Business Updates from Ukraine
Spondeo Ukraine Desk
Reliable source of news and business opportunities in Ukraine.
POLISH-UKRAINIAN NEWS
Ukraine launches modernized floor with Poland
On May 2 the Prime Minister of Ukraine Denys Shmyhal confirmed that an interstate power line between Ukraine and Poland has been launched after a three-day test period.
This is another step to the integration with the EU. There will be increased export and import opportunities with the additional interconnector.
Energoatom is also working on launching an overhead line so Ukrainian and European power systems will be connected through Poland.
About 3.9 million refugees from Ukraine are officially registered in Europe
There are three countries that have granted the most temporary protection statuses and as of the end of March, these are Germany 1,067,755 people (27%), Poland 976,575 (25%), and the Czech Republic 325,245 people (8%).
At the end of February, the number decreased by 3%: Czech Republic (-122,585; -27%), Sweden (-23,635; -49%), and Poland (-17,180; -2%).?
At the same time, the number increased in Germany (+33,125; +3%), Italy (+7,430; +5%), and Romania (+6,640; +6%).
The number of Ukrainian refugees officially registered in the EU reached 5,008 million, according to UN data as of March 28, 2023.
/UBN/
Ukraine Invest and?Fundusz Górno?l?ski S.A.?to support the creation of an industrial park for companies interested in the reconstruction of Ukraine.
Fundusz Górno?l?ski S.A. - a Polish joint-stock company from Katowice signed an agreement to support the creation of an industrial park for companies interested in the reconstruction of Ukraine.?
The agreement aims to find and attract production companies from around the world to plan and implement investment projects in Ukraine today.
FINNISH-UKRAINIAN NEWS
Ukrainian President visited?Finland
President of Ukraine Volodymyr Zelensky and Finnish counterpart Sauli Niinist? in Helsinki finally met. Strengthening the capabilities of Ukrainian soldiers on the battlefield and opportunities for the security of Ukraine were the main topics of this event.
Finland consistently supports Ukraine, its freedom, territorial integrity, and sovereignty, as well as all the principles of international law on which the peaceful coexistence of peoples depends.?
Finland already provided 15 military aid packages, and the 16th package was discussed that day too as well as cooperation in matters of European and Euro-Atlantic integration.
New book by Nataliya Teramae: Bohomazov in Finland. A Century Later
“Bohomazov in Finland. A Century Later” book written by Nataliya Teramae (Ukrainian researcher and journalist and acting board member of the Association) was announced as part of the cultural diplomacy of the Ukrainian Association in Finland.?
Oleksandr Bohomazov is a famous Ukrainian artist, people also know him as "Ukrainian Picasso". In 1911, he worked at the newspaper “Kievskaia Misl” and was sent on an artistic trip to Finland. As a result, his work “Finnish Cycle” and several media publications were born.?
Natalia Teramae made her own trip to Finland to meet art critics and historians and researched the artworks, letters, and family memories for her book.
INTERNATIONAL COOPERATION
In April, the international reserves of Ukraine increased by 13%, renewing an eleven-year maximum
As of May 1, 2023, Ukraine's international reserves, according to preliminary data, amounted to 33 million euros.
Nordic Countries Pledge to Support Ukraine’s Path to EU and NATO
The future of Ukraine lies in the Euro-Atlantic family. Ukraine’s European perspective and Ukraine the status of a candidate country are already granted by the EU.
Finland, Denmark, Iceland, Norway, and Sweden strongly support Ukraine’s path to membership in NATO.
Since February 2022, the Nordic countries of Europe have provided Ukraine with military support totaling EUR 4.4 billion. In addition to that, civilian aid, including financial, humanitarian, and emergency support was provided too. The total value of these national Northern European events has exceeded EUR 1.5 billion since February 2022 and will continue to grow.
/KyivPost/
BUSINESS IN UKRAINE
83% of companies have employees mobilized into the Armed Forces
83% of companies reported their employees are in the armed forces, among which 51% of companies have up to 10% of conscripted workers mobilized, 25% – 10-20%, and 5% – 20-40%. Engineers, IT specialists, electricians, mechanics, machinists, and drivers are within 43% of business-critical specialists who have been mobilized.
Besides, full activity of companies is being resumed. 68% of the companies work in full. 54% of companies worked fully in January, and 44% in October 2022.?
90% pay full wages to employees, plus 21% make advance and bonus payments. And, 10% resort to wage cuts, 2% to layoffs, and 3% of companies send employees on unpaid leave.
