Business news from Ukraine

IFC TO PROVIDE UP TO $15 MLN TO NEW HORIZON CAPITAL’S FUND INVESTING IN UKRAINE

KYIV. July 21 (Interfax-Ukraine) – The International Finance Corporation (IFC), a member of the World Bank Group, will be providing up to $15 million to the Emerging Europe Growth Fund III (EEGF III, Delaware, the United States) launched by Horizon Capital Advisors, LLC for investment mostly in Ukraine.
Earlier, on June 5, the IFC board approved the project to invest up to $20 million in EEGF III.
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.
Along with IFC and OPIC, the co-investors in the fund are the European Bank for Reconstruction and Development (EBRD), Dutch Development Bank and Western NIS Enterprise Fund (WNISEF).
Horizon Capital was established in 2006. It manages private equity funds Western NIS Enterprise Fund (WNISEF, established in 1994 with a capital of $150 million), Emerging Europe Growth Fund, L.P. (EEGF, established in 2006 with a capital of $132 million) and EEGF II (EEGF, established in 2008 with $370 million capital).
The funds are invested in projects in Ukraine, Moldova, and Belarus.

MOBILE ID TECHNOLOGY TO BE INTRODUCED IN UKRAINE BY LATE 2017 – PM

KYIV. July 20 (Interfax-Ukraine) – The Mobile ID electronic identification technology could be introduced by mobile operators by the end of 2017, Ukrainian Prime Minister Volodymyr Groysman has said.
“I think that this year we would expand the possibilities of Mobile ID. We are working on the issue. I think that this year we would make the relevant decisions,” he said at a government meeting on Wednesday.
Earlier Groysman called on all mobile operators to create the identical system that would be clear for users. He said that the government is ready to support the idea in the legal field – to form a package of legislative initiatives for the implementation of mobile identification.
Using Mobile ID mobile communications users would be able to sign documents in the electronic form, pay for services and receive access to protected e-documents using their mobile phones.
Mobile ID provides for the creation of an infrastructure for interaction between mobile operators’ networks, key certification centers and various electronic interaction portals with citizens, providing mobile phone owners with special SIM cards with built-in identification algorithms. Since 2000, similar services have been introduced in most EU countries, as well as in Moldova, Azerbaijan, Lithuania, Latvia, Estonia and Kazakhstan.

EIB READY TO ISSUE LOAN FOR BUILDING NEW METRO STATIONS IN KHARKIV – FIRST DEPUTY MAYOR

KHARKIV. July 20 (Interfax-Ukraine) – Representatives of the European Investment Bank (EIB) have approved a financial contract for a loan of EUR160 million for the construction of new metro stations in Kharkiv, First Deputy Mayor Ihor Terekhov has said.
“We have achieved agreement on virtually all items of the financial contract, which will allow issuing the loan to Kharkiv,” the press service of Kharkiv City Council said citing the official.
According to him, at a meeting in Kyiv representatives of the EIB, Kharkiv City Council, the Ministry of Finance, the Ministry of Economic Development and Trade, the Ministry of Regional Development and the Ministry of Infrastructure discussed all the financial components of the loan for EUR160 million, as well as technical issues related to the construction of new metro stations. In addition, the parties approved all tranches of the loan, based on the schedule of subway construction.
“We’ve also discussed a number of technical issues regarding the future construction of the third subway line, the purchase of rolling stock and the construction of an electric depot. This gives us green light to receive a loan from the European Investment Bank for metro building,” Terekhov said.

KYIVSTAR’S SHAREHOLDER VEON LAUNCHES NEW FREE MESSENGER IN UKRAINE

KYIV. July 20 (Interfax-Ukraine) – VEON Ltd. international group (earlier VimpelCom), the global provider of telecom services, on July 19 launched the VEON personified Internet platform for communications on the Ukrainian, Italian, Pakistani, Russian and Georgian markets, Kyivstar mobile communications operator has said on its website.
“VEON is a global digital platform uniting all modern Internet communications technologies, content services and entertainment, making them affordable for clients of any mobile communications operators in one application,” the operator said.
Using the platform one can publish photo, video and audio messages and share your location.
The press service of Kyivstar told Interfax-Ukraine that clients of all Ukrainian mobile operators will be able to use the application.
“Subscribers of companies, which are part of VEON Group, including Kyivstar, will have additional advantages. Using the VEON platform, they can communicate, send messages without paying for internet traffic and even if they have no money on their accounts,” the company said.
Kyivstar said that in the near term VEON would be expanded with financial services.
Now the application is available for Android, and it will be launched for iOS in the near term.

GOVT EXPANDS LIST OF STATE-OWNED BANKS PAYING COMPENSATIONS FOR COST OF MACHINERY TO FARMERS

KYIV. July 20 (Interfax-Ukraine) – Ukraine’s Cabinet of Ministers has expanded a list of banks, which can pay compensations for the cost of agricultural machinery to farmers. 75% and more shares in these banks belong to the state.
According to the decision made by the government on Wednesday, agricultural producers will be able to receive partial compensation for the cost of agricultural machinery and equipment made in Ukraine not only at the fully state-owned banks, but also at the banks where the state holds 75% and more shares.
As reported, farmers, starting from 2017, will receive partial compensation for agricultural machinery in the amount of 20% of its cost if the production localization level for sophisticated machinery in Ukraine exceeds 35%. UAH 550 million was allocated for these purposes in 2017, and in 2018 the government support under this program could expand to UAH 1 billion.
A list of 40 enterprises which machinery can be bought with compensation of 20% of its cost by the state has been posted on the website of the Economic Development and Trade Ministry.

UKRAINIAN GOVERNMENT APPROVES RURAL AREAS DEVELOPMENT CONCEPT

KYIV. July 20 (Interfax-Ukraine) – Ukraine’s Cabinet of Ministers has approved a concept for development of rural areas, the implementation of which would improve the quality of life and welfare of rural residents.
According to the decision made at a meeting on Wednesday, the concept will help to implement measures aimed at reforming the rural areas development governance system, stirring up proactivity and responsibility of rural territorial communities in the regions and increasing employment rate in rural areas.
The government will provide support to residents who decide to build houses in rural areas, develop healthcare center network and improve medical care, draw up and approve local sports development programs, regional cultural and historic heritage maintenance and restoration programs and ensure their financing, restart and modernize engineer networks and water purification facilities.
The action plan will be implemented using national and local budgets funds.
Central and local executive power agencies are to inform the Agricultural Policy and Food Ministry every year before April 1 on the implementation of the plan. Generalized information is to be submitted to the government by April 15.