Business news from Ukraine


Investments in research and development (R&D) and precision farming in the long term will allow raising investment in GDP by more than 30 times, professor of the Kyiv School of Economics (KSE) Oleh Nivievsky said during a panel discussion at Interfax-Ukraine on Thursday.
“One dollar of investment in research in the agricultural sector produces an average of $ 32 in national wealth in the long term. Compared to investment in infrastructure, the figure there is up to $ 5 per dollar invested in it. Accordingly, the potential of agricultural R&D is much higher than it might seem,” he stressed.
In addition, according to the expert, for the Ukrainian conditions of investment in agrarian R&D with the simultaneous introduction of precision farming methods, this indicator can be increased by 10%.
The panel discussion on the development of precision farming was also attended by Olha Trofimtseva, the President of the Ukrainian Agri-Food Platform; Serhiy Sychevsky, Bayer business development manager; Dmytro Zaitsev, the head of the precision farming service of Continental Farmers Group agricultural holding; head of the precision farming and telemetry department in Ukraine, Moldova, Scandinavia and the Baltic States at CNH Ukraine Mykola Chornonos; Kyrylo Druzhinin, the director for innovation at Agrain.

“If the technology responds to one of two questions: to make working conditions easier for a person or to improve its results, then it already makes sense to study it. Further, the area of the field is studied, what crops are planted on it, what technology and production culture we have,” Continental representative Zaitsev explained the approach to the introduction of precision farming.
Representative of Agrain agricultural holding Druzhinin, in turn, clarified that the methods of introducing precision farming can differ significantly for agricultural holdings with thousands of hectares in processing and for farmers with a land bank of tens of hectares. According to him, another trend in precision farming will be a reduction in the number of workers in agriculture and a change in the demand for professions: for example, now tractor drivers in an agricultural holding are more likely to perform the functions of operators controlling the autonomous operation of machines.
“The progress that we have in technology is just the space. If you look at machinery as a thing that performs some kind of operation instead of you, you will not see progress. But if you look at it as a way to facilitate work and a means of reducing costs, then we have the fact of a technological revolution that is taking place before our eyes,” Druzhinin emphasized.

According to him, at present, Agrain has practically completed the transfer of equipment to the autonomous processing of fields, when agricultural machines can independently move along the specified navigation lines not only in a straight line, but also turn around in the aisle.
Serhiy Sychevsky clarified that one of the problems of the widespread introduction of autonomous machinery is the small number of innovative machines in Ukraine that is capable of generating data on movement, which can be read and used by equipment from other manufacturers in the future. He cited the estimates of Bayer, according to which in Ukraine now only about 20% of combines and seeders can generate high-quality navigation data for autonomous operation.
“I will make a small emphasis: at the Agritech exhibition in Germany, we will offer a solution that we will also offer in Ukraine. It will allow increasing the number of compatible combines that can generate such information in the fields,” Bayer’s business development manager said.
The representative of CNH Ukraine, Mykola Chornonos, emphasized a significant shortage of personnel capable of developing the direction of precision farming, especially specialists in the field of data analytics and machine learning. During the discussion, the participants supported the opinion that not a single educational institution in Ukraine prepares specialists in this industry, while agricultural companies themselves are engaged in their training “from scratch.”
He also noted the need for the state to determine strategic directions for the development of the agro-industrial complex and initiate development in them.
“If you look, in recent years, there has been an increase in the service orientation of the agro-industrial complex. In fact, all manufacturing companies are switching to service models of cooperation with their end customers. One of the good cases where you can see this transformation is the drone market, which is growing every year. This year if I’m not mistaken, their growth was 700%. Where else can you see this?” Olha Trofimtseva said.
Despite such volumes of market growth, such companies are gradually switching to a service model of work, selling not only equipment, but also services for their maintenance.

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Ukraine is waiting for the arrival of investors from Israel and guarantees the protection of their investments, Ukrainian President Volodymyr Zelensky has said.
“Ukraine is waiting for Israeli investors, and the government and I personally guarantee the protection of all their investments. In addition, Ukraine is interested in studying and using Israel’s significant experience in the field of innovation,” Zelensky said during joint statements with Israeli President Isaac Herzog to the media.
He added that Israeli campaigns, in turn, can use Ukraine’s colossal potential as a new European technological hub.
Zelensky noted that today the volume of direct Israeli investments in Ukraine does not meet the potential of the two countries.
“New technologies, innovations, cybersecurity, healthcare, pharmaceuticals, space programs, banking, finance, construction, agriculture are just some promising areas for the development of investment cooperation between Ukraine and Israel,” the President of Ukraine said.
Zelensky also said that the Free Trade Agreement between Ukraine and Israel opens up new opportunities for strengthening bilateral economic interaction. The countries intend to increase trade volumes to the level that had been before the spread of COVID-19.

