Business news from Ukraine

Business news from Ukraine

Ministry of Economy and USAID launch $15 mln grant program for medium and large enterprises

The Ministry of Economy and USAID are launching a $15 million grant program for medium and large enterprises, under which one business will be able to receive a grant of $250,000 to $2 million.

“Companies with an estimated minimum annual sales of $8 million in hryvnia equivalent are invited to participate in the program. This figure is important given that the target sales growth based on the results of the concept implementation should be at least $2 million,” the Ministry of Economy said in a release.

It is noted that grant funding should be used by program participants to develop their business, in particular, to increase sales, increase exports and create new jobs.

The condition for participation in the program is the investment of additional funds – the company’s own funds or other resources attracted by the company. The program participants will be selected in two stages: the first is the evaluation of concepts, and the second is the evaluation of detailed grant applications from participants who have passed the first stage. One of the criteria for evaluating concepts will be the number of jobs created.

It is specified that the concepts must be submitted no later than February 29, 2024. They are expected to be implemented within 12-24 months.

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Ukrainian Institute in Sweden gets its own premises in center of Stockholm

“We support Ukraine’s struggle for freedom in the long term and at all levels”, – Minister of International Cooperation and Foreign Trade of Sweden

The Ukrainian Institute in Sweden has received its own premises in the center of Stockholm and for the first time in 10 years since its establishment has its own home.

On December 20, Minister of International Cooperation and Foreign Trade of Sweden Johan Forssell inaugurated the Ukrainian Institute in Sweden on the island of Strömsborg. From now on, the cultural and diplomatic organization, founded in 2014 by Ukrainian-Swedish concert pianist Natalia Pasichnyk, will work in the historic center of the Swedish capital, near the Nobel Museum, the Royal Palace and the Riksdag.

“Sweden’s support for Ukraine is extensive and long-term. The work of the Ukrainian Institute in Stockholm is an important part of the protection of Ukrainian cultural heritage and helps to spread knowledge and understanding of Ukraine in Sweden. From the Swedish side, we are clear that we support Ukraine’s struggle for freedom, long-term and at all levels,” said Johan Forssell.

For nine years, the Ukrainian Institute in Sweden has been filling a large gap in the knowledge and understanding of Ukraine through culture in Scandinavia.

“Few people could name even one Ukrainian writer or composer before the Great Invasion. And only now the West has finally realized why. There should not have been a Ukrainian cultural heritage, because according to the current Russian leader, as well as his predecessors, “there is no such nation.” The Russian narrative is that Ukrainians are Russians, who have refused to recognize this time and again throughout history. And the aggressor claims that this war is needed to explain this to Ukrainians once and for all,” emphasized Pasichnyk.

The reopening of the Institute – now in its own premises – marks a milestone and an important step forward for its continued work to raise awareness of Ukraine’s significant cultural heritage and rich cultural life.

“We are entering a new chapter as we have fantastic premises to share with our incredibly welcoming partners at International IDEA,” added the founder of the Ukrainian Institute in Sweden.

The opening ceremony was also attended by the delegation of the Central Election Commission of Ukraine, which is currently participating in International IDEA events in Stockholm.

For reference:

The Ukrainian Institute in Sweden is a platform for Swedes and Ukrainians to meet, raising awareness of Ukraine’s significant heritage and rich cultural life. The organization works to strengthen Swedish-Ukrainian cultural ties. We believe that knowledge about each other and cultural cooperation are central elements of our society’s resistance to future threats. Our role is unique – we were the first Ukraine-centered organization to become an associate member of the Stockholm Cluster of the European Union National Institute for Culture (EUNIC) in 2014, and within this network we have become an integral part of the European cultural scene.

Over the years, we have organized the Young Talents – Ukraine concert series for young talents from Ukraine, the Rethinking Europe music festival, poetry evenings, events with Swedish and international authors, the Nordic Ukrainian Film Festival, and other events. Together with our partners from the European Union National Institutes for Culture (EUNIC), we regularly participate in film festivals (e.g. REX Animation Festival, European Film Festival, Sounds of Silence) and other events such as concerts, panel debates, European Day of Languages, etc.

International IDEA – International Institute for Democracy and Electoral Assistance – is an intergovernmental organization that supports democracy around the world. The vision and mission of the organization is to advance democracy worldwide as a universal human aspiration and a factor in sustainable development by supporting the development, strengthening and protection of democratic political institutions and processes at all levels. International IDEA is headquartered in Stockholm, on the island of Strömsborg, where the Ukrainian Institute in Sweden has now found its home.

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Ukrainian agrarians harvested 78.7 mln tons of crops in 2023

As of the third week of December, agrarians of all regions of Ukraine harvested 78.7 mln tons of grains and oilseeds: 57.86 mln tons and 20.76 mln tons respectively.

