The volume of construction work performed in Ukraine in 2018 increased by 4.4% compared with 2017, while growth in 2017 compared with 2016 was 26.3%, according to reviewed statistics. According to the State Statistics Service, the data are given excluding the occupied territory of Crimea and the temporarily uncontrolled territories in Donetsk and Luhansk regions.
According to the agency, the volume of construction work performed in December 2018 decreased by 8.8% compared with December 2017, while compared with November it grew by 36.7% (according to seasonally adjusted data it declined by 3.2%).
According to the report, in 2018 compared with 2017 the volume of construction work decreased only in residential construction – by 1.6% (a rise of 16.3% in 2017 on 2016).
Nonresidential construction in 2018 rose by 1.2% (26.1% in 2017) and in engineering – by 9% (31.7% in 2017).
In 2018 compared with 2017, an increase in the volume of construction work was recorded in 14 regions of Ukraine, while in Kyiv there was a drop of 3.5%, to UAH 30.1 billion.
According to the State Statistics Service, the largest increase in this indicator was seen in Vinnytsia (by 42.6%, to UAH 5.5 billion), Donetsk (by 32.6%, to UAH 5.3 billion) and Cherkasy (by 18.2%, to UAH 1.9 billion) regions.
The decline in construction work in 2018 by 2017 was recorded in Kirovohrad (by 16.7%, to UAH 1.6 billion), Luhansk (by 16.3%, to UAH 0.6 billion) and Mykolaiv (by 14.3%, to UAH 2.8 billion) regions.
Ukrainian President Petro Poroshenko held a meeting with newly elected President of Brazil Jair Bolsonaro in Davos (Switzerland), where the World Economic Forum is taking place. During the meeting the two presidents pointed out the importance of resuming large-scale cooperation in all sectors of mutual interest.
“The parties discussed prospects of intensification of trade and economic cooperation, first of all in the military-technical, investment, energy, scientific-technical and other spheres. It was also agreed to hold a regular meeting of the Intergovernmental Commission on Trade and Economic Cooperation in the near future,” the press service of the Ukrainian head of state reported on Thursday.
The parties confirmed interest in restarting a number of industrial, energy, infrastructure and other projects suspended by the previous administration of Brazil.
“The parties stand for the need to increase the level of coordination between the two countries in the framework of international organizations, first of all the United Nations. The President of Brazil supported the independence, sovereignty and territorial integrity of Ukraine,” the press service said.
Poroshenko invited Bolsonaro to visit Ukraine.
Horizon Capital, a U.S. private-equity firm investing in high growth and export-driven companies in Ukraine and the near region, has announced the final closing of its third fund, $200 million Emerging Europe Growth Fund III LP, far surpassing the $150 million target size announced in 2017.
“EEGF III’s investment strategy is focused on fast-growing, export-oriented companies that leverage Ukraine’s cost competitive platform to generate global revenues primarily in IT, light manufacturing, food and agriculture. The Fund will also pursue investments in select, high-growth domestic market segments, including e-commerce, healthcare and pharma, consumer goods and financial services,” Horizon Capital said in a report on Wednesday.
According to the press release, investments will range from $5-20 million and be made over the next two or three years.
Horizon Capital said that EEGF III has made six investments to date, five in the core sectors driving Ukraine’s export boom and best-positioned to access global markets, including IT, light manufacturing and food and agro. The Fund has backed Genesis, global IT product company; Intellias, fast-growing large IT services company; Yarych, leading biscuits producer; MAIB, No. 1 bank in Moldova, and others.
According to the press release, in what marks the largest private equity fund raised for Ukraine in a decade, Horizon’s EEGF III received strong backing from existing and new investors, attracted by the excellent value, fast growth and abundance of opportunities that Ukraine offers.
“Our fundraising success should send a strong signal that Ukraine offers tremendous rewards for those willing to look past the headlines,” Horizon Capital’s Founding Partner and CEO Lenna Koszarny said.
According to the press release, EEGF III was launched with an anchor commitment from Western NIS Enterprise Fund and attracted investments from the EBRD, FMO, IFC, PROPARCO, DEG, and IFU with over one-third of capital raised from institutional investors, foundations, family offices and other private investors.
Horizon Capital said that the new fund enjoys strong backing from existing investors of Horizon Capital’s prior funds, who contributed over 55% of total commitments. U.S. and Europe-based investors contributed roughly 35% each of total capital raised, with the remainder from other international investors.
Horizon Capital was established in 2006. It manages private equity funds Western NIS Enterprise Fund (WNISEF, established in 1994 with a seed capital of $150 million), Emerging Europe Growth Fund, L.P. (EEGF, established in 2006 with a seed capital of $132 million) and EEGF II (EEGF, established in 2008 with $370 million seed capital). The money of these funds is invested in projects in Ukraine, Moldova, and Belarus.
Industrial production in Ukraine in 2018 increased by 1.1% compared with 2017, while in December 2018 from December 2017 the decline was 3.5%, the State Statistics Service has reported.
The service said that with the adjustment to the effect of calendar days, industrial production in December 2018 from December 2017 decreased by 2.7%.
It indicated that industrial production in December last year in relation to the previous month decreased by 1.7% and taking into account the seasonal factor by 0.2%.
The decline in processing industry in December 2018 compared to December 2017 was 8.6%, while in mining industry and quarrying there was an increase of 1.8%, and the rise in the supply of electricity, gas, steam and air conditioning was 11.1%.
According to the report, in general, last year, processing industry posted a rise of 0.2%, mining industry and quarrying some 2.1%, the supply of electricity, gas, steam and air conditioning some 2.8%.
According to the State Statistics Service, in 2018 compared with 2017, the highest growth in industry was recorded in Sumy (by 10.4%), Ivano-Frankivsk (by 10%), Chernivtsi (by 5.5%), Zakarpattia (by 4.6%), Zaporizhia (by 3.2%), Mykolaiv (by 2.6%), Dnipropetrovsk and Volyn (by 2.3%) regions.
According to the statistics, industrial production in Luhansk region decreased 18% last year, while in Donetsk region it grew by 2.2%, including in December 2018 compared to December 2017 in Luhansk region the decline was 27% and in Donetsk region an increase of 5.1% was seen (excluding the zone of Joint Forces Operation (JFO).
As reported, the growth of industrial production in Ukraine in 2017 amounted to 0.4%, in 2016 it was 2.4% after a four-year decline: in 2015 it decreased by 13%, in 2014 – by 10.1%, in 2013 – by 4.3%, in 2012 – by 0.7%.
