The Arab Council of Ukraine and the Khmelnytskyi Regional Council have agreed to develop the region’s cooperation with the countries of the Arab world, particularly in the economic, investment and humanitarian spheres.
According to Mohammad Farajallah, Secretary-General of the Arab Council in Ukraine, Violeta Labazuk, Chair of the Khmelnytskyi Regional Council, met with Khusam Raad, Chair of the Committee on Foreign and Diplomatic Relations of the Arab Council in Ukraine, advisor to the Honorary Consul General of Ukraine in Syria, and representative of the Muslim community in the Khmelnytskyi region.
The parties discussed opportunities to expand the international ties of the Khmelnytskyi region and establish contacts with representatives of businesses and public organizations from Arab states.
Particular attention was paid to the prospects of attracting investment, implementing joint projects, developing trade and economic cooperation, and humanitarian initiatives.
During the meeting, the parties also discussed opportunities to present the economic and investment potential of the Khmelnytskyi region to potential partners from Arab countries.
The Arab Council of Ukraine stated its readiness to facilitate the establishment of direct contacts between representatives of the region and business circles of Arab states, as well as to support initiatives aimed at developing interregional and international cooperation.
The parties agreed to continue their interaction and work out specific areas of possible cooperation.
The Arab Council of Ukraine is a public organization whose activities are aimed at developing relations between Ukraine and Arab countries and strengthening business, public, cultural and humanitarian ties.
ARAB COUNCIL OF UKRAINE, Arab countries, COOPERATION, INVESTMENT, Khmelnytskyi region, LABAZIUK, UKRAINE, АБУ АЛРУБ
Ukrainian gas station chains are not yet fully passing on the increased costs resulting from Russian attacks to consumers, instead offsetting them by reducing their own profitability; however, the ability to keep prices in check in this way is limited, according to Serhiy Kuyun, director of the A-95 Consulting Group.
As the expert reported on his Facebook page, “A-95” specialists compared retail prices for gasoline and diesel fuel with their customs value over the past three years.
The resulting difference includes gas stations’ logistics and operating costs, as well as operators’ profits. According to “A-95” calculations, in 2026 this markup did not increase but actually decreased slightly compared to the previous year, despite a significant rise in fuel companies’ expenses.
Among the additional costs, Kuyun cites the restoration of damaged gas stations and the strengthening of their security. According to him, installing an anti-drone protective structure over a single gas station can cost about €100,000, while building a temporary shelter can cost 1–1.2 million UAH.
At the same time, personnel costs are rising. According to data from the State Tax Service cited by the expert, the official salaries of employees at the 40 largest gas station chains have increased by 20% over the past year. Additional expenses arise from the need to organize work schedules and staff rotations in frontline regions.
“In other words, the stability of the markup was achieved by reducing profits,” Kuyun noted.
According to his assessment, the most difficult economic situation has developed in the left-bank region of Ukraine. The cost of delivering fuel there is higher than in the western and southern border regions, while there is virtually no significant regional variation in retail prices.
National chains can partially offset the low profitability of such gas stations through more efficient stations in other regions. For small local operators in the east of the country, this option is often unavailable.
According to Kuyun, some local gas stations are currently operating with zero or negative profitability. The expert attributes this to why some gas stations damaged by Russian drones are not being rebuilt: investments in repairs may not pay off given the current economic situation.
A further negative factor is the decline in fuel sales. Kuyun attributes this both to the impact of attacks on Ukrainian industry and the resulting drop in consumption, as well as to the high cost of petroleum products on the global market.
According to the expert, for now, fuel retailers are effectively absorbing part of the rising costs using their own revenues, rather than passing them on entirely to the final price of gasoline and diesel fuel.
However, this situation cannot last indefinitely.
“It’s hard to say how much longer fuel retailers will be able to absorb these price increases using their own revenues. I think it won’t be long,” Kuyun noted.
