Recent Business News and Opportunities from Ukraine
Spondeo Ukraine Desk
Reliable source of news and business opportunities in Ukraine.
POLISH-UKRAINIAN NEWS
Poland and Ukraine join forces for IT growth
Poland and Ukraine are set to boost their IT collaboration, laying the foundation for economic development and Ukraine's post-war recovery. This was the focus of discussions during the "The Role of New Technologies in the Recovery and Development of the Ukrainian Economy" industry meeting held as part of the ZPP and WEI conference "Europe Poland Ukraine. Rebuild Together '23."
Key Points:
//Nv.ua//
Poland to Insure Investors in Ukraine's Reconstruction
President Andrzej Duda has signed an amendment to Poland's export insurance law, strengthening support for Ukraine's reconstruction. This empowers the state insurer, KUKE, to assist private businesses investing in Ukraine's recovery. The amendment also provides foreign subsidiaries in Poland with equal insurance coverage to local firms, facilitating Ukrainian companies' expansion in Poland.?
The law covers a wide range of insurance, including protection against non-payment and reinsurance for transport. It further encourages Polish companies to invest in projects aimed at exporting to Ukraine. This initiative promotes economic development and collaboration between Poland and Ukraine.
//ubn.news//
Support for Ukrainians to grow their businesses in Poland: Program registration in progress
Ukrainian entrepreneurs aiming to grow businesses in Poland can join the Reframery project. This initiative, backed by McMaster University, the Warsaw School of Economics, and the Fund for Social and Economic Initiatives, offers complimentary training and expert sessions. The program supports startups and business growth, covering market analysis, marketing, teamwork, and customer relations. The online curriculum includes self-paced modules and 6 group mentoring sessions, supplemented with business cases, assignments, and videos. //Ukrayina.pl//
Ukrainians named the reasons why they want to stay in Poland
Around 40% of Ukrainian respondents who currently reside in Poland as refugees revealed that the presence of social factors like friendship, language, and culture similarity are crucial for longer stays, according to the study by EWL Migration Platform, EWL Foundation, and the University of Warsaw's Center for Eastern European Studies. Ukrainians named the following points as important in choosing Poland:
Poland is the culturally closest neighbor - 34%;
Similar languages - 28%;
It is easier to find a job in Poland - 27%. However, at the moment, Germany is becoming the preferred destination for refugees over Poland. Research shows 37% desire to stay in Germany, drawn by higher wages and support, in contrast to 19% in Poland.?
//Ukrayina.pl//
International Cooperation
Ukraine joins Three Seas Initiative as associate partner
During the Three Seas Initiative Summit held in Bucharest on September 6th, Ukraine attained associate membership status in the initiative. The summit prominently featured discussions centered on Ukraine, with the conflict initiated by Russia prompting a reevaluation of global approaches. These discussions underscored the importance of modernizing infrastructure, transportation systems, and food supply chains, and attracting investments in strategic sectors to reduce dependence on Russian oil and gas.
The Japanese businesses want to create an industrial zone in Bucha, Ukraine, where they will produce "green" hydrogen
Yulia Svyridenko met with representatives of a large Japanese business. Photo: Ministry of Economy
In a meeting led by Yulia Svyridenko, Head of the Ministry of Economy, Japanese delegates from diverse sectors such as healthcare, e-commerce, communication, and financial technologies, including companies like Rakuten and Allm Inc., discussed modern technologies for Ukraine's reconstruction. A standout proposal emerged: the development of a green industrial zone spanning 3,000 hectares in Bucha, Kyiv region. This ambitious project aims to produce "green" hydrogen, advancing renewable energy, heat, and fuel production.
Japan and Luxembourg pledge support for Ukraine's reconstruction
Japan and Luxembourg are extending their support to Ukraine's recovery efforts. During a meeting between Prime Minister Denys Shmyhal and Japan's Minister of Foreign Affairs Yoshimasa Hayashi, Japan expressed interest in long-term collaboration, having already provided EUR 1.97 billion in macro-financial aid.?
Discussions revolved around housing reconstruction, food security, small businesses, and technological cooperation. Meanwhile, Luxembourg is set to assist Ukraine's small and medium-sized enterprises, green metallurgy, credit access, and financial technologies, utilizing funds like the European Investment Fund. This partnership reflects international solidarity in aiding Ukraine's post-conflict resurgence.
