The Ministry of Economy has raised its forecast for Ukraine’s gross domestic product (GDP) growth in 2023 to 4%, First Deputy Prime Minister and Minister of Economy Yulia Svyrydenko said in Kyiv on Saturday at the annual meeting of the Yalta European Strategy organized by the Victor Pinchuk Foundation.
“This year, we believe that GDP growth will be 4%, although pessimists believe that 3%… We have maintained macro stability, this is the basis for further recovery of Ukraine,” she said.
Svyrydenko clarified to Interfax-Ukraine that the government has not yet approved the forecast for 2024, while the National Bank of Ukraine expects GDP growth of 3.5%, and up to 6.8% in 2025.
“We are always more optimistic than the National Bank,” the First Deputy Prime Minister and Minister of Economy said.
She added that inflation, according to the NBU’s forecast, will slow to 10.6% this year, and core inflation to 9%.
In her speech, the First Vice Prime Minister also reminded that the NBU had recently cut the discount rate to 22% per annum.
“As a participant in this discussion, I will say that I was in favor of a bigger reduction. I think that our macroeconomic situation allows us to be more flexible, but, as always, realistic,” Svyrydenko said.
According to her, the Ministry of Economy sees improvements in the agricultural sector and expects that in November a working instrument for military insurance will be created through the efforts of both the Ukrainian government and the European Bank for Reconstruction and Development (EBRD).
The First Deputy Prime Minister emphasized that the government is also actively working on a four-year development plan under the Ukraine Facility program announced by the EU, which will start operating in early 2024 and will become the basis for further growth of its economy.
As reported, in June, the Ministry of Economy slightly downgraded its GDP forecast for this year from 3.2% to 2.8% due to the destruction of the Kakhovka hydroelectric power plant and pessimistic expectations for the upcoming harvest. According to Natalia Gorshkova, Director of the Strategic Planning and Macroeconomic Forecasting Department of the Ministry of Economy, in early August, the Ministry had already assumed economic growth of 5% in 2023, but so far it has conservatively maintained the 2.8% estimate, taking into account the existing risks. At that time, the Ministry of Economy predicted that GDP growth would accelerate to 5% next year, with inflation slowing to 10.8%.
At the end of July, the National Bank of Ukraine raised its forecast for Ukraine’s GDP growth in 2023 from 2% to 2.9%, but lowered it for 2024 from 4.3% to 3.5%. In addition, the NBU improved its inflation estimate this year from 14.8% to 10.6%, and next year to 8.5%.
In August, inflation in Ukraine fell to 8.6% in annual terms.
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In addition to the report on the contract concluded without the use of the electronic procurement system, public procurement in the amount of UAH 50 thousand or more must also be accompanied by a justification for its implementation approved by the head of the customer, the government has introduced such changes to the rules for public procurement during martial law.
“A tender through Prozorro does not in itself guarantee an automatic positive result. Many people remember cases when the procurement was transparent, competitive and in accordance with the rules, but the validity of the need or the terms of the procurement caused a public outcry. Therefore, this change is primarily intended to improve the quality of work of those who announce the tender,” First Deputy Prime Minister and Minister of Economy Yulia Svyrydenko commented on the changes on Friday.
According to her, the resolution also reduces the list of grounds for which public procuring entities may sign contracts directly instead of competitive bidding, while increasing the responsibility of public procuring entities for abusing such grounds as urgent need.
In addition, amendments have been made to allow sanctioned participants whose assets have been transferred to the National Agency for Finding, Tracing and Management of Assets Derived from Corruption and Other Crimes (ARMA) to participate in public procurement.
The sale of a share (33.35%) of the Ocean Plaza shopping mall to Andrey Ivanov has been officially finalized, businessman Vasyl Khmelnitsky said.
“Last week were officially finalized all transactions on the sale of my share of Ocean Plaza shopping mall to my long-time partner Andrei Ivanov,” – said Khmelnitsky on Facebook.
Ocean Plaza shopping mall was opened in Kiev in December 2012 on Antonovycha Street, 176. Its total area is 165 thousand square meters. m. Investments in the mall amounted to about $300 mln. UDP Company and K.A.N. Development LLC acted as partners in the development of the project.
The mall was sold to Arkady Rotenberg’s Russian TPS-Nedvizhimost in 2012. Later, in 2019, businessman Vasily Khmelnitsky indirectly through UPD Holdings Limited acquired a 33.5% stake in Ocean Plaza shopping mall. In 2021 he sold his stake to entrepreneur Andrei Ivanov, the deal was finalized in the summer of 2023.
“More than three years ago, my partner Vasily Khmelnitsky and I reached an agreement under which I would gradually buy out the development company UDP, whose investments had been under my management for a long time. The agreement to buy out 33.35% of shares of Ocean Plaza shopping mall, which is part of UDP, is a logical continuation of the process”, – commented the owner of the investment company Q Partners Andrey Ivanov to the agency “Interfax-Ukraine”.
As reported, in June 2023, the FGI registered corporate rights to the state share (66.65%) in the shopping mall Ocean Plaza.
“In the public communication of the fund we hear intentions to sell their stake already by the end of this year. As a minority owner, we are fulfilling all the state’s requirements to prepare the company for sale. Our further view on the development of this asset will depend on the results of privatization,” – said Ivanov.