As reported by the Ministry of Agrarian Policy and Food, grain and legumes were harvested on an area of 10 million 509 thousand hectares with a yield of 55.1 c/ha.

Compared to the same date a year ago, the total harvest is 23.6% higher, or 15.02 million tons, including 24.2% higher, or 11.26 million tons, of grains and 22.1% higher, or 3.76 million tons, of oilseeds. At the same time, it should be taken into account that this year corn has been harvested from 88% of the area, while a year ago – from 75%.

In addition, 11.86 mln tons of sugar beet were harvested from 248.6 thou hectares. Although its yield this year, unlike grains and oilseeds, is lower than last year, due to the expansion of the area by 38.3%, the harvest is 31.8% higher than last year.

As reported, this season’s winter wheat plantings amounted to 4166 thou hectares (-834 thou hectares compared to the previous one), winter barley – 536 thou hectares (-255 thou hectares), and rapeseed – 1374 thou hectares (+110 thou hectares).

According to the newly revised forecast of the Ministry of Agrarian Policy, in 2023, farmers will be able to harvest 81.3 mln tons of grains and oilseeds, including 59.7 mln tons of grains and 21.6 mln tons of oilseeds.

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In 2023, Intergal-Bud Construction Company built more than 120 thousand square meters of real estate

In 2023, Intergal-Bud Construction Company completed the construction of more than 120 thousand square meters of real estate and plans to launch four new housing projects next year.

“The war is making its own adjustments to the work of the entire industry, but Intergal-Bud continues to build. In 2023 alone, we received certificates of readiness for more than 120 thousand square meters of real estate in the capital region. In 2024, we plan to launch four new residential projects and are generally optimistic,” Anna Laevska, Commercial Director of Intergal-Bud, told Interfax-Ukraine.

According to her, in early 2024, the company also intends to complete the construction of 180 thousand square meters of housing in Kyiv, Lviv, Chernivtsi, and Zhytomyr.

In the sales structure of Intergal-Bud, more than 60% of transactions relate to the purchase of housing in finished buildings or those that will be put into operation in the next six months. At the same time, projects scheduled for completion in two years account for only 11% of sales, compared to 52% in 2021, noted Laevska.

“Investors, given the military risks, are not ready to wait for a long time and prefer to buy real estate at the final stages of construction. This is a common trend in the market. But at the same time, the demand for housing is high and it is necessary to ensure the continuity of the construction process. The number of transactions on the market is growing, and accordingly, there is a need for new projects,” the expert explained.

At the same time, the share of speculative demand in the market remains insignificant – Ukrainians mostly buy housing for themselves to improve their living conditions. For the same reason, the number of transactions for the purchase of two- and three-bedroom apartments, as well as renovated apartments, has increased over the past year.

According to Ms. Laevska, housing prices have increased by an average of 20% compared to last year. At the same time, prices grew more rapidly in the economy and comfort class segments, while in the premium category the growth was about 10%.

“Developers who demonstrate active dynamics on construction sites were forced to revise the cost of real estate, as the cost of construction has increased by a total of 40% since the beginning of the full-scale invasion,” she said.

Intergal-Bud has been operating in the residential real estate market since 2003. The company has built 170 houses, with 20 residential projects under construction. The total area of the projects is 4.6 million square meters.