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Investments in the construction sector of Ukraine in the next three years could reach $2 billion, the founder and president of City One Development, Valeriy Kodetsky, told Interfax-Ukraine, commenting on the results of CC Forum Monaco Global Investment in Sustainable Development held in July.
“The world business positively evaluates the initiated reforms in the construction sector of Ukraine. However, the main measure will be not only nominal reform, but its real effectiveness. Forum participants predict that Ukraine will be able to attract up to $2 billion in the next three years with an annual progress of up to 20%,” Kodetsky, who was the only representative of Ukraine at this event, said.
According to the expert, the participants of the CC Forum estimated the investment potential of the Ukrainian construction industry at no less than $50 billion. At the same time, “powerful foreign investors” are primarily interested in the creation of new factories and production facilities, participation in large infrastructure projects and the implementation of projects in the commercial and residential real estate segments.
One of the important directions for the development of domestic development, according to Kodetsky, may be the reorientation of business processes towards the creation of a high-tech closed cycle for the production of modern construction equipment and materials that correspond to global trends in environmental safety and energy conservation.
“Thanks to foreign partners, for 10 years Ukraine can fully provide itself with everything necessary not only for the development of the construction sector, it is capable of reaching a new technological level. This is primarily about setting up the production of building materials through the introduction of energy-saving environmental technologies,” he said.
According to the expert, the annual demand of the Ukrainian market for float glass is more than 100 million square meters and almost 100% is covered by imports, and 80% of this volume is used in the construction sector.
Kodetsky said that in the near future, thanks to foreign investors, the construction of a float glass plant could begin, which could potentially satisfy up to 30% of the domestic construction market. The volume of foreign investments in this production could be more than $80 million with a payback period of five or six years. The profitability of the plant will be over 30%.
According to his forecasts, over the next two years, the growth of float glass production may reach 3-5% annually. The expert said that the estimated cost of domestic float glass will be 15-20% lower than exported, which will allow developers to redirect the released funds to improve the quality of construction projects, increase the level of builders’ wages, etc.
“The establishment of high-tech closed production processes will reduce the cost of building materials by 25-30%. Part of these costs can go to improve the quality of projects in various segments of real estate,” he said.
At the same time, the expert drew attention to the fact that effective reforms in construction will significantly reduce the “corruption burden” on developers, and the released financial resources could be reassigned to social responsibility programs, as well as to increase salaries in the construction sector.
“According to our calculations, salaries in construction as one of the main driving spheres of the Ukrainian economy in the next two years may grow by at least 30-40%,” Kodetsky said.
The president of City One Development recalled that now more than 1 million of our fellow citizens are forced to work in the construction sphere in Eastern Europe. Moreover, the “net” earnings of a builder, depending on qualifications, are on average 30-40% higher than in Ukraine. He believes that an increase in wages by at least a third can return up to 200,000-300,000 compatriots to the domestic construction market.
“The development of construction now depends on the effectiveness of the implemented reforms and the creation of opportunities for attracting foreign investment. It is the construction sector that can become a driving force for sustainable economic and social development of our state,” Kodetsky said.
In turn, Tetiana Shulha-Zabelska, Managing Partner of the Residential Estate Development Community (RED Community), said in a commentary that the main goal of the CC Forum was to determine the main directions of sustainable development of society and business in the face of the existing challenges of counteracting global diseases and epidemics, changes climate, migration and the like.
“As for the investment attractiveness of Ukraine, global business leaders almost unanimously consider Ukraine one of the countries with the greatest development potential and attractive for long-term investments,” she said.
According to Shulha-Zabelska, most of the investments (more than 40%) will be spent on the development of large-scale projects to create technology parks and facilities for the production of modern building materials. About 35% of the funds raised can go to infrastructure facilities, and 25% of investments will directly relate to commercial and residential real estate projects.
“The Ukrainian strategy for attracting foreign funds should be inextricably linked to global trends in sustainable development, the implementation of global trends in the construction industry, an increase in jobs with an increase in the income of citizens of the country,” she said.
City One Development is an investment and development company that provides a range of services in the field of creation and development of real estate facilities.
Founded in 2017, the RED Community brings together over 30 leading residential developers.



  • 1000 business and political leaders from around the world and 30 speakers will gather over three days.
  • Hosted in-person in Kyiv from 20-22 October 2021, they will discuss and create commercial and partnership opportunities to deliver a secure energy future.
  • The event showcases Ukraine’s natural gas opportunities and attractive investment climate as well as the Ukrainian gas sector’s central role in Europe’s energy supply.

Naftogaz and event organiser dmg events announced the launch of a major gas sector event in Ukraine. The Ukraine Gas Investment Congress, taking place from 20-22 October 2021 under the patronage of the Ministry of Energy of Ukraine and with the support of the Ministry of Environmental Protection and Natural Resources of Ukraine, will bring together industry leaders from around the world to discuss energy transition, technology, and industry transformation, along with key trade flows and delivery strategies.

