Business news from Ukraine

MARKET OF NEW AND USED ELECTRIC VEHICLES IN UKRAINE 34% DOWN IN MAY

The initial registrations of electric vehicles in Ukraine (new and used) in May 2021 decreased by almost 36% compared to May last year, to 622 units, including registrations of cars decreased by almost 36%, to 590 units, and commercial grew by 14%, to 32 units, according to the Ukrautoprom association.
According to a post on its website, the share of new electric cars in total registrations accounted for 11% (67 units).
The total number of registered passenger cars is 66 new and 524 used, and there is only one new commercial vehicle.
Compared to April this year, registrations in May decreased by 11%.
The most popular electric car in May was once again the Nissan Leaf with 186 cars of this model that received Ukrainian registration (in April – 198).
As reported, Nissan Motor Ukraine, the official distributor of Nissan in Ukraine, announced the start of official sales in Ukraine in the summer of the updated Nissan Leaf (before that, only used ones were imported to Ukraine), and in May announced that in the offered rich configuration N-Connecta the price starts from UAH 976,490.
The second result in May 2021 was shown by Tesla Model 3 with 66 registrations, and the third was AUDI E-Tron (33 registrations). The fourth most popular was Tesla Model S with 32 registrations, and Chevrolet Bolt closes the top five of the May electric car market with 29 cars.
The most popular commercial electric vehicle remains the Renault Kangoo Z.E. with 24 registrations.
According to the association, in January-May, a little more than 3,000 electric vehicles passed the first registration in Ukraine, which is 12% more than in the same period in 2020, with 90% of them being used.
In particular, registrations of new cars increased by 36.5% versus January-May 2020, to 299 units, used ones – by almost 10%, to 2,716 units.

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OFFICE REAL ESTATE MARKET IN KIEV TO EXPAND BY 376,000 SQ M

It is planned to open 16 business centers with a total area of 376,000 square meters in Kyiv in 2021-2022, Managing Partner of CBRE Ukraine Radomyr Tsurkan told Interfax-Ukraine during the forum devoted to current trends in real estate on Wednesday.
“The collapse of the offices that scared everyone at the start of the pandemic did not take place. According to a study conducted by CBRE in 2020, 73% of those surveyed want to return to the office and have a hybrid work format,” Tsurkan said.
As a result, active construction of new projects and entry of new office space into the market is seen. In particular, in the first quarter of 2021, the new supply amounted to 22,000 square meters.
“Now the vacancy rate is about 14%, this is a fairly healthy indicator. The rates have dropped slightly – by 10% compared to 2020 and total $25 per square meters a month,” Tsurkan said.
According to CBRE Ukraine, in 2021, 12 business centers with a total area of 207,000 square meters are being prepared for going live.
In 2022, it is possible to replenish the office real estate market with four facilities with a total area of 169,000 square meters.
Among the trends in the office real estate market, the expert named changes in formats. “Now everyone understands: a large business center must have a coworking space. Another innovation that we will see soon is a mandatory area for conversations, meetings with visitors on the ground floor and/or in the office itself. This is a safety requirement, including epidemiological,” Tsurkan said.

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ANTIMONOPOLY COMMITTEE OF UKRAINE STARTS STUDYING ELECTRIC CAR CHARGING MARKET

The Antimonopoly Committee of Ukraine (AMCU) has begun collecting information and studying the electric car charging market, the committee said on its website.
It notes the intensive growth of the electric car market in recent years, while the market for commercial charging stations is also growing. In this regard, the AMCU starts monitoring it in order to control compliance with the legislation on the protection of economic competition.
“The purpose of this control is to determine the state of the competitive environment in the market and its assessment; to identify and determine the problems in the market that hinder the development of competition; to ensure compliance with legislation on the protection of economic competition; to prepare, if necessary, based on the results of such control, proposals for the implementation of measures aimed to develop competition,” the committee notes.
The AMCU called on current and potential market participants to provide information and considerations on possible economic, organizational, administrative and technical barriers that may prevent new companies from competing in the electric vehicle charging market.
As reported, Minister of Infrastructure Vladyslav Krykliy said in November 2020 that Ukraine supports the use of ecological modes of transport in cities, therefore, as part of the National Transport Strategy until 2030, it plans to completely replace all urban public transport with electric one and create the appropriate infrastructure for this.

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ENERGY TALKS: GEORGIA & UKRAINE ENTERING THE MARKET?