Bridging Danish-Ukrainian business relations in Mykolaiv
On September 9th, a significant step towards enhancing Danish-Ukrainian business connections was taken with the grand opening of the first business office of Bright Bird, a private Danish risk management company. Supported by the regional military administration, Bright Bird will offer comprehensive concierge services to Danish citizens, including facilitating meetings with local businesses. Bright Bird is committed to fostering international business cooperation in Ukraine. The company will arrange meetings between Danish entrepreneurs and their Ukrainian counterparts, offering invaluable support for those eager to engage in cross-border collaborations.
Lithuania to Fund Ukrainian Rehabilitation System Development
Chancellor of the Lithuanian Government, Gedre Balchitite, has pledged €6 million to support the expansion and enhancement of Ukraine's rehabilitation system. The funds will be utilized for the construction of a new rehabilitation center or additional facilities, increasing capacity and improving service quality. Some of the allocated funds may also go towards the training of rehabilitation professionals and expanding psychological rehabilitation services, meeting the rising demand.
Ukraine and Lithuania explore rail and air connections restoration
Plans include resuming passenger railway transportation on the Kyiv-Warsaw-Vilnius route, transferring transit cargo inspections to the Klaip?da port, and enabling Ukrainian airlines to operate from Lithuanian airports. This move is expected to simplify border procedures and increase agricultural product transport to Klaip?da by up to 500,000 tons annually. Lithuania also intends to establish railway trolley exchange terminals to enhance cargo flow. Furthermore, Ukrainian airlines may have the opportunity to operate in Lithuania and participate in strategic direction tenders, according to Lithuanian officials.
EU and Nefco partner to provide housing for Ukrainian IDPs in 10 cities
In response to Russia's invasion of Ukraine, the "EU Support for Urgent Housing Needs for Internally Displaced Persons (IDPs) in Ukraine," managed by Nefco and funded by the EU, is currently underway in ten Ukrainian cities. Repurposing funds from the "Ukraine Solid Waste Management and Energy Efficiency Programme in Amalgamated Municipalities," this EUR 19.4 million initiative focuses on renovating and enhancing energy efficiency in municipal buildings, benefiting 1,800 IDPs. Projects are set for completion by year-end 2023, contributing to a greener and more resilient Ukraine. The dormitory in Lutsk is already renovated and will welcome 180 teachers, and their families relocated from subdivisions of Donetsk National Technical University.
Real Estate
Kovalska Group's CEO, Serhii Pylypenko, discusses the impact of conflict on Ukraine's housing market
The market has witnessed a dramatic transformation since the Russian invasion, with dwindling professional investors, cautious developers, and a diminished buyer base. The May shelling briefly affected buyer confidence, but it rebounded in the following month. Concerns over potential threats, such as the Zaporizhzhia Nuclear Power Plant incident, temporarily deferred home purchases. Despite these challenges, 2023 has exceeded expectations, with sales witnessing substantial growth. Kovalska Group's Kyiv housing complexes, which sold only a few units monthly in 2022, now consistently achieve over 20 sales per month, with some months exceeding 30. This underscores the remarkable market expansion.?
Ukraine secures 216M EUR for urgent housing repairs via World Bank
Ukraine has inked an agreement with the World Bank, securing 216M EUR for emergency housing repairs through the Housing Repair for People's Empowerment (HOPE) project. This project, with a total funding pool of 746M EUR, will address immediate and critical needs in refurbishing partially damaged individual and multi-apartment residential buildings in territories under Ukraine's control. The funding comprises a 151.1M EUR grant from the Multi-Donor Trust Fund (URTF) and a 65.2M EUR loan from the IBRD, backed by the Japanese government.
The overarching goal of the HOPE project is to create conducive conditions for the return of Ukrainian residents to regions affected by hostilities in liberated parts of Ukraine.
Business
Ukraine introduces e-residency for foreigners to open businesses and pay taxes online
The Ukrainian Cabinet of Ministers, in collaboration with the Ministry of Digital Transformation, has approved a resolution enabling foreigners to acquire e-resident status online. This move allows foreign nationals to register as individual entrepreneurs, establish online bank accounts, and manage their businesses remotely without physical presence.?
Tax payments and reporting will be facilitated through Ukrainian banks acting as tax agents. The resolution aims to attract foreign investments and streamline business operations in Ukraine, eliminating bureaucratic barriers. Key provisions include the process for obtaining and canceling e-resident status, system management, and protection of personal data.?
