Business news from Ukraine


The European Bank for Reconstruction and Development (EBRD) intends to invest $1 billion in 2022 and is ready to finance NJSC Naftogaz Ukrainy, said Bank President Odile Renault-Basso.

“We intend to continue investing $1 billion this year and we are focused on supporting key infrastructure such as the power grid (Ukrenergo), we are reserving a Naftogaz credit line to support their working capital and liquidity,” she said during the discussions at the Ukrainian House in Davos as part of the World Economic Forum on Wednesday.

The EBRD intends to offer an investment plan to support these companies and the private sector in general, provide credit lines for agribusiness and pharmaceuticals and not only, she added.

“We also plan to work with municipalities to help internally displaced people,” said Renaud-Basso.



President of the European Council Charles Michel has said that “massive investments” will be sent to rebuild Ukraine after the war, which was waged against it by Russia.

“We will continue to assist Ukraine with political, financial, humanitarian and material support. We’ve agreed to develop a Ukraine development trust fund. In the short term, it will help support Ukraine, and in the long term, it will provide massive investments to rebuild economy and infrastructure,” he said, speaking at the European Parliament on Wednesday.

The President of the European Council also assured that the EU’s support for Ukraine is “rock solid.” “We are more united than ever. United in sanctions on Russia, united in putting pressure on the Kremlin, united in supporting Ukraine as much as we can. We know we are… with the US, Canada, Japan, Australia, the Republic of Korea, the UK and many countries of the world, we are ready… [to bear the burden of] the sanctions. And, most importantly, our unity, our EU unity, our Atlantic unity, our determination. These are our main assets to end the war, to stop these atrocities and to help rebuild Ukraine,” Michel said.


British American Tobacco (BAT), one of the world’s largest manufacturers of tobacco products in the world, has suspended its work and business operations in Ukraine due to the military invasion of the Russian Federation, while in the Russian Federation the corporation will suspend all planned capital investments and “rationalize its marketing activities”.
The corresponding statement was posted on the corporation’s website on Wednesday.
“In Ukraine, we have suspended all business and manufacturing operations and are providing all the support and assistance we can to our colleagues, including relocation and temporary accommodation. Our businesses bordering Ukraine are providing assistance to the humanitarian relief effort. In Russia, we have a full establishment of our people right across the country, including substantial local manufacturing. Our business in Russia continues to operate. As a key principle we have a duty of care to all our employees at this extremely complicated and uncertain time for them and their families,” it said in the report.
“We are deeply concerned about the conflict in Ukraine. The safety and wellbeing of our people there and across the region is our first priority. We have full local establishments of 1,000 people in Ukraine and 2,500 in Russia. Our thoughts are with them all at this incredibly difficult time,” the report says.
“We have suspended all planned capital investment into Russia and will focus on our portfolio of locally produced tobacco products – including our heated tobacco products. Furthermore, we are scaling our business activities appropriate to the current situation, including rationalizing our marketing activities. This fast-moving and complex situation demands us to constantly assess a wide range of factors and considerations. We are complying, and will continue to comply with, all international sanctions related to this conflict in full,” the company said.

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The volume of investments in real estate in Kyiv amounted to the equivalent of $33 million in January 2022, which is 35% less than in December 2021, but 25% higher than in January 2021, First Realty Group told Interfax-Ukraine.
“The level of capitalization was affected by the long New Year holidays. At the same time, we are seeing a trend of changing the portrait of the buyer – today the greatest demand is for objects in the medium and high price segments,” Olena Biberova, the CEO of Blagovist, said.
According to Blagovist, in January 2022, the segment up to $50,000 took a share of 9% of the total number of transactions. In this category, mainly one- and two-room apartments were purchased, most of all in Dniprovsky and Desniansky districts of the capital. Transactions with apartments accounted for the bulk of the share.
In the segment from $50,000 to $100,000, some 37% of operations in January were completed, mostly apartments in residential areas of Kyiv.
The price category from $100,000 to $250,000d became the most massive in January, it gave 41% of transactions. Here two- and three-room apartments in Solomiansky, Darnytsky, Pechersky districts of Kyiv prevail.
The price category from $250,000 in January was represented by 13% of the total volume of transactions.
Blagovist real estate agency, founded in 1993, is part of First Realty Group corporation. Currently, there are eight offices of the agency in Kyiv, with which about 500 professional real estate consultants cooperate.