FREE REGISTATION
DATE & TIME:
December 10, 09:30 – 11:00 GMT
TOPICS AND QUESTIONS TO BE DISCUSSED:
Green Hydrogen is having a moment around the world. Now new players are entering the market:
The Georgian government has recently asked the EBRD to explore the country’s potential for generating green hydrogen which could then be blended and transported to end-users through existing gas pipelines.
Ukraine has the potential for substantial hydrogen production – it is estimated that approximately 505,133 million m3 of green hydrogen could be produced in Ukraine annually. Various hydrogen-related projects are starting to be unveiled in the country.
AMONG CONFIRMED SPEAKERS:
– Aleksandr Riepkin, President, Ukrainian Hydrogen Council
– Daniel Potash, Chief of Party, USAID Energy Program
– David Managadze, Associate Director, Regional Head – Caucasus, Energy Eurasia, EBRD
– Jorgo Chatzimarkakis, Secretary-General, Hydrogen Europe
You can learn more on the event’s official website: https://www.investinnet.com/energy-talks/ or contact the organisers: info@investinnet.com
Open4Business is an official information partner of the event.

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UKRAINIAN PHARMA MARKET COULD GROW BY 6% IN 2020

By the end of 2020, the pharmaceutical market of Ukraine will grow by 5-6% in national currency, while at the beginning of the year a growth of 14% was expected, Director of AstraZeneca Ukraine LLC Yevhen Gaidukov has said.
“If we had a forecast of about 14% growth in the national currency, now we believe that by the end of the year the market will grow by 5-6% in hryvnia, but growth will depend on the U.S. dollar exchange rate,” he said during the European Business Association (EBA) Global Outlook event held in Kyiv on Tuesday.
Gaidukov said that the key challenge faced by the pharmaceutical market in 2020 was the almost complete absence of patients in clinics since April-May and “absolutely panic demand in March.”
“We, as an industry, were not ready for this. Telemedicine and other means of remote communication between a doctor and a patient were undeveloped. This is the reason for the market decline,” he said.
Under the optimistic scenario, Gaidukov predicts the growth of the pharmaceutical market by 10-11% in 2021.
“For 2021, we believe that the market will grow by 10-11% under the optimistic scenario. With regard to our company, we want to grow and this year, we will grow several times faster than the market,” he said.
At the same time, Gaidukov said that the pace of the Ukrainian pharmaceutical market “will strongly depend on the reform of the healthcare system, which has slowed down this year, taking into account the prioritization of other things, in particular COVID-19.”

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FACTORING REFORM COULD ADDRESS MARKET GAP IN RECEIVABLES FINANCE IN UKRAINE ESTIMATED AT EUR 1.5-3.4 BLN

Factoring reform has the potential to address the market gap in receivables finance in Ukraine, currently estimated at between EUR 1.5 billion and EUR 3.4 billion, and developing the factoring sector will help expand access to finance for businesses and save jobs, Head of the Trade Facilitation Programme of the European Bank for Reconstruction and Development (EBRD) Rudolf Putz said during a webinar held jointly by the EBRD and the National Bank of Ukraine (NBU) on Tuesday.
According to the EBRD, in Ukraine, receivables finance represents only 0.1% of the country’s GDP, compared to 8% of output in neighboring Poland, where the factoring market remains the fastest-growing financial sector, worth EUR 66.1 billion and serving more than 18,000 businesses.
“The demand from smaller businesses, which typically find it difficult to secure bank loans, will grow exponentially as the COVID-19 pandemic shows no signs of slowing down,” Putz said.
The EBRD said that the webinar brought together more than 100 trade professionals, bankers and international experts. The two-day virtual event called for sound policy and a good regulatory framework to enable the healthy development of factoring, to expand access to finance for small and medium-sized enterprises (SMEs) and to strengthen their financial resilience.
The event was delivered by the factoring working group at the National Banking Association of Ukraine in cooperation with FCI, the largest global representative body for factoring and financing of open-account domestic and international trade receivables.
According to the report, drawing on the experience of Greece, Poland, Turkey, the United Kingdom and the United States of America, the working group and the National Bank of Ukraine agreed the next steps in reforming the sector.
These include the separation of factoring from debt collection; business education and marketing of factoring; the promotion of paperless and automated document flows; the protection of creditors’ rights; the rethinking of factoring-related risk assessment; the establishment of a factoring risk insurance framework; and improved legislative regulation.
FCI expressed a strong view that Ukraine needs to develop an effective regulatory policy governing the factoring business and to adopt a factoring law.
The EBRD is the largest international financial investor in Ukraine. To date, the Bank has made a cumulative commitment of almost EUR 15 billion through 466 projects in the country.
The EBRD launched two Solidarity Packages in response to the COVID-19 crisis and now expects to dedicate its total business investment of up to EUR 21 billion in 2020-21 to overcoming the economic impact of the crisis.

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