Week's balance: Economy accelerating, government lowering electric tariffs for industrial consumers, while non-residents putting bond purchases on pause
The State Statistics Service reported on a faster growth of the Ukrainian economy in 1H 2019, the Cabinet allowed reducing electricity tariffs for industrial enterprises, and non-residents suspended the purchase of Ukrainian government loan bonds – these are the main economic developments of the outgoing week.
New Old Reform: What economic changes are coming to Ukraine
President Volodymyr Zelensky announced the priority steps of Ukraine authorities to boost economic development. UNIAN has learned about the expected transformations awaiting the country in the near future.
Week's balance: Zelensky vows economic growth and launch of land market, water utility companies put forward their ultimatum, while gas tariffs are once again reduced
President Volodymyr Zelensky has promised to accelerate Ukraine’s economic growth and launch a full-fledged land market in 2020, Naftogaz announced another reduction in gas tariffs for the households, and water utility companies several weeks after the start of the electricity market reform demanded that electricity tariffs be reviewed, threatening to introduce hourly water supplies – these are the main economic developments of the outgoing week.
Russia in litigation siege. Can Naftogaz receive compensation for assets lost in annexed Crimea
Naftogaz, in its lawsuit, told The Hague court that the estimated losses from the seizure by Russia of the group’s assets in Crimea stood at $5.2 billion. Naftogaz expects that the international tribunal will hand down a verdict no earlier than late 2020. UNIAN learned whether the state-owned company would be able to receive compensation from the Kremlin, even if the court’s awards are in favor of Ukraine.
Week's balance: Ukraine prepping up for winter, hryvnia strengthening, and EBRD allocating EUR 250 mln for public transport purchase
The Ministry of Regional Development reported on Ukraine’s readiness for the heating season, non-residents' demand for domestic government bonds strengthened the hryvnia, while the European Bank for Reconstruction and Development allocated a number of loans to Ukraine, including EUR 250 million for municipalities to buy new vehicles – these are the main economic news of the past week.
Week's balance: Naftogaz reduces prices, hryvnia strengthens, while industrial output slides
Naftogaz of Ukraine promised in August to significantly reduce gas prices, the State Statistics Service reported a decline in industrial production in June, while the hryvnia strengthened on the outcome of parliamentary elections – these are the main economic developments of the outgoing week.
New parliament: Five parties and hundreds of promises. How will they affect wallets of Ukrainians
The outcome of the early parliamentary election to the Verkhovna Rada shows that five parties have made it to Parliament. All of them are political forces with distinctive leaders. That is, the Ukrainians again voted for specific "persons" and public promises, not for action plans. Although it is the action plan, especially its economic aspects, that will reflect on the wallets of every citizen.
Week's balance: NBU improves outlook, lowers key rate, finance ministry boasts of record borrowing, and customs agency receives official status
The National Bank announced improved economic development forecasts and decided to reduce the key rate, the Ministry of Finance held this year's record placement of domestic government loan bonds, while the renewed customs agency received official status and began its work – these are the key economic news of the outgoing week.
Week's balance: Launch of energy market, forex easing, and Nefyodov starting war against shadow businesses
A new model of the energy market started operating in Ukraine, the National Bank went for another forex deregulation for businesses, while the Cabinet approved First Deputy Minister of Economy Maksym Nefyodov at the post of the country's chief customs officer, handing him an "order" to start war against shadow businesses – these are the main economic news of the outgoing week.
New face of Ukrainian customs
The new customs chief has been appointed. It's former first deputy minister of economic development and trade, Maksym Nefyodov. A young official with a reputation of a reformer announced large-scale changes to turn customs into a European-style body without corruption and with full digitalization of control routine.
Week's balance: industrial output slows down, reformer Nefyodov appointed head of customs, National Bank says goodbye to small coins
The Cabinet has managed to complete the contest for the post of new head of the customs service and after two months of judicial struggle appointed reformer Maksym Nefyodov to this position, the State Statistics Service reported a slowdown in industrial output, while the National Bank announced the introduction of a new UAH 1,000 banknote and a withdrawal from circulation of small coins – these are the main economic news of the outgoing week.