Earlier it was reported that the Cabinet of Ministers on June 9, 2023 adopted an order on the transfer to the FGI share of the authorized capital of LLC “Investment Union “Lybid”, which owns the shopping mall, in the amount of 66.65%. Previously, these corporate rights belonged to Russian sub-sanctioned businessmen Arkady and Igor Rotenberg, but in March 2023, the Supreme Anti-Corruption Court recovered them in favor of the state by its decision.
On March 3, the Ukrainian Justice Ministry filed a lawsuit with the HACC to confiscate the companies that own two-thirds of the Ocean Plaza shopping mall (Kiev), including the Rotenbergs’ assets. Earlier, as part of the criminal proceedings, the arrested corporate rights of the companies for more than 350m hryvnyas were transferred to the National Agency for Identification, Search and Management of Assets Derived from Corruption and Other Crimes.
The National Anti-Corruption Bureau of Ukraine (NABU) and the Specialized Anti-Corruption Prosecutor’s Office (SAP) after the notification of suspicion of the former ultimate beneficiary of PJSC CB PrivatBank (Kiev) took measures to arrest his assets.
“On the basis of the decision of the Director of the NABU, agreed by the head of the SAP, for a period of 48 hours seizure of shares in the authorized capital of companies, which the suspect owns directly or indirectly, in the context of 307 legal entities, including joint-stock companies, with an estimated value of more than 3 billion UAH, as well as almost 1 thousand real estate, more than 1.6 thousand vehicles and ships”, – reports the press service of the NABU in the Telegram-channel.
It is noted that the basis for such a decision was the need to ensure the possible confiscation or special confiscation of property in criminal proceedings on the facts of embezzlement of funds of PrivatBank in a particularly large amount, legalization of proceeds of crime and official forgery committed by an organized group.
A motion to seize the above-mentioned property has been sent to the Supreme Anti-Corruption Court.
As reported, on September 7, law enforcers notified Kolomoisky and five of his former top managers of PJSC CB PrivatBank on suspicion of taking possession of the bank’s funds worth more than UAH 9.2 billion.
According to the investigation, in January-March 2015, the ultimate beneficiary of the bank, at that time – the head of the Dnipropetrovsk Regional State Administration, developed a plan to take over the funds of PJSC CB PrivatBank in order to further finance a controlled offshore company and increase his own share in the authorized capital of the bank. For this purpose, the bank was artificially obliged to pay more than UAH 9.2 billion to the controlled company under the pretext of allegedly repurchasing its own bonds at an inflated value.
Later, part of the amount of more than UAH 446 million was transferred to the accounts of three related legal entities under the guise of securities purchase and sale transactions, and then – to the accounts of two more. Eventually, the funds were transferred to the personal account of the ultimate beneficiary of PJSC CB PrivatBank. He disposed of them at his own discretion – he contributed them to the authorized capital of the bank in compliance with the requirements of the National Bank of Ukraine.
The actions of the defendants in the case are qualified under Art. 191, 209, 366 of the Criminal Code of Ukraine. The deputy head of the direction – director of the interbank dealing department of the bank, who at the same time was a trusted representative of a non-resident company connected with PrivatBank, was detained in accordance with Article 208 of the Criminal Procedural Code of Ukraine. The pre-trial investigation is ongoing.
G20 summit participants have reached consensus on the text of the final declaration, the document has been adopted, Indian Prime Minister Narendra Modi said on Saturday.
“Thanks to our hard work, and with your support on the declaration of the leaders of the G20 summit in New Delhi, there is consensus. I announce the adoption of the declaration,” Times of India quoted the prime minister as saying.
Modi also thanked all those who made the adoption of the final document possible.
The publication specifies that the declaration will be made public on Sunday at the end of the summit, and its adoption was a victory for India, currently chairing the G20. At the same time, there were deep disagreements among the G20 participants over Russia’s war against Ukraine and the issue of monetary compensation for involvement in climate change.
Earlier, the Indian Prime Minister gave his assessment of globalization. His position is described in more detail here – https://open4business.com.ua/ru/premer-ministr-indii-dal-svoyu-oczenku-proczessu-globalizaczii/.
Ukrainian metallurgical enterprises in January-August this year reduced revenues from ferrous metal exports by 51.1% compared to the same period last year – to $1 bln 821.054 mln.
According to statistics released by the State Customs Service (SCS), ferrous metals accounted for 7.44% of total export revenues during this period, while in 8M-2022 – 12.86%.
In August, revenues from ferrous metals exports amounted to $200.016 million, while in the previous month – $206.685 million.
At the same time, Ukraine has increased imports of similar products by 53% – up to $855.284 million in eight months of this year. In August, $136.466 million worth of products were imported.
In addition, in January-August Ukraine reduced exports of metal products by 11% compared to the eight months of the previous year – to $625.707 million. In August they were exported for $65.114 million.
At the same time, imports of metal products for the first eight months of the year increased by 24.8% to $515.548 million. In August, Ukraine received $82.645 million worth of these products.
As reported, metal enterprises of Ukraine in 2022 decreased revenues from exports of ferrous metals by 67.5% compared to 2021, to $4 billion 533.088 million. Ferrous metals for this period accounted for 10.26% of total revenues from exports of goods against 20.49% for 2021. At the same time, Ukraine last year reduced imports of similar products by 38.3% to $954.387 million.
In addition, in 2022, Ukraine reduced exports of metal products by 18.6% to $1 billion 52.512 million. Imports of metal products for the year fell by 42.9% to $643.162 million.
