The Business Week for the week of June 1-7, 2020

The Business Week for the week of June 1-7, 2020


Join the online discussion on the opportunities in agribusiness and IT sectors Ukraine has to offer 

Within the I3 Forum organized by the Qatari International Business Delegations Summit, UkraineInvest representatives will lead the discussion on the investment opportunities and present investment projects in the most prominent sectors of Ukraine’s economy:

July 11th, 2020: Food & Agriculture
Sergiy Tsivkaсh, Chair of the Board, UkraineInvest 

July 18th, 2020: Technology
Mykhailo Bechkalo, Executive Director

The online discussions will start at 8:00AM GMT. Please register to reserve your spot. 

The I3 Forum is an ecosystem of three main business forces engaged to collaborate, ideate, partner up and make business and investment decisions aimed at establishing the new local and international ventures.

We would like to thank our partner Qatar-Ukraine Business Council for the opportunity to join the event. 

HHLA to establish a subsidiary intermodal company in Ukraine

The German transport and logistics group HHLA announced the establishment of a multimodal operator – Ukrainian Intermodal Company – that will provide rail transportation services for containerized cargo across Ukraine. As reported, “Ukrainian Intermodal Company” continues to set up business processes and staff selection, preparation for the start of operations together with partners. The first direction should be Zaporizhzhia with a gradual expansion to other locations in Ukraine. HHLA’s subsidiary, SC “Container Terminal Odesa” (CTO), already successfully operates in Ukraine. In 2019, the company increased container handling compared to 2018 by 15.8% – up to 391.4 thousand TEUs.

The leading Turkish producer of raw materials Esan celebrates 25 years in Ukraine

Esan is one of the first Turkish companies to start operating in Ukraine. The company focuses on supplying raw materials such as clay and kaolin for ceramic industries in Ukraine and abroad. UkraineInvest team was happy to assist Esan on different stages of their operation in Ukraine. We are always ready to support and hope to see the further success of the company. 

The particularities of the bureaucratic system of Ukraine sometimes create unexpected difficulties in the work process. However, thanks to the constant support of our embassy, commercial adviser, the American Chamber of Commerce in Ukraine, UkraineInvest and the business ombudsman, such issues are resolved quickly and efficiently

Cenk Gultekin, Country Manager of Esan.

Take advantage of the investment opportunities promptly! Check out the latest update of Invest Atlas, which includes about twenty new projects under Magnets and Infrastructure sections.


Ukraine simplifies international trade in grain crops

Ukrainian government passed a decree on simplifying international trade in grain crops. In particular, the decree eases the regulations for grain exporters by canceling the obligations to use the recirculation system for grain fumigation. In addition, the document systematizes the list of control objects by shortlisting the organisms that may pose phytosanitary risks and unifies the procedures for inspection and sampling. According to the Ministry of Economic Development, Trade and Agriculture of Ukraine, the decree is aimed at reducing the financial burden on grain exporters, reinforcing the competitiveness of the Ukrainian products on the global market as well as enhancing the protection of the territory of Ukraine from the imports of certain dangerous organisms.

Ukraine accounts for most of the EU agri-food import growth

Ukraine underlines its status as a key food supplier to European markets. The country is number four international food exporter to the European Union according to the data released by the European Commission covering February 2019 to January 2020 period. The exports of agri-food to the EU increased by 21% on a year-over-year basis. Overall, Ukrainian agricultural exports to the EU reached EUR 6.8 billion, accounting for 6% of the EU agri-food imports. The top three origins for the agri-food imports were: the UK with EUR 16.5 billion or 14% share, Brazil with EUR 10.7 billion or 9% share, and the USA with EUR 10.1 billion or 8% share. The full report on the EU’s agri-food trade.

Ukraine exports more than 54 million tons of grain since the beginning of the agricultural year

Ukraine continues to show its agricultural might as the grain exports have reached 54 million tons since the beginning of the agricultural year, according to the information and analytical portal of the agro-industrial complex of Ukraine. This is an 8 million tons or 17% increase year-over-year. Data reveals Ukraine so far exported 20 million tons of wheat, 28.4 million tons of corn, 4.8 million tons of barley. Ukraine is on track to break the country’s annual grain exports record. The country was the world’s leading grain exporter during the 2018-19 season and has made significant inroads in recent years as a supplier of grains to key growth markets such as China, North Africa, and the Middle East.


Port Pivdennyi reached a new record in cargo handling

In May 2020, the international trade port Pivdennyi increased its cargo handling by 80% compared to the same period the previous year and reached 2.1 million tons, reports the Ministry of Infrastructure of Ukraine.
⚓️ Ore made up the biggest percentage of the cargo (1.5 million tons) that was handled in May. 
⚓️ The biggest chunk of cargo handling (75%) was export-oriented. 
In 1Q 2020, Pivdennyi set an ultimate cargo freight record and reached 4,6 million tons of cargo, a 50% increase compared to 1Q 2019.


Ukraine attracted UAH 2,9 billion to the state budget through government bonds auctions

On June 2, the Ministry of Finance of Ukraine sold 3-, 6-, 9-month, and 1-year hryvnia denominated bonds. Their average weighted yields were decreased to 9.84%, 10,11%, 10,89%, 10,86% respectively. The demand increased twice as much, while yields for 3- and 6-months bonds returned to the pre-quarantine levels. Overall, Ukraine attracted UAH 2,9 billion to the state budget, which is three times more than at the auction last week. 

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