The current situation of "financial cushion" is doing ok and is not too different as of January 2023: 25% have financial reserves for half a year, 23% for a year, and 37% for a year or more. Another 5% have reserves for several months, and 5% have none at all.?
/eba/
Changes in agreements with neighboring countries regarding products permitted for import and transit
The operation of the grain corridor is one of the urgent issues. Import/transit of agricultural products to EU countries and simplification of customs control procedures at western border crossings.
There are violations of agreements with neighboring countries regarding import and transit in general and regarding plans for further negotiations with countries and relevant EU institutions. The list of products is currently under discussion.
Businesses will also soon be able to use the E-queue service when crossing the border at all checkpoints (because currently, E-queue works at the Yagodin checkpoint).
/eba/
Ukraine’s oil giant plans to double production and create a network of 1,200 gas stations
Ukrnafta’s capital investments for 2023 will increase to 900 mln euros. The company’s strategic plan envisages increasing oil production from 1.5 million tons to 3 million tons per year, drilling 40 new wells, and increasing gas stations in 2023 to 694 in 2024 and up to 1,200 in 2027.
As a result, in 2023, the company plans to increase its net income by 81%, and its net profit will reach 300 mln euros.
/yahoo/
INVESTMENTS
Ukrainian government presents a guide for investors in Ukraine
1. Reforming the tax system and creating a legal framework for safe and transparent business conduct.
2. A structured financing package, including war risk insurance from MIGA and the DFC covering up to 90% of potential losses. (The Export Credit Agency will cover the credit risk).
3. Direct long-term and affordable lending from international financial organizations such as the IFC, EBRD, or EIB, supported by soft capital for investors.
/ubn/
Lands' auctions on Prozorro
The sales of the land plot with an area of 3,3300 ha in the industrial zone "Syhnivka" (St. Pivnichna):
Purpose: Industry
Starting price: 763,5K EUR
Auction date: 30 May 2023
The sales of the land plot with an area of 3,6100 ha in the industrial zone "Syhnivka" (St. Pivnichna):
The purpose of the site: industry
Starting price: 783,8K EUR
Auction date: 30 May 2023
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The sales of the land plot with an area of 4,1806 ha in the industrial zone "Syhnivka" (St. Pivnichna):
The purpose of the site: industry
Starting price: 940,7K EUR
Auction date: 30 May 2023
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The sales of the land plot with an area of 4,0200 ha in the industrial zone "Syhnivka" (St. Pivnichna):
The purpose of the site: industry.
Starting price: 864,6K EUR
Auction date: 30 May 2023
More details?????????
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The sales of the land plot with an area of 5,0987 ha in the industrial zone "Syhnivka" (the plot near the ring road, behind the shopping center "Try Slony"):
The purpose: industry.
Startingprice: 1,080,2 MLN EUR
Auction date: 30 May 2023
/Prozorro/
Nibulon is investing in constructing a large elevator and a mill at the port of Izmail
Nibulon - one of Ukraine’s largest grain market operators will increase shipments from the current 170,000 tons of grain per month to a potential 300,000 tons. They are thinking of building a full-fledged elevator on the site, to store 118,500 tons of grain at the same time, as well as a 750 tons per day capacity modern high-tech mill.
/unb/
Two investors to the Mostyska Dry Port Industrial Park
With a focus on Ukraine, Horizon Capital attracted more than 230 million euro
Horizon Capital Growth Fund IV (HCGF IV) exceeded its expected target size, doubling the investments to EUR 230 million since the first stage
The capital in the companies of visionary entrepreneurs in Ukraine and Moldova are the targets of the new fund investment plan.?
Gender balance, accelerated by the traditions of STEM education, and high demand for talent in the technological field - are the main improvements.
A new industrial park has been officially registered in Ukraine
The Dolyna Stryi (62nd industrial park) was included in the Register of Industrial Parks of Ukraine. The Dolyna Stryi was founded at the end of January 2023 in the Lviv region. The project will be for 30 years and will create up to 700 jobs in the processing industry on its 13.95 hectares.
Production of food products, electrical equipment, machines, equipment, and finished metal products; wood processing and manufacture of wood and cork products (except furniture); production of products from straw and plant materials for weaving; and repair and installation of machines and equipment, those are about to be engaged in the industrial park.
/ubn/
IT SECTOR
Digital Transformation During Wartime – Exclusive Interview with Minister Mykhailo Fedorov
Mykhailo Fedorov the country’s top digital reformer became Deputy Prime Minister for Innovation, Development of Education, Science and Technology, and Minister of Digital Transformation on March 21.?
