Ukraine’s Economic Development and Trade Ministry on November 7 placed the Energy industrial park (Mykolaiv) and the Innovation Forpost industrial park (Dnipro) with areas of 36 ha and 49.5 ha respectively to the register of industrial parks.
According to the information posted on the ministry’s website last week, the initiators of the creation of the parks were the Mykolaiv and Dnipro city councils, respectively.
The stated period of operation of the Energy park is 30 years. According to preliminary calculations of the initiator, 1,800 jobs will be created on its territory. The priority types of economic activity are the production of food and beverages, rubber and plastic products, building materials, glass, chemical products, finished metal products, machinery and equipment, as well as research and development activities in the field of information and telecommunications.
According to the ministry, the Innovation Forpost park was established for 45 years and provides for the production of electrical machines, electrical equipment, metallurgical production, production of non-metallic mineral products, as well as the provision of computer services. On the territory of the industrial park, according to the Dnipro City Council, up to 600 new jobs could be created.
The ministry said that 35 parks are already placed to the register of industrial parks, 17 of which selected management companies, and five have already attracted members. According to the ministry, another 14 industrial parks are not registered.
First Deputy Prime Minister, Minister of Economic Development and Trade Stepan Kubiv has proposed to Vice-Premier of the State Council of the People’s Republic of China Liu He to commence joint consultations about the possible creation of a free trade area (FTA). “I have offered Vice-Premier of the State Council of the People’s Republic of China Liu He to start joint Ukrainian-Chinese consultations on the prerequisites for creating a Ukraine-China free trade area,” he wrote on his Facebook page, following a meeting with Liu He during his working visit to Beijing (China) on Thursday.
According to a posting on the website of the Economic Development and Trade Ministry, after a long interruption in the work of the intergovernmental commission on cooperation between Ukraine and China, its activities were resumed, which favored increased trade and cooperation between enterprises of the two countries. “However, this volume of trade does not correspond to the existing potential. In the next five years, we can increase trade turnover to $20 billion a year,” the ministry said, citing Kubiv as saying.
As reported, trade turnover between Ukraine and China in January-August 2018, compared with the same period last year, grew by 21%, to $5.8 billion.
Ukraine and Israel will sign a free trade area (FTA) agreement at the end of November, Ukrainian Prime Minister Volodymyr Groysman has said after a meeting with new ambassador of Israel to Ukraine Joel Lion in Kyiv on Tuesday.
“The document will significantly expand our economic cooperation and will increase trade, which now amounts to $1 billion a year,” the head of government said on his Facebook page.
Groysman also said that this month in Kyiv there will be a Ukrainian-Israeli innovative summit, the participants of which will be representatives of about 50 enterprises working in the field of high technologies.
“We consider cooperation in the sphere of innovations to be one of the most promising,” the Ukrainian prime minister said.
As reported, Ukraine and Israel completed negotiations on signing a FTA agreement in April and intend to sign it by the end of 2018. Early August, the sides finished a legal reconciliation of the text of the FTA agreement. The next step in preparing the agreement for signing is the translation of the agreed text into Ukrainian and Hebrew.
From the moment the document enters into force, Israel intends to abolish 80% of duties on industrial goods, as well as a number of agricultural products – within quotas. Import duties on the agricultural products specified in the agreement will be completely canceled during the transition periods for three, five and seven years. Partial liberalization is envisaged for a separate category of goods.
Ukraine, in turn, intends to open 70% of the industrial goods market for Israeli producers, as well as abolish duties on a number of agricultural products immediately after the entry into operation of the agreement, for some of them within three or five years. In particular, Ukraine plans to reduce tariffs for certain seasonal vegetables and fruits from Israel.
Israel will be the 46th country, with which Ukraine signs the FTA agreement.
The World Bank has lowered its forecast for growth of Ukraine’s gross domestic product (GDP) in 2018 to 3.3% from 3.5%, Lead Economist and Program Leader covering Belarus, Moldova and Ukraine at the World Bank Faruk Khan said.
