Business news from Ukraine

FOREIGN DIRECT INVESTMENTS TO UKRAINE GROW BY $2.9 BLN IN 2019

The amount of foreign direct investment (FDI) in Ukraine in the form of share capital as of December 31, 2019 amounted to $35.81 billion, which is $2.9 billion, or 8.8% more than at the beginning of the year, the State Statistics Service has said.
According to its data, investment inflow last year amounted to $2.53 billion, withdrawal some $1.28 million, and also the increase was provided by the exchange rate difference due to the strengthening of the hryvnia at $950 million.
As reported, in the first quarter of 2019, FDI in Ukraine increased by $45.5 million. Their revenues amounted to $590 million, withdrawal some $500 million, and the contribution of the exchange rate difference amounted to $60 million.
In the first half of the year, FDI growth amounted to $840 million: investment inflow to $1.26 billion, withdrawal to $730 million with a foreign exchange contribution of $520 million.
In January-October 2019 FDI grew by $1.82 billion: investment inflow was $1.67 billion, withdrawal – $980,000 and the exchange rate difference – $1.14 billion.
A significant increase in FDI in the fourth quarter is associated with the transaction on the purchase of telecommunications business in Ukraine by Azerbaijan’s Bakcell from the MTS. The purchase transaction for Vodafone Ukraine was closed at the end of December 2019 with funding from J.P. Morgan and RBI, the price was $734 million, including deferred payment of about $84 million.
As reported, in 2018, FDI growth in Ukraine amounted to $1.3 billion, a year earlier it was $0.38 billion.
According to the State Statistics Service, the largest increase in FDI in 2019 was recorded from the Netherlands: by $1.183 billion (up to $ 8.3 billion), as well as Cyprus – $824.4 million (to $10.37 billion), Russia – $185.5 million (to $0.78 billion), Switzerland – $162.4 million (to $1.71 billion) and Germany – $141.7 million (to $1.84 billion).
At the same time, there was a sharp decrease in investments from Hungary – by $184.4 million (to $0.38 billion) and the UK – by $70.6 million (to $2.04 billion).
By industry, the largest increase in FDI was recorded in financial and insurance activities – $916.5 million, information and telecommunications – $738.5 million, mining and processing industries – respectively $283.8 million and $271.7 million, real estate operations – $237.5 million, electricity and gas supplies – $216.8 million, in wholesale and retail trade – $182.3 million, as well as in professional, scientific and technical activities – $126.1 million.
At the same time, in the area of administrative and support services, FDI decreased by $264.2 million.
The State Statistics Service also said that it stops calculating FDI, and now the National Bank of Ukraine will deal with this exclusively.

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MAIN TRADE PARTNERS OF UKRAINE IN % FROM TOTAL VOLUME (IMPORT FROM OTHER COUNTRIES TO UKRAINE) IN 2019

Main trade partners of Ukraine in % from total volume (import from other countries to Ukraine) in 2019

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UKRAINIANS SELL, BUY $1 BLN OF CURRENCY ONLINE IN 2019

The volumes of buying and selling currency online by individuals in Ukraine in 2019 were almost equal – $1 billion each, according to the website of the National Bank of Ukraine (NBU). According to the report, the abolition of restrictions on buying currency online for individuals did not lead to pressure on the foreign exchange market – about 7% of the cash market operations simply switched to online banking platforms.
“The National Bank will continue currency liberalization in the future. In particular, after the implementation of the split law, the National Bank will allow selling currency online not only to banks, but also to non-banking financial institutions that will come under the supervision of the NBU from mid-2020,” the regulator said.
As reported, on February 7, 2019 the law on currency and currency transactions entered into force. It foresees the introduction of more than 20 exemptions in the foreign exchange market. In particular, online purchase of foreign currency by individuals is allowed, while transferring funds in foreign currency between individuals (except relatives) will still be prohibited.
At the same time, from November 5, 2019 the central bank canceled the daily limit on the purchase of foreign currency and banking metals, which amounted to UAH 150,000.

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DYNAMICS OF CHANGES IN POPULATION OF UKRAINE FROM 1991 TO 2019

Dynamics of changes in population of Ukraine from 1991 to 2019

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UKRAINIAN PRODUCER OF CROP PROTECTION AGENTS BOOSTS PRODUCTION BY 25% IN 2019

Ukravit, a large Ukraine producer of crop protection agents and micronutrient fertilizers boosted production in 2019 by 25%, to 11,000 tonnes. The company told Interfax-Ukraine last week that its share of the Ukrainian crop protection agents and micronutrient fertilizers market in 2019 was around 10%. The company said that this year, Ukravit launched the seventh production facility in Cherkasy with an area of 1,300 square meters, which allowed to increase production by 1,100 tonnes compared to 2018, to 11,000 tonnes. Investment in the project exceeded $3 million.
According to the report, in 2019, the company also began to switch to direct sales and currently has 12 regional sales offices throughout Ukraine.
In addition, Ukravit expands the workshop for the production of plastic containers and storage facilities, renews its fleet.
The company this year began the construction of a plant manufacturing crop protection agents and micronutrient fertilizers in Uzbekistan, but has not yet disclosed project details.
Ukravit was founded in 1999. It is engaged in production and sale of pesticides, fertilizers, means for destruction of rodents and household insects.

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3,000 UKRAINIAN HOUSEHOLDS INSTALL PV PANELS IN Q3 2019

Around 3,000 households in the period from July through September 2019 installed photovoltaic (PV) panels with a total capacity of almost 70 MW, the press service of the State Agency for Energy Efficiency and Energy Saving said on the website on Tuesday.
“The switch to clean electricity allows saving money on electricity bills, encourages the use of energy-efficient appliances, changes behavior to energy-saving,” the agency said.
According to the report, as of October 1, 2019, about 15,000 households in Ukraine are already using clean electricity by investing EUR 300 million in PV panels. The total capacity of the installed PV panels is almost 350 MW.
The leaders among the regions in the use of alternative generation are: Dnipropetrovsk region (around 50 MW), Ternopil (near 37 MW) and Kyiv (some 27 MW).

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