Business news from Ukraine


KYIV. April 15 (Interfax-Ukraine) – Ukraine, since the beginning of 2015, has supplied 2,860 tonnes of sugar within the European Union’s duty-free quota of 20,070 tonnes.

According to the Ministry of Agricultural Policy and Food, Ukraine has fulfilled the quotas for honey (5,000 tonnes), and maize (400,000 tonnes). The quotas on barley cereals and flour has been 97.6% fulfilled (the volume of the quota – 6,300 tonnes), apple and grape juice – 98.8% (10,000 tonnes), oats – 67% (4,000 tonnes).

Ukraine also delivered 375,100 tonnes of wheat, 5,600 tonnes of barley and 4,000 tonnes of poultry to the EU under duty-free quotas.

As reported, the European Commission in October 2014 extended tariff quotas for Ukrainian agricultural products until December 31, 2015. In particular, tariff quotas, approved by the European Union from April 23, 2014, were extended until the end of 2014. Similar quotas were stipulated for 2015.

Thus, the quotas for all groups of goods in 2015 were not changed and are as follows: beef – 12,000 tonnes, milk, yogurt, dairy products – 8,000 tonnes, milk powder – 1,500 tonnes, butter – 1,500 tonnes, egg products – 1,500 tonnes, eggs – 3,000 tonnes, poultry – 36,000 tonnes, pork – 40,000 tonnes. Tariff quotas provided by the EU autonomous trade preferences for wheat are 950,000 tonnes, barley – 250,000 tonnes, and corn – 400,000 tonnes.


KYIV. April 15 (Interfax-Ukraine) – The European Bank for Reconstruction and Development is mulling the possibility of expanding its presence in Ukraine’s banking sector, a representative of the National Bank of Ukraine (NBU) has said.

It could be investment in one private bank and one state-run bank, director of the NBU’s international relations department Serhiy Kruhlyk said.

“It’s the best timing for entering,” he told reporters on Wednesday.

However, he did not provide any further details.

The press service of the Kyiv office of EBRD did not comment on the information.

The EBRD is the largest international financial investor in Ukraine. As of March 1, 2015, the Bank had a total cumulative commitment of EUR 10.9 billion in 344 projects in the country.

The EBRD holds 15% stakes in UkrSibbank and Megabank.

As reported, in March 2015, it was announced that EBRD, which held 15.2169% in ProCredit Bank (Kyiv), would withdraw from the structure of the bank’s shareholders.

In March it was reported that Austria’s Raiffeisen Bank International AG is holding negotiations with the EBRD to involve the bank as a co-investor in Raiffeisen Bank Aval.

Kruhlyk told reporters that a foreign investors want to buy a bank in Ukraine.

“Yesterday an investor arrived: he is buying one of the Ukrainian banks. Foreign investor… He said that he wants to develop a specific business there,” he said.

Kruhlyk said that the foreign investor has relatives from Ukraine.


BRUSSELS. April 15 (Interfax-Ukraine) – The European Commission’s (EC) proposal for new macro-financial assistance (MFA) worth EUR 1.8 billion to Ukraine was adopted on April 15, the EC has announced.

It was formalized with the signatures of President of the European Parliament Martin Schulz and of Zanda Kalniņa-Lukasevica, Parliamentary State Secretary for the European Affairs of Latvia, on behalf of the Latvian Presidency of the Council.

This follows the European Parliament’s positive vote and a Council agreement on the new proposal.

According to the EC, the EU and Ukraine will now have to agree on a Memorandum of Understanding.

The Commission says it hopes to conclude this process in the coming weeks, in order to allow for the disbursement of a first tranche of EUR 600 million before the summer break.

The new MFA comes on top of what the EU is already contributing via the State Building contract in terms of humanitarian, project, and technical assistance.

It will also be the third MFA program for Ukraine since 2010. In the course of 2014, the Commission disbursed EUR 1.36 billion under the previous MFA program, with a final tranche of EUR 250 million under MFA 1 to be disbursed this month.

Together, the three MFA operations to Ukraine amount to EUR 3.41 billion, which represents the largest financial assistance to a third country in such a short time.


KYIV. April 15 (Interfax-Ukraine) – The State Statistics Service of Ukraine in February 2015, for the first time since September 2014, recorded a surplus in foreign trade with goods, totaling $135.9 million, while in February 2014 the deficit was $117.8 million.

