Business news from Ukraine

Cabinet of Ministers of Ukraine has simplified electricity imports

On Saturday, the Cabinet of Ministers of Ukraine invalidated Resolution No. 775 of July 7, 2022 “On Imposing Special Obligations on Electricity Market Participants Engaged in Electricity Export Operations to Ensure Public Interests in the Functioning of the Electricity Market During Martial Law.”
According to the government’s representative in parliament, Taras Melnychuk, this was done “in order to create preconditions for increasing electricity exports to the unified energy system of Ukraine.”

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European Commission may allocate almost EUR 3.5 bln to Ukraine

The European Commission expects Kyiv to fulfill the conditions agreed upon earlier and the European Council to approve the Ukraine Plan, which will allow it to disburse another EUR1.5 billion in April and EUR1.9 billion in May under the Ukraine Facility, said Valdis Dombrovskis, the European Commission’s executive vice president.
“The next disbursement (for the Ukraine Facility) of EUR1.5 billion is scheduled for this month, if the policy conditions are met,” he said in a press statement following the meeting of the EU Council of Ministers (ECOFIN) held on April 12 in Luxembourg.
According to Dombrovskis, the European Commission is currently assessing Ukraine’s plan to draw up quarterly indicators of reforms and investments that need to be made to unlock future disbursements.
“In the near future we will finalize this work and submit the assessment to the (European) Council. Once the approval is received, it will pave the way for Ukraine to receive the pre-financing of EUR1.9 billion, most likely in May,” the Executive Vice President said.
He emphasized that the EUR50 billion Ukraine Facility until 2027 is a lifeline from the EU at an extremely difficult time to help Ukraine maintain key public services and keep the state functioning while Russia wages a brutal war, and recalled that the first tranche of EUR4.5 billion in transitional financing was disbursed in March.
Speaking about the Ukraine Plan, Dombrovskis noted that it will be the main instrument for the implementation of the Ukraine Facility, and it focuses on structural reforms to remove barriers to growth, investments in key sectors, and measures to facilitate Ukraine’s convergence with EU rules and standards as part of its accession path.
As reported, Ukraine expects to receive a total of EUR 2024 billion under the Ukraine Facility, with a total need for external financing of this year’s budget deficit of EUR 37.3 billion.

Ukraine sowed 1.26 mln ha with spring grains and legumes

As of April 11, Ukraine planted 1.26 million hectares with spring grains and pulses, up 72.2% year-on-year, the press service of the Ministry of Agrarian Policy and Food reported on Friday.

According to the report, 173.9 thousand hectares were planted with wheat (118.3 thousand hectares a week earlier), 683.4 thousand hectares with barley (543.2 thousand hectares), 147.7 thousand hectares with peas (119.0 thousand hectares), and 117 thousand hectares with oats (62.4 thousand hectares).

Over the past week, Ukrainian farmers sowed grains and legumes on the area of 408.6 thou hectares, a week earlier the figure was 375.4 thou hectares, and 262.2 thou hectares – a week earlier.

According to the Ministry of Agrarian Policy, Kyiv region is the leader in terms of sowing rates, having planted 23 thou hectares of wheat, 39.3 thou hectares of barley, 4.7 thou hectares of peas and 3.6 thou hectares of oats; Ternopil region – 18.9 thou. hectares of wheat, 63.6 thousand hectares of barley, 3.6 thousand hectares of peas and 5.1 thousand hectares of oats; Khmelnytsky – 14.5 thousand hectares of wheat, 63.6 thousand hectares of barley, 3.6 thousand hectares of peas and 5.1 thousand hectares of oats; Khmelnytsky – 14.5 thousand hectares of wheat. Khmelnytsky – 14.8 thousand hectares of wheat, 59.1 thousand hectares of barley, 2.6 thousand hectares of peas and 2.5 thousand hectares of oats; Zhytomyr – 13.7 thousand hectares of wheat, 15.9 thousand hectares of barley, 2.6 thousand hectares of peas and 2.5 thousand hectares of oats; Zhytomyr – 13.7 thousand hectares of wheat, 15.9 thousand hectares of barley, 2.6 thousand hectares of peas and 2.5 thousand hectares of oats. Zhytomyr region – 13.7 thou hectares of wheat, 15.9 thou hectares of barley, 2.6 thou hectares of peas and 17.9 thou hectares of oats; Vinnytsia region – 11.5 thou hectares of wheat, 52.3 thou hectares of barley, 6 thou hectares of peas and 1.1 thou hectares of oats.

Farmers in Poltava region have completed sowing early grains and pulses. They have planted 6.5 thou hectares of wheat, 73 thou hectares of barley, 8.5 thou hectares of peas and 2.3 thou hectares of oats.