In this interview, he tells about the main challenges facing Ukraine during this difficult period of renewal against the background of war and destruction – the country’s top digital reformer explains.
/KyivPost/
Ukrainian Ahrefs is developing a search engine with artificial intelligence called Yep. The value is up to 455 million euro
Yep got investments of 55 million euros in their project. They have plans to start training their own language models in the new data center this summer.?
Text, image, and news search, with plans to acquire a developer of a ready-made solution for map search, a brief summary of top search results alongside the usual links - they are all supported by Yep.
An important step towards digital visa-free: Ukrainian electronic signatures and seals on digital documents can be checked in EU member states
Ukraine became the first country to be included in the TC AdES LOTL list. The list contains information about electronic signatures and seals of states that are not EU member states, which allows them to be checked in EU countries.
This provides more opportunities for the use of electronic forms of contracts and other documents of Ukrainian refugees in the EU and Ukrainian businesses because statements and documents are signed using Diya.Pidpis-EU will be accepted by EU member states.
SharePark — AI-Powered Parking Management by Ukrainians
SharePark is developing an AI-powered parking management app for European drivers and parking lot owners. They use artificial intelligence to analyze the user's location and find the best option for needs (finding and booking parking spaces, electric charging stations, car washes, and services for paying fines, insurance, or toll roads).
The SharePark app will be released in mid-May 2023. Users will have two options: to pay for parking, and parking lots will give up to 10% of the transaction fee, or to purchase a SharePark subscription for €2.5-4.5 per month, depending on the country.
Nine technology companies will represent Ukraine at London Tech Week 2023
9 Ukrainian companies are taking part in the London Tech Week, the largest technology exhibition festival in Europe. It is ongoing from June 12 to 16, 2023.?
Companies should meet particular criteria to apply to participate in the competition: have up to 250 employees, operate in the UK market or are ready to enter it soon.
The USAID program “Competitive Economy of Ukraine,” with the assistance of the Ministry of Digital Transformation of Ukraine in cooperation with the European Business Association, Technosystem, and USF made it real for Ukrainians to join the event.
/eba/
Ukraine is becoming a Leader in Global Defence Tech. To bridge the efforts, Ukraine launched the BRAVE1 project
The world learned about innovative Ukraine after the start of a full-scale war. Many technological solutions to strengthen the country's defense capabilities and save lives are under development.
Ukraine is a leader in world defense technologies. The BRAVE1 project is a platform for military technological development. From UAVs to demining systems. From idea to mass production.
BRAVE1 should become the only international bridge for cooperation.
In general, the activities of BRAVE1 will be focused on 5 directions:
Invest - grants to developers,
领英推荐
Invent - search for the most effective technological solutions among Ukrainian developers;
The platform is a union of all interested parties of the industry,
Demonstration - interaction, development process and reviews,
Boost - support.
Ukrainian startups presented their products at SelectUSA, the largest investment summit in the USA
This year, the SelectUSA investment summit was attended by high-ranking officials of the White House, US governors, as well as representatives of more than 1,500 companies from more than 80 global markets. And this time the Ukrainian delegation was attending the event too.?
Over 4,000 guests took part in the event. Ukrainian startups were selected after the competition and were presented by 3D printing of human bones and organs, a cyber security platform, a startup that will help develop the audience's reaction to films and videos with the help of artificial intelligence, etc.
Beginning of a Robust Digital Collaboration. The signed Memorandum between Ukraine and Japan
Ukraine and Japan now collaborate on digital transformation, there is going to be a strong digital partnership between the two countries.
Japanese-Ukrainian relations do have the potential, stating that exchanging digital best practices would be beneficial for both sides.?
The memorandum outlines how Japan's assistance can help to develop and strengthen Ukrainian cybersecurity and bring innovations during all the challenges Ukraine is facing right now.
Ukraine is historically famous for its attractive conditions for conducting IT business
Starting from January 1, 2023, the VAT benefit for the IT industry, which has been functioning for the past 10 years, is no longer valid, as draft law No. 7611 was never adopted. This means that in extremely difficult times for business, entrepreneurs were not supported, but on the contrary, the fiscal pressure was increased, and current operations for the supply of software products are no longer exempt from VAT taxation.
/eba/
The Ministry of Digital Transformation approved a resolution about the unified platform for the state registers
The resolution on the unified platform of state registers was approved by the Ministry of Digital Transformation. About 450, 80% of state registers are technologically outdated and vulnerable to cyber-attacks.
It will not be possible to illegally edit information, because all changes in the registers will be recorded.
