Ukraine open for business

Future of Urban Development at International Mayors Summit 2024

The Western NIS Enterprise Fund proudly announces an unparalleled opportunity for city leaders, innovators, and policymakers at the International Mayors Summit 2024, set to be organized in Dănceni, Moldova, on April 11.

Themed “Building Resilient Communities Through Innovation and Cooperation,” this year’s Summit is dedicated to lead the way to the future of urban development and resilience. With an engaging lineup of activities, the Summit is more than an event, it’s a launchpad for actionable solutions and enduring partnerships. Participants will dive into:

Pitches of Mayors: Experience firsthand the innovative strategies mayors across the globe are employing to address local challenges through creativity and collaboration with diverse approaches to urban problem-solving.

Panel Discussion on Innovations and Digital Transformation in Local Government: Discover how digitalization is redefining the governance landscape, improving citizen services, and enhancing administrative efficiency.

EU Membership – Regional Efforts Panel: Learn from cities within the EU about the transformative impact of EU programs and funds on urban modernization and development, featuring insights from an EU representative on existing and upcoming initiatives.

Rebuild Ukraine Panel: Engage in a critical discussion on the ongoing efforts and future plans for rebuilding Ukrainian cities, focusing on resilience, infrastructure, and community restoration.

Session on the Power of Partnership Award: Celebrate successful city partnerships through presentations by mayor pairs, highlighting their collaborative projects and the potential for new alliances.

Innovative Solutions Exhibition: Explore technologies designed to enhance city living. From online voting systems to virtual reality in urban planning, discover tools that promise a more sustainable, convenient, and vibrant environment.

The Summit, supported by valuable partners and endorsed by President Maia Sandu, is poised to be a milestone event. It promises to deliver a rich agenda that fosters knowledge exchange, showcases best practices, and stimulates networking among urban leaders worldwide.

This is a unique chance for mayors, government officials, experts from across the EU, businesses working with local authorities and beyond to come together and envision the future of urban development, resilience, and innovation. The participation of representatives from diverse countries, including Slovakia, Poland, Lithuania, Romania, Sweden, Italy and France, ensures a global platform for exchanging innovative solutions and success stories in urban development.

Join us in Moldova for the International Mayors Summit 2024 to contribute to and benefit from a forward-thinking dialogue on making our cities resilient, innovative, and inclusive for all. The Summit is held with the valuable support of partners, including Primaria Mea, Comunitatea Plus, CIPE, and Cities 4 Cities.

For more information please visit our official website – https://internationalmayorssummit.com

About WNISEF

Western NIS Enterprise Fund (WNISEF), funded by USAID, is a pioneering $285 million fund in Ukraine and Moldova, investing over $188 million in 136 companies and unlocking $2.4 billion over 29 years.

Mayors Summit

Uzbekistan intends to intensify exports of fruit and vegetable products

In order to further promote fruit and vegetable products in Uzbekistan, a commission for the export of fruits, vegetables and food products will be established, headed by the Prime Minister.

For this purpose, Uzbek trading houses in Germany, Hungary, Poland, Spain, the United States, and Kazakhstan will be transferred to the management of entrepreneurs.

It has been announced that new trading houses will be opened in major port cities such as Nagoya (Japan), Mersin (Turkey), Rotterdam (Netherlands), Qingdao (China), Klaipeda (Lithuania) and Doha (Qatar).

Thanks to an investment of $8 million, modern laboratories with international accreditation will be launched this year in Zangiat, Fergana, and Samarkand.

A reference laboratory will also be set up in Tashkent to ensure that private laboratories meet international standards. For these purposes, $12 million will be allocated from the World Bank. In the future, internationally recognized reagents will be exempt from customs duties and will not require a mandatory environmental certificate.

For export companies with a shortage of working capital, the Business Development Bank will provide UAH 1.5 trillion in soft loans of up to 50% of the contract amount with the farmer and the procurement warehouse. Loans will be issued at 18% per annum with a grace period of six months for a period of up to 1.5 years.

Suppliers of various fruits and vegetables will be exempt from all taxes regardless of turnover, and will now be able to work as self-employed individuals.

Thanks to the measures taken, fruit products worth USD 1 billion are expected to be exported this year. As part of regional programs, 528 projects worth $833 million will be launched.

For more details, please follow the link

EXPORTS, FRUIT, UZBEKISTAN, vegetable products

Pawnshop assets decreased by 16.3%, financial companies – by 1%

The assets of pawnshops decreased most significantly in the fourth quarter of last year among all non-bank financial institutions (NBFIs) – by 16.3% to UAH 3.85 billion, while the assets of financial companies decreased by 1% to UAH 250.63 billion, according to data from the National Bank of Ukraine (NBU) released on Friday.

