Business news from Ukraine


The Cabinet of Ministers of Ukraine has supported the development of a government targeted program of the Ministry of Culture and Information Policy for the development of folk arts and crafts for 2021-2025.
The decision was made at a government meeting on Wednesday.
“Although the craft was and remains the hallmark of Ukraine, today it is in a state of decline and gradual oblivion. The number of craftsmen and organizations is decreasing. Rare artistic techniques and technologies are in danger of extinction. Therefore, folk arts and crafts will exist,” Minister of Culture and Information Policy Oleksandr Tkachenko wrote on his Telegram channel.
According to him, thanks to this program, the authorities are trying to: preserve and transfer the knowledge of the masters; reboot the perception of products and services domestically through marketing and communications; increase the capitalization of brands of folk crafts and their export potential; and set up competent distribution and logistics of goods.
“Folk arts and crafts are one of the most important authentic branches of our culture and, at the same time, a promising sector of creative industries. Behind it is the creation of added value and new jobs,” the minister said.

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The Affordable Loans 5-7-9% program will show results in the coming month as small and medium-sized businesses need such loans following the recent lockdown restrictions, Prime Minister of Ukraine Dents Shmyhal has said. “I am sure this program [Affordable Loans 5-7-9%] will show results literally in the coming month and this more than UAH 30 billion is exactly the borrowing base which could be refinanced this year,” he told reporters.
The prime minister also said that the government is ready to continue implementation of this program next year as well.

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Ukraine has launched the Accelerating Private Investment in Agriculture program according to the agreement signed last year, according to the website of the Ministry of Finance. “On May 20 this year, after Ukraine had conducted domestic procedures, the loan agreement entered into force,” the ministry said.
The loan amount is $200 million, the Finance Ministry noted.
The program should facilitate the creation of the State Agrarian Register and make it publicly available, conduct an inventory of state property lands and include these statements in the state land cadaster, develop a methodology for drawing up land use plans, conduct satellite mapping of the territory of Ukraine, and create an automated notification system for changes in the state land cadaster.
The agreement with the International Bank for Reconstruction and Development (IBRD) was concluded on August 27, 2019.
The IBRD is the main lending institution of the World Bank.

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Deputy Foreign Minister of Ukraine Vasyl Bodnar has held online talks with his Turkmen counterpart Berdyniyaz Miatiyev during which they agreed to sign a cooperation program between the foreign ministries of Ukraine and Turkmenistan for 2020-2021 in the near future, the Foreign Ministry of Ukraine said. “The diplomats noted the importance of active development of political, economic and humanitarian cooperation. With this aim they agreed to sign a cooperation program between the foreign ministries of Ukraine and Turkmenistan for 2020-2021 in the near future,” the ministry said on Wednesday.
The deputy ministers also decided to hold important bilateral events, in particular a meeting between the foreign ministers of the countries and another meeting of the joint intergovernmental commission for economic, cultural and humanitarian cooperation, after the quarantine.
The Ukrainian diplomat also said that the countries should unite their efforts in order to minimize a negative impact of the coronavirus (COVID-19) pandemic on the economies of both countries and protect the rights and interests of their citizens.
“This will help us to ensure active inter-regional cooperation and successful activities of Ukrainian companies in Turkmenistan, as well as restore mutually beneficial energy cooperation,” the ministry said.
The diplomats also discussed promising areas of cooperation between their countries within international organizations, including the UN.
The sides also agreed on building of active cultural and humanitarian cooperation, learning opportunities for intensification of cooperation in the spheres of science, education and technology, training diplomats and holding online lectures during the quarantine, the ministry said.

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Ukrainian President Volodymyr Zelensky has announced a launch of the new state program dubbed “Come Back and Stay.”
“Dear Ukrainians, I said during my swearing-in ceremony that there are 65 million of us Ukrainians across the globe, and our country badly needs you, your knowledge, your talents and mental values. We very much want you to come home. We also want to see those who have unfortunately given up in despair and are planning to leave Ukraine stay here,” Zelensky said in a video address on his Facebook page on Tuesday.
Affordable loans for those who wish to start or expand their own business will be the first step under this program, the Ukrainian president said.
“The loan amount will be UAH 1.5 million for five years. There will be the following interest rates: 5% for an existing or new business that will create at least two jobs, 7% for a new or existing business with revenues below UAH 25 million that creates no jobs, but if you hire a new employee, the rate will be cut by 0.5% with every new worker hired; and 9% for anyone presently working with revenues from UAH 25 to UAH 50 million, who wishes to expand their business,” Zelensky said.
Detailed information about conditions and mechanisms to facilitate the program and about its further stages will be available soon, he said.
“We have a lot more interesting ideas. If you’ve been dreaming of opening your own coffee shop, or car service, or barber shop, or wishing to expand your convenience store, cheese dairy or furniture factory, basically, any kind of business, please do come back and stay […] Let’s build a successful and flourishing Ukraine. And let’s do it together!” Zelensky said.
Zelensky, who took office of Ukrainian president on May 20 this year, promised Ukrainian citizenship to all ethnic Ukrainians across the globe willing to work for the benefit of the nation.

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In November, the German-Ukrainian Fund (GUF) will present a new FinancEast program to support micro–, small and medium-sized enterprises (MSMEs) in the government-controlled territories of Donetsk and Luhansk regions, under which it is planned to reimburse up to 50% of the cost of investment projects of enterprises, GUF Executive Director Valeriy Mayboroda has said.
“This program is also co-financed by the EU and its amount is EUR9.5 million,” Country Manager to Ukraine of the KfW Development Bank Kurt Strasser said at a GUF press event in Kyiv on Wednesday.
According to him, these will be subsidies to help medium- and small-sized enterprises that lack access to money over the difficult economic situation, as well as those who are located in the Donbas region.
The FinancEast program is co-financed by the EU through KfW, the GUF Executive Director said.
“The stage of the finalization of contracts and operational guidelines is nearing completion, and from November we will begin the active phase of its implementation,” Mayboroda said.
FinancEast materials indicate that investment projects for MSMEs are medium- and long-term ones for more than 12 months that are related to the purchase, modernization or reconstruction of fixed assets. Under an investment project, financing of current assets up to 20% of its value is allowed.
In 2019, the assets of a current program for lending SMEs in the national currency, which is designed until 2030, grew to EUR14.7 million, or 47%, since the launch of the project in 2017. This program is implemented by the GUF and financed by KfW and the EU.
Since the beginning of the project, 217 enterprises have been funded for a total of about UAH 710 million with an initial budget of the program being UAH 370 million. The average rate is 15.5% per annum. According to Mayboroda, the financial resource of the program was used twice due to the reuse of returned loans.
Partners under the GUF’s program are Kredobank, Ukrgasbank, ProCredit Bank and Bank Lviv. The GUF’s Executive Director said that negotiations with CreditWest Bank were also ongoing on its joining the program.

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