Business news from Ukraine

Business news from Ukraine

Losses from passenger transportation by Ukrzaliznytsia exceeded UAH 18 bln in 2024

Rail passenger transport in Ukraine, which is currently monopolized by Ukrzaliznytsia, requires the introduction of a Public Service Obligations (PSO) mechanism – predictable compensation for subsidized transport, according to Yulia Sirko, first deputy chair of the parliamentary committee on transport and infrastructure (Holos faction).

“There are many passengers who pay either 0 or 50%, for example, as UBD and so on. We have a number of beneficiaries who use transport, including rail, and this is, de facto, not compensated by the state or local authorities,“ she said at an expert discussion held by the Center for Transportation Strategies on ”Rail Freight Tariffs in 2025-2026” on Wednesday.

According to her, without the implementation of a set of PSO laws, Ukrzaliznytsia will be forced to constantly turn to the government and the Verkhovna Rada for funding for unprofitable passenger transportation.

Sirk added that PSOs will make this area transparent and recalled that Ukraine has committed to implementing these standards as part of the Ukraine Facility program.

“Unfortunately, passenger transportation continues to be unprofitable. This requires Ukrzaliznytsia to optimize all processes, optimize its operational activities, understand capital investments for 3-5 years, and understand unprofitability for 3-5 years,” the first deputy chair of the relevant parliamentary committee also noted.

As reported, Ukrzaliznytsia’s operating loss from intercity and international passenger transportation last year amounted to UAH 8.81 billion with revenues of UAH 10.67 billion, while from suburban transportation it amounted to UAH 9.31 billion with revenues of UAH 0.52 billion.

The Verkhovna Rada recently amended the state budget for 2025 and allocated UAH 8 billion in bank income tax to Ukrzaliznytsia, which should have gone to the Kyiv budget. In May this year, Ukrzaliznytsia also received UAH 4.3 billion from the budget to support passenger transportation during the war.

 

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Europe welcomed 340 mln tourists, exceeding pre-pandemic levels by 7%

Almost 690 million tourists made international trips in the first half of 2025, which is almost 5% or 33 million more than a year ago, according to the UN World Tourism Organization (UN Tourism).

“The number of international tourist trips in the first six months of 2025 increased by 5% compared to the same period in 2024 and amounted to almost 690 million. This is approximately 4% more than in the same period before the pandemic,” the report says.

According to UN Tourism, the highest growth rates in tourist trips in the first half of the year were recorded in Africa, up 12% compared to the same period last year. In North Africa and sub-Saharan Africa, the increase was 14% and 11%, respectively.

Europe received about 340 million tourists in six months, which is 4% more than in the same period last year and 7% more than in pre-pandemic 2019. The main destinations for travel in Europe, France and Spain, increased by 5%. In Central and Eastern Europe, the growth rate is even higher, at 9% compared to the first half of 2024, while inbound tourist flows are 11% lower than before the pandemic.

The number of tourists in North and South America increased by 3%, while the results for individual regions were uneven. South American countries recorded a 14% increase in tourist arrivals, Central America recorded a 2% increase, while North America saw no growth due to a decline in tourist trips to the US and Canada. The Caribbean region also saw a decline, partly due to lower demand from its main tourist market, the US.

In the Middle East, the number of tourist trips fell by 4% in the first half of the year, while compared to 2019, the increase was 29%. As noted by UN Tourism, these are the highest growth rates among all macro-regions.

The number of arrivals in the Asia-Pacific region during this period increased by 11%, which is 92% of the pre-pandemic level. Northeast Asia showed the highest figures among the world’s subregions: in the first half of the year, tourist traffic here grew by 20% compared to the same period last year.

According to UN Tourism, among the major tourist destinations, the largest increase in tourist trips was recorded in Japan and Vietnam (up 21%), Morocco (up 19%), South Korea (up 15%), Malaysia and Indonesia (up 9%), as well as Hong Kong, Mexico, and the Netherlands (up 7%).

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Serial production of new electric bus launched in Lviv – Kysilevsky

The Lviv-based Electronmash plant has unveiled a new model of electric bus, the Electron E181. The main feature of the model is its compact length of 10.2 meters. The electric bus can carry 90 passengers and has 30 seats. In particular, there is one seat for a passenger in a wheelchair.

One battery charge is enough for 300-350 kilometers. Battery charging takes up to 5 hours. The electric bus can operate in recuperation mode, i.e., when braking, some of the electrical energy is returned to the batteries.

This was announced by Dmytro Kysilevsky, deputy chairman of the Verkhovna Rada Committee on Economic Development and coordinator of the “Made in Ukraine” policy in Parliament.

The Electron concern implemented this project based on the Made in Ukraine policy instruments. In particular, localization requirements apply to public procurement for urban transport. The new electric bus has also been included in the register of equipment for which the state compensates the buyer for 15% of the cost.

The localization level of the new model is over 40%. More than 250 Ukrainian companies located in all regions of the country are suppliers of components and spare parts for the Electron E181 electric bus. The production of such a vehicle provides thousands of jobs throughout the supply chain.

