Business news from Ukraine

5 AMBASSADORS OF UKRAINE FIRED

On June 24, President of Ukraine Volodymyr Zelensky dismissed Ukraine’s ambassadors to Georgia, the Slovak Republic, the Portuguese Republic, the Islamic Republic of Iran and the Lebanese Republic by a series of decrees.

The relevant decrees No. 439/2022, No. 440/2022, No. 441/2022, No. 442/2022, No. 443/2022 are published on the website of the head of state.

So, Igor Dolgov was dismissed from the post of Ambassador of Ukraine to Georgia, Yuriy Mushka was dismissed from the post of Ambassador to Slovakia, Inna Ognivets – the post of Ambassador to Portugal.

Zelensky also fired Serhiy Burdilyaka from the post of Ukrainian ambassador to Iran and Igor Ostash from the post of ambassador to Lebanon.

In 2017, President of Ukraine Petro Poroshenko appointed Igor Dolgov, former Deputy of Defense of Ukraine for European Integration, to the post of Ambassador of Ukraine to Georgia.

In 2016, Poroshenko appointed diplomat Yuriy Mushka as Ambassador of Ukraine to the Slovak Republic, and Igor Ostash as Ambassador to Lebanon.

In 2015, Poroshenko appointed Inna Ognivets as Ambassador of Ukraine to the Portuguese Republic and Serhiy Burdilyak as Ambassador of Ukraine to the Islamic Republic of Iran.

WHAT EXPECTED REAL ESTATE MARKET IN COMING MONTHS – EXPERT OPINION

The war caused and continues to cause significant damage to the economy of Ukraine. Today, perhaps, the construction and real estate markets suffered the most from the hostilities. Thus, the report of the National Bank of Ukraine “On Financial Stability” dated June 17, 2022 indicates that since the beginning of the war, the market has practically stopped, both in terms of construction and the sale of housing. At the same time, according to the NBU, the situation has begun to level off in recent weeks, and above all in the regions that are least affected by the destruction from the war.

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The most favorable situation is in the western regions of the country, while the National Bank notes that a number of significant problems remain there. First of all, this is a market imbalance, when the prices declared by sellers are not supported by demand and are supported artificially.

As for construction, here, according to the regulator, the situation is more optimistic. Developers have restored work on almost 50% of the facilities in the country. The most positive dynamics is observed in the western regions, in the center and in the Odessa region.

As for the office real estate market, according to the NBU, it suffered to a greater extent from the massive transition of staff to remote work.

The Open4business portal asked financial expert Igor Stakovichenko to comment on the current situation. In his opinion, the severity of the crisis in the real estate market directly depends primarily on the intensity of hostilities in various regions of the country, as well as on the well-being of the population.

“We see that the demand for housing in the same Kharkiv and Dnipro collapsed almost equally. At the same time, housing construction in Kharkiv is at a standstill, while in Dnipro it is being restored. This is due to the risk assessment by developers, since the Kharkiv region is now under devastating shelling by the aggressor,” the expert believes.

In his opinion, most of the prices in both the primary and secondary markets are dictated by the overestimated expectations of developers who continue to hope to find a buyer for their goods despite changes in the economy and a decrease in the income of part of the population.

“Builders think in the old way, and form the price based on the cost and those mark-ups that were fair in the pre-war period. Buyers have become much more cautious and assess the risks, in particular, the presence of bomb shelters, evacuation routes, and so on. As for the secondary market, here prices are often drawn from the ceiling, hoping more for luck, ”said Stakovichenko.

According to the expert, market recovery can be expected after the end of the war, when the demand for housing will increase and investors’ fears will decrease.