Vinnytsia's Volia Agri-Food Park set to transform agri-food sector
In Vinnytsia, central Ukraine, the construction of the Volia Agri-Food Park has started, set to revolutionize the agri-food sector. This new industrial project with a budget of UAH 3 billion (74.7 million EUR) will be finished by late 2027.
Specifically focusing on intermediate and final food production, services, and R&D, the park will have a crucial role in supporting product certification, logistics, and export growth. Through the establishment of Volia Agri-Food Park, international and Ukrainian food enterprises will be able to find easy pathways to relocate and expand their operations. Additionally, the park will provide employment for 2,000 individuals.
The preparation is in progress and the park will soon include a modern center for businesses, a logistics hub, and a Light Industry Box for small food companies to produce goods.?
Bayer AG has started the construction of the Monsanto plant for the production of corn seeds in Zhytomyr Oblast
Bayer AG has commenced construction of a €60 million Monsanto corn seed production plant in Pochuyki, Zhytomyr Region. Expansion will create jobs, increase tax revenues, and bolster foreign currency earnings for Ukraine. Now, about 100 full-time employees and 250 to 300 seasonal workers work at the enterprise, also making The Bayer plant one of the largest in the region.
A new manufacturer of painted rolled steel opened in Bila Tserkva
Polysteel LLC, originally scheduled to commence operations in Kharkiv at the start of 2022, successfully launched its operations in Bila Tserkva. This achievement comes despite the challenges posed by the full-scale invasion of Russia into Ukraine, which forced the relocation of Polysteel's equipment from Kharkiv. Polysteel's entrance into the market represents a significant development for the Ukrainian steel industry.
Monobank was named among the top 200 global fintech companies by CNBC
Ukrainian startup, monobank, has secured a spot on CNBC's prestigious list of the world's top 200 fintech companies. Over 1,500 fintech companies were assessed for this list, considering factors like revenue. The list covers various fintech sectors, including neobanking, digital payments, and more. It features industry leaders like Ant Group, Tencent, PayPal, Stripe, Klarna, and Revolut (co-founded by Ukrainian Vlad Yatsenko).
//Biz.nv.ua//
Monobank introduces International Card Delivery to 180 countries
Monobank, a leading Ukrainian bank, is now offering international card delivery to its customers.? This customer-friendly move demonstrates monobank's commitment to providing advanced services.
The number of individual entrepreneurs (FOPs) exceeded 2 million in Ukraine
As of Autumn 2023, Ukraine celebrates a milestone with over 2.05 million active individual entrepreneurs (FOPs). In June alone, a record 31,480 FOPs registered, averaging 25,000 monthly. While 290.91 thousand FOPs closed between April 2022 and September 2023, the resilience is evident. Frontline regions experienced losses, yet Kyiv and Lviv Oblast saw significant growth, adding +12.9 thousand and 12,300 entrepreneurs respectively. Dnipropetrovsk followed closely with +8.6 thousand new FOPs.
领英推荐
Investments
Companies ready to invest in Crimea after its de-occupation
During the 3rd Summit of the Crimean Platform, President of Ukraine Volodymyr Zelenskyy mentioned that both foreign and domestic major companies are prepared to invest in Crimea following its liberation from occupation. Several companies, including SkyUp, Vodafone, and EPAM, have expressed interest in investing in Crimea to transform it into an innovation hub. The focus is on rebuilding the IT industry, creating jobs, fostering entrepreneurship, and attracting investments. The goal is to develop modern digital infrastructure, economic zones, and education centers, aiming for Crimea's recovery and growth after de-occupation.?
Epicentr and Paravita Invest €10 Million in INTERSPORT Polska
Epicentr K LLC and Paravita Holding Limited are investing €1.684 million (PLN 7.848 million) into INTERSPORT Polska S.A., with the remainder pending antimonopoly approval. These funds will fuel business expansion, improving commercial offerings, sales, and operational efficiency. Despite facing a mid-year negative capital of PLN 20.777 million (EUR 4.669 million), INTERSPORT Polska emphasizes the agreement's importance for its continuity. A shareholder meeting on September 26 will decide the company's future, with the original €10 million investment agreement extended to accommodate the Polish antimonopoly regulator, UOKiK.?
Lviv Invests 430K EUR in processing enterprises
Lviv's city government has allocated UAH 17 million to provide compensation for entrepreneurs establishing processing enterprises, as reported by the Ministry of Economy. Under this grant initiative, local governments will co-fund a portion of the investment required from companies. The state covers 50% of the funding and half of the processing equipment costs, up to a maximum of UAH 8 million (202K EUR), while the remaining responsibility falls on the entrepreneur.
