o-y
Jan - Apr 2019
Jan - Apr 2019 y-o-y
Jan – Apr 2019
Jan - Apr 2019 y-o-y
Jan - May 2019, y-o-y
May 2019
Jan - May 2019, y-o-y
May 2019
UAH/USD (NBU, average) 25.87
Source: Ukrstat, NBU
million
+6.0%
+9.3%
+1.6%
9.6%
million

3. According to results of the first tender over the past seven years for development of
hydrocarbon deposits on the basis of production sharing agreements (PSA), American,
Canadian and Ukrainian companies will invest about USD 430 million in exploration
WEEKLY REPORT July 01st → July 08th, 2019
Ukrainian Business News World Business News
Brewing giant Anheuser-Busch InBev (AB InBev) is seeking to raise up to
USD 9.8 billion by listing its Asia-Pacific business in Hong Kong, marking
what would be the world’s largest initial public offering this year
The European Bank for Reconstruction and Development (EBRD) will issue a loan of EUR 20
million to Dniprovska agribusiness group, one of the largest poultry producers in Ukraine, for
the reconstruction and expansion of the slaughtering house
Innovation District IT Park in Lviv plans to attract loans from EBRD and IFC. The first phase with
a construction area of 110,000 sq. m and the cost of about USD 180 million is scheduled for
completion in 24 months. Canada's Brookfield & Partners is the majority shareholder of the
project, and another investor is Horizon Capital
A Ukrainian startup that has launched PatentBot, a chat bot to register patents and
trademarks, has raised a new round of angel investment. In 2018, PatentBot entered the
acceleration program of the Hong Kong Betatron startup accelerator and was valued at USD
750,000
Ukrainian Agricultural Policy and Food Ministry sent UAH 382.6 million to farmers under the
livestock breeding support program for partial compensation of the cost of livestock facilities,
enterprises for storage and processing of agricultural products
The biggest investor in Aston Martin, Strategic European Investment Group,
is considering buying another 3% stake, offering to increase its holding after
shares in the luxury carmaker crashed almost 50% since its listing nine
months ago
Port operator DP World will buy Topaz Energy and Marine Limited for USD
1 billion from Standard Chartered and Renaissance Services. The deal is the
latest in Asia-focused lender StanChart’s efforts to sell its private equity
business as part of a broader shift away from direct investing
U.S. real estate firm CBRE Group would buy British property developer
Telford Homes for about 267 million pounds (USD 336 million) in a bid to
expand into Britain’s apartment rental market. The deal is an attempt to tap
into the budding build-to-rent market in Britain, which is in its infancy
compared to the United States
Shared office space manager WeWork Cos is looking to raise USD 3 billion
to USD 4 billion in debt before it goes public. Money-losing WeWork has
faced questions about the sustainability of its business model, which is
based on short-term revenue agreements and long-term loan liabilities
U.S. financial services provider Fidelity National Information Services (FIS) is
set to gain unconditional antitrust approval from the European Union for its
USD 35 billion bid for payments company Worldpay. The deal, announced
in March, is the biggest in the fast-growing electronics payments industry
The European Bank for Reconstruction and Development (EBRD) would provide a loan of
EUR 19.7 million to build a solar power plant with a capacity of 55.4 MW in Chyhyryn,
Cherkasy region