According to a review of the non-banking financial sector released on Friday, the assets of credit unions increased by 0.3% to UAH 1.42 billion in the fourth quarter, insurers by 5.7% to UAH 74.33 billion, and banks by 11.1% to UAH 2 trillion 942.81 billion.

Over the past year, the assets of pawnshops decreased by 6.2%, credit unions – by 1.9%, while financial companies grew by 2.7%, insurers – by 5.7% and banks – by 25%.

As noted by the National Bank, the total assets of non-bank financial services providers decreased by 0.7% in the fourth quarter of 2023, although they increased by 3.2% over the year. Their share in the financial sector assets supervised by the NBU decreased by 1.1 percentage points (pp) to 10.1% during the quarter.

“In the fourth quarter, the number of non-banking financial services providers decreased, as it has been doing throughout the year. 36 financial companies, 16 pawnshops, ten credit unions and insurers, as well as seven lessors were excluded from the Register,” the NBU said.

It is specified that most of the financial institutions left the market by the regulator’s decision, in particular due to non-compliance with license conditions. 14 financial companies voluntarily gave up part of their licenses, and two insurers had their individual licenses renewed after they eliminated violations of the regulator’s requirements.

At the same time, four pawnshops, a financial company, and a lessor were registered in the fourth quarter of 2023, compared to two financial companies and one lessor in the three previous quarters.

In total, more than 320 institutions, mostly financial companies and pawnshops, left the market in 2023, and only nine new NBFIs were registered: four pawnshops, three financial companies, and two lessors.

According to the NBU, 29 credit unions left the market over the year, mostly those that did not attract deposits.

“The volume of new loans decreased by 2% in the (fourth – IF-U) quarter due to a decrease in the volume of all loans, except for business loans. This was reflected in a 3.5% reduction in the loan portfolio compared to the third quarter (2023 – IF-U) and 2% compared to the end of 2022,” the review says.

The declared average share of the principal amount of loans overdue by more than 90 days decreased by 2 percentage points to 26% in October-December 2023.

It is noted that the net interest income of the CS decreased by 11%, primarily due to lower interest rates on all types of loans and an increase in administrative expenses by 23%, which exceeded operating income.

“Despite their operational inefficiencies, the institutions made a moderate profit due to lower loan loss provisions. The small profit has increased the role of own funds in funding credit unions,” the NBU commented.

The volume of share contributions due to the return of funds to depositors and the withdrawal of institutions from the market decreased by 12%, and deposits decreased by only 1%.

It is also indicated that in 2023, the number of violators of standards among the CS decreased by half – to 21. As of the beginning of this year, eight credit unions violated the capital adequacy ratio, while in the previous quarter there were ten, the National Bank reports.

“Most credit unions violate the limit on the share of unproductive assets,” the regulator emphasized.

Financial companies are in the opposite situation: while in the fourth quarter, the segment’s assets decreased by 1%, in annual terms, they grew by 2.7%.

“The volumes of all types of financial services, except for loans, decreased. For the second quarter in a row, financial companies have been increasing lending. In the fourth quarter (2023 – IF-U), the volume of loans increased by 10.7%: the volume of new business loans increased by 10.5%, and the population – by 11.1%.

It is noted that over the past year, 70% more loans were granted to the population than in 2022, but this is still 40% less than in 2021.

Speaking of leasing transactions, their volume decreased by 18% in the fourth quarter of 2023, primarily among legal lessors (financial or operating leases).

“New leasing agreements, as before, were concluded, as before, for the purchase of cars, agricultural machinery and trucks,” the central bank noted.

Last year, financial companies earned UAH 8.5 billion in profit, more than half of which was earned by the operator of the eHouse program, state-owned Ukrfinzhytlo, whose main income comes from interest payments on government bonds in the capital.

According to the data, three-quarters of financial companies were profitable in 2023.

The review says that in the fourth quarter of last year, pawnshops’ activities stagnated: the volume of assets and new loans decreased, and interest income fell. However, the segment made a profit by reducing administrative expenses.

“Profitability indicators declined slightly at the end of 2023. Equity decreased over the year,” the regulator summarized.

Ukrainian and Polish agrarian associations will continue negotiations on transit of agricultural products and unblocking border

Ukrainian and Polish agrarian associations will continue negotiations this week on the transit of grain and other products and the unblocking of the border, said Taras Vysotskyi, First Deputy Minister of Agrarian Policy and Food of Ukraine, during a national telethon.

