Business news from Ukraine

Business news from Ukraine

CAPITAL INVESTMENT IN UKRAINE IN JAN-SEPT GROWS BY 12.4%

Capital investment in Ukraine in January-September 2019 grew by 12.4%, while in the first half of 2019 – by 12.3%, the State Statistics Service has reported.
According to the State Statistics Service, in January-September 2019, UAH 379 billion of capital investment was disbursed (excluding the temporarily occupied Crimea, Sevastopol and the JFO area).
In the regional context, the largest increase in capital investment January-September 2019 compared to the same period in 2018 was recorded in Volyn (by 71.1%), Kherson (by 44.2%), Mykolaiv (by 34.7%), Poltava (by 29.3%), Kyiv (by 27.1%), and Dnipropetrovsk ( in 21.8%) regions.
According to statistics, capital investments for the reporting period decreased in Zakarpattia (by 15.3%), Vinnytsia (by 9.8%), Odesa and Chernihiv (by 8.6%), and Rivne (4.4%) regions.
In the industrial context, the largest increase in capital investment in the first nine months of this year was recorded in the field of research and development – by 79%, temporary accommodation and catering – by 67.5%, water transport – by 50.6%, advertising – by 44, 2%, professional scientific and technical activities – by 43.8%.
At the same time, in the field of postal and courier activities, the drop in capital investments amounted to 81.1%, information and telecommunications – 23.4%, agriculture, forestry and fisheries – 11.3%.
The main source of financing capital investment remains the own funds of enterprises and organizations, due to which 73.4% of the total volume of all investments has been used.
A significant share of capital investments was made in machinery, equipment and vehicles – 46.3%, buildings and structures – 45.6% of all investments.

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OFFICIAL RATES OF BANKING METALS FROM NATIONAL BANK AS OF NOVEMBER 27

Official rates of banking metals from national bank as of november 27

One troy ounce=31.10 grams

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NATIONAL BANK OF UKRAINE’S OFFICIAL RATES AS OF 27/11/19

National bank of Ukraine’s official rates as of 27/11/19

Source: National Bank of Ukraine

HUAWEI HOLD THE UKRAINE DIGITAL TRANSFORMATION FORUM 2019 IN KYIV

26th of Nov Huawei invited the stakeholders from government, operators, and industry partners to attend the forum. On the forum Huawei and the industry partners shared the views and suggestions regarding digital transformation of Ukraine.
Huawei introduced the global experience regarding the universal coverage and the infrastructure sharing, and all the stakeholders warmly discussed the development plan in Ukraine. Huawei said they would work closely with the Ukrainian partners to develop industry ecosystems, and drive Ukraine’s social and economic development.
In the 2019 Global Connectivity Index recently published by Huawei, Ukraine ranks four places higher than last year. Its GCI score has increased by 12 points in the span of five years, an impressive achievement among the 79 countries surveyed. From 2015 to 2019, the mobile broadband penetration in Ukraine increased from 8% to 65%.
During the past 20 years, Huawei has established close partnerships with major carriers, and enterprises to drive joint ICT infrastructure construction across the country. In the past three years, Huawei, together with local operators, has helped Ukraine achieve leapfrog development from 2G to 4G, saving three to five years of construction time compared with other countries.

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ZELENSKY: 500 NEW AMBULANCES WILL BE BOUGHT

President of Ukraine Volodymyr Zelensky has said that by the end of this year the ambulance fleet in the country would be replenished with 500 new ones, and the goal is to ensure that from 2020 there is no such vehicles older than six years.
“Until the end of this year, we will buy 500 ambulances. The task for the next year is not to have a single ambulance vehicle that is older than six years,” he said in a video message to Ukrainians about the success, victories, plans and failures of the authorities over the week recorded during the president’s walk through the streets of Kyiv.

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MTS IS ONE OF MOST SUCCESSFUL INVESTORS IN UKRAINE – OPINION

The transaction on the sale by MTS (Russia) to the Azerbaijani telecommunications company Bakcell of Vodafone Ukraine, the second largest mobile operator in the country, can be considered profitable, since MTS during 2010-2019 received $2.087 billion from this company, which is 5.5 times more than it invested.
This opinion was expressed by the head of the analytical department of Concorde Capital investment company, Oleksandr Paraschiy.
“MTS is one of the most successful investors in Ukraine. During 2003-2004 MTS bought a 100% stake in UMC (MTS-Ukraine, Vodafone Ukraine) for $378 million in cash. MTS has just sold the company for $734 million in cash (94% more than it bought it 15 years ago). During 2010-2017 the Ukrainian subsidiary of MTS paid (it is clear to whom) dividends totaling $1.353 billion (according to my estimates). So, we have: $378 million was invested in the company, $2.087 billion was received from the company during 2010-2019, or 5.5 times more than invested,” he wrote on his Facebook page.
According to Paraschiy, the average annual profit of MTS from investments in Ukraine during 2004-2019 amounted to 20%.
“The cost of the Ukrainian division of MTS under the agreement with Bakcell amounted to $848 million (according to MTS), which is 38% less than the conditional value of the Ukrainian division in the structure of MTS, ceteris paribus. The market will show whether it is a good deal for MTS or not. So far, the market is “inclined to believe” that the deal is good: MTS shares have risen slightly in price today. Perhaps one of the reasons for the growth is MTS’ promise to pay dividends to the shareholders from part of the money received from Bakcell,” he said.

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