Putin greenlights transit of Ukrainian goods. What pitfalls should Kyiv expect
Russia allowed transit by road and rail of Ukrainian goods through its territory, which has been banned since 2016. The condition is the use of GLONASS satellite tracking technology, as well as registration coupons. Experts do not believe in the "good intentions" of the northern neighbor – everything that Russia is doing always has a clear and goal that is far from being kind to Ukraine.
How conflict between Cabinet and Naftogaz helps Russia tighten gas noose on Ukraine's neck
A long-lasting conflict between Volodymyr Groysman's government and Naftogaz has moved to a new stage of aggravation. Now it is spinning against the Cabinet's decision on Naftogaz restructuring. The spat is being fueled by the lack of funds for pumping gas into underground storage facilities in excess of the usual volume, which is necessary to remove the risk of Russia's halting gas transit via Ukraine from January 1, 2020.
Week's balance: Zelensky vows business liberalization, NBU cancels mandatory sale of forex proceeds, while state budget gets EUR 1 bln
President Volodymyr Zelensky promised Ukrainian business leaders to liberalize the economy and improve business climate, the National Bank decided on a historic step to abolish the mandatory sale by exporters of foreign exchange proceeds, the state budget was replenished by EUR 1 billion after a successful placement of foreign government bonds, while the statistics agency improved the outlook for GDP growth in the first quarter – these are main economic news of the outgoing week.
Week's balance: Ukraine issues bonds worth EUR 1 billion, inflation shows rise, while Constitutional Court alters status of energy regulator
Ukraine for the first time in fifteen years issued euro-denominated bonds, the State Statistics Service reported accelerating inflation, the Cabinet approved Ukrzaliznytsia's development strategy until 2023, and the Constitutional Court caused a storm with its decision to recognize unconstitutional a number of provisions of the law on the energy regulator – these are economic news of the past week.
Debt pressure: borrowing again to pay back previous "loans"
The Ministry of Finance is going to borrow in the foreign market, again. They have announced the next issue of Eurobonds. No specifics have been revealed yet about its parameters. Details are being discussed with Ukraine's Western partners. But the main thing is that our country will get into more debts to settle on the previous ones worth billions.
Gas conflict between Cabinet and Naftogaz: Will Ukrainians have heat in their homes this winter?
Another conflict has erupted between the Cabinet and Naftogaz. This time it broke out against the background of the purchase of gas for the passage of the future heating season, taking into account the risk of a halt to the transit of Russian gas from January 1, 2020. Naftogaz said it had no money for these purposes. In turn, the government believes that the issue of the shortage of funds should be resolved by Naftogaz's "creative" management, which over the past three years has increased tenfold the expenditures on the company's management.
Week's balance: Cabinet "freezes" electricity tariffs for households, obliges Naftogaz to reduce gas prices, while National Bank keeps key rate unchanged
The government has passed a resolution that would retain electricity prices for the households at their current level until the end of 2020, and obliged Naftogaz to reduce by UAH 800–900 the cost of natural gas, while the National Bank ruled to keep the key policy rate unchanged to prevent inflation risks. These are this week's major economic developments in Ukraine.
Valeriy Makovetskiy: How Foxtrot pays taxes and teaches Ukrainians how to control the state
Valeriy Makovetskiy and Gennady Vykhodtsev are co-founders and leaders of the Foxtrot Group of Companies who have not only created a brand with a 25-year history, but have also set the example to Ukrainian businesses as a responsible taxpayer.
"Gas" plans: What will Ukraine do if Russia stops transit
Naftogaz has planned to pump additional gas volumes into underground storage facilities by the heating season, 3 billion cubic meters more than usual. This will be a kind of insurance if Gazprom from January 1, 2020, blocks the transit through our territory. But are there enough stocks and how can we pay for them?