1. WEEKLY REPORT
February 22nd → March 3rd, 2019

2. Capital investment into Ukrainian economy has been growing by almost a third for 2 years in a
row. In 2018, Ukrainian economy attracted UAH 526 billion in capital investment which indicates
an increase by 27,5% (in 2017 - +26,6%). Leading sectors in terms of capital investment are
industrial production, agriculture and construction
National Energy Company Ukrenergo presented the Market Management System platform for
two new segments of the wholesale electricity market (the balancing market and the supporting
service market), which has been functioning in the test mode since December 2018. Currently,
Ukrenergo is putting up a work schedule to create minimally sufficient functionality in order to be
able to launch the market on July 1, 2019
In 2018, budget revenues generated by tourism fees in Ukraine increased by 29.2%, to UAH 907
million. Tax payments from the tourism industry raised by 20.7%, to UAH 4.2 billion. The State
Border Service recorded an increase in the number of tourists from the countries not bordering
with Ukraine, particularly Europe: from Spain – by 68%, Britain – by 47.3%, Lithuania – by
23.4%, Italy – by 15.4%, Germany – by 13.3%, and France – by 9.2%
On 1 March 2019, Finance Ministry of Ukraine paid the seventh coupon for loan participation
notes with total amount reaching USD 444 million. These notes were issued as part of a debt
management operation conducted by Ukraine in 2015 with state debt and publicly guaranteed
debt, as well as the restructuring of external borrowings
On February 28, 2019, Ukraine raised a loan of EUR 529 million from Deutsche Bank under the
guarantee of the International Bank for Reconstruction and Development. The funds were
received in two tranches: an A tranche of EUR 240 million with maturity in four years and a B
tranche of EUR 289 million with ten year maturity
Pension Fund of Ukraine has generated UAH 13.6 billion from the preferential customs clearance
of cars registered abroad. Following the rule of the President Poroshenko, these funds will be
used for supplementary pension payments
WEEKLY REPORT February 22nd → March 3rd
Business climate in Ukraine
GDP growth +3.3%
Export $59,195
Import $62,947
Industrial output 1.1%
CPI 10.9%
Oil
Coal
Natural
Gas
Iron Ore
Copper
Corn
Wheat
USD/bbl
USD/ton
USD/MWh
USD/ton USD/bushel
2018, y-o-y
Jan - Nov 2018
Jan-Nov 2018 y-o-y
Jan - Nov 2018
Jan-Nov 2018 y-o-y
Jan - Dec 2018, y-o-y
Dec 2018
Macroeconomic indicators
Jan - Dec 2018, y-o-y
Dec 2018
UAH/USD (NBU, average) 26.85
Source: Ukrstat, NBU
65.07
70.55
20.82
85.98
USD/ton
USD/bushel
6525.00
3.73
4.57

3. Kernel, Ukrainian leading sunflower oil producer, will receive USD 48 million from EBRD for
construction of biomass power plants in Kharkiv, Mykolaiv, Odesa and Poltava regions.
USD 8 million will be raised from the World Bank’s Clean Technology Fund. The key driver
behind this investment decision is the reduction of carbon intensity in Ukraine’s energy
sector
DTEK Renewables will attract EUR 90 million from German commercial banks for the
construction of the second stage of Prymorsk wind power plant in Zaporizhia region. This
project is financed by two loans of German commercial banks for a total of EUR 180
million. This will be one of the largest commercial loans in Ukraine in recent years
NJSC Naftogaz Ukrainy has started the process of recovering USD 2.6 billion from
Gazprom (Russia) under the decisions of the Stockholm arbitration within the jurisdiction of
Luxembourg. Naftogaz has already received gas for a total of USD 2.1 billion. The rest is
collected through the enforcement process in several jurisdictions – the Netherlands,
Britain, Switzerland, and the United States, and recently in Luxembourg
Von der Heyden Group, a leading high-end niche player in the European real estate market,
announced multi-million investments in Ukraine. Known for construction of A class buildings
and hotels, the company plans to invest around USD 50-100 million in projects in Kyiv and
Lviv
Biopharma, a manufacturer of products from human donor plasma, has begun
commissioning work at a new fractionator plant, which is being built in Bila Tserkva.
Investment in the construction will amount to about USD 50 million. The processing
capacity will range from 250,000 to one million liters of plasma per year
The State Service of Geology and Subsoil of Ukraine will prepare and put up 30 oil and gas
areas for electronic auction by the end of May 2019. Their total capacity is valued about 92
billion m³ of gas and 16 million tons of oil. The price for the lots ranges from UAH 5 million
to UAH 500 million
WEEKLY REPORT February 22nd → March 3rd
Ukrainian Business News
Uber Technologies is in advanced discussions to buy its Dubai-based
rival Careem Networks. The companies may announce a cash-and-
stock transaction that values Careem at about USD 3 billion in the
coming weeks
Chinese startup Luckin Coffee, which has ambitions to overtake
Starbucks at home this year, has tapped three banks including Credit
Suisse to work on a U.S. IPO in 2019. The company is targeting a
valuation of about USD 3 billion
Danish brewer Carlsberg has bought a minority stake in Chinese
micro brewery Jing-A. Carlsberg will distribute beer produced by
Beijing-based Jing-A while the Chinese brewer will remain in control of
producing its craft and specialty beers
The Dutch government in recent days has stealthily built up a 14%
stake in Air France KLM, which it said was needed to protect Dutch
interests from growing French dominance in the airline group. Air
France KLM’s share price meanwhile rose more than 20%, from
around 10.40 EUR to 12.73 EUR
Britain’s M&S and Ocado launched an online food JV, belatedly giving
M&S a home-delivery service while netting USD 1 billion for its fast-
growing technology providing partner. Under the deal, Ocado’s retail
arm will become a joint venture with M&S, which will pay USD 1 billion
for its half share
Brazilian planemaker Embraer approved a deal to sell 80% of the
company’s commercial jet division to Boeing, a move that could
reshape the global market for aircraft of up to 150 seats. Under the
terms of the deal, Boeing will pay USD 4.2 billion to control Embraer’s
most profitable division, supplying passenger jets to airlines
World Business News