Business news from Ukraine

BOLT RAISES EUR 20 MLN OF INVESTMENT TO DEVELOP SERVICES IN EASTERN EUROPE (INCLUDING UKRAINE) AND AFRICA

Bolt, a ride-hailing service, has raised EUR 20 million of investment from the International Finance Corporation (IFC), a member of the World Bank Group, to increase access to mobility services in Eastern Europe (including Ukraine) and Africa (Nigeria and South Africa), the press service of the company reported on Thursday.
“Technology can and should unlock new pathways for sustainable development… Our investment in Bolt aims to help tap in to technology to disrupt the transport sector in a way that is good for the environment… and provides safer and more affordable transportation access in emerging markets,” IFC Chief Operating Officer Stephanie von Friedeburg said in a statement.
“We are looking forward to partnering with IFC to further support entrepreneurship… and increase access to affordable mobility services in Africa and Eastern Europe. Together with the investment from the European Investment Bank last year, we are proud to have sizeable and strategically important institutions backing us and recognising the strategic value Bolt is providing to emerging economies,” Bolt CEO Markus Villig said.
In Ukraine, Bolt ride-hailing service was launched in summer 2018.

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ABOLITION PAYMENT OF VAT ON DOMESTIC AIR TRAFFIC WILL HELP UKRAINIAN AIRLINES DEVELOP

Abolishing the payment of value added tax (VAT) for domestic air transportation will create positive conditions for the development of domestic airlines and revitalize regional air traffic, Deputy Head of the President’s Office Kyrylo Tymoshenko has said.
“We have goals to abolish VAT on domestic air transportation. This is an important topic. After all, it will help the development of Ukrainian airlines – not only state ones, but also private ones,” he said during the “Ukraine 30. Infrastructure” forum.
According to the official, this year the creation of a state air carrier can be completed and Ukraine will receive an understandable state national air carrier that will be able to solve not only tourism issues, but also state issues.
At the same time, Tymoshenko recalled that in the spring of 2020, at the beginning of the COVID-19 pandemic, it was necessary to involve private airlines in the evacuation of Ukrainian citizens from other countries.
“All this will be decided by a large national air carrier, which, I hope, will become known to the whole world,” he said.

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UKRAINE INTENDS TO DEVELOP TRADE RELATIONS WITH ISRAEL

Ukraine is heading towards economic issues in foreign policy and intends to develop trust and trade relations with Israel, Ukrainian Ambassador to Israel Yevhen Korniychuk said during the third Ukrainian-Israeli Innovation Summit in Kyiv.
“I support the proposal of our President and Foreign Minister about economization of our foreign policy. In our case, this includes such important aspects as the development of investment attractiveness, innovative technologies and trade relations between Ukraine and Israel. These are all real things, but for this we need to develop trust between our nations. We also need to support the agricultural sector, which needs Israeli technologies, irrigation systems, in everything that is aimed at its support and development,” Korniychuk said.
He said that the non-diplomatic trade and innovation mission of Ukraine in Jerusalem will also address these areas.
“This will also be a priority for the embassy in the next 6-12 months. We have already discussed the issue of premises for this mission, but the main question remains who will be involved in the B2B area in the mission,” the diplomat said.
The ambassador also announced his intention to pay more attention to popularizing the investment attractiveness of Ukraine. “Israel for me is a country with which I practiced law for many years, paying attention to supporting foreign direct investment in Ukraine. And I intend to be a lawyer for all Israeli investors in Ukraine and to promote their investments,” he said.
“My mission in Israel begins next week, and after the quarantine, I will have meetings with representatives of the government and parliament. I am looking forward to it,” Korniychuk said.

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UKRAINE AND EGYPT DISCUSS STEPS TO DEVELOP TRADE

President of Ukraine Volodymyr Zelensky had a phone conversation with President of Egypt Abdel Fattah Al-Sisi, during which they highly appreciated the trade and economic cooperation between the countries, discussed further steps to develop mutually beneficial cooperation, the press service of the President’s Office said.
“The President of Ukraine expressed interest in further strengthening trade and economic cooperation with Egypt, our country’s largest trading partner on the African continent and in the Middle East. Zelensky noted the contribution of Ukrainian companies to ensuring food security in Egypt, and stressed the importance of successful implementation of projects of Ukrainian enterprises in this country,” the message reads.
In addition, the topic of strengthening cooperation in the space industry was separately discussed.
“Given the considerable experience and the available industrial and engineering base, Ukraine is interested in resuming mutually beneficial cooperation with Egypt in such areas as satellite production and management, modernization of ground-based flight control base and equipment for testing spacecraft, training and education of Egyptian specialists. I am convinced that our states have a significant potential for cooperation in the use of outer space for peaceful purposes,” the President of Ukraine said.
The presidents also exchanged invitations on visiting the two countries after the stabilization of the situation with the coronavirus.

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SLOVAKIA’S NAFTA WINS AUCTION TO DEVELOP OIL AND GAS FIELD IN UKRAINE

Nafta RV LLC, a subsidiary of Slovakia’s Nafta, has won an electronic auction to receive a license for developmet of the Vantazhkivske oil, gas field (Poltava region), according to information on the ProZorro.Sale platform. During the auction held last Wednesday, Nafta RV offered UAH 6.846 million for the license compared with Optima Resource private enterprise, which stopped at the starting price of UAH 6.795 million.
After registering the required documents, Nafta RV will receive a subsurface site for geological exploration and further research and development for a period of 20 years.
According to the materials of the auction, prospective gas resources of category C3 at the Vantazhkivske field were estimated at 3.091 billion cubic meters. It is recommended to drill two exploratory wells with a depth of 5,700 meters and 6,300 meters.
Nafta’s main shareholder is EPH holding of Czech businessman Daniel Křetínský.

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UKRAINE PLANS TO DEVELOP NEW ENERGY STRATEGY

Ministry of Energy and Environment Protection of Ukraine will develop a new energy strategy of Ukraine, said minister Oleksiy Orzhel. “The energy strategy will be definitely reviewed because we have a strategy, which isn’t fulfilled,” he said at a briefing in Kyiv on Monday.
In particular, the minister noted among the priorities the increase in gas of own production, as the existing potential is not used enough. According to him, the gas production level in Ukraine corresponds to 1.2% of reserves, while the global trend in the world is 4%-5%.
“There will be legislative initiatives to increase gas production. There will be reforms on the market, we invite everyone to invest,” Orzhel said.
He added that the issue of such investments has been discussed with American partners at the negotiations in Poland that took place on the weekend.
Besides, the minister reminded that Ukraine has recently launched open licensing competitions.

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