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CABINET LAUNCHES NEW BUSINESS SUPPORT GRANT PROGRAMS

The Cabinet of Ministers has launched three new grant programs to support businesses, Prime Minister of Ukraine Denys Shmygal said.
“The first is irrevocable grants for the creation and development of processing enterprises. This may be an enterprise in the woodworking, metalworking, agricultural processing, furniture or construction sectors,” he said during a government meeting on Friday.
He added that the state will provide up to UAH 8 million in grant funds for those who already own a processing business or want to start one. It is fashionable to spend the grant on the purchase of equipment, the main requirement is to create at least 25 new jobs. In this case, the business owner must invest 30% of his investment. To receive a grant, an entrepreneur should submit a working idea, the prime minister explained.
The Cabinet of Ministers also approved a grant program for the IT sector and high-tech startups in the amount of UAH 750 thousand to UAH 3.5 million with the requirement to create at least five jobs.
In addition, the government launched the Start in IT grant program for IT education with a budget of UAH 1.8 billion, Shmygal noted. Thus, the state plans to finance educational grants up to UAH 30,000 for 60,000 Ukrainians. Funds can be spent on paying for a school or courses that will be determined by the Ministry of Finance.
This program is not for students or current professionals, but for those who have lost their jobs or are down and want to learn new skills in the profession of a developer or web designer, he pointed out.
Gradually, the details of these and other programs within the framework of the eWork project will become available in DIA, the head of government said.

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EU TO ALLOCATE 9 BILLION EUROS IN AID TO UKRAINE

The EU will allocate 9 billion euros in aid to Ukraine, Polish Prime Minister Mateusz Morawiecki has said.
“This historical moment and the language of today’s conclusions have been rejected for a long time. We have changed this with many countries. Ukraine is at war and has nothing to pay for many public services, so we have approved the allocation of 9 billion euros in aid,” Morawiecki said. on the page of the Office of the Polish Prime Minister on Twitter on Friday.

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MANUFACTURER OF GRAIN PROCESSING EQUIPMENT OLIS OPENS GRAIN WORKSHOP IN POLTAVA REGION

A manufacturer of grain processing and grain cleaning equipment, Olis LLC (Odesa), has built and put into operation a grain workshop of its production Optimatic K-15 in Poltava region.
“Good news not only for Olis as a manufacturer and supplier of grain processing equipment, but also for the region, where, thanks to a quality grain workshop, there will be no shortage of cereals. After all, local food production is very important today,” the machine-building company wrote on Facebook on Wednesday.
According to it, Optimatik K-15 is an aggregate universal grain mill designed for production of wheat, barley, pearl barley, peas, corn and millet.
A unit with a rated power of 30 kW/h can process 400-600 kg of millet, pearl barley or corn, or 700-800 kg of wheat, barley or peas per hour.
As reported, Olis resumed the work of its plant in Odesa region at the end of March and resumed the manufacture of equipment under new and previously concluded contracts.
Olis produces about 200 items of equipment for the grain processing industry. The enterprise is able to produce grain cleaning complexes, mills and grain workshops from the stage of technology development to commissioning of facilities.
The company’s products are exported to more than 25 countries around the world.

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DIIA.CITY PROJECT RECEIVES EMERGING EUROPE AWARDS – FEDOROV

The Diia.City project was awarded the Emerging Europe Awards, Deputy Prime Minister and Minister of Digital Transformation of Ukraine Mykhailo Fedorov said.
“The Diia.City project received the Emerging Europe Awards in the Modern and Future-Proof Policymaking nomination. The award celebrates the projects of countries that change the life of the developing region of Europe. The winners are chosen by people from all over the world who can vote online for their favorite project. This year, thousands of people took part in the voting, noting the importance of Diia.City,” Fedorov wrote on his Telegram channel.
The minister emphasized that “City was noted for its unique contribution to positioning Ukraine as a powerful IT hub, as well as for creating conditions for the development of companies and attracting investments.”
“I am sure that Ukraine will soon become the largest European IT hub. I am grateful to President Volodymyr Zelensky for the political will and full support in the launch of Diia.City,” Fedorov wrote.

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