Ukraine-Poland border will soon be unblocked

The border between Ukraine and Poland will soon be unblocked: the Ministry of Community Development of Territories and Infrastructure (Ministry of Restoration) and the Ministry of Infrastructure of Poland have agreed on the action plan necessary for this, the Ministry of Restoration reported.
“Ministry of restoration together with the new leadership of the Ministry of Infrastructure of Poland agreed on a plan of action to unblock the border”, – stated in the message of the Ministry of restoration in Facebook following the results of the meeting of the Deputy Ministers Sergei Derkach and Yuriy Vaskov with the new Deputy Minister of Infrastructure of Poland Pawel Gantsazh on Friday.
It is indicated that the meeting was a continuation of agreements at the level of Deputy Prime Minister for Recovery – head of the Ministry of Recovery Alexander Kubrakov and Polish Minister of Infrastructure Dariusz Klimczak on December 20.
It is noted that the parties reached an understanding on compromise solutions and their implementation. The next stage – negotiations at the level of the Ministry of Infrastructure of Poland and the protesters. The issue of changes to the current Agreement on liberalization of freight transport is not discussed, stressed the Ministry.
“On the third day after the appointment welcomed in Kiev the new Deputy Minister of infrastructure Pawel Ganczaj. Together we finalized the action plan for unblocking the border. Agreed a protocol with a unified position of the ministries. About this meeting agreed on Wednesday Alexander Kubrakov and Polish Infrastructure Minister Dariusz Klimczak”, – wrote in Facebook on Friday Derkach.
According to him, the Ukrainian side “offered the things they are ready to do to unblock the checkpoints”. At the same time, the agreement on liberalization of freight traffic is fundamental and is not being discussed now, he stressed.
On Wednesday after the meeting between Klimczak and Kubrakov, Poland’s Ministry of Infrastructure said on its official website that its main topic was the protest of Polish carriers at the Polish-Ukrainian border.
“Together with the Ukrainian side, we must find a solution to the reasons for the ongoing protest and meet the expectations of entrepreneurs working in the field of freight transportation between Poland and Ukraine,” the statement quoted the Polish infrastructure minister as saying.
It was also reported that Klimczak handed Kubrakov the demands received from the protesters at the meeting in Lublin. In particular, they spoke about the need for the Ukrainian side to improve the mechanism of crossing the border by trucks that use the Ukrainian system of electronic queue, the exclusion of registration in this system of empty vehicles returning from Ukraine, the exclusion from this system of EU carriers, including Polish carriers, at the border crossing points specified by them. Alternatively, the principle of reciprocity may be introduced regarding the period of stay of EU vehicles in Ukraine and Ukrainian TCs in the EU.
The report said that Klimczak also emphasized the need to modify the agreement between the EU and Ukraine on road transportation of goods (“transport visa-free zone”), on the complete abolition of which the protesters initially insisted.
As reported, Polish carriers began the blockade of the checkpoints “Jahodyn – Dorohusk”, “Krakivets – Korczowa” and “Rawa Ruska – Hrebenne” on November 6, and on November 22, the protest was joined by the organization Oszukana Wieś, which blocked the checkpoint “Shehyni – Medyka”. Only empty vehicle checkpoints and low-tonnage vehicle checkpoints remained outside the blockade.

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Three more industrial parks to be created in Ukraine

The Cabinet of Ministers at a meeting on Friday included in the Register of industrial parks three parks at once: two in Khmelnytskyi region and one in Lviv region, the Ministry of Economy reported.
In particular, the register includes FE Krasyliv Technoport with the area of 10.146 hectares, the creation of which was initiated by JSC Krasyliv Machine-Building Plant. The park plans to create about 500 jobs in the industrial cluster for metalworking and metal products manufacturing.
“The initiator plans to invest in the park 87 million UAH, it is also expected to attract investments of the management company, residents of the park (in its own production), private financing of the project,” – indicated the Ministry of Economy.
It is noted that investors from Poland, Germany and Turkey have confirmed their readiness to invest in the park’s enterprises following the results of negotiations.
The total amount of preliminary confirmed investments is 555 million UAH, another 70 million UAH is expected from small and medium-sized businesses, which will help with the manufacture of parts for the production of large investors.
The second park in Khmelnytsky region, included in the register, was the FE “Carbon Neutral ECO AGRO HAB Podillya “Gorodok”, on the territory of Gorodok city territorial community. 50.1856 hectares of land were allocated for the arrangement of the park, and the initiator of the IP was Epicenter K LLC.
“The park will specialize in agro-processing – production of oil and fats, products of the flour and poultry industry, other food products and ready-made animal feed. In addition, it is planned to produce most of the electricity for the work of the enterprises located there,” the report says.
It is assumed that the creation of the park will provide work for about 480 residents of the community. As noted in the concept of the park, during 2026-2032 the enterprises participating in the park will pay to the budgets more than 525 million UAH of taxes and fees.
In addition, the register of FE includes “YADRO Industri” in Drohobych, Lviv region, with an area of 10.0036 hectares, initiated by LLC “Facade-West”, which plans to invest in the development of more than 561 million UAH.
It is planned to create about 500 jobs in the industrial cluster, one of the key types of production of which is planned to be window production.
Priority for placement in the park will also be enterprises for production of building materials from clay, porcelain and ceramics products; production of cement, lime and gypsum mixture and products from these materials, processing and finishing of stone, etc.
It is stated that among the investors ready to invest in production are companies from the USA and Spain, Ukrainian small and medium-sized enterprises. The total amount of their investments is planned at the level of 270 million UAH.
“The development of industrial parks is very important in the context of recovery and further growth of the Ukrainian economy…The government is purposefully working on the development of processing with high added value. And the work of processing enterprises within the parks gives businesses significant additional opportunities for growth,” the press service quoted Deputy Economy Minister Volodymyr Kuzo as saying.
Given the decisions taken by the government on Friday, 73 parks are included in the Register of industrial parks.
As reported, the draft state budget for 2024 for the first time provided for the allocation of UAH 1 billion for the development of infrastructure of industrial parks.

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