Business news from Ukraine

Business news from Ukraine

BORYSPIL INTERNATIONAL AIRPORT INCREASES PASSENGER TRAFFIC BY 22.5%

Boryspil International Airport (Kyiv) in January-September 2019 increased passenger traffic by 22.5% compared to the same period in 2018, to 11.623 million people, the press service of the airport has told Interfax-Ukraine.
Passenger traffic on international flights for the indicated period amounted to 10.8 million people (an increase of 23.7%), in the domestic sector some 831,200 people (an increase of 8.8%).
The number of flights for January-September 2019 amounted to 84,400 for arrival/departures, which is 16.1% more than in the same period in 2018, in particular 74,340 international flights (more by 18.2%), and 10,080 domestic flights (2.8% more).
In September 2019, passenger flow in Boryspil amounted to 1.649 million people, which is 27.6% more than in September 2018. At the same time, passenger traffic on international flights amounted to 1.552 million people (29.3% more), on domestic flights some 97,200 (6.1% more).
The number of flights in September 2019 amounted to 11,443 for arrival/departure, which is 24.7% more than in the same period in 2018, including 10,290 international flights (28% more), and 1,150 domestic trips (up by 1.6%).

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UKRAINIAN STARTUP FUND STARTS TO ACCEPT APPLICATIONS FOR GRANTS IN A MONTH

The Ukrainian Startup Fund will start accepting applications from startups in November 2019, and plans to hold a pitch event in December, member of the fund’s supervisory board Lesia Sevruk has told Interfax-Ukraine. “At present, a portal is being developed through which applications will be submitted. Accordingly, they are not yet available. Submitting applications through the portal is fundamental for us to minimize the subjective influence of the fund’s employees on the selection process. We plan to receive applications in November, and an event in December,” she said.
According to her, the fund’s supervisory board has approved the procedure for issuing grants and regulations on the commission and expert council.
“In the near future we will form a commission and an expert council,” Sevruk added.
As reported, the Ukrainian Startup Fund with a budget of UAH 400 million was launched in July 2019. The fund plans to give grants to startups at an early stage in the amount of $25,000 to $75,000. The fund announced the first five transactions by the end of 2019.

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STATE-RUN NAFTOGAZ CREATES OIL DIVISION OF GROUP

NJSC Naftogaz Ukrainy has approved the creation of Naftogaz Oil Trading LLC in the oil division of the group, which will be engaged in trade with oil and petroleum products.
The decision of the shareholders – Ukrtransnafta – dated October 3, 2019 was posted on the website of the oil transmission network operator of Ukraine.
The directorate of Ukrtransnafta is to take the required measures to register Naftogaz Oil Trading LLC and ensure its further functioning.

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UKRAINIAN BANKS TO GET EUR 70 MLN CREDIT LINE FROM EU TO SUPPORT LOCAL SME

Raiffeisen Bank Aval, ProCredit Bank and OTP Bank (all based in Kyiv) have signed a credit line agreement with the European Bank for Reconstruction and Development (EBRD) and the European Union (EU) for the total amount of up to EUR 70 million in hryvnia equivalent under the SME (small and medium-sized enterprises) Finance Facility of the EU4Business initiative.
An Interfax-Ukraine correspondent has reported that the signing ceremony took place at the EBRD office on Tuesday.
In particular, Raiffeisen Bank Aval will receive a credit line with the limit of EUR 25 million in hryvnia equivalent, ProCredit Bank – EUR 20 million in hryvnia equivalent, and OTP Bank – EUR 25 million in hryvnia equivalent.
The total limit of the facility is EUR 120 million in hryvnia equivalent.

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CHANGES IN CURRENCY EXCHANGE, UAH/RUB, 31.07.19.-30.09.19.

Changes in currency exchange, UAH/RUB, 31.07.19.-30.09.19.

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UKRAINIAN DIGITAL TRANSFORMATION MINISTRY INTERESTED IN CRYPTO MARKET

The Ministry of Digital Transformation of Ukraine is interested in participation in the regulation of the crypto assets market, a representative of the ministry Oleksandr Borniakov said at the Blockchain Society and the State of Ukraine open-door meeting in Kyiv.
“The ministry’s plans are to ensure that mining is launched legally after determining its status. That is, those involved in mining could do this without fear that they are in some kind of “gray zone,” he said.
Borniakov said that the Ministry of Digital Transformation also considers its task to ensure all conditions for international cryptocurrency exchanges to work in the country.
According to a message in the Facebook social network that, in accordance with the resolution published last week, the Ministry of Digital Transformation is responsible for the formation and implementation of the government policy in the field of the IT industry, therefore the issue of introducing blockchain technology, its application in public administration and the development of virtual assets is extremely urgent.
According to the ministry, the state plans for the next two to three years the following: legislatively define terminology; work out a compromise version of taxation in this area; by the summer of 2020, implement the recommendations of the Financial Action Task Force on Money Laundering; introduce blockchain technology into public registers; legalize mining and attract international cryptocurrency exchanges to the country.
In this regard, in the near future, the Ministry of Digital Transformation plans to sign a memorandum with the Blockchain4Ukraine inter-faction parliamentary group of the Verkhovna Rada, including more than 50 deputies, the Blockchain Association of Ukraine (BAU), the Better Regulation Delivery Office (BRDO) and other institutions.
“A concept that is understandable for all players should be developed in Ukraine – definitions, information exchange, who regulates and how, issuing licenses, limits, and other things. It will be great if the Ministry of Digital Transformation assumes this… A regulator of market behavior in this area should be defined, as without this, the rights of consumers and investors may be infringed,” acting Director of the Department of Strategy and Reform of the National Bank of Ukraine (NBU) Mykhailo Vidiakin said, commenting on this issue in the Facebook social network.
He also called for the prompt adoption of the required legislation and the development of a strategy with specifying the place of crypto assets in the development of the financial market of Ukraine.
“Now we are developing a strategy for the development of the financial sector until 2025, in which regulators accept proposals from the market. Documents and a form for submitting e-proposals are available on the NBU’s website in the Comprehensive Program for the Development of the Financial Sector section,” Vidiakin said.

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