Business news from Ukraine


KYIV. Feb 16 (Interfax-Ukraine) – The number of transactions using payment cards in 2016 increased by 28%, to 2.513 billion, and their volume – by 30.6%, to UAH 1.61 trillion.

According to the website of the National Bank of Ukraine (NBU), the volume of transactions to obtain cash using payment cards rose by 22.5% and amounted to UAH 1.039 trillion (64.5% of total transactions with payment cards), while that of non-cash payments by 48.5%, to UAH 571.275 billion (35.5% of total transactions with payment cards).

The total number of active payment cards last year grew by 5% or 1.55 million, reaching 32.4 million as of January 1, 2017. The number of contactless payment cards rose by 37.4% or 540,000, to 1.99 million. The number of payment cards with e-money function soared by six times, to 54,000.

“The number of retail and servicing companies using cashless payments last year grew by over 11% or 14,674, to 145,938. As of January 1, 2017 there were 33,800 ATMs and 219,200 terminals,” the NBU said.

The leaders in terms of payment cards are PrivatBank, Oschadbank and Raiffeisen Bank Aval.


KYIV. Feb 15 (Interfax-Ukraine) – JKX Oil&Gas Plc in January 2017 increased average daily production in Ukraine by 9.9% year-over-year and by 13.4% on December 2016, to 4,356 barrels of oil equivalent per day (boepd), the company’s press service reported on Wednesday.

Gas production grew by 7.6% and 14.6% respectively, to 21.2 million cubic feet per day (MMcfd).

Average group production for January 2017 was 10,136 boepd, a 1.8% month-on-month increase, while production in Russia declined by 5.5% compared to December 2016, 5,779 boepd.

Average group production in January fell by 4.5% year-over-year.

“In Ukraine, gas and liquids production increases were driven by the workover of well NN47 at the Rudenkivske field that was completed in December,” the company said.

In January NN47 produced a total of 138 million cubic feet of gas and 5,786 barrels of condensate. In addition, the Ihnatovske field waterflood project commenced with injection of water through well IG126 in the southern part of the field.

According to the report, in Russia, gas production fell as effects of acid stimulation on wells 25 and 27 that completed in November began to subside. Further acid stimulation carried out on these wells in the latter part of January helped restore daily production to previous levels.

JKX said that in Hungary, gas sales from the Hajdunanas field commenced on February 2, 2017 at an initial rate of 1.8 MMcfd, after a production and sales break of more than three years. Production forecasting and development planning is underway and future work may include a workover of the existing Hn-1 well to add production from the Lower Pannonian reservoir interval.

Earlier JKX Oil&Gas Plc said that in 2016 the company saw a 7.5% fall in average daily production in Ukraine, to 4,001 boepd. Average group production grew by 12.1%, to 10,083 boepd.

The largest shareholders of the company are Eclairs Group of Ihor Kolomoisky and Hennadiy Boholiubov with 27.54% of the shares, Glengary Overseas Limited of Oleksandr Zhukov with 11.45%. In addition, Russia’s Proxima Capital Group owns 19.92% in JKX.


KYIV. Feb 15 (Interfax-Ukraine) – The Ukrainian media online advertisement market totaled UAH 1.784 billion in 2016, and this was 38% up on 2015, the Ukrainian Internet Association has said in a press release.
The direct sale share of the market was 47%.
The largest segment was the banner advertisement with 51.2% of the market. The share of advertisement in a video player (pre-roll, mid-roll, post-roll, pause-roll, overlay advertisement and picture-in-pause) was 28.7%, the share of in-page video (content-roll) was 4.8% and other unconventional solutions (pop-up or pop-under windows, catfish, screen glide, synchronous banners, frontlines, full screen advertisement, audio advertisement in the digital audio flow and other solutions) was 12.3% and sponsorship – 3%.
The media Internet advertisement recording was based on analysis of data from questioning of largest advertisement agencies, website and sales houses.
“AdPro(DAN), ITCG, Iplace, Publicis Groupe Media, TMGU, AdWork, DIEVO, MediaHead, Neos, Netpear, Promodo, newage leading online advertisement agencies and representatives of largest platforms, holdings and sales houses as Lux (Channel 24), RBC, RIA,, UMH, Digimedia, Admixer, DMDim/Go2Net, FISH, DigitalDecisions, Adwise, T-Sell,,,, Rontar, Novoye Vremia,, Edipress, RST and Obozrevatel took part in the poll,” the Ukrainian Internet Association said.


KYIV. Feb 15 (Interfax-Ukraine) – The adoption of the bill on electronic trust services by the Verkhovna Rada would allow citizens to use smartphones to receive services from public agencies, while business will be able to take part in tenders of the European Union (EU) countries, Ukrainian Justice Minister Pavlo Petrenko has said.
“For ordinary Ukrainian this means that using own smartphone each of us will be able to register a company, sign any contract, send an inquiry and receive any information about operations of a public agency. All active operations of small and medium sized enterprises can be carried out in communications with public agencies using one small smartphone, without paper and talks with red tapists,” he said at a press conference at Interfax-Ukraine in Kyiv on Monday.
Petrenko said that the Verkhovna Rada earlier failed to pass the bill at second reading and he urged parliamentarians to adopt the bill soon.
“The adoption of the bill allows Ukrainian business to take part in tenders in the EU,” the minister said.
He said that tenders in the EU are held in the electronic form, and companies are identified using MobileID and BankID.
He said that by the end of 2017 many mobile operators are ready to introduce the identification system using MobileID, while banks are using BankID. The approval of the bill would allow introducing these systems to the operation of pubic agencies.
The minister promised that the Justice Ministry will be the first agency which will execute the bill after its adoption.
First Deputy Economic Development and Trade Minister Maskym Nefyodov said that the Economic Development and Trade Ministry is ready to start a friendly contest with the Justice Ministry in the issue of the quick introduction of the bill.


KYIV. Feb 15 (Interfax-Ukraine) – Starting from 2017 farmers will receive partial compensation of the cost of agricultural machinery in the amount of 15% of its cost via banks if the production localization for the machinery in Ukraine exceeds 35%.

Ukraine’s Cabinet of Ministers approved the relevant resolution in Kyiv on Tuesday.

“We want to achieve that the localization of Ukrainian agricultural machinery manufacturers by 2020 reaches 60%,” Agricultural Policy and Food Minister of Ukraine Taras Kutoviy said presenting the documents at a government meeting on Tuesday.

He said that the decisions made foresee the increase of localization to 45% in 2018, to 55% in 2019 and to 60% in 2020.

The minister recalled that the legislation passed at the end of 2016 allocates 0.1% of the cost of gross agricultural products for this partial compensation, or around UAH 550 million.

He said that next year the sum will be increased to 0.15% or around UAH 900 million, and will reach 0.2% in 2019, exceeding UAH 1 billion.

“The volume of agricultural engineering goods will be over UAH 4 billion,” Kutoviy said. He added that deterioration of agricultural machinery at farms today is some 85%, and its pace exceeds the upgrade pace.

ISSUE 46 15 Feb , 2017

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The Ukrainian League of Industrialists and Entrepreneurs (ULIE), the largest business association in Ukraine, and Interfax-Ukraine News Agency are delighted to present you e-digest “Ukraine Open for Business”. This product is issued biweekly in English and covers key political and economic events in Ukraine.