Business news from Ukraine

IFC TO INVEST UP TO $20 MLN IN HORIZON CAPITAL’S NEW FUND FOR UKRAINE

KYIV. June 8 (Interfax-Ukraine) – The International Finance Corporation, a member of the World Bank Group, is to invest up to $20 million in a direct investment fund, Emerging Europe Growth Fund III, L.P. (EEGF III), registered in Delaware in the United States and launched by Horizon Capital Advisors, LLC for investment mostly in Ukraine.
The IFC board approved the project at a meeting on June 5, IFC said in a statement.
IFC’s investment will not exceed 20% of the total fund size. Small- and medium-sized growing enterprises are expected to be main recipients of EEGF III investment.
IFC recalls it is an investor of EEGF II fund, and participation in the new fund will help Horizon complete individually launched investment projects.
The European Bank for Reconstruction and Development (EBRD) can be engaged as a co-investor of the fund, the statement said.
As reported, U.S.-based Overseas Private Investment Corporation in June 2016 reported the disbursement of up to $37.5 million to EEGF III fund, launched by Horizon Capital, for up to 10 years.
The fund with a declared volume of $150 million will focus on medium-sized fast-growing, export-oriented companies in Ukraine and Moldova with the potential to become local or regional market leaders. It is assumed that the fund will make investment by buying a minority stake in such companies. At the same time, if necessary, it is also possible to provide seed capital for start-ups, acquire businesses or participate in privatization.

MAYORS OF KYIV AND BERLIN SIGN JOINT STATEMENT ON PARTNERSHIP BETWEEN CITIES

KYIV. June 8 (Interfax-Ukraine) – Kyiv city head Vitali Klitschko and Berlin Mayor Michael Mueller on Tuesday signed a joint statement on cooperation and partnership between the capitals of Ukraine and Germany, the Kyiv city state administration has reported.
“We appreciate the assistance of our friends who come to Kyiv, invest funds and implement projects. We understand how important it is to partner with one of Europe’s leading cities,” on Tuesday said.
“I am very pleased with the deepening of bilateral relations between Kyiv and Berlin in the ‘partner cities’ format and the signing of a joint statement on cooperation for establishing friendly, sustainable and mutually beneficial relations for the benefit of residents of both capitals,” he added.
During the meeting, Klitschko stressed that the cooperation between Kyiv and Berlin had been going on for a long time.
In his words, the city authorities’ priority is to ensure their transparency and effective work, fight corruption, bring the municipality to a higher level of interaction with residents of Kyiv, introduce the Smart City system and invite investors in the city. In this direction, he said, Kyiv very closely cooperates with the German government and Berlin in particular.
According to the signed document, the parties identified the existing common challenges in the context of urban development – urban development, transport, health care.
Klitschko and Mueller agreed to instruct the city administrations to exchange information and use it when planning their own projects. In addition, Kyiv and Berlin will be able to exchange expert opinions on projects that are planned for implementation in the capitals.
While commenting the document, Mueller in turn said that the main task of signing the memorandum was to deepen and extend ties between the cities in key areas of urban economy.

SOME UAH 6.5 BLN WILL BE USED TO SUPPORT FARMERS IN 2018 – GROYSMAN

KYIV. June 8 (Interfax-Ukraine) – Some UAH 6.5 billion will be used to support agricultural producers and UAH 1 billion to compensate for the cost of agricultural machinery in 2018, Prime Minister of Ukraine Volodymyr Groysman has said.
“This year we foresaw UAH 550 million for the support of Ukrainian agricultural machinery producers because we want the machinery to be manufactured in our country to create jobs and every year increase this support in Ukraine. We believe in 2018 this support will be UAH 6.5 billion, we will spend another UAH 1 billion on agricultural machinery,” the prime minister said at the opening of the ХХІХ Agro 2017 agro-industrial exhibition.
According to him, 1% of proceeds from all agricultural production are to be reinvested in agriculture.
The premier said 40% of the country’s forex earnings fall on the agrarian sector.

CABINET APPROVES ALLOCATION OF UAH 766 MLN FOR REGIONAL INVESTMENT PROJECTS

KYIV. June 8 (Interfax-Ukraine) – The Cabinet of Ministers of Ukraine has approved a list of investment programs and regional development projects that could be implemented in 2017 at the expense of the State Regional Development Fund in the amount of UAH 766 million.
The corresponding decision was made at a government meeting on June 7.
Prime Minister of Ukraine Volodymyr Groysman noted the allocation of funds in the amount of UAH 766 million is the first stage since the fund foresees UAH 3.5 billion for the implementation of regional projects.
Later on the same day the press service of Deputy Prime Minister and Minister of Regional Development, Construction, Housing and Utilities Services Hennadiy Zubko said 111 projects worth a total of more than UAH 765.9 million have been approved.
In particular, projects in Vinnytsia, Volyn, Dnipropetrovsk, Donetsk, Zhytomyr, Zakarpattia, Zaporizhia, Ivano-Frankivsk, Poltava, Rivne, Sumy, Ternopil, Kharkiv, Kherson, Khmelnytsky, Cherkasy, Chernivtsi and Chernihiv regions will be financed.

PROMISING FOR INVESTORS IN MARIUPOL ARE METALLURGY, ENGINEERING, AGRICULTURE, TOURISM – EUROPEAN COMMISSIONER HAHN

KYIV. June 7 (Interfax-Ukraine) – European Commissioner for European Neighborhood Policy and Enlargement Negotiations Johannes Hahn believes that promising for investors in Mariupol are metallurgy, engineering, agriculture, and in the medium and long term tourism.
“First of all, we should mention metallurgy and everything related to it … production of engines. And if you look around you can see that this is a rich agricultural area, so agricultural production is another promising area. I would also not underestimate the potential of tourism in the medium and long term perspective,” he said at a briefing in Mariupol (Donetsk region).
The European Commissioner noted Mariupol has a significant number of highly qualified personnel and a good scientific base.
Deputy Prime Minister, Minister of Regional Development, Construction, Housing and Utilities Services Hennadiy Zubko noted it is important for Ukraine to offer Europe its spheres for investment.

DART AIRLINE LAUNCHES REGULAR FLIGHTS ON KYIV-BOLOGNA ROUTE

KYIV. June 7 (Interfax-Ukraine) – Dart airline from June launched regular flights on the Kyiv-Bologna (Italy) route from Kyiv Zhuliany International Airport.
According to a press release from the airport, flights will be carried out on Tuesdays and Fridays on board modern Airbus A320/319 aircraft.
Departure from Kyiv will be at 09:50, departure from Bologna at 12:35. Air tickets can be bought on the official website of the airline and the agencies selling tickets.
Dart airline has been operating as a charter air carrier since 1997. It operates Bombardier Lear Jet 60, Airbus 320 and Boeing 737-300/500 aircraft.