Digest of Economy & Markets, International Support, Politics & Culture
Markus CIUPEK
Dr.-Ing. | ?? ????Entrepreneur & Investor Empowering Manufacturing in Ukraine ???? | Co-Owner, Time & Space Ukraine | Mentor & Resilience Expert | Public Speaker | Author | Connecting ????????????Businesses
Welcome to the 43rd Edition of "Ukraine Through My Eyes"!
Talks about ending the war in Ukraine are getting louder, but not necessarily more meaningful. Some proposals, like granting NATO membership to only unoccupied Ukrainian regions, raise serious concerns. Such ideas risk leaving occupied territories in a "grey zone", vulnerable to further aggression.
Partial solutions will not bring lasting peace. Critics warn that such compromises could undermine Ukraine’s territorial integrity while emboldening its adversaries. President Volodymyr Zelenskyy has repeatedly emphasized that past agreements—like the 1994 Budapest Memorandum, which failed to protect Ukraine’s sovereignty—should serve as lessons, not blueprints.
The international community is at a crossroads. It must choose between pursuing a comprehensive strategy for lasting peace or accepting temporary fixes that could lead to future escalation. The decisions made today will shape the region’s stability and set a precedent for international law.
Despite these uncertainties, Ukraine is pushing forward.
Investment opportunities are expanding. This week’s Topic of the Week offers a city-by-city guide for foreign investors, showcasing Kyiv’s financial dominance, Lviv’s booming IT sector, Dnipro’s industrial strength, and Odesa’s role as a logistics hub.
Economic resilience remains strong. Ukraine is launching its first postal bank, climate shifts are opening the door to subtropical agriculture, and the National Bank is exploring e-hryvnia as a digital currency. The Diia.City IT sector contributed a record UAH 18 billion in taxes, even as IT exports declined for the second year.
Ukraine’s workforce is adapting. The OnTrack program is training women as truck and bus drivers, while Transcarpathian manufacturers are hiring workers from Bangladesh to counter labor shortages.
International partners continue to stand with Ukraine. The European Investment Bank has pledged €200 million to modernize hydropower stations, and Ukraine is strengthening its position as a key transit hub for Azerbaijani gas.
Defense innovation is accelerating. The Ministry of Defense has launched FPV drone production, reinforcing Ukraine’s battlefield capabilities. Meanwhile, Ukraine is deepening NATO cooperation by sharing battle-tested military expertise.
Ukraine’s cultural voice is reaching global audiences. The graphic novel "A Short History of the Long War" is set for international release, and the Kyiv Art Session festival in the UK is raising funds for infrastructure restoration.
Ukraine’s future is being shaped today—with every investment, partnership, and innovation. Thank you for standing with Ukraine!
Слава Укра?н? – Разом до перемоги!
??Yours sincerely, Markus Ciupek
A City-by-City Overview for Foreign Investors
Foreign investors have many options in Ukraine's developing economy, but picking the appropriate city may be just as important as selecting the right sector.
Every major metropolitan center has its strengths, often demonstrated by the success of leading global corporations already operating there—ranging from booming tech clusters to industrial powerhouses.
Kyiv: The Corporate and Financial Epicenter
Kyiv, the capital of Ukraine, is the perfect place for businesses that require regular official interactions. It is home to important regulatory agencies and ministry offices, making it ideal for financial, legal, and consulting firms.
Lviv: The Center of Creativity and IT
Known for its startup culture and tech expertise, Lviv’s ecosystem is strengthened by computer science and engineering-focused universities. Its Western location and cultural ties facilitate nearshoring partnerships with EU businesses.
Kharkiv: A Hub for Advanced Manufacturing, R&D, and Engineering
With several technological institutions and research organizations, Kharkiv supports a robust pipeline of scientists and engineers. Its long history in aerospace, military, and machinery industries makes it a prime location for innovative manufacturing.
Dnipro: The Powerhouse of High-Tech and Industrial Manufacturing
Dnipro has long been an industrial stronghold, with logistical networks and industrial parks that support large-scale production. Local technical institutes train engineers and technicians in advanced assembly line management.
Odesa: The Gateway for Trade and Logistics
One of the largest ports in the region, Odesa’s Black Sea port is essential for import-export companies. It is an ideal base for businesses distributing consumer goods and exporting agricultural products.
