Business news from Ukraine


Metinvest, an international vertically integrated mining and metallurgical group of companies, is launching a large-scale project for the construction of a new workshop for the production of cold-rolled steel, galvanized and painted coils at Illich Metallurgical Plant (Donetsk region). According to a company press release, the group signed a contract for the supply of equipment with the world’s leading supplier of metallurgical technologies, Italy’s Danieli, on June 10. The total investment in the project will exceed $1 billion.
At the same time, it is specified that it is planned to build a cold rolling shop at Illich steel mill, which will consist of a continuous cold rolling mill combined with a pickling line, as well as three modern lines for applying zinc, aluminum-zinc and polymer coatings. At the first stage, investments in the project will exceed $800 million.
For the construction of the complex, Metinvest will attract a large foreign contractor with experience of participation in similar projects.
It is planned that in 2025, after the completion of the first stage of the project, the mill will produce about 1.2 million tonnes of highly competitive cold-rolled and galvanized steel, as well as color-coated steel per year. At the same time, the capacity for the production of cold-rolled coils will amount to more than 400,000 tonnes, galvanized coils – over 60,000 tonnes and polymer-coated coils – more than 140,000 tonnes.
Yuriy Ryzhenkov, the Director General of Metinvest, noted that the construction of a cold rolling mill is the company’s most ambitious project for the next five years.
“This is a logical continuation of the program of modernization of rolled steel production at Illich steel plant. The entire new technological chain, including a modern continuous casting machine, a reconstructed 1700 mill and a new cold rolling shop, will allow Metinvest to achieve world-class product quality at all stages of production – from semi-finished products to coated rolled products. The production of premium high-tech goods, the use of advanced technologies, environmental friendliness and the creation of new jobs for qualified specialists – all this makes the project significant for Mariupol, for the industry, and for the whole country,” the top manager said.

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Eurohold Bulgaria, one of the leading independent financial and insurance groups in South-Eastern Europe, has raised $31 million from the investment fund Global Emerging Markets Group (GEM, Luxembourg), according to a press release from Euroins Ukraine (Kyiv).
According to him, the parties have already signed a commitment agreement. The investment was provided on the basis of equity financing through the purchase of shares in the Bulgarian holding.
The raised funds will be used by Eurohold to acquire the companies of CEZ Group in Bulgaria – one of the largest exporters of electricity in Eastern Europe, as well as to develop its insurance business. The long-term strategic goal of Eurohold is to become one of the leading independent financial service providers and energy market operators in Southeast Europe.
“We are pleased that GEM has decided to invest in our holding and support our investment strategy. The agreement with GEM is a sign of confidence in the quality of management and the chosen vector of development of our company,” Vasil Stefanov, the head of M&A department at Eurohold, said.
As reported, on January 19, the Bulgarian Energy and Water Regulatory Commission issued a permit to the financial and insurance holding Eurohold Bulgaria to purchase seven Bulgarian subsidiaries of CEZ Group.
GEM investment fund, Luxembourg, was founded in 1991 and manages assets in the amount of $3.4 billion. It specializes in investment instruments for emerging markets. To date, the fund has over 400 transactions in 70 countries around the world. The fund’s offices operate in New York, Los Angeles, Paris, Nassau (the Bahamas).
Eurohold Bulgaria, Sofia, was founded in 1996 and is one of the largest independent financial groups in the region of Central, Eastern and South-Eastern Europe. Eurohold Bulgaria shares are listed on the Warsaw Stock Exchange and the Bulgarian Stock Exchange.
Insurance is the largest segment in the portfolio of activities and the main source of income for Eurohold Bulgaria. Euroins Insurance Group (EIG), a member of the holding, is consolidating its operations in the regional insurance markets. The group operates in 11 countries and has subsidiaries in Bulgaria, Ukraine, Romania, North Macedonia, Georgia, Russia and Belarus. EIG has over 4 million customers and over 3,000 employees.
Eurohold’s business in Ukraine is represented by two insurance companies: Euroins Ukraine and European Travel Insurance.



The European Investment Bank (EIB) invested over EUR 1 billion in Ukraine in 2020 alone. This represents an increase of more than 50% compared to 2019, the press service of the bank has reported.
“We delivered record investment of over EUR 1 billion in Ukraine in 2020, focusing our operations on support for conflict-affected regions of eastern Ukraine, sustainable and green infrastructure, digitalization, innovation and business recovery after COVID-19,” the press service said, citing EIB Vice-President Teresa Czerwińska, who is responsible for operations in Ukraine.
She said that Ukraine is the main recipient country of EIB investments in the Eastern Neighbourhood, accounting for more than 60% of the EIB’s lending activity in the region and supporting the European Union’s policies in its neighbourhood.
According to the report, total EIB investment in Ukraine has now reached EUR 7.5 billion.
The EIB financed small and medium-sized enterprises (SMEs) to ensure they can survive the crisis and continue to provide jobs. It also invested in infrastructure rehabilitation and development, innovation and improvements in public transport and key public services such as education and the postal service.
In 2020, the EIB supported 75 SMEs and mid-caps and helped sustain close to 18,500 jobs in Ukraine.



