Business news from Ukraine

EUROPEAN INVESTMENT BANK TO ISSUE EUR 55 MLN TO UKRAINE, GEORGIA, MOLDOVA

The European Investment Bank (EIB) will provide Ukraine, Georgia and Moldova with EUR 55 million through ProCredit Bank in the respective countries to support small and medium-sized enterprises (SME) within mitigating the effects of the economic shock, the EIB’s website reports.
“As part of the overall response to COVID-19, the operation will support the financial intermediaries with temporary emergency measures to facilitate the provision of liquidity to SMEs and midcaps and thereby contribute to mitigating the impact of the economic shock,” the report says.
ProCredit Bank in Ukraine was founded in 2001. At the beginning of 2020, its sole shareholder was ProCredit Holding (100% of the shares).
According to the National Bank of Ukraine, as of May 1, 2020 ProCredit Bank ranked 14th among 75 banks operating in the country in terms of total assets (UAH 25.646 billion).

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UKRAINE, GEORGIA, MOLDOVA ADDRESS EU FOR FINANCIAL SUPPORT

The foreign ministers of Ukraine, Georgia and Moldova have addressed the European Union together regarding the importance of support for the Eastern Partnership, according to the press service of the Foreign Ministry of Ukraine.
“On the margins of the Munich Security Conference the Ministers of Foreign Affairs of Ukraine, Georgia and Moldova have signed a joint letter to the Members of the European Commission regarding importance of relevant financial support for the Eastern Partnership in the next EU Multiannual Financial Framework for 2021-2027 that is currently being shaped by the EU institutions,” reads the statement.
The ministers called on the EU to take into account within its strategic budgetary planning for the next seven years the scale and ambitions of the reforms, which are being implemented and planned by Ukraine, Georgia and Moldova in the process of their European integration.
“The joint address of the Ministers is another sign of unity of Ukraine, Georgia and Moldova in their approaches to future development of the Eastern Partnership, based on the differentiation principle, as well as to the idea of enhanced dialogue in the EU+3 Associated Partners format,” reads the statement.

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HORIZON CAPITAL INVESTMENT COMPANY TO INCREASE ASSETS IN UKRAINE AND MOLDOVA TO OVER $1 BLN

Horizon Capital investment company to increase assets in Ukraine and Moldova to over $1 bln
DAVOS. Jan 24 (Interfax-Ukraine) – Horizon Capital, an investment company currently managing assets in Ukraine and Moldova in the amount of about $850 million, intends to exceed the asset level under management of $1 billion in the near future, Lenna Koszarny, the CEO of the company, has said. “Our main plans are as follows: we will manage more than $1 billion in the near future. These are our direct investments, co-investor funds and debt financing,” she told Interfax-Ukraine on the sidelines of the Ukrainian House, organized by the Pinchuk Foundation, WNISEF and Horizon Capital in Davos.
She said that Emerging Europe Growth Fund III (EEGF III) fund, worth $200 million, the formation of which was completed a year ago, has already made nine investments in Ukraine.
“And we are closing two more deals: the tenth and 11th investments are companies that are developing rapidly,” she said, without specifying the details before the completion of transactions.
She emphasized that the company intends to remain the leader in its sector.
Horizon Capital was founded in 2006 by four partners who began their cooperation with Western NIS Enterprise Fund (WNISEF), an investment fund created for the funds of the U.S. government in 1994 with a capital of $150 million for Ukraine and Moldova. Currently, the major shareholder and CEO of Horizon Capital is Koszarny. The company has offices in Kyiv and Chicago.

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MAJOR BUYERS OF UKRAINIAN ELECTRICITY ARE HUNGARY, POLAND. SLOVAKIA, ROMANIA, MOLDOVA

Ukraine boosted its electricity exports by 4.9% in 2019, to 6.469 billion kWh, the Ministry of Energy and Environment Protection has told. Electricity supplies from the Burshtyn TPP energy island to Hungary, Slovakia, and Romania rose by 17.1%, to 4.448 billion kWh.
Exports to Poland fell 2.4%, to 1.377 billion kWh.
Exports to Moldova fell 32.6%, to 644 million kWh.
In July, Ukraine resumed commercial imports of electricity. The year’s total was 2.699 billion kWh, including 909.8 million kWh from Slovakia, 851.3 million kWh from Belarus, 630.1 million kWh from Hungary, 286.3 million kWh from Russia, and 21.1 million kWh from Romania.
Due to crossflows related to the parallel work of the united energy system in Ukraine and systems in bordering countries (accounted for under contracts signed by Energomarket), Ukraine imported 41.6 million kWh of energy from Russia and 1 million kWh from Belarus in 2019.

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MOLDOVA DENIES INFORMATION ABOUT OPENING CRIMINAL PROCEEDINGS AGAINST UKRAINIAN COMPANY FARMAK

The National Anticorruption Center of the Republic of Moldova has denied information spread by a number of mass media about the opening of criminal proceedings against Farmak pharmaceutical company (Kyiv) in connection with its participation in tenders for the purchase of insulin. The press service of the company said, with reference to official information from the Moldovan agency, no criminal proceedings were opened against Farmak in connection with its participation in public tenders in Moldova on November 30, 2018 for the purchase of insulin analogues in the framework of the National Program for Diabetes Prevention and Treatment for 2019.
Farmak called on all media that disseminated false information about its participation in criminal proceedings in the Republic of Moldova with a request to refute this information as false and harmful to the business reputation of the company, the statement said. In addition, the company asked mass media representatives to always contact it for official comments to verify any information about Farmak.
PJSC Farmak is one of the three leaders in the pharmaceutical industry of Ukraine. It is a member of the Manufacturers of Medications of Ukraine Association. The beneficiary of the company is head of the supervisory board Filia Zhebrovska.

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DELIVERING COMPANY NOVA POSHTA DOUBLES VOLUME OF DELIVERIES IN MOLDOVA AND TRIPLES IN GEORGIA

Nova Poshta Moldova through January-June 2019 doubled a number of deliveries compared to the same period in 2018, Nova Poshta Georgia saw 32% rise in the similar indicator, Nova Poshta Group of Companies reported on its website.
According to the group, its offices in Moldova and Georgia managed to increase a number of processed deliveries and to shorten the terms of delivery thanks to launch of deliveries in any part of the country, delivery speed-up and attraction of the new large business clients.
“Fast and reliable delivery in Moldova favors development of the local online stores since the customers started to arrange online orders…As in Ukraine, one of the key segments of Nova Poshta in Moldova is e-commerce, a developing market with free niches. Therefore, the task of Nova Poshta Moldova is to create an effective logistics infrastructure mean to facilitate the development of e-commerce,” Nova Poshta International Operations Director Aliona Stepina said.
She said Georgia’s complex landscape and geography are such that not all the logistics companies operating in this country are ready to deliver parcels and cargo to remote mountain settlements. Meanwhile, Nova Poshta Georgia managed to ensure delivery to each client, which became an important competitive advantage and allowed the company to enter the top three market leaders and improve the quality of work with business clients.
The group stressed that the companies in both states continue to expand the list of the services both for domestic deliveries, as well as for international destinations, will introduce digital-tools, which have already proved to be effective in Ukraine.
Nova Poshta Moldova and Nova Poshta Georgia are parts of Nova Poshta Group.
Nova Poshta, founded in 2001, is the leader in the local delivery market. The company’s network consists of more than 3,300 offices throughout Ukraine.

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