The event is ideally timed to address Ukraine’s efforts to strengthen links with the European Union and achieve energy independence by 2030. As the importance of European energy security increases, the event will provide a platform for government ministers, energy industry leaders, investors, and technology innovators to examine opportunities to modernise Ukraine’s resources.

These are quickly becoming an attractive investment proposition, with attendees able to consider a well-developed midstream infrastructure that facilitates the monetization of new developments at scale, asset backed trading, and extensive Europe export potential, with the largest underground storage capacity in Europe and transit capacity of 90bcm.

The Energy Strategy of Ukraine 2035 aims to create a highly competitive energy market which encourages foreign direct investment and underpins rapid infrastructure development and integration with the EU’s systems. The Gas Investment Congress provides a forum for value-add partners to contribute capital and technological expertise to secure growth opportunities and financial returns.

Naftogaz СЕО Yuriy Vitrenko said: “Ukraine, and with it Naftogaz, have a key role to play in providing energy security for Europe. With the second largest gas reserves on the continent, Ukraine has the single largest growth opportunity in natural gas production in the EU. As the Gas Investment Congress shows, the investment opportunities in the gas sector are enormous.”

Christopher Hudson, President of Global Energy, dmg events, commented, “We very much look forward to joining forces with Naftogaz to host this event in Ukraine. By bringing together energy industry leaders, policy makers and investors, the Ukrainian Gas Investment Congress will present Ukraine’s natural gas opportunities and attractive investment climate to the world.”

Anyone wishing to attend can register their interest at:


About Naftogaz:

State-owned Naftogaz is the largest national oil and gas company of Ukraine, owning 38,000 km of gas pipelines and 30 billion cubic metres of storage capacity. Naftogaz’s strategy of hydrocarbon resource base development aims to double Ukraine’s gas reserves in the next 10 years.

About dmg :: events:

dmg is one of the leading global event organisers, working across several key industries. Its energy portfolio includes some of the biggest events in the sector, such as Gastech, ADIPEC, and the Global Energy Show.

For media enquiries, contact: / +38 098 3099953 – Julia Pryanykova / +44 7860 955581 / +44 75 3819 6545



Today, on July 30, Deputy Economy Minister of Ukraine Iryna Novikova met with the founder of Welfare Investment Alliance consulting company, Ambassador Extraordinary and Plenipotentiary of the Republic of Uzbekistan to Ukraine (2012-2019) Alisher Abdualiev.

The Deputy Minister of Economy expressed hope for the further strengthening of relations between the two countries and stressed that creating comfortable conditions for doing business and implementing new investment projects is an extremely important step for enhancing investment cooperation between the states.

“Today Ukraine is interested in attracting investments and therefore is actively introducing new legislative initiatives. We see a great demand from investors for industrial parks and a new mechanism to support investors in attracting investments, the so-called law on ‘investment nannies’,” Novikova said.

During the meeting, the participants discussed the prospects and possibilities of creating a simplified access to the markets of the countries, a favorable environment for the implementation of joint projects and attracting investments.

So, among the promising industries for cooperation between the two countries is the aviation industry, as well as the implementation of projects to create livestock complexes and silk production in Ukraine.

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The metallurgical industry will play a key role in achieving Ukraine’s carbon neutrality, according to representatives of the largest Ukrainian metallurgical companies speaking during the international forum “Decarbonization of the Steel Industry: a Challenge for Ukraine” taking place in Kyiv.
According to a press release from GMK Center, the ambitious plans of the EU and the United States to achieve carbon neutrality by 2050 are putting pressure on Ukrainian metallurgical companies. To compete successfully on foreign markets, Ukrainian producers also need to have CO2 reduction targets and decarbonization strategies.
“Now Metinvest is developing a detailed roadmap to reduce CO2 emissions. We are very careful in working out each step that will eventually lead our production to carbon neutrality, because such a large-scale transformation should not harm the sustainability of our business. We hope to conclude partnerships today, which will allow us to follow the path of decarbonization,” CEO of Metinvest Group Yuriy Ryzhenkov said during the event.
During the forum, Metinvest signed two memorandums of cooperation for the implementation of joint projects to reduce greenhouse gas emissions. One of them was signed with Primetals Technologies – an international company providing a full range of technologies, products and services for the metallurgical industry, the other – with K1-MET – a leading Austrian research center in metallurgy.
The press release notes that Ukraine actively declares its intention to follow the direction of decarbonization. In January 2020, the country presented the Green Energy Transition Concept, which sets a goal to achieve a carbon neutral economy by 2070.
In April 2021, the government presented the draft of the second Nationally Determined Contribution to the Paris agreement. It assumes that Ukraine by 2030 will reduce CO2 emissions by 65% compared to 1990, in particular industrial enterprises – by 61%.

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