The European Bank for Reconstruction and Development (EBRD) in 2020 reduced investments in Ukraine to EUR 812 million in 34 projects compared to 2019, when the Bank invested 51 projects for EUR 1.1 billion.
“In terms of annual investment, Ukraine ranked third among the Bank’s countries of operation after Turkey and Egypt,” the EBRD said in a press release.
According to it, new investments included support for projects to improve corporate governance (as a pilot transformation program for Ukravtodor), as well as a project for transforming Ukrposhta, improving transport infrastructure in Ukrainian cities, introducing energy efficient technologies in heavy industry, etc.



Recycling Solutions from the portfolio of the UMG Investments of the SCM Group has announced the opening of the Ukrainian Mineral Fertilizers complex, the main product of which is nitrogen-sulfur and multiple-nutrient fertilizers based on ammonium sulfate, in the city of Kryvy Rih, where over $11 million was invested.
“We planned and built the complex from scratch. The total investment amounted to more than $11 million. The company created 72 jobs,” UMG Investments CEO Andriy Gorokhov said in a press release on Tuesday.
According to the press release, the production capacities of the new manufacturer, operating with compacting technology, make it possible to provide Ukrainian farmers with up to 100,000 tonnes of finished products every year. The complex has new equipment from the Japanese-German holding Hosokawa Alpine.
The CEO of UMG Investments reminded that this is the second project of the processing portfolio this year: in March it was announced that it had entered into an agreement with Ihor Liska’s Effective Investments company to acquire a minority stake in Feednova, a new enterprise for the production of high-protein feed additives for agricultural and domestic animals. Now the company has already begun the process of placing equipment of the first stage at the construction site, and the project is planned to be completed by the end of 2020.
“We are planning further investments in recycling and are now looking for partners and considering appropriate projects for plastic recycling,” Gorokhov said.
Recycling Solutions is a Ukrainian company managing by-products and waste for the coal, metallurgical, thermal power and agricultural industries of Ukraine. Its areas of operation is processing and sale of ash and slag materials, smelter slag, rare and industrial gases, ammonium sulfate, animal by-products; production of heat and electricity from coal mine methane.
CEO of Recycling Solutions Dmytro Anufriev said that for many years crystalline ammonium sulfate – a valuable by-product of the metallurgical industry that can be turned into fertilizers – was exported for processing to countries such as Turkey, Bulgaria or Serbia, and then imported after processing back to Ukraine.
“Recycling Solutions has set up a local production facility in Kryvy Rih for processing crystalline ammonium sulfate into a ready-to-use granular product,” Anufriev said.
In the first half of 2020, Recycling Solutions sold more than 825,000 tonnes and 455,000 cubic meters of waste and by-products of domestic enterprises. The company received UAH 343.1 million of gross income and invested UAH 12.2 million in the creation of new processing enterprises, according to the release.
The company said in the press release that since its foundation, Recycling Solutions has attracted more than $15 million of investment in business development and the introduction of recycling technologies. The company employs over 220 people.
UMG Investments starts and develops businesses with high growth potential.

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The Ukrainian group of companies RDS, as part of repair work on the section of M-14 highway in Kherson region, acquired Kredmash DS-16837 asphalt concrete plant for UAH 25 million and invested about UAH 50 million in a production base located in Nova Kakhovka of Kherson region, co-founder of the company Yuriy Shumakher has told Interfax-Ukraine.
“The total amount of our investments in the purchase of the asphalt concrete plant and in the production base was about UAH 75 million. We are expanding our presence in Kherson region, for this we are investing in a base in Kherson region,” he said.
The expert clarified that the new asphalt concrete plant will start work in a week, which will allow the work to be carried out systematically and meet the stated terms of local construction projects.
The productivity of Kredmash DS-16837 plant is up to 160 tonnes of asphalt concrete per hour. It consists of a high-power asphalt mixing facility, a feeding unit, bunkers for a mineral powder unit, four bitumen tanks of 30 cubic meters each and a ready-mix unit (100 tonnes).
RDS Group is one of the top three road building companies in Ukraine, including Kyivshliakhbud and Rostdorstroy. Its core business is construction, reconstruction and maintenance of highways and bridges, construction of airfield complexes.

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