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The owner of the UFuture group, businessman Vasyl Khmelnitsky, has said that he and his family have no plans to leave Ukraine and go abroad, and expressed confidence that there will be no full-scale war and its threats are not justified.
“Me and my whole family (mother, wife, children and grandchildren) stay in Ukraine. We continue to live our usual lives and do not plan to go abroad. My whole team also remains in the country. We continue to work, create value and invest in Ukraine,” Khmelnytsky wrote on his Facebook page on Tuesday.
He said that he speaks exclusively as an entrepreneur, and his position is based on an understanding of many internal and external processes.
“But these are political processes, and I don’t want to discuss them publicly,” he said.
Khmelnytsky expressed the opinion that today, the most real threat that paralyzes all processes is panic.
“What can we do now to at least slightly stabilize the situation: 1. Continue to work effectively and live a familiar full life. 2. Maintain critical thinking, common sense and a cool head,” the businessman said.
“Whatever storms occur in the country and the world, I will leave my ship last,” he added.
A day earlier, a similar public post was posted by Andriy Stavnitser, co-owner of the TIS terminal group and the towing company P&O Maritime Ukraine, calling for “constructive calm activity.”
“We can’t let this crisis go to waste, it should make us stronger… I don’t believe in a full-fledged invasion, but I better be ready,” the businessman wrote.
UFuture is a holding company that brings together Khmelnytsky’s business and social projects. It has a diversified portfolio of assets in real estate, infrastructure, industry, renewable energy, pharmaceuticals and IT. The value of UFuture’s assets is estimated at $500 million. The total capitalization of the businesses in which it has invested is up to $1 billion.

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The Ukrainian real estate investment fund Focus Estate Fund has acquired the Turawa Park shopping center in Opole (Poland) from the international investment management group abrdn for an undisclosed amount, the fund’s general partner Maksym Shkolnik has said.
“This is our fourth asset in Poland, and we plan to continue scaling our portfolio in the Polish market, where we have been present for more than five years,” he said.
BNP Real Estate, which operates the shopping center, brokered the deal. B2R Law, CSWP, Dentons, CMS and Gleeds advised on this transaction.
Turawa Park is a multi-format shopping center with a total area of over 35,000 square meters, which has more than 60 stores. It includes a gallery with an area of 18,000 square meters, a retail park of 8,000 square meters, and the area of DIY stores – 9,000 square meters. The parking area is designed for 1,320 cars.
Turawa Park’s anchor tenants are such well-known brands as Carrefour, Reserved, Sinsay, Media Expert, Action, Smyk. Other tenants are Rossmann, Big Star, C&A, Pepco, Levis, Sephora, Deichmann.
According to the press service of the fund, at the time of the acquisition, the total vacancy rate was 29%.
“We see good prospects in the value-added retail segment in which we operate. Custom retail parks and neighborhood malls have proven to be some of the most resilient classes during the pandemic. As for the deal itself, it was rather complicated, and I would like to thank the abrdn team for their professional and balanced approach,” Shkolnik said.
The fund’s portfolio includes three more shopping centers in Poland in the cities of Sandomierz, Zgorzelec and Bartoszyce.
At the end of 2021, Focus Estate Fund sold two of its retail properties in the Czech Republic to the DRFG investment group: Centro Ostrava Retail Park and Most Retail Park.
Focus Estate Fund is a real estate investment fund focusing on non-premium medium-sized retail properties in Central and Eastern Europe.

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