Key Factors to Consider for Business in Ukraine
Choosing the Right City for Your Business
Industry focus and growth strategy are critical when selecting the best Ukrainian city for business. Kyiv remains the top choice for corporate headquarters and financial services, while Lviv leads in IT and creative industries. Dnipro excels in large-scale manufacturing, Kharkiv offers strong engineering and R&D capabilities, and Odesa is the premier location for marine trade and logistics.
Ukraine’s economic landscape is diverse and full of opportunities, making location selection a key factor for business success.
Ukraine’s First Postal Bank Set to Launch: Cabinet of Ministers Approves Ukrposhta’s Acquisition of PINbank
Ukraine's national postal operator, Ukrposhta, is acquiring shares of PINbank, previously owned by Russian oligarch Yevgeny Giner, to establish the country's first postal bank. The Cabinet of Ministers adopted a resolution allowing the transfer of PINbank shares to the Ministry of Infrastructure, which will then hand them over to Ukrposhta.
This move will enable Ukrainians in remote areas to access banking services, especially where traditional bank branches are limited. Ukrposhta operates nationwide, offering essential services to both rural and urban communities.
The Prime Minister noted that this decision could save the government approximately 5 billion UAH over the next three to four years, with funds directed toward priority budget items.
In 2024, Igor Smilyansky, CEO of Ukrposhta, hinted that PINbank would be transferred to Ukrposhta, stating that "Russian oligarchs’ money will be utilized for the benefit of Ukrainian citizens."
The state announced the nationalization of PINbank earlier in 2024, acquiring an 88.89% stake that had belonged to Giner’s First Investment Bank.
Ukrposhta has been seeking a banking partner to provide financial services across its extensive network, especially in remote areas.
In 2022, the company approached the National Bank of Ukraine (NBU) to discuss purchasing Alpari Bank, which would enable financial services directly at postal branches. However, the NBU declined the request due to “document deficiencies.”
By 2023, the sole shareholder of Alpari Bank voluntarily ceased banking activities without liquidating the legal entity.
Source: NBU, 28/01/2025
Ukraine Set to Cultivate Tropical Fruits Amid Climate Change
Ukraine's agricultural sector may soon see a third grain harvest, along with new heat-loving varieties, due to ongoing global warming.
Currently, Ukrainian farmers gather two grain crops per year, one in spring and one in winter. However, evolving climate conditions are making a third harvest more feasible.
Winter crops are maturing up to a month sooner in some regions, and if warming trends persist, areas like Kharkiv could experience a climate similar to that of Crimea by the century's end.
Scientists predict that the Ternopil region might support subtropical agriculture, a previously unthinkable outcome for its cooler climate. However, cold winds in spring pose significant challenges to young crops unprepared for sudden temperature drops.
Plant breeders are developing heat-resistant varieties to mitigate the risks of climate extremes.
As temperatures rise and farming practices adapt, Ukraine's agricultural landscape is on the verge of a remarkable transformation, with subtropical fruits flourishing alongside traditional staples.
Source: Ukrainian Hydrometeorological Institute, 28/01/2025
The National Bank of Ukraine is studying the feasibility of introducing its digital currency - e-hryvnia
Central banks worldwide are exploring the possibility of issuing digital currencies (CBDCs) to address the rapid development of digitalization in modern life and the desire to increase the speed and convenience of payments. The National Bank of Ukraine is also considering the feasibility of introducing its own retail CBDC, e-hryvnia, as an additional opportunity for users. A decision on large-scale issuance of e-hryvnia has not yet been made, but a pilot project based on Distributed Ledger Technology (DLT) will help verify its capabilities, user needs, and programmability. E-hryvnia is the digital money of the National Bank, an electronic form of the monetary unit of Ukraine, issued by the National Bank. If introduced, it would be a legal tender in Ukraine and exist only in a non-cash form, serving as a supplement to cash and non-cash forms of money. It must perform all functions of money, be convenient, and be accessible to all users without exception. The National Bank is studying the possibility of issuing e-hryvnia to create a convenient tool for making payments, ensure user privacy, simplify access to digital money, contribute to economic security, increase financial inclusion, and develop Ukraine's payment infrastructure following global trends. Users can use e-hryvnia for various types of payment transactions, including transfers between individuals, goods and services, state payments, charitable payments, and social benefits.
