On Saturday night Kyiv time, international rating agency Fitch Ratings confirmed Ukraine’s long-term foreign currency issuer default rating (IDR) at “restricted default” (RD).
“Fitch believes that Ukraine is still in the process of broader restructuring, with its GDP warrants only becoming defaulted after the May 31 payment date. The long-term foreign currency IDR will remain at RD until Ukraine normalizes its relations with the vast majority of its external commercial creditors,” the agency said in a statement on its website.
Fitch recalls that following last year’s restructuring of outstanding sovereign Eurobonds and state-guaranteed debt of Ukravtodor and Ukrenergo a preliminary agreement was reached on the restructuring of their state-guaranteed Eurobonds worth $825 million (with payments suspended from November 9, 2024), which should be completed by July.
At the same time, Ukraine and the holders of GDP warrants (for a notional amount of $2.6 billion) have not been able to reach an agreement on restructuring, and Cargill’s $0.7 billion external commercial loan, payments on which have been suspended since September 3, 2024, has also not yet been restructured.
The agency also confirmed the national currency ECAI at ‘CCC+’, reflecting Ukraine’s continued servicing of its national currency debt. Only a small share (1.1% as of May 2025) is held by non-residents, while the majority is held by
the National Bank of Ukraine and domestic (mainly state-owned) banks, and this ownership structure limits the benefits for the country from debt restructuring in local currency, creating potential fiscal costs (including bank recapitalization).
Regarding the Ukrainian-Russian ceasefire talks, Fitch mentioned the first bilateral meeting in Istanbul in three years but noted that it did not lead to any breakthrough.
“The US administration’s stated goal of ending the war could lead to a negotiated ceasefire, but a peace agreement is unlikely due to the difficult-to-reconcile positions of both sides,” the agency said.
It added that the agreement on mineral extraction between the US and Ukraine had eased diplomatic tensions, but the potential economic benefits, as well as the extent to which it could link US economic interests to Ukraine’s strategic security goals, remained highly uncertain.
As for the fiscal deficit, Fitch pointed to its reduction to 17.2% of GDP in 2024 thanks to high revenue performance despite the economic slowdown, and forecast an increase in the deficit to 19.3% of GDP in 2025.
“High spending pressures will persist even after the end of the war, as Ukraine is likely to maintain a significant military presence,” the agency said, noting that Ukraine will need $524 billion in reconstruction over the next decade, which is about 2.8 times Ukraine’s nominal GDP in 2024.
The publication emphasizes that Ukraine’s financing needs this year will be comfortably met, leaving additional liquidity buffers for next year: net foreign financing will reach $55 billion compared to an average of $25 billion per year in 2022-24, mainly due to advance receipts from frozen Russian assets. At the same time, uncertainty regarding financing for 2026 and beyond remains high. Fitch expects domestic borrowing to increase in 2026 thanks to a relatively stable banking sector and low domestic financing this year.