Other projects of the State Agency, which are at the stage of implementation, were also presented. The first results should be shown in August 2023.
The Ministry of Digital and NABU will cooperate to prevent corruption — a memorandum was signed
ClearVPN by MacPaw Inc. received a Cybersecurity Award
Ukrainian IT company MacPaw developed ClearVPN. It allows to make digital life safer, more private, and more comfortable. ClearVPN is used by 40K Ukrainians every month.?
Also, it is completely free of charge for Ukrainians anywhere thanks to integration with Diya. Signing, and with the premium version of ClearVPN, Ukrainians can get a secure Internet connection, access to reliable sources of information, and protect their Internet traffic.
Zeely.app, which develops an AI application for the development of small and medium-sized businesses, has attracted almost 1 million euros investment
Export of IT services at the beginning of 2023 decreased by 16%
In the first quarter of 2023, the export of IT services from Ukraine decreased by 16% compared to 2022, and IT export of services for the first quarter of the year is 43%.
The decrease is due to two factors: firstly, in previous years the industry grew at extremely high rates, and secondly, each first quarter of the new year traditionally has a drop compared to the first quarter of the previous year.
The Ukrainian Pavilion at Stockholm Tech Show
One of the leading tech events in the Scandinavian region, the Stockholm Tech Show, brings together top tech companies, investors, and industry experts from around the world, making it the perfect platform for networking and building partnerships.
10 IT companies represented Ukraine in this year:
WE/AR Studio - AR and VR development, Rapid Prototyping, Ideation services, AR/VR data Analytics, and XR Strategy;
TRIARE - web and mobile development from simple apps to complex e-commerce systems, client+server applications, and others;
Integrity Vision - software development and software product customization;
Stfalcon LLC | Mobile & Web App Development Company LLC | Mobile & Web App Development Company - development of custom web services and mobile applications;
Geniusee - software, and product development company;
Computools - development of software solutions;
DataMix - custom software development;
Innovations Development Lab - solutions for large and medium-sized businesses, process automation, cybersecurity, innovative solutions based on cloud technologies, R&D projects;
LAMPA Software - development of Android and iOS applications, REACT web platforms, OTT services and Smart TV, loyalty programs, chats and social services, delivery and taxi services, platforms for online consulting;
SoloWay Technologies - digital business transformation services.
CULTURE
Imagine Dragons Showcase Reality of Ukrainian War in ‘Crushed’ Short Film
Imagine Dragons “Crushed” is the heartbreaking story of a 14-year-old boy living in Ukraine. Sasha (the boy) walks through his ruined village, which was occupied by Russian forces for five months and shelled.
United24 (founded by Volodymyr Zelenskyy, supported the short film. The band hopes that people will consider donating to United24 and raising their voices for this cause.
'This is Our Reality': Ukraine Artists Depict the War
Zhanna Kadyrova's works were sold out by galleries around the world, thus raising funds to help civilians and soldiers.
Ukrainian culture has spread a lot since the beginning of the war, the war, its horrors and realities are reproduced on canvas, but also the future.
It was the evacuation to rural western Ukraine without her usual workshop and tools that helped her notice and start creating something new.
/KyivPost/
More than 7 million Ukrainians are below the poverty line - World Bank
The World Bank confirmed that the poverty rate in Ukraine in 2022 increased from 5.5% to 24.2%, so 7.1 million people were below the poverty line.
Prices for food, fuel, and services have increased very sharply (some of them by 50%).
The unofficial unemployment rate is 36%, while inflation has reached 26.6% at the end of 2022, and the situation can only get worse in the future.
The United24 platform collected EUR 300 million in one year
During the year, United24, the largest fundraising platform, raised 300 million euros to support Ukraine.
Mykhailo Fedorov - Minister of Digital Transformation confirmed that Ukraine is supported by people from 110 countries.
In addition to such ambassadors as Imagine Dragons, Barbara Streisand, heroes of "Star Wars", Scott Kelly, and other famous people, Richard Branson has become the new ambassador of United24, he will collect funds for the project to rebuild Ukraine.
Ukraine Climbs in World Press Freedom Chart
Ukraine is on the 27th place in the World Press Freedom ranking. Suddenly, it has risen to 79th place from 106th.?
The rankings of many countries have started to fall eg Russia, Turkey, and Germany. About? 31 countries have a “very serious" press freedom situation.
?The influence of oligarchs?was decreased by the so-called anti-oligarch law initiated by Volodymyr Zelensky in 2021. And Ukrainian businessman Rinat Akhmetov gave up his media holding which definitely helped too.?