“It is very important that the associations of different sectors have established communication and will continue to meet this week to clearly agree on the parameters (of export and transit of Ukrainian agricultural products – IF-U). Everyone realized (at the Ukrainian-Polish meeting in Poland last week – IF-U) that interaction and cooperation, agreements will ultimately have the best result,” he said.

According to Vysotsky, in the first two weeks of April, a meeting of the Polish and Ukrainian sides is planned in an expanded format, where farmers of the two countries will look for ways to cooperate. It is expected that this could also become the basis for agreements at the interstate level. Agrarian associations will work on each industry whose representatives were at the talks, including raspberries, juice, honey, eggs, grain, and poultry.

“There is a cautious optimism in this regard, which gives us hope that after a few more meetings to fix the final parameters, we will finally be able to solve this problem,” Vysotsky emphasized.

He also added that the issue of transit of Ukrainian grain is raised at all international meetings.

“Ukraine insists that transit should be available without stops and blockages,” the First Deputy Minister summarized.

agrarian associations, AGRICULTURAL PRODUCTS, BORDER, TRANSIT

Non-life insurers increased administrative expenses by 11.9%, advertising and marketing expenses by 27.4%

In 2023, administrative expenses of Ukrainian non-life insurance companies increased by 11.9% to UAH 5.415 billion compared to 2022, while marketing and advertising expenses increased by 27.4% to UAH 140.7 million.

According to the website of the National Bank of Ukraine (NBU), the cost of concluding and renewing insurance contracts amounted to UAH 9.801 billion, which is 13.7% more than in the same period of the previous year (UAH 8.624 billion), including agency fees of UAH 8.970 billion (+15.1%). Under reinsurance contracts – UAH 129.5 million (+85.5%), in particular, remuneration to brokers – UAH 128.2 million (+91%), of which to non-resident brokers – UAH 26.4 million (+5.6%).

According to the regulator, the cost of settling insurance claims in 2023 increased by 28.9% to UAH 495.8 million, including the cost of paying for appraisers’ services by 40.9% to UAH 174.9 million, and legal costs doubled to UAH 68.3 million.

Assistance services cost insurance companies UAH 201.2 million (+10.8%), and assistance to non-residents – UAH 10.1 million (-15.1%).

The NBU also reports that in 2023, non-life companies in Ukraine collected UAH 41.851 million in gross premiums, which is 20% more than a year earlier, with earned premiums amounting to UAH 34.359 billion (+10.4%). The company paid out UAH 15.601 billion in insurance claims to clients, which is 28.8% more than in 2022.

As reported with reference to the NBU data, as of December 31, 2023, 89 insurance companies specializing in risk insurance were registered in Ukraine, while as of the same date in 202, there were 114.

NON-LIFE

Two new industrial parks should attract UAH 1.5 bln of investments – ministry

The Cabinet of Ministers of Ukraine has approved the creation of two new industrial parks (IP) – “Dnister” on the territory of Yampol city territorial community of Mogilev-Podolsky district of Vinnytsia region and “Galicia” on the territory of Kalush in Ivano-Frankivsk region.

According to the Ministry of Economy, total investments in the two industrial parks for the next three years should amount to more than UAH 1.5 billion.

Prime Minister of Ukraine Denis Shmygal at a government meeting on March 29 announced the inclusion of the two new parks in the Register of industrial (industrial) parks, and the creation of the State Office for the development of industrial parks.

According to the Ministry of Economy, the concept of IP “Dnister” assumes the creation of 265 jobs in the processing industry on an area of 17.2 hectares.

“It is assumed that the park will specialize in the production of paper and paper products, processing of plant products and other activities compatible with those listed,” the report explains.

In turn, IP “Galicia” will be located on an area of 19.8 hectares and will provide the creation of up to 1000 jobs.

The main directions of activity are determined by the manufacture of construction materials.

On the territory of the park will be created production of building materials from clay, production of cement, lime and gypsum mixtures, as well as manufacturing of products from concrete, gypsum and cement.

According to the Ministry of Economy, the investors plan to start production of machinery and equipment, introduce processing of industrial and household waste, engage in scientific and technical activities, as well as create enterprises that will work with alternative energy and energy conservation.

As reported, the state budget-2024 for the first time provided for the allocation of 1 billion UAH for the development of infrastructure of industrial parks.

CABINET OF MINISTERS, Galicia, INDUSTRIAL PARK, UKRAINE, Дністер

Business news from Ukraine