Business news from Ukraine

Business news from Ukraine

Investment potential of Bukovyna will be demonstrated in Chernivtsi at FIT for Ukraine industry forum

On April 12, UkraineInvest, in partnership with the Chernivtsi Regional Military Administration, will hold the ninth in the series of FIT for Ukraine Forum: Fruit and Vegetable Processing in Chernivtsi. The event will present analytical materials on the state of the sector in the region, investment opportunities, and government incentives for investment projects. The event will be held offline, but everyone will be able to join the live broadcast.

Key topics include:
● attracting investment in fruit and vegetable processing
investment policy, analytics and prospects for the region’s development
● creation of a cluster of fruit and vegetable producers
● experience of investors working in Chernivtsi region.

The forum will also include an EXPO zone where companies will have the opportunity to present their products and services, which will become an effective tool for promoting goods and services to foreign markets and a platform for establishing mutually beneficial contacts between potential business partners.

Currently, about 200 companies with foreign capital from 28 countries operate in Chernivtsi region. Bukovyna ranks 1st in terms of fruit and berry production and yield in Ukraine. To support small producers and the industry as a whole, there is a need to establish fruit and berry harvesting and processing facilities in the agglomeration. This will make it possible to form large batches of products, process them and sell them, expanding the market, including to EU countries.

Program:
https://docs.google.com/document/d/1fnsHWARGP4c05aSdypo7Mux3QoTeznDzzWGGs8vARZA/edit?fbclid=IwAR1alkoHnuHknaLglR-zJPq6rQSek6oPISUx3j2g8Y8Av0pHA814aflzWd4

Registration for online viewing:
https://forms.gle/ggfKX4DSije5h2ueA

Media accreditation is required and runs until 18:00 on April 11. Contact person: Nazariy Volyansky, tel. +380630231193, e-mail: nazarii.volianskyi@ukraineinvest.gov.ua
For reference: UkraineInvest is a government office for attracting and supporting investment in Ukraine, which has been a state institution since 2018. The main priorities of the team are to attract and support investment in Ukraine. FIT for Ukraine is a series of sectoral analytical events for investors interested in rebuilding Ukraine. The platform promotes investment opportunities for Ukraine’s economic transformation.

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Univest has invested UAH 300 mln in construction of new workshop in Kyiv region

Univest, a manufacturer of paper and cardboard packaging for the food industry, has invested about UAH 300 million in the construction of a new eco-packaging workshop in the Fastindustri industrial park (Fastiv, Kyiv region), said Dmytro Kysylevskyi, deputy chairman of the parliamentary committee on economic development.

According to his post on Facebook, the equipment that has already been installed is planned to be put into operation in a few months.

Kysylevsky said that the equipment for industrial production in the industrial park was first imported to Ukraine with the use of import duty and VAT incentives.

“Ukrainian entrepreneur Volodymyr Kudryashov, owner and CEO of Univest, pioneered the use of government incentives. He had to work with customs to figure out how to do everything, because it was the first time both the company and the state did it,” he wrote.

As reported, the law provides for exemption from VAT and customs duties on imports of new equipment, as well as from income tax for 10 years if the company operates within the framework of the IP; preferential rates of real estate tax and land fees from local authorities.

Univest Holding, according to its website, is one of the leaders in publishing and printing in Ukraine. Its key business areas include a large offset printing house, Univest Print, a cardboard, plastic and blister packaging manufacturer, Univest Packaging, a cardboard eco-tableware manufacturer for fast food chains, Food-in-Box, and a publishing house (producing agricultural magazines and books), Univest Media.

The holding also includes a warehouse complex with an area of 20 thousand square meters, a creative and advertising agency.

According to the Clarity system, packaging manufacturer Univest Marketing LLC increased its net profit by 5.3 times in January-September 2023 compared to the same period in 2022, to UAH 77 million, with net income growing by 58% to UAH 548.9 million.

The company’s product range includes paper cups, lids, burger boxes, soup bowls, salad bowls, trays, French fries packaging, and ice cream and popcorn buckets.

According to YouControl, the company is owned by Cyprus-registered U.C.H. Univest Ciprus Holding, and the ultimate beneficiaries are Volodymyr Kudryashov (51%) and German citizens Hans and Louis Riffart (12.74% each).

The 15-hectare Fastindustri was included in the Register of Industrial Parks in January 2017. According to Kysylevsky, Univest is the main investor in the IP.

The park is planned to accommodate several more enterprises based on the circular economy principle, and the investment plans for the IP are calculated until 2027.

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OTP Bank transferred UAH 1 million to Superhumans Center in February

In February, JSC OTP BANK transferred UAH 1 million to the account of Superhumans Center, a non-profit project that provides prosthetics, complex reconstructive surgery, rehabilitation and psychological support to Ukrainians who have been injured in the war.

