Business news from Ukraine

GERMAN-UKRAINIAN FUND STARTS PROJECTS FOR SMALL AND MEDIUM-SIZED ENTERPRISES IN UKRAINE

The German-Ukrainian Fund (GUF) jointly with financial partners – OTP Leasing, Oschadbank and Ukrgasbank – has started implementing the FinancEast program to finance investment projects of small and medium-sized enterprises (SME) in government-controlled areas of Donetsk and Luhansk regions.
An Interfax-Ukraine correspondent has reported that GUF signed agreements with OTP Leasing, Oschadbank and Ukrgasbank under the program in Kyiv on Thursday.
To implement the FinancEast program, the European Union provided Ukraine with a grant of EUR 9.5 million through the German development bank KfW. Grant resources will be provided to SME in the form of compensation up to 50% of the cost of investment projects financed by OTP Leasing, Oschadbank and Ukrgasbank. Investment projects include the purchase of agricultural machinery, equipment, vehicles, installation, construction and reconstruction of premises on a lease or loan.
“I am very glad that this program was decided to be implemented on the basis of GUF. We are impressed that this program is aimed at investments, at hryvnia lending to the regions that need financing most. And with the help of GUF we provide what our creditors require – transparency, reporting and effectiveness of these programs,” GUF Executive Director Oleh Strynzha said at a briefing.
First Deputy Governor of the National Bank of Ukraine (NBU) Kateryna Rozhkova said that the NBU is taking a number of measures aimed at enhancing lending, including lending to SME, which can become a driving force for the country’s economic development. “In December, we eased the requirements for banks when lending to private entrepreneurs and new enterprises. And we hope that this will greatly facilitate not only the work of banks, but also the entrepreneurs themselves… The second point: we continue working on the development of such instruments as guarantees and compensation tools for SME together with our donors and the government,” she said.

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ENERGY EFFICIENCY FUND PLANS TO FINANCE OVER 16,000 ENERGY-EFFICIENT MODERNIZATION PROJECTS WITHIN 5 YEARS

The Energy Efficiency Fund plans within five years to finance over 16,000 projects under the Energodom program to support energy-efficient modernization for homeowner associations, Director of the fund Yulia Holovatiuk-Ungureanu has said.
“Our Energodom program began its work on September 3. We are starting the phase of project implementation. We plan that by 2023 almost 9,000 projects will be implemented, and by 2025 more than 16,000 projects,” the director of the fund said during the presentation of the Energodom program on Wednesday.
According to her, by the end of 2025, gas savings due to energy-efficient modernization will amount to 1.5 billion cubic meters.
The Minister of Development of Communities and Territories of Ukraine Olena Babak said that energy-efficient modernization will reduce the level of thermal energy consumption for the “light” package by 20%, for the “complex” package – by 60%.
In addition, 720 energy auditors have passed certification to date, and over the next two years their number should grow to 5,000, Hennadiy Zubko, Deputy Prime Minister and Minister of Regional Development, Construction, Housing and Utilities Economy in 2014-2019, said.

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BELARUS AND UKRAINE MAY INCREASE COMMODITY TURNOVER TO $5 BLN

Belarus and Ukraine may increase mutual commodity turnover to $5 billion in 2018, Belarusian Deputy Prime Minister Igor Lyashenko said. “Positive dynamics of trade and economic relations between our countries was observed in the past few years. We have managed to stop the fall that was in 2013 and resume growth,” Lyashenko said at a plenary session of the first forum of Belarusian and Ukrainian regions in Gomel on Friday.
The amount of bilateral trade reached $4.6 billion in 2017 and went up 20% against 2016, he said.
“We project commodity turnover at $5 billion this year [an 8.7% increase from 2017],” Lyashenko said.
Belarusian President Alexander Lukashenko and Ukrainian President Petro Poroshenko have decided to bring mutual commodity turnover to at least $8 billion in 2019.
Not only the governments of the two countries, but also the regions need to contribute to achieving this goal, Lyashenko said.

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UKRAINIAN SEA PORT AUTHORITY WANTS TO START DREDGING PROJECTS IN 2019

The Ukrainian Sea Port Authority plans to double dredging works at Ukrainian ports in 2019, bringing the volume of projects to 16.335 million cubic meters, the press service of the authority reported after Dredging day 2018 held in Odesa. “This figure reflects the amount of work that the Sea Port Authority plans to start in 2019 compared to the amount of work that was planned to start in 2018,” the press service of the authority told Interfax-Ukraine.
At the same time, the authority said that the consolidated data on the implementation of the dredging plan for the current year are now being collected, work on individual facilities is proceeding as part of the plan, and for some of them even ahead of schedule.
The plans for 2019 include the continuation of dredging at the ports of Chornomorsk and Yuzhny (both Odesa region), including work to dredge the first boot basin of the Sukhy estuary of the Chornomorsk port in the amount of 1.1 million cubic meters with a planned period of four months, as well as in Yuzhny port (second and fourth launch complexes) in the amount of 6.339 million cubic meters with a planned implementation period of 21 months.
To maintain the passport depths, it is planned to carry out work in the amount of 8.88 million cubic meters in the ports: Kherson, Reni, Izmail, Odesa, Berdiansk, Mariupol, as well as on the Buzko-Dniprovsky-Lymansky canal; Kyiv, Kamianske, Kaniv, Kremenchuk, Dniprodzerzhynsk, Dniprovske and Kakhovka water reservoirs.

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UKRAINE ATTRACTS $103.8 MLN OF TECHNICAL ASSISTANCE FOR HEALTHCARE PROJECTS IN H1 2018

The volume of technical assistance raised by Ukraine for the healthcare projects in January-June 2018 totaled $103.8 million, Ukraine’s Economic Development and Trade Ministry has reported. The entire sum was sent to implement 23 donor projects in the healthcare sphere and this is 3% of the total volume of technical assistance attracted by Ukraine over the period (not taking into account the Chornobyl Shelter Fund).
As reported, Ukraine in January-June 2018 raised $0.4 billion more international technical assistance compared with January-June 2017: $3.5 billion for 467 projects, not taking into account the Chornobyl Shelter Fund.

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JAPAN READY TO ISSUE LOANS TO UKRAINE FOR PROJECTS OF ELECTRICITY GENERATION FROM WASTE

Japan is ready in the future to provide Ukraine with loans for the implementation of projects for generating electricity from waste, Japanese Ambassador to Ukraine Shigeki Sumi has said.
“Japan is very interested in having a system through which energy will be generated from waste,” Sumi said at the conference “New Waste Management Policy is a Way to a Circular Economy” dedicated to the implementation of the National Waste Treatment Strategy until 2030 in Kyiv.
He noted that last year Japan International Cooperation Agency (JICA) developed a program for Ukraine and at the moment Japanese experts have visited three cities (including Kharkiv and Kyiv), where they conduct research for the possible further financing of relevant projects.
“In the future, the Japanese government will be ready to issue loans to the government of Ukraine to implement such a system for generating electricity from waste,” Sumi stressed.
As reported, in May JICA proposed Kyiv City State Administration to assess the potential of landfill No. 5 in the village of Pidhirtsi (Kyiv region) for energy production.

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