Foreign investors are actively interested in buying state-owned stakes in energy supply companies, while at the same time they note the need to introduce incentive tariff formation (RAB tariffs) for the reliable evaluation of privatized facilities, Brian Best, the manager of the investment banking department at Dragon Capital investment company, has stated.
“We see a certain interest in the energy sector and we have a mandate from international investors for participation in privatization of regional energy companies,” he said at the conference “Turning Tides: M&A in Ukraine” organized by AEQUO law firm in Kyiv.
At the same time, the expert noted the importance for investors of the availability of a transparent and understandable system for electricity tariffs formation.
“Without clarity in the structure of tariffs, it is difficult for investors to understand what the future cash flow will be and how to calculate the value of these assets. RAB tariffs are definitely a necessary condition for privatization,” the expert said.
Speaking about other state enterprises to be privatized, the expert noted the presence of a number of obstacles that limit investors’ interest in such assets, despite the fact that many of them seem very attractive.
“For example, Odesa Port-Side Chemical Plant and Sumykhimprom are burdened with significant artificial debts. And in order to conduct fair privatization, it is important to clear the balances of the enterprises from these liabilities,” he said.
Director of the European Bank for Reconstruction and Development (EBRD) in Ukraine Sevki Acuner on June 1 will finish his work on the post and will transfer to the London office of the bank, Senior Adviser of the EBRD Anton Usov has told Interfax-Ukraine.
“Managing Director of the EBRD in Eastern Europe and Caucasus Francis Malige will be also responsible for EBRD operations in Ukraine,” Usov said, commenting on the new management structure.
As reported, the EBRD in April 2013 appointed Acuner director in Ukraine from June 1. Acuner, who previously held the position of EBRD Deputy Country Director for Turkey, replaced Andre Kuusvek, who has been appointed Director of Local Currency and Capital Markets Development at the EBRD’s headquarters in London and who had been Director for Ukraine since 2008.
The EBRD is the largest international financial investor in Ukraine. Since the beginning of the bank’s operations in the country in 1993, its total liabilities have reached EUR 12 billion.
The State Space Agency of Ukraine (SSAU) and the European Commission (EU) signed the Copernicus Cooperation Arrangement formalizing plans to develop cooperation under the Copernicus Earth observation programme.
The EU delegation to Ukraine said that under the Arrangement signed in line with the European Neighbourhood Policy (ENP) and Eastern Partnership, SSAU would provide full, free and open access to space monitoring data from its Earth remote sensing satellites, as well as to geophysical and meteorological data of regional observatories to the Copernicus programme.
According to the document, it is planned to boost cooperation between SSAU, the European Space Agency (ESA) and the European Organisation for the Exploitation of Meteorological Satellites (EUMETSAT) in the sphere of collection and use of data of space monitoring from European Sentinel satellites of the Copernicus programme.
Under the Arrangement, the sides would promote cooperation in processing space monitoring data for joint use in the following areas: long-term management of natural resources, monitoring of marine and coastal zones, water resources management, the impact of climate change and adaptation to them, disaster risk reduction, food security and rural development, and health management issues.
Each side will fund its own activities under the programme and adhere to the principle of ‘no exchange of funds.’ The National Center Of Space Facilities Control And Test would coordinate the programme in Ukraine.
The aggregate state (direct) and state-guaranteed debt of Ukraine in April 2018 decreased by 0.41%, or by $320 million, to $77.05 billion, according to the website of the Ministry of Finance.
In the national currency, the national debt declined by 1.59%, or by UAH 32.62 billion, to UAH 2.021 trillion.
According to the Ministry of Finance, the reduction of state and state-guaranteed debt is due to both the repayment of part of obligations and the strengthening of the national currency exchange rate in the reporting period.
Since the beginning of the year, the aggregate state (direct) and state-guaranteed debt in U.S. dollar terms increased by 0.97%, or by $740 million, in the hryvnia declined by 5.64%, or by UAH 120.7 billion.
The ministry said public debt in April fell by 1.36%, to UAH 1.749 trillion (in dollars by 0.18%, to $66.67 billion), in particular external debt by 1.9%, to UAH 1.003 billion (in dollars by 0.73%, to $38.22 billion).
The state-guaranteed debt in April fell by 3.03%, to UAH 272.24 billion (in dollars by 1.87%, to $10.38 billion), in particular the external one by 3.19%, to UAH 258.54 billion (in dollars by 2.03%, to $9.86 billion).
The ministry noted the principal amount of the national debt was denominated in U.S. dollars – 41.35%, another 31.93% was in the hryvnia, 17.66% in special drawing rights, 7.9% in euros. In addition, less than 1% of the national debt is denominated in Canadian dollars and yen.
President of Ukraine Petro Poroshenko at a meeting with Chief Executive Officer of DP World Sultan Ahmed Bin Sulayem has discussed the prospects of investing in Ukraine.
According to the presidential press service, Poroshenko noted the participation of the DP World official in a meeting of the National Investment Council and thanked him for his efforts to improve the investment climate in Ukraine.
The head of state noted the importance of increasing opportunities for investment in Ukraine and invited DP World to invest not only in the development of port infrastructure facilities.
In addition, the parties discussed the company’s plans to participate in the privatization program in Ukraine and continue investing in the state economy in the field of railway transport and agriculture.
Sultan Ahmed Bin Sulayem, in turn, thanked the president of Ukraine for the opportunity to participate in the meeting of the National Investment Council, noting the benefits of such meetings for business representatives.
DP World is one of the world’s largest port operators.
President of Ukraine Petro Poroshenko within the framework of the National Investment Council has met with President of Turkey’s Turkcell company Ahmet Akca and discussed the prospects of supporting the program of rural medicine.
“The interlocutors discussed the prospects of involving this company in the program of support for rural medicine in Ukraine, in particular taking into account its extensive experience in providing similar technical equipment in medicine, education, etc.,” reads a report on the presidential website.
The president of Ukraine noted that in accordance with his agreements with President of Turkey Recep Tayyip Erdogan, Ukraine and Turkey had significantly increased their cooperation, especially in the economic sphere.
The parties are also finishing preparations to the meeting of the Strategic Council of the two countries, which should take into account the issues of cooperation between Ukraine and Turkey in the security, military-technical sphere, road construction and telecommunications, including the use of the Turkcell potential.
The president noted a “very responsible attitude towards doing business in Ukraine” of this company.
“I am grateful for your decision to increase the volume of investments into our country,” Poroshenko added.
The Turkcell chairman, in turn, thanked the president for an opportunity of his company to take part in the work of the National Investment Council.
“It was a very productive and effective meeting. I am particularly impressed with its spirit and positive energy,” Ahmet Akca noted.