Thus, future price trends at Ukrainian gas stations will depend not only on global oil and petroleum product prices and the exchange rate, but also on operators’ ability to offset rising costs related to logistics, security, infrastructure restoration, and personnel.
Source: Serhiy Kuyun — Facebook post.
The European Bank for Reconstruction and Development may provide EUR600 million to restore the electricity balancing market, said Ukraine’s First Deputy Prime Minister for Energy Denys Shmyhal after a meeting with EBRD President Odile Renaud-Basso.
“Ukrainian energy companies need EUR600 million in financing to revitalize the balancing market. We greatly appreciate the EBRD’s participation in this process and count on the bank’s support for this reform,” he wrote on his Telegram channel.
According to the First Deputy Prime Minister, the parties also discussed priorities for further cooperation across all areas. Currently, Ukraine, in partnership with the EBRD, is implementing 13 energy projects that cover virtually the entire energy chain—from gas production and supply to electricity generation and transmission—as well as projects in hydropower and renewable energy. The total value of the portfolio exceeds EUR3 billion.
In addition, Shmyhal and Reno-Basso coordinated further cooperation to attract new contributions for the reconstruction of the New Safe Confinement at the Chernobyl Nuclear Power Plant during the Donors’ Conference, which is scheduled to take place in Paris in November.
Finnish industrial company REKA Group is beginning the implementation of the REKA NOVO investment project in Novoselytsia, Chernivtsi region, with a total investment volume of €5 million, the Chernivtsi Regional Military Administration reported.
The new enterprise will specialize in the production of silicone hoses for European manufacturers of trucks, special-purpose vehicles, and companies in the shipbuilding industry.
Thus, this is an export-oriented production facility being created by a foreign investor directly in Ukraine and integrated into European industrial chains.
REKA Group representatives Markku Rentto and Mika Kärkkäinen announced the start of the project during a meeting with the leadership of the Chernivtsi region and the Novoselytsia community.
According to the published data, the project has been named REKA NOVO. The total volume of capital investment will amount to €5 million. The first stage of the enterprise is expected to be launched in early 2027.
The products of the new plant will be oriented primarily toward the European market. This makes it possible to view the project not only as a direct foreign investment in Ukrainian industry, but also as a further integration of Ukrainian production sites into the supply chains of European mechanical engineering.
According to specialized investment resources, international manufacturers of heavy machinery, including Volvo and John Deere, are named among the potential consumers of the products. However, the official statement of the Chernivtsi Regional Military Administration does not identify specific customers, so the conclusion of direct contracts with these companies has not yet been publicly confirmed.
For the Chernivtsi region, the project is of particular interest against the background of the comparatively small accumulated volume of foreign direct investment. According to the Regional Military Administration, more than 400 enterprises with foreign capital operate in the region, while the total volume of attracted foreign direct investment amounts to about $19 million.
Against this background, REKA Group’s €5 million investment is a notable new industrial project for the region.
The location of the production facility in Novoselytsia also gives the investor a logistical advantage: the city is located not far from the border with Romania, which facilitates the integration of the enterprise into European production and transport chains.
The project is also indicative of a broader trend toward relocating individual production operations closer to the EU market. Ukraine’s western regions, thanks to their geographical proximity to the European Union, relatively developed industrial base, and access to the Ukrainian workforce, are gradually becoming one of the main locations for new export-oriented production facilities.
Official source: Chernivtsi Regional Military Administration — REKA NOVO investment project.
According to Experts Club, electric vehicles in Ukraine will remain more cost-effective than internal combustion engine vehicles even after full taxation on their import is restored, says Serhiy Kuyun, director of the “A-95” Consulting Group.
According to Enkorr, a 20% VAT is set to be reinstated on electric vehicle imports into Ukraine starting January 1, 2027. Meanwhile, the preferential regime in effect until the end of 2026 exempts electric vehicles from VAT and import duties.