Source: Oleksiy Shaban, Deputy Governor of the NBU for Economichna Pravda, 28/01/2025
Record amount in three years: residents of "Diia.City" paid UAH 18 billion in taxes for 2024
Residents of "Diia City" paid a record 18 billion UAH in taxes in 2024, which is the highest figure in the three years of the initiative's existence. During this time, IT companies and startups operating within "Diya City" have significantly increased their contributions to the budget, which has helped strengthen the country's economy. In 2024 alone, the amount of tax revenues was 8 billion UAH higher than in 2023. These records emphasize the importance of "Diia City" for the development of the technology sector and ensuring stable financial flows in the face of economic challenges.
Source: Mykhailo Fedorov Facebook, 28/01/2025
Big Mac Index: how much the dollar should be worth in Ukraine
Ukrainian currency is again among the ten most undervalued currencies in the world. In the updated Big Mac index, the hryvnia dropped to sixth place from the bottom in the list of the most undervalued currencies in the world. A Big Mac costs 120 UAH in Ukraine, while in the USA it costs $5.79. Thus, the Ukrainian currency is undervalued by 50.7% compared to the actual exchange rate of 42.0 UAH/dollar, and the purchasing power parity rate should be at 20.73 UAH/dollar. The Big Mac index is a way of determining whether currencies are at the “correct” level, invented by The Economist magazine in 1986. The specified index is calculated based on the cost of a Big Mac in the USA. The price set in the national currency of the country is compared with the American Big Mac. The list of the most undervalued currencies in the world also includes the currencies of Taiwan, Indonesia, India, Egypt, and South Africa. This list has hardly changed compared to 2024. At the same time, the overvalued currencies are the Swiss franc (by 38.0%), the Argentine peso (by 20.1%), the Uruguayan peso (by 19.3%), the Norwegian krone (by 15.3%), the euro (by 2.8%), and the Costa Rican colon (by 1.9%). The British pound dropped from the list, and the Costa Rican currency made it to the top.
Source: The Economist, 30/01/2025
Not Obvious Ukrainian Export Product: Oilcake
Agricultural products provide more than half of Ukraine's export revenue. While there is a lot of talk about the export of wheat, corn, and sunflower oil, there is much less attention on another major export item—and that is oilcake.
Oilcake is called pomace, waste from the production of oilseeds or beans. This product provides more than 3% of Ukraine's exports. Last year, 4.8 million tons of sunflower oilcake were sold abroad for $1.03 billion, and 725 thousand tons of soybean oilcake for $304 million.
The statistical classifier defines oilcake not as an agricultural product, but as food industry waste. Although such waste is not inferior in value to some grain crops: the average export price of sunflower oilcake in 2024 was $215, and soybean oilcake was $420.
Sunflower oilcake goes mainly to China (31.5%) and Poland (12%), and soybeans—to the same Poland (46%) and Hungary (24%).
Oilcake is used as feed for fattening domestic animals and as an ingredient for preparing complete compound feeds and feed mixtures.
Source: The Ministry of Economy of Ukraine, 31/01/2025
Ukrainian Exports of IT Services Fall for the Second Year in a Row
Ukrainian exports of IT services in 2024 brought in $6.45 billion, which is 4.2% less than in 2023. Thus, a decline was recorded for the second year in a row: in 2023, exports of services by Ukrainian IT professionals had already decreased by 8.5%.
In December 2024, the volume of exports of IT services even increased by 1% year-on-year, to $617 million, but this had little impact on the annual result.
The share of exports of IT services in total exports of goods and services decreased to 11.5%, compared to 13.1% in 2023.
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Among the countries that provided revenue to the Ukrainian IT industry in 2024, the USA is the leader—$2.4 billion (-10.5%), accounting for 37% of the volume of all IT exports. The United Kingdom is in second place with 9% and $565 million (+5.6%), and Malta is in third place with $501 million (-11.5%), a share of 8%.
Exports of IT services from Ukraine have been growing actively since 2013, first exceeding the $5 billion mark in 2020, and in 2021 reaching $6.8 billion. In 2022, it reached a record $7.3 billion.
