Business news from Ukraine


The Ministry of Digital Transformation of Ukraine has received an application from Samsung for residency in Diia.City, Deputy Prime Minister, Minister of Digital Transformation Mykhailo Fedorov said on his Telegram channel on Tuesday.
In addition, according to Fedorov, the Ukrainian IT company MacPaw also applied for residency in Diia.City.
Samsung Electronics is a company that introduces technologies in the world of smartphones, TVs, and home devices. It is a leader in the introduction and commercialization of innovative technologies in the markets of South Korea, the United States and Japan. In Ukraine, the official office was opened in December last year.
MacPaw is a Ukrainian IT company that has been developing software for Apple systems since 2008. It creates applications that make it easy to work on Mac. The most famous products are the CleanMyMac MacBook cleaner, the Gemini photo deletion program, and the alternative appstore Setapp.
Diia.City is a special legal and tax regime for IT, which involves a set of measures to stimulate the development of the high-tech industry.

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Mobile network operators Kyivstar and Vodafone Ukraine are in dialogue with the Ministry of Digital Transformation on the issue of smartphoneization of the elderly.
“Preliminary consultations with the Ministry of Digital Transformation on this project were held. But the implementation and details of the project have not yet been finalized,” the Kyivstar press service told Interfax-Ukraine.
The company recalled that the operator is systematically working to overcome digital barriers between generations: in 2019, the educational project Smartphone for Parents was launched; at the beginning of 2020 a special line of tariffs for subscribers over 60 years old were introduced.
“Digital services, for which we, among other things, are building coverage, cannot be obtained on feature phones. Therefore, smartphoneization is a strategic task at the national level. We are already in dialogue with government authorities on this issue. At the moment, we are waiting for project proposals, which we can study,” the press service of Vodafone Ukraine told Interfax-Ukraine.
The company said that not all Ukrainians still use smartphones: according to the operator, about 28% still use feature phones. In most cases, these are older subscribers.
“The authorities have indeed turned to us with a request for a preferential tariff for pensioners. lifecell is ready to join the working group on this project. Details on the development of the tariff will be discussed at joint meetings with the Ministry of Digital Transformation,” lifecell’s press service told Interfax-Ukraine.
The operator also said that among its already existing offers, one can choose convenient tariffs for each subscriber.

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The EU intends to provide Ukraine with EUR 20 million of financial support for the digital transformation development, Deputy Prime Minister, Minister of Digital Transformation Mykhailo Fedorov said.
“EUR 9.6 million is the first financial contribution that Ukraine will receive under the EU4DigitalUA project. The Estonia’s e-Governance Academy and the Spanish foundation FIIAPP Spain will help in the implementation of projects on electronic services, cybersecurity, data protection, and the development of registries,” Fedorov wrote on the Facebook.
He wrote that funding will also cover: development of infrastructure for electronic government; modernization of public e-services and development of services on the Diia (Action) portal and in the Dia app; visualization of information about access to broadband Internet in Ukraine; further connection of the main registers to the Trembita data exchange system; development of a national personal identifier, a state digital identity card and a register registration addresses of citizens; development of trust services.
“Support of digitalization in Ukraine is at the same time support of all key reforms and anti-corruption. The country will receive more qualitative changes. We are grateful to the EU for their trust and we act together,” Fedorov wrote.