Sunflower was sown on 470.1 thou hectares. Soybeans are being sown in 9 regions. Farmers in 15 regions have started sowing corn, which has already been planted on 120 thousand hectares.

Sugar beet was sown on 157.6 thou hectares. The largest area under this crop is in Vinnytsia region – 42 thou hectares.

Farmers in Mykolaiv, Odesa, Khmelnytsky and Kherson regions have started sowing buckwheat and millet.

The Ministry of Agrarian Policy reported that 70% of respondents plan to increase soybean acreage by an average of 21% compared to 2023, according to a survey conducted by the State Agrarian Register on farmers’ preparations for the spring crops sowing campaign for the 2024 harvest.

The survey also showed that during the spring sowing campaign, Ukrainian farmers will prioritize pulses, which will increase by 11%, and spring barley – by 7%. The area under spring rapeseed is expected to increase by 24%, sugar beet by 17%, and corn by 9%. The area under sunflower may potentially decrease.

In general, in 2024, the area under spring crops may decrease by 0.5 million hectares or 3.7% compared to last season, according to the Ministry of Agrarian Policy.

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Auction for sale of Ocean Plaza shopping mall is being prepared

The Auction Commission has set the starting price of privatization of the state share (66.65%) in the authorized capital of LLC Investment Union Lybid, which owns Ocean Plaza shopping mall, at UAH 1.65 billion, the press service of the State Property Fund (SPF) reported.
According to the report, the starting price and terms of sale should be approved by the Cabinet of Ministers of Ukraine, FGI will prepare a draft of the relevant decision.
After the government approves the starting price, the date of the auction will be set, the agency said. The state share in the authorized capital will be put up for electronic auction in the system “Prozorro.Sales”.
As reported, the FGI plans to hold an auction on privatization of shopping mall Ocean Plaza in the second half of the year.
Ocean Plaza shopping mall was opened in Kiev in December 2012 on Antonovycha Street, 176. Its total area is 165 thousand sq. m. Investments in the facility amounted to about $300 mln. UDP Company and K.A.N. Development LLC acted as partners in the development of the project.
The mall was sold to Arkady Rotenberg’s Russian TPS-Nedvizhimost in 2012. Later, in 2019, Ukrainian businessman Vasyl Khmelnytsky indirectly through UPD Holdings Limited acquired a 33.5% stake in Ocean Plaza mall. In 2021, he sold his stake to entrepreneur Andrey Ivanov. The deal was finalized in summer 2023.
In June 2023, the Cabinet of Ministers transferred to the FGI a 66.65% stake in the authorized capital of Investment Union Lybid LLC, which owns the shopping mall, for further privatization.

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Rains possible in Kyiv starting Sunday evening

On Sunday, April 14, there will be no precipitation in Ukraine at night, short-term rains in the western, evening and northern regions, thunderstorms in some places, the Ukrainian Weather Center reports.
Southwest, westerly wind, 7-12 m / s, gusts of 15-20 m / s in the afternoon in the western regions.
The temperature at night will be 7-12°, during the day 18-23°, in the south, in Transcarpathia and Prykarpattia in some places up to 26°; in the Carpathians at night 3-8°, during the day 10-15°.
In Kyiv on Sunday, no precipitation, only short-term rain in the evening. West wind, 7-12 m / s. The temperature at night will be around 10°, during the day 20-22°.
According to the Central Geophysical Observatory named after Borys Sreznevsky. On April 14, the highest daytime temperature in Kyiv was 25.4° in 1972, and the lowest nighttime temperature was -3.9° in 1928.
On Monday, April 15, there will be short-term rains in Ukraine, sometimes thunderstorms, in the southern part without precipitation.
West, southwest wind, 5-10 m / s, in the Carpathians, during the day and in the east of the country, gusts of 15-20 m / s in some places.
The temperature at night will be 6-11°, during the day 15-20°, in Transcarpathia 20-25°; in the southern part of Ukraine at night 9-14°, during the day 22-27°.
On Monday, there will be short-term rain in Kyiv. West, southwest wind, 5-10 m / s. Temperature at night 8-10°, during the day 17-19°.