//ubn.news//
Respublika Park Shopping Center plans reconstruction opportunities in Ukraine
The Austrian investor behind the Respublika Park shopping center is poised to play a role in Ukraine's reconstruction efforts.? The company is committed to contributing to the country's recovery and infrastructure development. Tolstunov underlines that despite inherent risks, foreign businesses should explore investment opportunities in Ukraine, given its promising business landscape and significant potential. He emphasizes that early entry into this potentially lucrative market can enhance prospects for success and growth.
//ubn.news//
Kernel enhances oilseeds business sustainability with Chornomorsk Port Investment
Kernel has invested in assets for vegetable oil transshipment at the Chornomorsk port to enhance the sustainability of its oilseeds processing business. These assets, capable of storing 105,000 tonnes of sunflower oil, will enable uninterrupted processing plant operations during transportation disruptions. In the event of blockades at Ukrainian Black Sea ports, Kernel plans to use rail and road transport to redirect sunflower oil to the Danube River port, reducing logistics costs. If the ports are unblocked, these assets will serve as the primary deep-water transshipment base for exporting sunflower oil. The acquisition is subject to Ukrainian anti-monopoly supervision. Additionally, Kernel is acquiring 100% corporate rights in Reni-Oil LLC for EUR 21.74 million, providing a 15,000-tonne sunflower oil transshipment terminal in the Reni port.
EBRD Allocates EUR 182 Million for vital Lviv-Rava-Ruska road upgrade in Ukraine
The European Bank for Reconstruction and Development (EBRD) is providing a EUR 182 million loan to Ukraine's State Agency for Restoration and Development of Infrastructure to upgrade the Lviv-Rava-Ruska road near the Polish border.?
Originally intended for major highways, the funds have been redirected due to Russia's disruption of trade via Ukraine's Black Sea ports, causing increased land route traffic to the EU.?
The project aims to improve road conditions, enhance safety with barriers, and create bicycle infrastructure while supporting climate adaptation measures. This upgrade will strengthen transport links between Ukraine and the EU, reduce freight traffic costs, and facilitate vital goods' export and import, aligning with the Solidarity Lanes initiative amidst the ongoing conflict.?
Pragmatech Ventures Invests EUR 375k in Ukrainian Startup Pluspoint
Pluspoint is currently in the process of developing a tool designed for managing online brand reputation, as reported by AIN.UA. Among the startup's future plans are enhancing integrations with popular messaging platforms, adapting their product for new markets, and incorporating artificial intelligence features based on LLM technology.
Ukraine's Deposit Guarantee Fund adapts to the ongoing war
Despite Ukraine's ongoing conflict with Russia, the Deposit Guarantee Fund continues to effectively sell assets in 2023. Even with non-performing loans at EUR 12.6 billion in July, the Fund has past experience to manage the situation. Experts like Serhii Fursa are confident in the system's crisis management abilities, thanks to manageable debt levels. Ukraine is a global leader in converting assets from liquidated banks due to straightforward procedures. The Prozorro.Sales platform, used for seven years, plays a key role, with auctions generating almost EUR 119 million this year and over EUR 161 million since the start of the full-scale war. A "pilot project" introduces sector-based credit pools for auction. Funds from asset sales settle creditor claims.
Western Ukraine to launch five waste recycling clusters
Five waste recycling clusters are set to open in western Ukraine, as part of the Transcarpathian regional waste management plan. The APENA3 international project presented this initiative, aiming to make the region a leader in sustainability and attract investment for essential waste treatment infrastructure. Each cluster, covering six districts, will house sorting and processing facilities, with an estimated investment cost of UAH 4-5 billion each (EUR 100-125 million). The goal is to reduce waste disposal and enhance waste treatment, aligning with Ukraine's commitment to sustainable waste management during its reconstruction phase. Environmental assessments and legislative approval are required to proceed.
SCM Group Increases Investment in Ukraine by 25% to 321M EUR
Over six months, the SCM Group has raised its investment in Ukraine by a quarter, now totaling EUR 340 million. Capital investments by the Metinvest group have been channeled into furnace repairs at Zaporizhstal and Kametstal, as well as equipment restoration at the Kryvyi Rih GZK. Notably, significant efforts have been focused on advancing production infrastructure at Pokrovskuvigilla and the implementation of new pit mines.