Slovakia plans to allocate EUR 84 million in loans and grants for the restoration of the infrastructure of NEC Ukrenergo. Slovakia is ready to allocate about EUR 84 million in loans and grants for the implementation of projects to restore and develop the infrastructure of NEC Ukrenergo. The company announced this on Friday, citing investment director Oleg Pavlenko. “In particular, we are talking about the construction of a new high-voltage line in a region that has been severely affected by Russian shelling, the construction of a new Ukrenergo substation, and the reconstruction of an existing one,” he said.According to Pavlenko, the implementation of each of these initiatives is very important for the system operator, as these measures will significantly strengthen the stability of the Ukrainian energy system. Ukrenergo executives discussed the implementation of joint projects and the possible participation of Slovak businesses in the restoration of Ukraine’s energy sector with representatives of the Slovak government. In particular, they discussed attracting infrastructure investments under the European program to support Ukraine, Ukraine Facility. The implementation of projects to restore Ukraine’s energy infrastructure with the support of Slovak partners will be administered by the Export-Import Bank of the Slovak Republic and the Slovak Development Agency with the assistance of the country’s government.Fitch confirms Ukraine’s “restricted default” rating On Saturday night, the international rating agency Fitch Ratings confirmed Ukraine’s long-term foreign currency issuer default rating (IDR) at “restricted default” (RD). “Fitch believes that Ukraine is still in the process of broader restructuring, with its GDP warrants only becoming defaulted after the May 31 payment date. The long-term foreign currency IDR will remain at RD until Ukraine normalizes its relations with the vast majority of its external commercial creditors,” the agency said in a statement on its website.Fitch recalls that following last year’s restructuring of outstanding sovereign Eurobonds and state-guaranteed debt of Ukravtodor and Ukrenergo reached a preliminary agreement on the restructuring of its state-guaranteed Eurobonds worth $825 million (with payments suspended from November 9, 2024), which should be completed by July.At the same time, Ukraine and the holders of GDP warrants (for a notional amount of $2.6 billion) have not been able to reach an agreement on restructuring, and Cargill’s external commercial loan of $0.7 billion, payments on which have been suspended since September 3, 2024, has also not yet been restructured.The agency also affirmed the national currency IDR at ‘CCC+’, reflecting Ukraine’s continued servicing of its domestic debt.
Only a small share (1.1% as of May 2025) is held by non-residents, while the majority is held by the National Bank of Ukraine and domestic (mainly state-owned) banks, and this ownership structure limits the benefits for the country from debt restructuring in national currency, creating potential fiscal costs (including bank recapitalization). Regarding the Ukrainian-Russian ceasefire talks, Fitch recalled the first bilateral meeting in Istanbul in three years, but noted that it did not lead to any breakthrough.The US administration’s stated goal of ending the war could lead to a ceasefire through negotiations, but a peace agreement is unlikely due to the difficult positions of both sides,” the agency said.It added that the agreement on mineral extraction between the US and Ukraine has eased diplomatic tensions, but the potential economic benefits, as well as the extent to which it can link US economic interests to Ukraine’s strategic security goals, remain highly uncertain.As for the fiscal deficit, Fitch pointed to its reduction to 17.2% of GDP in 2024 thanks to high revenue performance despite the economic slowdown, and forecast an increase in the deficit to 19.3% of GDP in 2025.High pressure on spending will remain even after the end of the war, as Ukraine is likely to maintain significant military forces,” the agency believes, also recalling the need for $524 billion in reconstruction over the next decade, which is approximately 2.8 times Ukraine’s nominal GDP in 2024.The publication notes that Ukraine’s financing needs this year will be comfortably met, leaving additional liquidity buffers for next year: net foreign financing will reach $55 billion, compared to an average of $25 billion per year in 2022-24, mainly thanks to advance receipts from frozen Russian assets. At the same time, uncertainty regarding financing for 2026 and beyond remains high. Fitch expects domestic borrowing to increase in 2026 thanks to a relatively stable banking sector and low domestic financing this year.
Slovakia is ready to allocate approximately EUR 84 million in loans and grants for the implementation of projects to restore and develop the infrastructure of NEC Ukrenergo.
The company announced this on Friday, citing investment director Oleg Pavlenko.
“In particular, we are talking about the construction of a new high-voltage line in a region that has been severely affected by Russian shelling, the construction of a new Ukrenergo substation, and the reconstruction of an existing one,” he said.
According to Pavlenko, the implementation of each of these initiatives is very important for the system operator, as these measures will significantly strengthen the stability of the Ukrainian energy system.
UkrEnergo executives discussed the implementation of joint projects and the possible participation of Slovak businesses in the restoration of Ukraine’s energy sector with representatives of the Slovak government. In particular, they discussed attracting infrastructure investments under the European program to support Ukraine, Ukraine Facility.
The implementation of projects to restore Ukraine’s energy infrastructure with the support of Slovak partners will be administered by the Export-Import Bank of the Slovak Republic and the Slovak Development Agency with the assistance of the country’s government.