Recovery Construction Forum Ukraine took place on April 11

RECOVERY CONSTRUCTION FORUM UKRAINE was held on April 11, 2024, bringing together government officials and the construction community to discuss current industry challenges and effectively coordinate efforts to rebuild Ukraine.
The forum was attended by over 2,000 people, including community representatives, construction business representatives, architects, construction students and other guests.
– The first block of discussion was devoted to the state policy of Ukraine’s reconstruction.
– Ms. Natalia Kozlovska, Deputy Minister of Community Development, Territories and Infrastructure of Ukraine, spoke about the current priorities of community and infrastructure recovery, tools and resources that are provided to communities for their participation in the recovery process. Ms. Natalia paid special attention to effective coordination between different agencies and local authorities in the recovery process.
– “If something happens, it is only because of the symbiosis between the state and the market. Thank you to those who support us in the implementation of decisions, sometimes telling us what will not work and what needs to be improved,” Ms. Natalia said.
– Valeria Ivanova, Deputy Head of the State Agency for Restoration and Development of Infrastructure of Ukraine (Restoration Agency), told about the areas of responsibility of the Restoration Agency: these are large infrastructure facilities, transportation infrastructure, logistics and border crossing checkpoints, frontline infrastructure, restoration of damaged and destroyed towns and villages, restoration of housing and social infrastructure. For example, 330 bridges have been repaired during 2022-2023.
– “Monitoring and analysis of procurement has already been implemented – we verify with experts the tender documentation for the absence of discriminatory criteria. We also evaluate the efficiency of procurement, analyze estimates, improve approaches,” said Valeria Ivanova.
– Mr. Oleksandr Novitskiy, Chairman of the State Inspectorate of Architecture and Urban Planning of Ukraine (SIAM), told what mechanisms are in place to ensure transparency of SIAM work and in what direction they will be developed. In particular, he noted the role of automation of processes of obtaining authorization documentation for transparency. For example, last year the number of applications for objects of impact class CC2 and CC3 increased.
– “For us, a builder is a businessman who creates added value. We stand, as we have since the first day of our existence, clearly and confidently on zero tolerance to corruption. If you have not had the experience – apply, and check,” Mr. Alexander assured.
He said that this year the decision is overdue and a preliminary draft of the resolution of the Cabinet of Ministers of Ukraine has already been prepared to return full-fledged licensing: “We are already at the finish line, when we will be able to return normal licensing, but taking into account the past experience. In order to create a convenient service, which will be predominantly automatic. And where the automatic mode will not work for technical reasons, there will be our employees who are always ready to provide all the necessary professional assistance.”
– Valeriy Sushkevich, Chairman of the National Assembly of People with Disabilities of Ukraine, noted the importance of accessibility of the space for all Ukrainians. He emphasized that given the large number of warriors who have been injured, the issue of accessibility is more acute than ever.
– “All state bodies should work on accessibility so that those who protected us could live in a civilized Ukraine,” Mr. Valeriy emphasized.
– Eugene Metzger, Chairman of the Board of Ukrfinjitlo, informed about the current status of the eOselli program, its prospects and achievements. Thus, in 2024, 4 more banks were accredited in the program, 2,553 families received their housing, 70 Ukrainians bought private houses under the program.
– “We are creating a new product – rent with the right to buy. We are focusing on internally displaced persons,” Mr. Eugene shared.
He also presented the innovations of the eVidnovlennya program, which are in the process of coming into force: the certificate as a down payment on mortgage, the opportunity to buy better and bigger housing, convenient integration of the program in the Diya app.
– Lev Partskhaladze, President of the CSU, presented the CSU initiative on the need to develop model projects of social infrastructure facilities: “We must prepare ourselves. The projects ready for realization will allow to restore the destroyed faster and more qualitatively”.
– Alexander Prokudin, Head of Kherson Regional Military Administration, in his video address presented statistics of destroyed and damaged objects. He spoke about the tools and mechanisms of reconstruction. Mr. Alexander paid special attention to helping people who suffered as a result of Russian aggression.
– Vitaliy Boyko and Andriy Garbuziuk, logisticians of the Bureviy Brigade, presented the possibility of helping the military – through the collection of FPV drones.
– “The kind of help that we have now is help for support, not for Victory. We propose to join forces,” Mr. Andrey noted about the initiative “Wings of Architects”.
– Igor Guda, Founder of Creator-Bud, presented the company’s role in the reconstruction, in particular active participation in providing housing for the military. He noted that today the effective tool is low-rise construction, which is carried out quickly: the process of erection, connection to the eOsel program and implementation.
– Also in the framework of RECOVERY CONSTRUCTION FORUM UKRAINE considered the possibilities of community support and the role of business associations in reconstruction processes.
