The EU delegation, EBRD, and EIB recommend postponing Ukraine's new wholesale electricity market launch due to current political conditions making reforms more difficult. The IMF is waiting for parliamentary elections and a new government to resume cooperation discussions. The EIB issued a EUR 200 million loan for infrastructure restoration in eastern Ukraine and IDP support.
2. The Delegation of the European Union to Ukraine, European Bank for Reconstruction and
Development and the Resident Representation of the European Investment Bank (EIB) in Ukraine
recommend postponing the introduction of the new wholesale electricity market for a certain
period of time. Delegation and EIB believe that the current political context makes it more difficult
to keep the reform moving or to intervene if necessary to address issues on the way of its
implementation
The International Monetary Fund (IMF) is waiting for the parliamentary election and the formation
of the new Government in Ukraine to discuss further cooperation. Afterwards the IMF mission is
committed to renew constructive discussion with official Kyiv on the recent developments and
economic policies
The European Investment Bank (EIB) has issued a long-term low-interest loan in the amount of
EUR 200 million to the Cabinet of Ministers of Ukraine within the Early Recovery Program. The
funding will be used to invest in the restoration of key infrastructure objects in Donetsk and
Luhansk regions, as well as to ensure adequate living conditions for internally displaced persons
The World Bank’s Board of Executive Directors approved a USD 200 million loan to Program-for-
Results (PforR) on Accelerating Private Investment in Agriculture to improve opportunities for
small and medium enterprises (SMEs) in the agriculture sector of Ukraine.
In June 2019, NJSC Naftogas of Ukraine will reduce the price of gas sold to industrial consumers
on a prepaid basis by 7.9% (by UAH 496) compared to the price in May, to UAH 5,803 per 1,000
cubic meters (including VAT)
At the meeting with European Commission’s Director-General for Mobility and Transport Henrik
Hololei, Deputy Prime Minister for European and Euro-Atlantic integration of Ukraine Ivanna
Klympush-Tsintsadze stated that Ukraine is focused on developing investment projects within the
Indicative trans-European Transport Network (TEN-T). The implementation of such projects will
require almost EUR 13 billion investment. It is planned to use the funding to build 4,800
kilometers of roads and railways, 6 ports and 11 logistics centers
WEEKLY REPORT May 20th → May 26th, 2019
Business climate in Ukraine
GDP growth +3.3%
Export $14,905
Import $16,918
Industrial output -0.9%
CPI 8.9%
Oil
Coal
Natural
Gas
Iron Ore
Copper
Corn
Wheat
USD/bbl
USD/ton
USD/MWh
USD/ton USD/bushel
2018, y-o-y
Jan - Jan 2019
Jan-Jan 2019 y-o-y
Jan – Jan 2019
Jan-Jan 2019 y-o-y
Jan - Feb 2019, y-o-y
Feb 2019
Macroeconomic indicators
Jan - Mar 2019, y-o-y
Mar 2019
UAH/USD (NBU, average) 26.34
Source: Ukrstat, NBU
68.69
55.55
14.74
98.14
USD/ton
USD/bushel
5932.00
4.04
4.90
million
+7,8%
+7,3%
+2,1%
8,8%
million
3. The international rating agency Fitch Ratings has affirmed the foreign-currency long-term
issuer default ratings (IDR) of ProCredit Bank, Bank Credit Agricole and Pravex-Bank at "B-"
and local-currency IDRs at "B" with a stable outlook
The European Union is interested in high-level transport infrastructure cooperation with
Ukraine and further development and reformation of the transport sector in accordance with
EU norms and standards. EUR 4.5 billion will be invested with the help of the World Bank to
develop and implement 39 projects in the Ukrainian transport infrastructure sector
Valued at USD 500 million, Ukrainian predictive sales startup People.ai raised USD 60 million
from three investors – Lightspeed, Andreessen Horowitz and Iconiq. People.ai has built a
platform which collects all the data that salespeople generate and then uses it to provide
guidance for them to help generate leads and close more deals
Ukrainian EFI Group has bought a share in DOC.UA from Chernovetskiyi Investment Group
(CIG). DOC.UA is an online service for healthcare service provider search. It presumably
includes data on more than 1,300 clinics and 7,000 doctors in 24 cities across Ukraine
SCM Holding plans to sell its telecom asset Vega to one of the leading Ukrainian telecom
operators, Vodafone Ukraine. Over the past six months, SCM has re-registered several
valuable assets to Vega, such as frequencies in the range of 2.5-2.7 GHz. The deal is valued
at about UAH 1 billion
On May 24, 2019, The National Bank of Ukraine (NBU) filed counterclaims against two
verdicts of the district administrative court of Kyiv dated April 18, 2019, which annulled the
decisions of the NBU on the withdrawal of insolvent PrivatBank from the market with the
participation of the state and on determining the list of persons affiliated with the bank
WEEKLY REPORT May 20th → May 26th, 2019
Ukrainian Business News
Fiat Chrysler has made a merger proposal to Renault in a deal that
would create a new third-ranked global manufacturer. The deal would
create a carmaker selling 8.7 million vehicles annually, and generate
EUR 5 billion in estimated annual savings
Payment technology company Global Payments is nearing a deal to
acquire peer Total System Services for about USD 20 billion in an all-
stock deal. The transaction is the latest large-scale consolidation effort
by payments tech company
Soros Management fund has built a 3% stake in Swiss asset
manager GAM Holdings. The Group has around CHF 132.2 billion of
assets under management and employs over 900 staff with offices in 14
countries and is listed on the SIX Swiss Exchange since 2009
Japan’s Nippon Life Insurance would increase its stake in the Mumbai-
based asset manager Reliance Capital. Reliance Capital and Nippon
Life Insurance both own 42.88% stake each in Reliance Nippon. Nippon
Life will buy out most of Reliance Capital's stake with this deal
The founders of Oriflame have made an offer to buy out the shares in
the Swedish beauty products company they do not own, valuing the
company at 12.9 billion crowns (USD 1.3 billion). Oriflame’s products
are sold in around 60 markets under many different brands of which
Oriflame is the biggest
Norway’s sovereign wealth fund bought a 3.10 % stake in Britain’s
Metro Bank, a day after the British lender raised USD 476.10 million to
shore up its balance sheet. The nine-year-old challenger bank saw its
market value fall by more than USD 1.90 billion after disclosing in
January it had under-reported the risk of its loan book by nearly 1 billion
pounds, hitting its capital levels
World Business News