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The Ministry of Digital Transformation has selected 15 technology startups that will represent Ukraine at Startup Grind Global 2020, the tenth global conference of entrepreneurs and investors in Silicon Valley. According to the organizers, the results of the competition have demonstrated great potential for the development of Ukraine as a technological IT center.
“The competition made it possible to select the most interesting and promising Ukrainian startups. The experience of the Competitive Economy of Ukraine [CEU] program in supporting Ukrainian startups in global technological events testifies to the interest of foreign investors in the products of Ukrainian startups,”, USAID CEU Program Deputy Chief Olesya Zaluska told reporters during a pitch in Kyiv last week.
Following the results of the competition, a list of startups-finalists who will be included in the Ukrainian delegation was compiled:
1. Let`s Enhance – Improving Image Quality with Machine Learning;
2. – A multi-channel sales platform that automates contacts using emails, calls and tasks;
3. Legal Nodes – A global marketplace for the technology business, with the help of which the founder or legal adviser of a technology company can contact a lawyer that is most relevant to legal needs and financial capabilities;
4. Poptop – The leading marketplace for booking performers of various kinds and locations for events in real time;
5. Delfast – Electric bicycles;
6. Animal ID – Service for the identification of animals;
7. Kray Technology – A drone that helps to increase crop yields and reduce the amount of fertilizer in the agricultural sector;
8. Costless – A personal shopping assistant who helps to make smart decisions, saving money, time and energy. It provides agencies, brands and retailers with real-time analytics, forecasts of changes in prices and volumes of consumption, information on consumer behavior;
9. AxDraft – Helps to draw up legal documents 10 times faster, avoiding mistakes and increasing the efficiency of the legal department by 25%, delegating part of the legal work to “non-lawyers” without risks;
10. Effa – An environment-friendly toothbrush made of paper and environmentally friendly materials as a “green” alternative to disposable plastic brushes;
11. Pix – A backpack with support for animation;
12. Nuka – Creates a convenient way to record. The first product is a waterproof perpetual notebook with the ability to clean sheets. It can be fully synchronized with the nuka mobile application. The second product is an eternal pencil;
13. CamTouch – A complex that allows you to turn any flat surface into an interactive one and control it using a laser pointer or a special stylus;
14. ActiveChat – A service for creating virtual assistants;
15. ADAM – 3D bioprinting of organic bone structures.
Startups-winners will receive the right to participate in the conference in the United States, own exhibition booth, promos, PR support from the organizers and reimbursement of financial costs for logistics.
More than 160 Ukrainian startups fought for the right to participate in the conference, of which 25 applicants were selected who presented their products to the jury during the Open Call Pitch Event in Kyiv in the evening on December 19.
“Of the 160 applications received, more than 50 startups are ready to attract foreign investment and bring their products to new markets,” Startup Grind Kyiv Chapter Director Kateryna Dehtyar said.
According to Startup Grind Kyiv Chapter Co-Director Hannah Zenn, Ukrainian startups that are on the delegate list have great potential to attract Seed and A-round investments, find customers among U.S. companies such as Facebook, Deloitte, Target, BMW, CISCO, as well as partners for further growth.
The competition was held jointly with Startup Grind Kyiv (the official representative of the Startup Grind international startup ecosystem) with the support of the USAID CEU Program.

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The Ministry of Digital Transformation of Ukraine is interested in participation in the regulation of the crypto assets market, a representative of the ministry Oleksandr Borniakov said at the Blockchain Society and the State of Ukraine open-door meeting in Kyiv.
“The ministry’s plans are to ensure that mining is launched legally after determining its status. That is, those involved in mining could do this without fear that they are in some kind of “gray zone,” he said.
Borniakov said that the Ministry of Digital Transformation also considers its task to ensure all conditions for international cryptocurrency exchanges to work in the country.
According to a message in the Facebook social network that, in accordance with the resolution published last week, the Ministry of Digital Transformation is responsible for the formation and implementation of the government policy in the field of the IT industry, therefore the issue of introducing blockchain technology, its application in public administration and the development of virtual assets is extremely urgent.
According to the ministry, the state plans for the next two to three years the following: legislatively define terminology; work out a compromise version of taxation in this area; by the summer of 2020, implement the recommendations of the Financial Action Task Force on Money Laundering; introduce blockchain technology into public registers; legalize mining and attract international cryptocurrency exchanges to the country.
In this regard, in the near future, the Ministry of Digital Transformation plans to sign a memorandum with the Blockchain4Ukraine inter-faction parliamentary group of the Verkhovna Rada, including more than 50 deputies, the Blockchain Association of Ukraine (BAU), the Better Regulation Delivery Office (BRDO) and other institutions.
“A concept that is understandable for all players should be developed in Ukraine – definitions, information exchange, who regulates and how, issuing licenses, limits, and other things. It will be great if the Ministry of Digital Transformation assumes this… A regulator of market behavior in this area should be defined, as without this, the rights of consumers and investors may be infringed,” acting Director of the Department of Strategy and Reform of the National Bank of Ukraine (NBU) Mykhailo Vidiakin said, commenting on this issue in the Facebook social network.
He also called for the prompt adoption of the required legislation and the development of a strategy with specifying the place of crypto assets in the development of the financial market of Ukraine.
“Now we are developing a strategy for the development of the financial sector until 2025, in which regulators accept proposals from the market. Documents and a form for submitting e-proposals are available on the NBU’s website in the Comprehensive Program for the Development of the Financial Sector section,” Vidiakin said.