ONGOING TENDERS
Restoration of heating, water supply, and sewage systems in the city of Irpin, Kyiv region
Opened: 11/09/2023
Closing: 25/09/2023
Link: nefco.int
Improvement of the quality of the provision of communal services work on solid household waste management, and emergency network repair in the community of Pervomaiskiy, Kharkiv region
Opened: 04/09/2023
Closing: 25/09/2023
Link: nefco.int
Recovery of water supply and wastewater system facilities in the urban village of Piskivka, Kyiv region
Opened: 22/08/2023
Closing: 26/09/2023
Link: nefco.int
The energy efficiency of buildings belonging to the territorial community of Slavutych
Opened: 21/08/2023
Closing: 29/09/2023
Link: nefco.int
Recovery of district heating, water supply and wastewater system facilities on the territory of Borodianka Village Territorial Community
Opened: 05/09/2023
Closing: 05/10/2023
Link: nefco.int
Invitation for Tenders – Capital repair of educational institution in the city of Makariv
Opened: 11/09/2023
Closing: 09/10/2023
Link: nefco.int
More tenders from Nefco: https://www.nefco.int/
IT & Tech
Cryptocurrencies in Ukraine's defense
The 2022 Russian invasion of Ukraine showed how cryptocurrencies can play a role in modern warfare. When Ukraine was facing financial difficulties, cryptocurrencies unexpectedly helped by supporting the country during the conflict. Prior to the invasion, Ukraine was a leading adopter of cryptocurrencies, driven by inflation and a lack of trust in local banks. After the invasion, Ukraine's government embraced crypto donations, raising $225 million within a year for various needs. Despite environmental concerns, Ukraine's unique energy surplus allowed for sustainable Bitcoin mining. The adoption of cryptocurrencies in Ukraine's defense signifies a wider trend in digital finance's evolution, impacting beyond borders.?
//Kyiv.independent//
GEEK Ventures Raises EUR 22 Million for Immigrant-Led Startups
Ukraine's GEEK Ventures secures a substantial funding to support immigrant startup founders in the United States. Spearheaded by partner Vadim Rogovsky, the venture fund plans to invest monthly in one to two immigrant-founded startups, with investments ranging from EUR 47k to EUR 0.94 million. As of August 2023, GEEK Ventures boasts a portfolio of 35 companies and aims to invest in 30 more over the next 18 months. Founded in December 2021, the fund, led by Ihar Mahanek and Vadym Rogovskyi, has actively supported startups with Ukrainian founders in the wake of Ukraine's crisis.?
//tech.ukraine//
Ukrainian Blockchain Startup Stroom Raises EUR 3.3 million
Ukrainian blockchain startup Stroom Network has secured EUR 3.3 million in funding to introduce "liquid staking" on the Lightning Network. The investment round was led by Berlin-based crypto firm Greenfield and included participation from various key players in the industry. Stroom's innovative protocol enables users to leverage their Bitcoin holdings on both the Lightning Network and Ethereum, earning routing fees and exploring yield opportunities. The company aims to address the lack of liquidity in the Lightning Network and contribute to Bitcoin's scalability. This funding will also support team expansion and the release of lnBTC, an Ethereum-based wrapped token.?
//tech.ukraine//
The IT Ukraine Association will present the Incredible Tech Catalog
On September 14, the IT Ukraine Association together with the Ministry of Digital will hold a presentation of the Incredible Tech catalog. The selection of companies for the catalog was carried out by an independent expert council, which included representatives of the Ministry of Digital, founders and CEOs of tech companies, and investors.
The project will help to promote the IT industry of Ukraine on the international market, raise awareness of the possibilities of Ukrainian IT, attract new investments in the industry and scale existing IT businesses.?
Important Events
2nd International exhibition & conference REBUILD UKRAINE. Poland, Warsaw, Expo XXI, 14-15 November 2023
Organizers invite expertise in infrastructure, industry, energy, and housing. This opportunity offers a deep understanding of reconstruction dynamics, enhanced visibility, and direct interaction with Ukrainian businesses and local communities.
IT Arena Tech Conference, 2023
IT Arena, the annual tech conference in Lviv, is gearing up for its 10th anniversary in 2023. From September 29 to October 1, attendees can expect more inspiring speakers, expanded global networking, and historic Lviv venues. Known for industry expert talks and a vibrant tech atmosphere, this year's event promises a special experience. Celebrating a decade of innovation and inspiration, IT Arena 2023 is set to surpass all expectations.