– Sergiy Mamedov, Deputy Chairman of the Board of Directors of CBU, Vice-President of the Association of Ukrainian Banks, Chairman of the Board of Globus Bank, financial expert, who drew attention to the fact that in the second half of 2023, banks’ loan portfolios grew by UAH 35 billion or 16% of GDP growth.
– Anatoliy Kinakh, President of the USSPP, spoke about the difficulties faced by business today. He noted that the most painful issue is access to resources due to the huge scale of destruction.
The speakers also discussed the difficulties faced by business in today’s conditions and possible ways to overcome them. Representatives of the construction business described how demand has changed in the face of the large amount of destruction.
– Victor Zhynger, Marketing Manager of VYURT-UKRAINE, noted that the projects of reinforcing the foundation part after a missile attack, building up the existing monolithic slab with the help of “post-reinforcement” technology (post-REBAR) have become more frequent.
– Andriy Korol, Commercial Director of Caparol Ukraine, presented the company’s experience in technical selection of solutions, documentation and full technical support of new construction projects of key players in the Ukrainian market.
– Sergiy Skorik, Commercial Director of Kvertus, informed about the latest achievements in drone defense. Thus, the company is able to manufacture thousands of devices per month and has unique combat experience in countering enemy drones.
– Within the framework of the panel discussion on “GROWING GROUMS: POSSIBILITIES, PLANNING AND INNOVATION”, communities presented their own experience in rebuilding and working with international funds to raise funds, their main needs and priorities. They discussed where communities should start, in particular in developing a comprehensive recovery plan. Representatives of foundations and international organizations told what tools and mechanisms they use to support and restore communities and where they start. They noted that the search for funds often causes difficulties – in order to allocate funding it is necessary to present a ready-made project, and accordingly, specialists who can develop it are needed.
– The experts also participated in a panel discussion on technical regulation and recovery standards. They reviewed trends and innovations that are possible and promising for use in restoration and useful for communities.
– Artem Bezuglyy, Director of the State Enterprise “National Institute for Infrastructure Development”, spoke about how to accelerate innovation in construction. Important is the use of active communication; improvement of normative regulation – creation of an adequate regulatory framework for the introduction of innovations (building standards, harmonization of EN, etc.), improvement of the pricing system in construction; scientific and technical support for the introduction of innovations at the stage of design and execution of construction works.
– When discussing modern development, analytics and realities under war conditions were presented, in particular, actual real estate statistics. For example, the pace of construction has decreased and this also affects the operating time, and the geographical focus has shifted to the western regions. Also, the demand for warehouse space is now increasing, and developers are gradually expanding into this market.
– Architects presented their own cases ready for implementation and experience of realization of rehabilitation projects. Also Olga Sidorchuk, Chairman of the CCU Committee on Regulatory and Legislative Activities, attorney, lawyer in the field of construction and real estate, head of SEMPRA LAW, and Mikhail Sapon, Chief Architect of Irpen, presented a practical case of restoration step by step – from the moment of obtaining city planning conditions to obtaining a building permit.
– During RECOVERY CONSTRUCTION FORUM UKRAINE was raffled 4 certificates totaling 1 million hryvnias from Caparol Ukraine among territorial communities!
Therefore, the certificates of UAH 250 thousand were given to:
– Borodyanska community
– Chernobayivska community
– Svetlovodska community
– Koptevska community
We are grateful to Caparol Ukraine for supporting the communities!
Forum organizers: Confederation of Builders of Ukraine CSU and International exhibition operator Premier Expo Ukraine.
General Partner: Creator-Bud
Strategic partners: Caparol Ukraine, Würth – Ukraine, Kvertus
Financial partner: Globus Bank
Logistics partner: EURO Forwarding
Logo partners: Penetron Ukraine, Ukrexpertiza Group, Eurobud, Egis in Ukraine, PBF GROUP.
Industry partners: Association of Cities of Ukraine, All-Ukrainian Association of United Territorial Communities, Association of Small Cities of Ukraine, All-Ukrainian Association of Communities, NGO “Mayors Club”, American Chamber of Commerce in Ukraine, European Business Association, Association of Real Estate Professionals (Realtors) of Ukraine (ASNU), Ukrainian Union of Industrialists and Entrepreneurs, ICC Ukraine, Association “Ukrcement”, Association of Consulting Engineers of Ukraine (AECU), Interstate Guild of Consulting Engineers, CBRE Ukraine
General Information Partner: Interfax-Ukraine
Information partners: Build Portal, ProfBuild, MIND, Property Times, LUN, RED Community, The Page, RBC-Ukraine, IRS, Polsko-Ukraińska Izba Gospodarcza (PUIG), CHAS PERSHIKH, zagorodna. com, TRUE, Address Group, KyivVlada, Stolichnaya Real Estate, Ukraine Communal, NGO “Living Planet”, Public Union “Business for Partnership”, Media Network “Window of Restoration”, Kyiv National University of Construction and Architecture, Kharkiv National University of Municipal Economy named after Beketov.
LET’S WIN AND REBUILD EVERYTHING!
TOGETHER TO VICTORY!
HOLY UKRAINE!

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