The Business Week for the week of May 4-10, 2020

The Business Week for the week of May 4-10, 2020


The Government of Ukraine extends the quarantine amid Covid-19 until May 22. However, some of the restrictions will be eased. In particular parks, recreation areas, beauty salons, hairdressers, summer playgrounds, public catering establishments will be opened on May 11. The work of dentists, attorneys, psychologists, auditors as well as non-food retail and shops (including those located in the shopping malls) will be allowed. The operation of the mentioned institutions will be possible only if the following requirements are met: social distancing, wearing a face mask, regular disinfection, compliance with anti-epidemic measures.


UkraineInvest welcomes La French Tech in Kyiv! 

La French Tech is a unique tech ecosystem that brings together startups, investors and innovative companies. Kyiv has become a part of the globally integrated network, which is present in more than 100 cities worldwide.  La French Tech Kyiv is aimed at uniting under a single label French innovators and everyone interested in French innovation ecosystem; promoting French and Ukrainian innovations as a key part of the European technological ecosystem; supporting startups in their international development; facilitating communication between French Tech communities abroad and other communities based in Ukraine. Many of the French companies that have been present in Ukraine for a while, showed their willingness to support La French Tech Kyiv, among them are Auchan, Bla Bla Car, Crédit Agricole Bank, Decathlon, Global Distribution Ukraine, Jeantet, L’Oréal, Mazars, MasSeeds, Orange, Renault and Ubisoft.

Genesis invested $150 000 in the Ukrainian startup Elision

Ukrainian startup Elision, a visual podcast platform for distribution and monetization of podcasts, attracted $150 000 from Genesis Investments. The startup was established in November 2019 and Genesis became the first venture fund to invest in Elision. The platform allows podcasters to upload their content and monetize it, while customers have the opportunity to get access to over 30 million podcasts. Elision introduced the feature that let the podcasters to visualize their content by adding illustrations, photos, links and other materials. The idea of the company is to open up a platform for independent podcasters and compete with big labels. Genesis management believes the podcast industry is one of the fastest-growing media niches and assures the startup will become one of the world’s leaders in this segment.  “The podcast industry is growing 50% year over year and it’s expected to increase 10 times by 2026,” says Elision CEO Viktor Pavluchynsky.


Ukraine’s international reserves increased by 3% in April 2020

In April 2020, Ukraine’s international reserves grew by 3% and in total reached $25.7 billion. The drivers for the increase were NBU’s reserves management transactions and FX market interventions. The NBU made USD 678.8 million in net FX purchases in April. As for now, the international reserves cover 4.5 months of future imports, which is enough for Ukraine to meet its obligations, and for the government and the NBU to make their current transactions. Through 2019 NBU increased the international reserves by 22%.

The Banker admitted Ukraine’s EUR 1 billion sovereign bonds issuance as the best transaction in Europe in 2019 

The Banker published its annual report on Europe’s best deals of the 2019 year and recognized Ukraine’s EUR 1 billion sovereign bonds issuance as the best transaction in the category “Sovereign, supranational and agency financing”. It became the first euro-denominated issuance in 15 years. The transaction was launched on June 13, attracted huge interest for the €1bn issue, with order books peaking at €6bn, which allowed a significant tightening of pricing from initial guidance of 7.125% to a coupon of 6.75%, the report reads. The transaction became a landmark strategic deal for Ukraine as it was aimed at re-engaging with continental European accounts and establishing an alternative pool of liquidity away from its US dollar investor base. Investors from across Europe, the US, and some Asian countries were involved in the deal, which became the most diversified B rate euro offering in the sovereign space.

Ukraine sells UAH 10 billion worth of government bonds

On May 5, the Ministry of Finance of Ukraine sold UAH 10 billion worth of three-month hryvnia-denominated bonds. The average weighted yield for three-months hryvnia bonds is 11,26%. Last week, the government issued dollar- and hryvnia-denominated bonds worth in total UAH 9.8 billion. 


Ukraine – the road ahead is favorable, a new investment report by Wood&Company

Wood&Company, the leading investment bank in Emerging Europe, published its investment research on Ukraine –  “Ukraine – the road ahead is favorable”.  The report reveals Ukraine’s cyclical and structural changes, GDP drivers, convergence and competitiveness vs regional competitors, reform prospects and political outlook, capital markets snapshot as well as Ukraine equity universe. Wood&Company evaluates monetary policy as prudent but active and private balance sheets as solid.


Hungarian Wizz Air plans to expand its presence in Ukraine

The largest lowcost airline in Central and Eastern Europe – Wizz Air – announced opening a new base at Lviv International Airport on July 1, 2020. “When we usually open a new base, this is mainly a large investment. More than $100 million is a very significant investment and long-term ones. Thus, opening the base is a good investment for the local economy. It will take several years to get them back,” says Wizz Air Chief Commercial Officer George Michalopoulos. The company expects to have one aircraft placed in Lviv but gradually increasing the number. Lviv base will be the second Wizz Air base in Ukraine, after Kyiv. Additionally, the company is planning to open seven new routes from Lviv to Denmark, Estonia, Portugal, Germany, Poland, and from Kharkiv to Talin and Berlin. Wizz Air operates flights on more than 710 routes from 25 bases connecting 154 destinations in 45 countries. 


What opportunities does Ukraine have to offer for foreign business in the aerospace industry?  

🚀Ukraine provides an efficient platform for establishing a maintenance, repair, overhaul (MRO) service center for regular checks and maintenance to aircrafts. 
🚀Ukraine is well-positioned and has all the necessary expertise to become a part of foreign aerospace companies’ value chain. 
🚀Import replacement of Russian materials and components is an immediate business opportunity.

Read about Volodymyr Usov’s, a new chief of Ukraine’s State Space Agency, ambitious goal on how to make space the biggest trademark of Ukraine.

“Ukraine at the same time is blessed to be still having two valuable things: unique space technologies, such as the full circle of production of rockets, and talented engineers with ideas. And right now there’s a narrow window of opportunity for Ukraine for stepping in the global space industry market,” Usov said.