70% ad market reduction and decrease of salaries because of high inflation now are an improvement to the economic stabilization of most media outlets.
/KyivPost/
Use of Ukrainian Language Grows Since the Full-Scale Invasion
“Self-Ukrainization,” within society, is a progressively increasing phenomenon.?
The number of Ukrainian residents who speak Russian has halved since the war started to 13%. At the same time, the popularity of the Ukrainian language is more than 69%. Now 98% of Ukrainian citizens are proud to be Ukrainian.?
As part of informational diplomacy, all of the broadcasters switched fully to broadcasting in Ukrainian as well.
Almost everybody, even the Ukrainian president, is trying to speak the proper Ukrainian language. And as a cultural diplomacy mission and representation, the president speaks Ukrainian at all international meetings too, to promote Ukraine, to remind people about Ukraine.?
/KyivPost/
LVIV NEWS
In the first quarter, Lviv region replenished the state budget by more than EUR 200M
During January-April 2023, Lviv Oblast filled the state budget with 206.6 million euros at the expense of taxes and fees. This is 23.7% more than in the first quarter of 2022.
The largest amount of income to the state budget is the collection of value added tax - almost 34% of the total amount or 673 million euros (31% compared to last year).
33.2 million euros came from the corporate income tax to the state budget from Lviv Oblast.
In the first quarter of 2023, receipts to the state budget from personal income tax increased by almost half - 47%.
49.5% more revenue was collected from the military levy - 16,2 million euros.
The Louvre Hotels Group chain will open an aparthotel in Lviv
The final stage of signing a franchise agreement with the international hotel chain Louvre Hotels Group is happening. The project is about the aparthotel, part of the multifunctional complex Kristal Plaza in Lviv. and a member of the Ukrainian Hotel & Resort Association (UHRA).
The Louvre Hotels Group supports Ukrainian hotel developers and contributes to their projects. Kristal Plaza, an apartment hotel, will be the first project in Ukraine. The opening is scheduled for the end of 2023 under the Tulip Residences brand.
/ubn/
A modern rehabilitation building of the Nezlamni National Center was opened in Lviv
/Unbroken/
Lviv is the most transparent city in Ukraine
Lviv is in the top three "transparent" cities, in which the indicators are fulfilled by 75-100%.
Adapted analysis by of the work of city councils in wartime conditions by Transparency International Ukraine.
The population of Lviv increased from 800,000 to two million people. The load on the city's infrastructure has risen with about 5 million people who passed through Lviv.
50 best employers during the war by Forbes Ukraine and the job search site Work.ua.
Four companies from Lviv are on the list:
IT company SoftServe Ukraine – 10th place;
Concern "Halnaftohaz" – 28th place;
Consulting company PwC Lviv SDC – 37th place;
Animal feed manufacturer Kormotech LLC - 47th place.
And more than 20 companies have offices and representative offices in Lviv, those are EPAM Systems, Ciklum, Intellias, Sigma Software Group, DataArt, Valtech, TechMagic, N-IX, communication operators - Vodafone, Kyivstar, Lifecell, banks - PUMB, Ukrsibbank, Ukrhazbank, Raiffeisen Bank, retailers and energy - Epicenter K, Puma, WOG, Carlsberg, auditing and consulting company KPMG, restaurant McDonald's.?
/Forbes/
TENDERS
NEFCO
1.General Procurement Notice – Improving energy efficiency in public buildings in the city of Slavutych
Opened: 46/01/2023?
Closing: 04/07/2023
2.General Procurement Notice – Improving energy efficiency in public buildings in the city of Khmelnytskyi
Opened: 04/01/2023?
Closing: 04/07/2023
3.General Procurement Notice – Energy efficiency improvements in public buildings in the city of Ivano-Frankivsk
Opened: 31/01/2023?
Closing: 30/01/2024
4.General Procurement Notice – Housing for internally displaced persons and rehabilitation of liberated cities in Ukraine, Component II
Opened: 14/03/2023?
Closing: 14/03/2024
5.General Procurement Notice – EU Programme: Repair of critical infrastructure, Ukraine
Opened: 21/02/2023?
Closing: 30/06/2024
6.General Procurement Notice – EU Programme: Repair of critical infrastructure – Ukraine
Opened: 04/05/2023?
Closing: 31/07/2024
7.General Procurement Notice – Housing for internally displaced persons and recovery of liberated cities in Ukraine
Opened: 15/02/2023?
Closing: 15/02/2025