Nibulon plans huge expansion. Nibulon one of Ukraines largest grain traders is to increase its investment in Ukraine. "This year to the company will start construction of two transshipment terminals in the Zaporizhia and Dnipropetrovsk regions and increase the capacity of the company's transshipment terminal in Kremenchuk. The Nibulon shipyard in Mykolaiv is being reconstructed and the investment program in the building of a new grain carrying freight fleet is moving forward the company announced. Nibulon also plans to implement a long-term investment program in Egypt of USD 2 billion over 10 years, the company reports
Myronivsky Hliboproduct invests additional poultry production. Myronivsky Hliboproduct (MHP) is to invest USD 300 million in a second production line at their Vinnytsia poultry farm, Production at the farm is currently 280,000 tonnes a year. The new investment will boost this to 560,000 tonnes by 2020. MHP is the largest poultry producer in Ukraine and a major food exporter to Europe and the Middle East. The company owned by Ukrainian businessman Yuriy Kosiuk also produces grains, sunflower oil, and meat, its press service reports.
Commercial vehicle sales up. Sales of new commercial vehicles grew by 24% in January-June 2018, y-o-y, to 6,400 signaling an increase in business confidence, Sales of Renault commercial vehicles grew by 19% to 1,174; whilst Citroen sold 588; Fiat, 573; Ford, 555 and Belarusian producer MAZ, 503 vehicles. In June alone, the increase was 1,241 vehicles amounting to a 38% growth y-o-y. the Ukrautoprom association reports
Ukraine: Is it time to invest? US investment banker Rodolfo Amoresano of Ukraine Finance Partners believes
yes. The pattern of crisis in emerging markets since the mid 1980's has been similar all over the world with fast, indiscriminate and continuous capital outflow, asset price collapse and little regard for value. Ukraine reached this point in 2015/16 and over the past 2 years has seen a marked recovery. This has resulted in a clear sense of what needs to be done in terms of reform and capital attraction, a willingness of the west to support Ukraine geo-politically coupled with a clear demand from a well-educated population. Ukraine and Poland started from almost the same macro-economic point. Today Poland's GDP per capita is $29,251 whilst Ukraine languishes at $8,656. Whilst there still remains a lot to be done, the turn-around has been impressive. He believes that solar energy and the SME sector are business areas that merit consideration
Oligarchic power declines. The total wealth Ukraine's top 10 oligarchs has declined by 39.1% from $20.2 billion to $12.3 billion since 2009. The biggest losers are Rinat Akhmetov at 66.4%, Victor Pinchuk at 36.4%, Ihor Kolomoysky at 30.6 , and Gennady Bogolyubov at 11.8%. The conflict in the East has seriously undermined Akhmetov's fortune whilst Kolomoysky's problems are already well documented. Not everybody has lost money: President Poroshenko is up 85.3%, grain magnet Andre Verevskiy by 75.8%, chicken supremo Yuriy Kosiuk by 69.5% and Dmytro Firtash, despite his virtual incarceration in Austria, is up 60.2%. Research UBJ, data source: Forbes
Ukraine to liberalize currency control. DLA Piper reports that parliament has adopted a new law on currency operations designed to liberalize currency control in place of the former forex regulations. There will be a 7 month transition period to enable to NBU to align its systems and regulations. Most significant are that individuals and corporations will be able to maintain offshore accounts with foreign banks, invest in securities and real estate and incorporate foreign legal entities and branches. The law will enable non residents to maintain bank accounts and make cross border loans by offshore lenders without NBU registration. The current 180 day settlement rule will be cancelled, currency control will be substituted with bank currency oversight for all transactions over UAH 150,000 and the numerous current licenses will be reduced to one.
Ukraine and Saudi Arabia sign investment memorandum . The Government has approved a memorandum between the Cabinet of Ministers and the Government of the Kingdom of Saudi Arabia to develop investment and cooperation in the agricultural sector, including in the field of livestock and fisheries, and to ensure the mutual exchange of information on agricultural issues, the press service of the Ministry of Agrarian Policy and Food reports. Ukraine and the KSA will exchange information, develop cooperation, implement investment projects and organize investment and exhibition events, Ukrinform reports.
Grain exports down. During the 2017 / 2018 marketing year, Ukraine exported 39.4 million tons of grains, five million tons less than a year earlier, totaling, the press-service of Ministry of agrarian policy and food reports. In the 2016 / 2017 marketing year, Ukraine set a new record for grain exports of 44.4 million tons. In 2015 / 2016 it was 39.5 million tons.
Coal production falls . Ukraine’s coal mines extracted 2.55 million tons of coal, 94.2%. of the planned target, Ukrinform reports. Production from mines managed by the Energy Ministry totaled 308,700 tons, 78.7% of the planned target.
Parliament limits timber exploitation and exports. The Verkhovna Rada has approved amendments to the legislation concerning the preservation of Ukrainian forests and prevention of illegal export of unprocessed timber. Domestic consumption of raw timber has been limited to 25 million cubic metres per year and administrative and criminal liability for illegal logging and export has been significantly strengthened, Interfax-Ukraine reports.
Kyiv-Boryspil airport rail link approved. The Cabinet of Ministers has approved a project to build a 37.5 kilometre-long railway connection between Kyiv’s main railway station and Boryspil airport. It will cost UAH 583.238 million and take 13.5 months to implement.