According to Kuyun’s assessment, the elimination of this exemption will make electric vehicles more expensive to purchase, but it will not deprive them of their main advantage—significantly lower operating costs.
“Even with all taxes included, an electric vehicle remains cost-effective. The electricity needed to charge it is significantly cheaper than fuel for a vehicle with an internal combustion engine,” the expert notes.
The savings on operating costs are particularly noticeable with high annual mileage. If an electric vehicle consumes about 15–20 kWh of electricity per 100 km, then when charged at home, the cost of such a trip remains several times lower than the cost of gasoline or diesel fuel for a vehicle of a similar class.
An additional advantage of electric vehicles is the simpler design of their powertrain. They lack a number of components and consumables typical of vehicles with internal combustion engines, which potentially reduces the cost of regular maintenance.
According to Kuyun, the Ukrainian market has already reached a stage of development where tax incentives are no longer the main driver of demand for electric vehicles. In recent years, the model lineup has expanded significantly, the used-car market has grown, and the charging station infrastructure is developing.
At the same time, the reinstatement of the VAT could have a noticeable impact on the market immediately before the end of the tax incentive period. Buyers planning to purchase an electric vehicle may try to import and register it by the end of 2026 to take advantage of the current tax incentives.
As a result, electric vehicle imports may accelerate further in the final months of 2026, after which the market may undergo a correction period in early 2027.
For comparison: with a customs value of 20,000 euros for an electric vehicle, the 20% VAT refund alone potentially increases the tax component by approximately 4,000 euros, without taking into account the specifics of determining the tax base and other payments. However, for an owner with high annual mileage, part of this difference is gradually offset by lower energy and maintenance costs.
Analysts at Experts Club note that the future dynamics of the Ukrainian electric vehicle market will no longer depend solely on tax incentives. The cost of electricity and automotive fuel, the development of charging infrastructure, prices for new and used electric vehicles, the condition of batteries, and the residual value of vehicles on the secondary market will become increasingly important.
Therefore, the reinstatement of full taxation may alter the structure of imports and slow the market’s growth rate; however, it does not, in and of itself, eliminate the economic advantages of electric vehicles for a significant portion of drivers.
Original source: Enkorr – “Electric Vehicles Will Remain Cost-Effective Even With All Taxes — Expert”.
The Czech oil and gas company MND is considering investing at least $60 million in hydrocarbon production projects in Ukraine as part of a partnership with the Naftogaz Group.
Naftogaz and MND signed a memorandum of understanding on potential cooperation regarding three existing production-sharing agreements between Ukrgazvydobuvannya and the Ukrainian government. The document was signed during the Carpathian Eight Summit, the group reported.
If the agreements are implemented, MND will be able to participate in the development of Ukrainian fields and contribute its own capital, technology, and operational expertise to the projects.
The initial investment under the three agreements could total $60 million. However, the Czech company’s participation has not yet been finalized—it will depend on the results of the relevant competitive selection process.
Naftogaz views attracting international oil and gas companies as one of the tools for increasing its own gas production amid regular Russian attacks on Ukraine’s energy infrastructure.
Serhiy Fedorenko, acting head of Naftogaz, noted that the group is interested in international partners capable of bringing investment, modern technologies, and practical experience.
In turn, Yana Gamrshmidova, CEO of the energy division at MND Group, stated that the company is already contributing to Ukraine’s energy resilience and intends to introduce new technologies and create jobs.
MND is of particular interest as a strategic investor because it is not a financial institution but an active European energy company with its own expertise in hydrocarbon exploration and production.
For Ukraine, attracting such a partner could mean not only an inflow of foreign capital but also access to field development technologies and management expertise from the European oil and gas industry.
The memorandum is not yet a final investment agreement. The parties must still agree on the terms of cooperation, and MND’s potential participation in production-sharing agreements must go through the procedures required by law.
However, the announced initial investment of $60 million makes the initiative one of the most significant new projects involving private European capital in Ukraine’s extractive industry.