The transfer was made under the charitable donation agreement for 2023-2024 concluded between the Bank and Superhumans Center, which provides for monthly support to the center. The funds are allocated to two crucial areas: support for the heroes, returning them to social life, and the creation of an educational center to scale up assistance and training for prosthetics specialists.

The total amount transferred by OTP Bank to the Superhumans Center is currently over UAH 28.8 million.

As a reminder, in 2023, OTP Bank held two charity auctions, during which it raised UAH 8.8 million. All funds were allocated to the prosthetics and rehabilitation center.

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World gold prices hit an all-time high

The price of gold reached an all-time high in trading on Wednesday and continues to rise.

Quotes for April contracts on the New York Stock Exchange Comex on Thursday rose by 0.3% to $2163.9 per ounce. The previous trading session ended at a record high of $2158.2 per ounce.

The rally is supported by a weaker US dollar and lower government bond yields, Trading Economics notes. This, in turn, is due to hopes that the Federal Reserve will soon begin to cut interest rates amid the deteriorating situation in the country’s economy. On Wednesday, Federal Reserve Chairman Jerome Powell said that it would probably be advisable to ease monetary policy “at some point this year.”

Based on futures quotes on the rate, traders currently estimate a 70% probability of a Fed rate cut in June.

“Gold is likely to move higher as bullish sentiment remains dominant,” said Tai Wong, an independent metals trader based in New York. – “However, it may take some time for the market to digest Powell’s comments and also to see Friday’s employment report.

Experts expect that the number of jobs in the US economy in February increased by 200 thousand (after an increase of 353 thousand the previous month), and unemployment remained at 3.7%.

The Government of Ukraine within framework of “eWork” increased amount of compensation for vineyard planting by almost 50%

The Government of Ukraine has expanded the terms of state grants under the program “eWork” for the development of horticulture, in particular, increased compensation for the cost of vineyard planting projects from 225 thousand UAH to 330 thousand UAH per 1 hectare of plantings, reported the Ministry of Agrarian Policy and Food on Wednesday.

It is indicated that the relevant changes to the Cabinet of Ministers’ resolution of June 21, 2022 № 738 were made by the resolution № 241 on the initiative of the Ministry of Agrarian Policy.

It is noted that the agreed document proposes to change the conditions of planting and arrangement of planting on the land plot or on adjacent plots.

According to the new norms, grants will be provided not only for planting not more than 25 hectares of plantations with the installation of irrigation systems and water intake, but also for the arrangement of plantations on the land plot or on adjacent land plots, the total area of which is from 1 to 25 hectares.

The resolution also allows location between land plots of farm tracks, runs, field protective forest strips and other protective plantings, boundaries (rivers, streams, canals, forest strips, vegetation strips, trees, paths, ravines, gullies, ravines, wetlands).

According to the adopted document, at the same time the Cabinet of Ministers obliged grant recipients to attach scanned copies of the project of construction of a modular greenhouse with cost estimates, which must be signed by the project developer and irrigation project (in the absence of a corresponding section with calculations in the project of construction of a modular greenhouse) with indication of water intake sources (previously, project estimates and indication of water intake sources were not required) when registering an application on the portal “Dia”.

The government grant program “eWork” has been in effect since July 1, 2022 and provides support for small and medium-sized businesses. Among its advantages is the opportunity for everyone to create or develop their own business in the areas of “Own Business”, “Own Garden”, “Own Greenhouse”, and “New Level”.

In 2023, 131 orders were issued for grants for the development of horticulture, berry growing, viticulture (UAH 432.8 million) and greenhouse farming (UAH 159.4 million). It is expected to create about 15 thousand jobs.

Grants are provided in the amount of no more than 70% of the project cost and no more than UAH 10 million. The grant recipient must finance with its own or credit funds at least 30% of the project cost. A mandatory condition is employment of a certain number of workers: for orchards – from 5 to 10 permanent and 125-425 seasonal workers depending on the name of plantings, for greenhouses – at least 4 permanent and 10 seasonal workers per 1 hectare.

Funding for agro-producers under the government’s eWork program during 2024-2025 is provided through World Bank support under the “Emergency Inclusive Support for Ukraine’s Agricultural Recovery (ARISE) Emergency Project”.

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National Bank slightly strengthened reference hryvnia exchange rate

The reference exchange rate of the hryvnia to the US dollar on the interbank foreign exchange market as of 12:00 a.m. on March 7, 2024.

Indicator 06.03.2024 07.03.2024 07.03.2024 Change, %.

Reference hryvnia to US dollar (UAH/$) 38.3099 38.1029 -0.54

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