In 2023, Ukrainian IT exports stopped growing for the first time in history. Revenue from exports of services by Ukrainian IT specialists decreased by 8.5% to $6.7 billion, the lowest figure in recent years.
The main reasons for this decline are the slowdown in the global economy and the war. During the full-scale war, more than half of Ukrainian companies faced contract termination, according to a study by IT Research Ukraine. Another quarter of those surveyed reported a loss of more than 40% of their income.
Source: The Ministry of Economy of Ukraine, 31/01/2025
Ukraine Announces New Recruitment for OnTrack Program for Free Training of Women as Truck and Passenger Bus Drivers
The training will last 6 weeks and consist of online theory and practical classes in one of three cities in Ukraine: Kyiv, Kremenets, or Ternopil. In addition to driving, program participants will undergo training in first aid and visit companies and enterprises to better familiarize themselves with the profession of a driver.
At the same time, the program also provides participants with accommodation and meals during the internship.
The Swedish non-profit organization Beredskapslyftet implements the project with the Ministry of Economy of Ukraine. Women with at least three years of Category B driver's license and driving experience can join the initiative.
The application process continues until February 15, 2025.
Source: The Ministry of Economy of Ukraine, 27/01/2025
In Transcarpathia, a Furniture Manufacturing Company Opens New Jobs and Attracts Workers from Bangladesh
The Transcarpathian furniture company "Lamella" is waiting for 30 workers from Bangladesh. This was reported by the commercial director of the company, Yaroslav Shcherban.
"We have problems with employees, people simply do not go to work because they need to register with the CCC. We have a reservation for 50% of men. At the same time, 50 people from the company are mobilized and served, there are wounded who have already been demobilized. Some women replace men. But some types of work women cannot physically perform. Therefore, the company is looking for labor. One of the international recruiting agencies suggested that we recruit workers from Bangladesh," said Yaroslav Shcherban.
Generally speaking, Ukraine has a chronic shortage of specialists in the production sector and almost 3 million Ukrainians (mainly from the western regions) who were involved in labor migration in peacetime.
In addition, according to UN experts, given the high mortality rate and low birth rate, the population of Ukraine will decrease to 15.3 million people by 2100.
So, the story of attracting labor migrants may become a necessity.
Source: Liga.net, 29/01/2025
Ukraine Secures €200 Million from EIB to Modernize Hydropower Stations
Ukraine is set to receive €200 million from the European Investment Bank (EIB) to upgrade several Dnipro hydropower plants.
The Cabinet of Ministers approved the decision on September 28, focusing on hydroelectric facilities, equipment renewal, and heating and energy efficiency.
The funds will be used to repair damage caused by Russian attacks on critical infrastructure, and an additional €100 million will be allocated to improve central heating systems and boost energy efficiency in Ukrainian communities.
The funds will be used to purchase boilers, engines, turbines, and other essential equipment.
The Cabinet of Ministers' representative to the Verkhovna Rada, Taras Melnychuk, confirmed the government's proposal to the EIB for two key projects:
Source: The Cabinet of Ministers of Ukraine, 28/01/2025
Ukraine is Ready to Transit Gas from Azerbaijan
Ukraine could become a transit area for gas from Azerbaijan.
According to Volodymyr Zelensky, during a press conference with Moldovan President Maia Sandu, Ukrainian infrastructure could be used for the transit of Azerbaijani gas.
Volodymyr Zelensky said that this week he met with Azerbaijani President Ilham Aliyev in Davos, and one of the topics of the meeting was gas supplies. However, the details of these negotiations are not disclosed.
“We discussed with him that he could export gas through Ukraine. He could use our infrastructure if the countries of Eastern Europe need gas.” - Volodymyr Zelensky.
Azerbaijan increased natural gas production by 4.3% during 2024, to 50.6 billion cubic meters. Half of this was exported.
It is not reported how exactly such an agreement will work.
Source: Volodymyr Zelensky Facebook, 31/01/2025
The Ministry of Defense Has Started Its Production of FPV Drones
The Ministry of Defense of Ukraine has launched licensed production of modern FPV drones based on one of the state-owned enterprises. Production was launched in December last year as part of a pilot project.