The Central Asia-European Union Economic Forum and Investor Forum will be held in Uzbekistan in November. This was announced by the European Union Ambassador to Tashkent, Toivo Klaar, during the celebration of Europe Day on May 12.
“These forums will open up new business opportunities,” said the head of the diplomatic mission.
As a reminder, during the first Central Asia-European Union summit, which took place in April, the EU announced an investment package for Central Asia worth €12 billion for the development of four areas: transport corridors, critical raw materials, green energy, and satellite internet.
Toivo Klaar also noted that the EU is looking forward to the next Human Rights Dialogue.
In addition, the European Union is expecting a visit by Uzbekistan’s President Shavkat Mirziyoyev to Brussels this year to sign an Agreement on Enhanced Partnership and Cooperation.
“This historic visit will open a new chapter in relations between the EU and Uzbekistan, which will be deepened, diversified, and modernized in many areas,” the EU ambassador said in his speech.
The pharmaceutical company PJSC Borshchagivsky Chemical and Pharmaceutical Plant (BCHF) has changed the composition of its supervisory board.
As reported by the company in the information disclosure system of the National Securities and Stock Market Commission, in accordance with the decision of the annual general meeting on April 30, the shareholders re-elected three ultimate beneficial owners to the supervisory board: Mykola Bezpalka (owns 0.028982% of the authorized capital), Tetyana Artemenko (owns 0.038643% of the share capital), and Oleg Goloborodko (owns 0.038643% of the share capital).
By decision of the meeting, Lyudmila Bezpalko (who owns 1.410491% of the authorized capital) and a representative of the shareholder of PJSC “Farfirma ‘DARNITSA,’ Director of Corporate, Legal Relations and Compliance of ‘Darnitsa’ Sergey Bobylev, were also included in the Supervisory Board.
In addition, the shareholders’ meeting terminated the powers of Supervisory Board member Dmytro Guz.
As reported, BHFZ increased its net profit by almost 17% in 2024 compared to 2023, to UAH 273.402 million. In 2023, BHFZ’s net profit increased by 3.38% compared to 2022, to UAH 262.863 million.
As of the first quarter of 2023, 31.8% of BHFZ shares belonged to the pharmaceutical company PJSC “Pharmaceutical Firm ‘Darnitsa’ (Kyiv). The company’s shareholders also included ‘Beldor Group’ (21.26%) and ‘Lenik Group’ (20.32%).
According to data from the OpenDataBot system, the ultimate beneficiaries of BHFZ are the beneficiaries of the pharmaceutical company Darnitsa, Gleb Zagoriy, Yevgen Sova, Tetiana Artemenko, Mykola Bezpalko, and Oleg Goloborodko.
On May 23, 2025, US President Donald Trump announced his intention to impose a 50% tariff on all goods imported from the European Union starting June 1. This decision was explained by the lack of progress in trade negotiations and accusations of unfair trade policies on the part of the EU.
Trump stressed that the EU is “very difficult to do business with” and that the negotiations are “going nowhere.” He also noted that goods produced in the US will not be subject to the new tariffs.
In addition, Trump threatened to impose a 25% tariff on Apple products if the company does not move iPhone production to the US. This statement caused Apple shares to fall 3% in pre-market trading.
Analysts warn that the introduction of 50% tariffs could lead to a 1.7% decline in GDP in Germany and a 4% decline in Ireland over three years. European markets reacted with a decline: the Stoxx Europe 600 index fell 1.7%, and shares of exporters such as Stellantis and Deutsche Bank lost up to 4.6% in value.
The EU is considering retaliatory measures, including the introduction of tariffs on US goods worth up to €95 billion, including Boeing products, cars, and bourbon. Negotiations between EU and US representatives are continuing, but the prospect of a large-scale trade war is causing concern on both sides.
Thus, the measures announced by Trump could significantly exacerbate trade relations between the US and the EU, affecting global markets and the economy as a whole.
