Business news from Ukraine

UKRAINIAN PRESIDENT DISCUSSES PROSPECTS OF BOOSTING INVESTMENT BY UBER WITH UBER CEO

Ukrainian President Volodymyr Zelensky met Uber Technologies Inc. CEO Dara Khosrowshahi on the sidelines of the 74th session of the UN General Assembly in New York and discussed the prospects of increasing capital investment of the company in Ukraine with him.
“During the meeting, the parties discussed a number of issues regarding Uber’s activities in Ukraine, as well as the prospects of increasing the company’s investments in our country,” the press service of the head of state reported.
Zelensky informed Khosrowshahi of the implementation of the reform policy aimed at improving the business climate in Ukraine and creating favorable conditions for attracting foreign investments.
In addition, the use of environment friendly vehicles in Ukraine by Uber was discussed during the meeting.

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INVESTMENT OF EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT IN UKRAINE EXCEEDS $1 BLN

Investment of the European Bank for Reconstruction and Development (EBRD) this year exceeded $1 billion, EBRD Vice President Alain Pilloux has said. This week, by coincidence, the bank’s investments in the country in 2019 exceeded $1 billion. And by the end of the year, the EBRD is going to invest even more, he said at a meeting with reporters on Thursday.
This amount may not be enough, but this is clearly not a small amount of investment in the country, Pilloux said.
He also added that he had visited Ukraine six times over the past year. Pilloux said that the EBRD knows Ukraine “in detail:” the EBRD is working not only in Kyiv, but in all regions. The bank is working with cities, Ukrainian companies, he said. Pilloux said that they are not the kind of people who arrive from London or other places and look at Ukraine from windows of five-star hotels.

CYPRUS AGAIN LEADER IN FOREIGN DIRECT INVESTMENT TO UKRAINE, FOLLOWED BY THE NETHERLANDS AND RUSSIA

Foreign direct investment (FDI) in Ukraine as equity capital as of July 1, 2019, was $33.724 billion, which was 2.6%, or $0.84 billion more than in the beginning of the year, the State Statistics Service of Ukraine said. According to the data, the inflow of FDI for the sixth months of 2019 totalled $1.256 billion, $728.9 million was written off, other changes of the cost of the corporate capital of nonresidents totaled $309 million with exchange rate differences of $520.8 million.
According to previously published data, first quarterly inflow of FDI in Ukraine grew by $45.5 million.
Cyprus was the leader in FDI surplus in the first half of 2019 with $388.8 million, followed by the Netherlands ($295.1 million), Russia – 145.5 million, and Switzerland ($100.3 million).
Meanwhile, FDI from Hungary decreased $250.6 million.
Nonresidents invested $318.5 million in financial and insurance activities, $184.9 million and $176.4 million in extractive and processing industries respectively, $113.8 million in wholesale and retail trade, $122.6 million in transactions with property, $128.4 million in science and technical activities.
Although there was a $270.4 million drop in FDI in the field of administrative and supportive service for the mentioned period.

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VASYL KHMELNYTSKY’S UFUTURE PLANS TO INCREASE INVESTMENT BY 20% IN 2019

The UFuture investment group of Ukrainian businessman Vasyl Khmelnytsky plans to increase investment in various businesses by 20% in 2019, to $60 million.
“Last year, the UFuture group invested almost $50 million in various businesses. In 2019, we plan to invest another $60 million. If we talk about investments only in impact projects, I estimate the total amount, taking into account capital investments, to be more than $50 million,” Khmelnytsky said in an interview with the Top 100. Rating of the Largest magazine.
He said on his Facebook page that in September this year, UFuture will open a new campus on the territory of the UNIT.City innovation park (Kyiv).
“At UNIT.City, everything is in line with the schedule. In September, a new campus and an art facility [will appear],” he wrote.
As reported, in January 2019, UFuture in partnership with KAN Development on Wednesday took part in the ribbon-cutting ceremony of the third campus – a new six-story B12 business center with a gross area of 16,900 square meters – in the UNIT.City innovation park (Kyiv).
In February 2019, Khmelnytsky said in an interview with Interfax-Ukraine that the first phase of LvivTech.City is scheduled for opening at the end of 2019.
He said that the first Lviv campus will combine office and commercial sections (cafes and restaurants). The office space will be 9,500 square meters, commercial – 3,000 square meters.
UFuture unites companies and social projects of Khmelnytsky. The group includes the Bila Tserkva industrial park, the UDP development company, the Sikorsky Kyiv International Airport, outdoor advertising operator RTM-Ukraine, as well as innovative businesses: UDP Renewables (creates and develops photovoltaic power plants under its control), the pharmaceutical company Biopharma, innovative parks UNIT.City and LvivTech.City.

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EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT PLANS TO DOUBLE INVESTMENT IN UKRAINE

The European Bank for Reconstruction and Development (EBRD) plans in 2019 to increase the volume of investment in the Ukrainian economy to $1 billion, head of the Ukrainian office of the EBRD Marina Petrov has stated.
“The $500 million that we invested last year was not bad at all. This year we sincerely hope to increase it twice [investment in Ukraine],” she said at a meeting at the European Business Association (EBA), dedicated to the expectations of businesses from the presidential election.
However, she noted the importance of consistency and predictability of the future economic policy.
“We hope that there will be no reversal,” she said.
“The ongoing changes [political] carry both risks and opportunities. We hope very much for a balanced economic policy that will allow accelerating the growth that has already begun in the Ukrainian economy,” she told Interfax-Ukraine.
The banker stressed the need to continue cooperation with the IMF.
“We hope that, first of all, the work on the IMF program will continue. We already see investors ready to come to the economy [in Ukraine]. The most important thing is not to frighten investors, not to make unexpected economic decisions,” the expert said.

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FOREIGN DIRECT INVESTMENT IN UKRAINE GROWS BY $0.69 BLN IN 2018

Foreign direct investment (FDI) in Ukraine as equity capital as of late 201, was $32.29 billion, which was 2.2%, or $0.69 billion, up on the beginning of the year, the State Statistics Service of Ukraine said. According to the retrospective data, which the authority also announced, the inflow of FDI last year exceeded the figure for 2017, when it amounted $0.38 billion, whereas before this, for three years, FDI fell by a total of $22.47 billion.
In 2018, nonresidents increased investment in Ukraine by $2.87 billion, while disinvesting $0.97 billion, it said. Some $1.22 billion FDI was written off due to the change of the cost and the exchange rate, losses and reclassification.
This is slightly better than in 2017 when residents increased investment in Ukraine by $2.51 billion and disinvested $0.76 billion.
According to previously published data, quarterly inflows of FDI in Ukraine last year were recorded in the first and fourth quarter, $1.15 billion and $0.32 billion respectively, while in the second and third quarters their outflow was recorded – $0.66 billion and $0.12 billion respectively.
The Netherlands was the leader in FDI in 2018 – $951.5 million or more than one third of all investment, followed by Russia and Cyprus – $495.6 million and $477.6 million respectively.
FDI from Austria accounted for $203.7 million, France – $110.9 million, the U.K. – almost $98.7 million, and from Poland – $90.6 million.
Nonresidents invested $1.215 billion in financial and insurance activities, or 42.3% of all FDI, $599.4 million in wholesale and retail trade, $405.3 million in transactions with property, $302.1 million in industry and $119.4 million in IT and telecom.