This project is being implemented under a tripartite agreement with a private developer, who granted a license to produce UAVs based on a state-owned enterprise under the control of the Ministry of Defense. The manufactured drones will be sent to units of the Defense Forces of Ukraine.
It is noted that after developing the production technology and scaling it up, the state-owned enterprise will be able to independently participate in tenders of the Defense Procurement Agency and other potential customers.
“The experience is positive. Thanks to the integration of the state into production chains, we have gained a clear understanding of the cost of drone production and our competitive advantages in this market,” said First Deputy Minister of Defense, Lieutenant General Ivan Havrylyuk.
According to him, this will allow improving the quality of finished products through sustainable competition.
In addition, specialists from the Main Directorate of Defense Innovations of the Ministry of Defense have worked out a roadmap for organizing similar production together with other drone developers.
The defense department noted that this will significantly increase production capacity to scale up drone production.
Source: The Ministry of Defense of Ukraine, 29/01/2025
Deputy Minister of Defense for Digitalization Talks About the Exchange of Knowledge with NATO Countries
Deputy Minister of Defense for Digitalization, Kateryna Chernohorenko , during the pitching of the “Pluses” project in the application for the military “Army+”, spoke about future updates in the application.
“In ‘Army+’, we launched courses on UAVs — ours and enemy ones, on cyber hygiene, radio communications, etc. This year, the training course will be translated into English. We will provide verified NATO military personnel with access to these ‘life hacks’ of the Ukrainian war,” the official said.
She specified that this will be an English-language platform, where, by a certain agreement with NATO countries, they will receive access to translated Ukrainian courses.
“We have to exchange influence through ‘life hacks’, which we compile in one system, on weapons, support for allies. And through a single point of entry, export our knowledge. Not only to export but also to exchange for things that are important to you,” Kateryna Chernohorenko concluded.
The following courses became available in the ‘Army+’ application on October 24, 2024:
Later, the following were added:
Over the first two weeks of online training in the application, more than 6,000 servicemen used it.
Source: Deputy Minister of Defense for Digitalization Kateryna Chernogorenko, 29/01/2025
Painting "A Short History of the Long War" to Be Published in France
The graphic novel “A Short History of the Long War,” created by artist and cultural scientist Mariam Nayem in collaboration with illustrators Yulia Vus and Ivan Kypibida, will be published in France.
The translated version in French will appear before the Ukrainian version, the publishing house “Vydavnytstvoe” reported on its Facebook page.
“One of the most unprecedented events for the Publishing House is the release of the French translation of the illustrated book ‘A Short History of the Long War’ by Mariam Nayem, Yulia Vus, and Ivan Kypibida before the release of the Ukrainian edition. For the first time in the history of our publishing house, the translation will see the light of day before the original,” the post says.
The French version of the illustrated book will be published in February 2025 with the support of Robinson, one of the divisions of the largest French publishing group Hachette Livre.
The publication will be available in France, Belgium, Switzerland, Quebec (a province of Canada), and other French-speaking countries.
The official website of the Publishing House also reported that the rights to publish the picture book have already been purchased by Polish and Finnish publishers.
The original version of the graphic novel in Ukrainian will be available for sale this spring, and pre-orders are currently underway.
Source: Publishing House “Vydavnytstvoe”, 27/01/2025
Kyiv Art Session Charity Festival Underway in the UK
From January 25 to February 2, the Kyiv Art Session art festival with the participation of director and musician Serhiy Fomenko will take place in London, Cambridge, and Oxford.
The event was organized to raise funds for the restoration of buildings and critical infrastructure damaged by Russian aggression.
The Ministry of Culture and Strategic Communications announced that the event will include:
One of the main events will be the screening of the documentary film “People of Steel,” which tells about the defense of Mariupol in February-May 2022.
The main events of the festival will take place on:
Admission is free.
Kyiv Art Session is organized by the Dom Master Class Cultural Center in conjunction with the “See Ukrainian!” Association, with the support of the MHP-Hromadi Foundation, Winner Company, the Ministry of Culture and Strategic Communications, and the Ministry of Foreign Affairs of Ukraine.
Source: The Ministry of Culture and Strategic Communications, 28/01/2025