“By purchasing Ukrainian equipment, customers not only receive modern and high-quality products, but also have access to proper service and the ability to adapt a specific vehicle to the customer’s wishes. Up to 40% of the funds spent on Ukrainian goods are returned to budgets at various levels in the form of taxes, financing both communities and the Armed Forces. Therefore, replenishing the passenger fleet with Ukrainian rather than foreign vehicles means comfort and safety for passengers, confidence in service, and a return of part of the funds through taxes to the budget,” said Dmytro Kysilevsky.

The policy of developing Ukrainian manufacturers, “Made in Ukraine,” was announced by President Volodymyr Zelenskyy in February 2024. It is aimed at supporting production, industrial investment, and exports.

Legislation on localization in public procurement came into force in July 2022. In 2025, it will require that at least 25% of certain types of products purchased by government agencies, state-owned companies, and communities be of Ukrainian origin. In 2028, the localization level for public procurement will be 40%.

 

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Traffic restrictions in central Kiev on Thursday

Temporary traffic restrictions will be in place in central Kiev on Thursday, September 11, due to security measures involving foreign delegations, First Deputy Head of the Patrol Police Department Oleksiy Biloshitsky said on Telegram.

“We ask for your understanding and to take this into account when planning your day,” he wrote.

Source: https://interfax.com.ua/

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Aluminum imports increased by 18%, exports by almost 20%

In January-August 2025, Ukraine increased imports of aluminum and aluminum products by 17.6% to $344.293 million (in August – $44.034 million).

Aluminum exports increased by 19.2% to $98.922 million (in August – $13.215 million).

Aluminum is widely used as a structural material. The main advantages of aluminum are its lightness, malleability, corrosion resistance, high thermal conductivity, and the non-toxicity of its compounds.

In particular, these properties have made aluminum extremely popular in the manufacture of kitchen utensils, aluminum foil in the food industry, and for packaging. The first three properties have made aluminum the main raw material in the aviation and aerospace industries (recently, it has been replaced by composite materials, primarily carbon fiber). After construction and packaging production—aluminum cans and foil—the largest consumer of metal is the energy industry.

 

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Ukrainians have most positive perception of EU countries and UK, and most negative perception of China and Hungary, according to study by Active Group and Experts Club

Ukrainians have the most positive attitude toward Germany, the UK, Norway, and France, while Hungary, China, Iraq, and Serbia are among the countries with the worst ratings. This is evidenced by the results of a study conducted by Active Group and the Experts Club analytical center at the end of August.

“We conducted a representative survey of 800 respondents at the end of August, taking into account gender, age, and region of residence. The margin of error does not exceed 3.5%. This is not the first study of this type, but this time we selected 50 countries based on economic criteria – we asked about the countries with which Ukraine trades the most,” said sociologist and founder of Active Group Andriy Yeremenko at a press conference at the Interfax-Ukraine agency on Tuesday.

According to him, the study showed that public opinion is clearly divided between Western countries and countries outside the West.

“Ukrainians most often associate the achievement of peace with the European Union – 42% of respondents believe this. The United States is supported by almost 26% of respondents, and the United Kingdom by 13%. Other large countries, such as China, India, and Brazil, are not really considered to be contributing to a peaceful settlement in Ukraine,” Yeremenko emphasized.

Alexander Pozniy, director of the research company Active Group, added that in economic terms, Ukraine’s key partners are China, Poland, Germany, Turkey, and the United States.

“At the same time, attitudes toward them vary greatly. For example, more than 76% of Ukrainians have a positive attitude toward Germany, while only 12% have a positive attitude toward China, and 40% have a negative attitude. The case of Hungary is even more critical, with 16% having a positive attitude and 55% having a negative attitude,” he said.

Maksym Urakyn, founder of Experts Club and deputy director general of the Interfax-Ukraine news agency, drew attention to economic imbalances in Ukraine’s trade with its leading partners.

“In the first half of 2025, Ukraine’s foreign trade deficit amounted to $18.5 billion, while in 2024 it was $12.4 billion. In other words, we have a significant deterioration. In particular, the negative balance exceeded $7 billion in trade with China alone, $2 billion with Germany, over $1 billion with Poland, and about $2 billion with the United States,” the expert emphasized.

He clarified that Ukraine remains a powerful exporter of agricultural products—grains, oilseeds, metals—while imports from the EU and China consist mainly of machinery, equipment, transport, electronics, and chemicals.

“This once again confirms the need for profound structural changes in the economy and diversification of foreign economic relations. We cannot continue to depend on a narrow circle of suppliers,” Urakin noted.

At the same time, according to the expert, sociological data demonstrate a certain paradox.

“The most economically advantageous partners for us are Egypt, Spain, Moldova, Algeria, Lebanon, and Iraq. But Ukrainians’ attitude toward most of these countries is neutral or even negative. This indicates that society forms its assessments not on the basis of economic benefits, but mainly on the basis of political statements or events,” he added.

Urakin concluded that this discrepancy between the economy and public opinion could have long-term consequences for Ukraine’s foreign policy.

“The representative offices of foreign countries that are Ukraine’s trading partners should pay more attention to working with Ukrainian society, holding cultural events, supporting humanitarian projects, and forming a positive image. Otherwise, we will continue to have a situation where the country is an important trading partner, but at the same time is perceived negatively by the majority of citizens,” emphasized the founder of Experts Club.

Learn more about the study

Source: https://interfax.com.ua/news/press-conference/1103619.html

 

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