Exports in February 2015 fell by 35.9% year-over-year, to $2.933 billion and imports decreased by 40.3%, to $2.857 billion.

In January and February 2015, exports of goods fell by 33.7% year-over-year, to $5.973 billion, and imports dropped by 37%, to $5.866 billion, with the surplus being $106.7 million compared to a deficit of $300.9 million.

The service said that Russia’s share of exports fell from 17.8% in January-February 2014 to 10.1% in January-February 2015, and its share of imports fell from 29.4% to 16.5%.

The share of supplies to Turkey grew from 6.4% to 7.7%, to China – from 5.5% to 7.4%, to Egypt from 5.9% to 6.7%, Italy from 5.2% to 5%, the Netherlands from 2.3% to 3.6%, Germany from 3% to 3.5% and the share of supplies to Poland did not change, being 5.4%.

The share of Hungary of total imports grew from 1.9% to 6.4%, Germany from 7.7% to 10.9%, China from 9.6% to 11.3%, Poland from 4.7% to 5.2%, the United States from 3.4% to 4%, France from 2.6% to 3%, while from Belarus they fell from 5.9% to 5.7%.

As reported, data from the State Statistics Service differs from data presented by the National Bank of Ukraine, which take into account informal trade. According to the NBU, Ukraine’s deficit of foreign trade with goods in February was $551 million, which is 23.5% down on February 2014. Exports fell by 34.1%, to $3.157 billion, while imports – by 41.7%, to $3.708 billion.

The NBU said that in January-February 2015, Ukraine’s deficit of foreign trade with goods was $979 million, which is 36% down year-over-year: exports fell by 32.5%, to $6.237 billion and imports dropped by 33%, to $7.216 billion.


KYIV. April 15 (Interfax-Ukraine) – Around 400 representatives of different foreign delegations will attend the International Support for Ukraine Conference scheduled to be held in Kyiv on April 28, Head of the conference organization committee and Economic Development and Trade Minister of Ukraine Aivaras Abromavicius has said.

“The goal of the conference is to show to our western partners that reforms are going on in our country, and there is a mood for reforms and we have a clear plan towards reforming the country,” he said.

He said that the conference is intended to show the unity of Ukrainian authorities in their plans to conduct reforms.

Ukrainian President Petro Poroshenko, Ukrainian Prime Minister Arseniy Yatseniuk, Ukrainian Verkhovna Rada Chairman Volodymyr Groysman, and every Ukrainian minister are due to take part in the conference.

Abromavicius said that Ukraine expects that the foreign delegations to participate in the one plus three format: head of the government or state and three profile ministers.

Representatives of the European Bank for Reconstruction and Development (EBRD), World Bank and International Monetary Fund (IMF) have been invited to take part in the conference.

It is planned to discuss the financing of eastern regions of Ukraine which have suffered from the ongoing conflict, business climate issues, and aid for displaced persons.


Kyiv, April 14 (Interfax-Ukraine) – The National Bank of Ukraine has said that the foreign exchange market has stabilized in recent weeks and that they started working on the gradual removal of restrictions on foreign exchange transactions in line with the commitments under the new program of cooperation with the International Monetary Fund (IMF).

“There are grounds to speak about the achievement of equilibrium on the foreign exchange market… That’s why the National Bank has noted the existence of prerequisites for liberalization of the market and easing some restrictions,” the NBU press service quoted the central bank’s governor, Valeriya Gontareva, as saying at a weekly meeting with bankers on Tuesday.

She recalled that on April 10, 2015, the NBU canceled the requirement of the obligatory use of letters of credit to import certain vitally important goods (oil, petrol, diesel fuel, drugs for hemodialysis and treating patients) for transactions under direct contracts with producers, and military goods.

According to first deputy head of the NBU Oleksandr Pisaruk, the National Bank within two or three months will finish the process of cleansing the banking system, and will then proceed to the structural stabilization of the market. “The regulator is working on a plan for the gradual removal of restrictions on foreign exchange transactions… In particular, all restrictions on the withdrawals from customers’ bank accounts, which were introduced in 2014-2015, will be gradually removed,” he said.

Gontareva added that such steps of the regulator should help restore citizens’ confidence in banks and will be “a point of reboot” for the banking system.