The Business Week for the week of July 6-12, 2020

The Business Week for the week of July 20-26, 2020


The President of Switzerland acknowledged Ukraine’s reforms progress

During the official visit to Ukraine, President of the Swiss Confederation Simonetta Sommaruga noted Ukraine’s reforms progress and willingness to continue cooperation in this direction. The country has invested $1.715 billion in Ukraine’s economy. A major part of Swiss investment in Ukraine was channeled in the industry.

Switzerland is one of the five largest investors in Ukraine’s economy, and our countries must develop this potential”,

emphasized Volodymyr Zelenskyy, the President of Ukraine.


KOSTAL to build automotive electronics plant in Kyiv region

German company KOSTAL has put a capsule in the foundation at the future plant for automotive electronics production near Boryspil. The total amount of investment is EUR 39 million. It is expected that the new plant will create more than 900 jobs in the region. The start of the production  is scheduled for 2021. UkraineInvest has been supporting  the company throughout different stages of the project implementation.

KOSTAL is the world’s leading manufacturer of automotive and industrial electronics and components for such brands as Volkswagen, Renault, Porsche, Skoda, Audi, Ford, DAG, etc. The company is also developing an R&D center in Ukraine, which performs the entire production cycle of creating new products.


Ukraine will provide state support for large investment projects

Draft Law No. 3760 “On State Support for Investment Projects with Significant Investments” was approved in the first reading by the Parliament of Ukraine on 21 July 2020. The new bill stipulates state support of the projects with significant investments and provides incentives to domestic and foreign investors for the  implementation of the high added value projects, which will generate employment in Ukraine. The parliament will consider the draft in its second reading, with the final vote expected later in 2020.


Ukrainians ranked 4th in tech skills proficiency globally

Ukrainians are ranked number 4 in the Global Skills Index (GSI) 2020 due to the proficiency of the technical skills. The GSI report conducted by the global online learning platform Coursera assesses the skill proficiency of learners in each country, measures which skills are trending globally, and identifies fields of study and roles engaging highly with the essential skills for the future of work.

Coursera has analyzed 65 million learners from 60 countries in different fields of study such as business, technology, and data science. The general qualification level of Ukrainians in the field of technology is 95%, with the highest index of 100%. Read more

LetyShops has attracted $3 million from the AB Capital Group

LetyShops, a cashback service founded by Ukrainians, has attracted $3 million from the German investor AB Capital Group. The investment is expected to support the provider’s growth in Spain, Germany, Poland, Latin America and India as well as launch in the new markets. Currently, the largest cashback provider in Ukraine and CIS cooperates with 2,400 online stores and hosts more than 12 million users.

Up-and-coming Ukrainian entrepreneurs now have more resources available such as business incubators, accelerators, increasing VC investment and mentors with global experience from earlier successful Ukrainian start-ups. All of this converges to make Ukraine a tech hotspot in Europe.


Construction of cargo terminal at Boryspil airport is expected to start this fall

The construction of the Boryspil cargo terminal will begin in autumn. As reported by the Ministry of Infrastructure, design work is currently underway to prepare for the construction of the cargo terminal, for which additional land plots have already been allocated. Provided that all preparatory work is completed on time, the construction will begin in the fall and should be completed by the end of 2021. The opening of a new cargo terminal will strengthen Ukraine’s position as a logistics hub. Read more

FlixBus launches Kyiv-Krakow-Prague and Kyiv-Vilnius routes

The bus operator FlixBus launches two new international destinations from Ukraine: Kyiv-Krakow-Prague and Kyiv-Vilnius routes. For the first time, the operator’s line connects Ukraine with the Baltic countries, where FlixBus recently opened its first routes and destinations. 

Now you can easily get to Vilnius and at an affordable price by a comfortable bus, and then, by making one change – across the Baltic countries,”

said FlixBus Director in Ukraine, Poland and the Baltic States Michal Leman.

Dnipro hotel in Kyiv to become a base for cybersport events

A group of investors plans to create the world’s first hotel fully prepared for e-sports events on the basis of the Dnipro hotel in Kyiv, which has recently been sold on the auction held by the State Property Fund. 
The object  will include not only the attributes of a top hotel such as restaurants, bars, SPA zones, and fitness centers but also unique e-sports elements: training zones, an e-sports stage, special rooms for professional players, as well as the world’s best players’ lounge. Read more

Dnipro is one of the key infrastructure projects within the framework of e-sports development in Ukraine. Our goal is to make Kyiv a Mecca of world e-sports, and bring Ukraine closer in level to South Korea and the United States, ”

said Alexander Kokhanovsky, co-founder of the Ukrainian multi-gaming e-sports organization


Ukraine places eurobonds for USD 2 Billion

Ukraine has announced the pricing of new 12-year eurobonds maturing in 2033 in the amount of $2 billion, denominated in U.S. dollars with a yield of 7.2%. According to the Ministry of Finance, it is expected that the new issue will be assigned “B” ratings by the rating agencies Standard & Poor’s and Fitch. Settlements for the new issue are due on July 30, 2020.  Read more

NBU retains refinancing rate at 6%

The Board of the National Bank of Ukraine (NBU) has retained the refinancing rate at 6% per annum. It will keep prices from growing under conditions of economic recovery in 2021-2022 and, on the other hand, it will leave enough space for a further decrease in the cost of loans to the individual character level. According to the NBU statement, the central bank revised its forecast for the refinancing rate for 2020 from 7% to 6% per annum with its further growth to 6.5% in 2021.

Stay tuned and follow us on FacebookTwitterLinkedIn or YouTube for more updates.