The International Monetary Fund (IMF) in the October 2018 World Economic Outlook (WEO) lowered its estimate for the growth in Ukraine’s gross domestic product (GDP) in 2019 to 2.7% from 3.3% projected in April.
The Board of Directors of the International Monetary Fund (IMF) is ready to approve a new program to support the economic policy of Ukraine, a Stand-By Arrangement, only after the final review of heating tariffs in accordance with the increase in gas prices.
Ukraine’s Verkhovna Rada has approved a resolution on the conclusions and proposals to a bill on the national budget for 2019 drawn up by the parliamentary budget committee, which means the adoption of the draft national budget at first reading.
The deficit of Ukraine’s foreign trade in goods in January-August 2018 increased by 45.7% compared to January-July 2017, to $5.004 billion (it was $3.434 billion in January-August 2017.
Inflationary pressure remains high, despite the weakening of the food inflation, the National Bank of Ukraine (NBU) has said, commenting on the September inflation figure on its website.
Consumer prices in Ukraine after a decline by 0.7% in July and stability in August grew by 1.9% in September, and since early 2018 their growth was 5.6%, the State Statistics Service has reported.
The surplus of the national budget of Ukraine in January-September 2018 amounted to UAH 7.329 billion.
The National Bank of Ukraine (NBU) has reviewed upwards growth of consumer prices in 2018 to 10.1% from 8.9%, taking into account the fact that large inflation pressure remains and the regulated prices are increased, the central bank has reported on its website.
The World Bank has improved its forecast for Ukraine’s state and guaranteed debt in 2018 to 67.2% from 75.1% of GDP, in 2019 – from 73.5% to 64.8% of GDP, and in 2020 – from 68.4% to 62.4% of GDP, the World Bank said in its latest Ukraine Economic Update.
The aggregate state (direct) and state-guaranteed debt of Ukraine in September 2018 decreased by 0.25%, or by $0.19 billion, to $74.66 billion, according to the website of the Ministry of Finance.
The international reserves of Ukraine in September 2018 decreased by 3.5% and as of October 1 amounted to $16.638 billion, the corresponding preliminary data have been posted on the website of the National Bank of Ukraine (NBU).
The balance of payment in August has a surplus of $27 million, the National Bank of Ukraine (NBU) has reported.
Industrial production in Ukraine in September 2018 decreased by 1.3% compared to September 2017, while in August it fell by 0.5% compared to August 2017, in July the growth was 2.9%, in June this figure was 2.2%, and in May some 2.5%, the State Statistics Service has said.
Retail trade turnover in Ukraine in January-September 2018 increased by 5.5% in comparable prices in comparison with January-September 2017, the State Statistics Service has said.
Ukrainians in September were optimistic about the country’s economic development over the next year – the respective index grew by 10 points compared with the August figure, to 62.6, and consumer confidence improved by 2.3 points.
Ukraine and France plan to create a joint meteocluster for agriculture, the press service of the Regional Development, Construction, Housing and Utilities Economy Ministry has reported. “We are planning to create a joint meteocluster for agriculture and assistance to farmers. This is about bringing new technologies to the processing of meteorological data. This is necessary to obtain more accurate weather data, increase harvest and crop protection, introduce system monitoring of climate change and further modeling,” Deputy Prime Minister, Regional Development, Construction, Housing and Utilities Economy Minister of Ukraine Hennadiy Zubko said.
According to the report, the Ukrainian-French intergovernmental commission on economic cooperation came to the relevant agreements.
According to the press service of the ministry, the representatives of the countries also agreed on attracting French companies to the development of Ukrainian farms, investments in seed production, and on strengthening cooperation in animal husbandry, in particular, in the dairy sector.
In addition, the countries plan to develop cooperation in IT and cybersecurity, and French companies will take part in energy efficiency and renewable energy projects, as well as in public procurement through the ProZorro e-procurement system.