The Business Week for the week of September 28-October 4, 2020

The Business Week for the week of September 28-October 4, 2020


Ukraine and Microsoft to start cooperation in cloud services development 

This week the Ministry of Digital Transformation of Ukraine and Microsoft signed the Memorandum of cooperation for the development of Azure cloud services in Ukraine. The implementation of this project is estimated at $500 million. The cooperation envisages the Azure Expansion Program aimed at establishing the hyperscale cloud services, which will be the first of its kind in Eastern Europe and Central Asia.  


Foreigners are now allowed to enter Ukraine

The Government of Ukraine has lifted the temporary entry restrictions for foreigners traveling to or through Ukraine. Foreigners and stateless persons are now allowed to cross the Ukrainian border with valid health insurance issued by a Ukrainian insurance company, or a foreign company with an office in Ukraine. The insurance must cover the potential costs of COVID-19 treatment, observation, and be valid for the period of intended stay in Ukraine. Foreign and Ukrainian citizens who did a PCR test no more than two days before the trip and have proof of negative test results can cross the borders without restrictions too. Read more


Ukraine diversifies its nuclear fuel supply

On September 30, Westinghouse Electric Company signed a contract with the National Nuclear Energy Generating Company (NNEGC Energoatom) on VVER-440 nuclear fuel for the Rivne nuclear power plant. The parties also signed a Letter of Intent on further exploring the localization of fuel assembly component production in Ukraine. Atomenergomash, a subdivision of Energoatom, is currently completing qualification to manufacture VVER-1000 top and bottom nozzles for Westinghouse fuel, reads the Westinghouse press release. Westinghouse Electric Company is the world’s leading supplier of nuclear energy technology. The company provides nuclear power plants, nuclear fuel, plant automation and operating plant products and services. Read more

Ukraine is preparing new PPP projects for seaports 

During the conference “Investments matter”, the Ministry of Infrastructure of Ukraine and Ukrainian Sea Ports Authority (USPA) announced about the plans for concessions and privatization to be done in the next years:
☑️ Chornomorsk ferry and container terminals;
☑️ Passenger terminals in Odesa, Berdiansk, Mariupol, Reni, and Ismail seaports;
☑️ Privatization of the Bilhorod-Dnistrovskyi, Ust-Dunaisk, and Skadovsk seaports.
Earlier this year Ukraine successfully signed the concession agreements for the two seaports (Olvia and Kherson), which totaled over $134 million in investments. 

Baltic brand Bolt arrives in Vinnytsia

Online taxi service Bolt is increasing its footprint in Ukraine. This week the company launched its services in Vinnytsia, which became the seventh Ukrainian city to have it. Earlier this year Bolt appeared in Dnipro and launched its e-scooters rentals in Kyiv. The company began its taxi services in Ukraine in 2016. Earlier in 2020, the Estonian transport networking startup launched its food delivery services, capitalizing growing demand for home delivery services. Bolt also has its R&D center in Kyiv with several dozens of people in house. Bolt is an Estonian unicorn startup valued at over $1 billion with the total investment exceeding $177 million.

S&P: Ukrainian banks have better liquidity than most CIS banks

The indicators of financing and liquidity of the banking system of Ukraine are better than in other CIS countries, Primary Credit Analyst for the Financial Institutions Sector at S&P Global Ratings Annette Ess said during the webinar. The reasons for that are low ratio of loans to deposits, the decrease of the external debt in the banking sector, increase of deposits in national currency.


Investment promotion in Eurasia: a mapping of  investment promotion agencies

OECD released a new report that takes stock & benchmarks regional IPAs to open perspectives for improvement. The report is focused on IPAs in the Eurasia region and highlights the agencies’ efforts in promoting their countries as investment destinations, attracting FDI and supporting foreign investors. UkraineInvest was happy to take part in the survey conducted by the OECD and share our practices.  

“UkraineInvest, for example, reports that working closely with the French embassy in Kyiv to solve problems raised by French-based MNEs helped reinforce the visibility of the agency abroad and ultimately contributed to the attraction of a large French industrial MNE in Ukraine. This case illustrates well how working relationships can create opportunities, although the time and resources they require is a barrier to their multiplication,” reads the OECD report.

“Working with investors in the country, supporting them with existing operations and trying to solve their problems, can be extremely beneficial to the policy improvement process. UkraineInvest has applied this approach, focusing on existing investors’ problems rather than trying to bring in new investors. This choice led to stronger ties with existing investors and stakeholders, and steps to address critical impediments to investment project implementation. It eventually contributed to bringing new investment projects,” noted the OECD. Read the full report.

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