Articles Economics

The Ukrainian authorities gave start to the heating season, the European Union put forward new conditions for Ukraine to obtain macro-financial assistance, while the government promised to find incentives for the development of national industry in the hope to accelerate the economy growth.

Ukraine’s Minister of Infrastructure has told in an interview with UNIAN about projects that will see funding from a $1 billion loan, plans to increase rail fares, and performance of CEOs of Ukrainian Railways [Ukrzaliznytsia] and Ukraine’s State Postal Service [Ukrposhta].

The International Monetary Fund issued its recommendations to Ukraine on how to preserve growth of the country’s economy. Despite the advice, the Parliament extended for one year a moratorium on farmland sales. It also passed a bill enhancing the fight against raiding. These are the main economic news of the past week.

The International Monetary Fund has published an updated list of recommendations to Ukraine in the framework of a four-year reform program. The list of requirements is very tough. A new fourth loan tranche worth $1.3 billion is at stake. However, Kyiv is at risk of having the disbursement delayed, because one of the key requirements - the launch of the land market - has "failed" to be fulfilled.

Chairman of the Agrarian Party of Ukraine Vitaly Skotsyk in an interview with UNIAN has told what the farmers actually demand in their strikes, what strategic error the ministers make the government make by changing tax rules for agribusinesses, and how many billions the budgets of various levels will lose if the dysfunctional policy is implemented.

On October 4, the Ukrainian Parliament finally adopted several important environmental bills. Unfortunately, there was no "amber" draft law among them, which has for over several years been so much craved for in Rivne, Zhytomyr, and Volyn regions known for their rich amber deposits.

After the Revolution of Dignity in Ukraine, China has become the country’s increasingly important trading partner. Against the backdrop of its slowing economy, China is implementing an ambitious infrastructure project titled "Silk Road", designed to connect Europe and Asia economically. Ukraine could become a strategic part of this initiative.

Serious orders were given to the head of Ukraine’s Fiscal Service, the national energy and utility regulator raised electricity tariffs for the industry, and the hearings began in Stockholm arbitration into the lawsuits of Ukraine’s Naftogaz and the Russian Gazprom - these are the main economic news of the past week.

The director of the EBRD office in Ukraine in an exclusive interview with UNIAN told what reforms are expected from the Ukrainian Government and what will be a key success factor in the country’s investment policy.

The Ukrainian government is introducing an experiment from October 1, canceling state regulation of food prices. This immediately sparked speculations over a possible increase in prices for bread and other socially significant products. In turn, the Cabinet explains that this step will reduce the pressure on business while not affecting the prices.

Ukrainian businesses are looking forward to the moment when the government adopts the new tax rules for 2017. The Finance Ministry pledged not to look down on anyone in particular. Tax rates will remain untouched, so this mini-reform will boil down to enhancing the administration of taxes. At the same time, the powers of the fiscal authorities will be cut back, while small businesses will even be granted “tax holidays”.

After a year's lull, a tap of external funding has opened for Ukraine; the parliament began its consideration of a draft state budget for 2017; while the Cabinet deprived the Economy Ministry of control over Naftogaz - these are the main economic news of the past week.

Traditions are changing in Ukraine - after many years of adopting the state budget on New Year’s eve, the country can actually do it within the required terms and pass the main financial document before the end of autumn. Experts assess the project positively, while legislators get ready for a heated debate. Meanwhile, Prime Minister Volodymyr Groysman has vowed not to let the budget process be turned into some "Pokemon show".

Executive Directors of the International Monetary Fund decided to disburse the third tranche of the loan for Ukraine, the National Bank eased forex restrictions and lowered the discount rate, while the Government has tabled in Parliament a draft budget for 2017- these are the main economic news of the past week.

Social Policy Minister Andriy Reva in an interview with UNIAN has told who can apply for a subsidy this winter, who can be deprived of it and why, and also about the fact that the state cannot secure all the assumed social obligations.

The International Monetary Fund has finally set a date for the meeting on the Ukrainian issue; the Ukrainian president in his annual address to the Verkhovna Rada has outlined priorities for the country’s international and economic policy; while the hryvnia exchange rate continues to rock - these are the main economic events of the past week.

Volodymyr Groysman’s Cabinet announced plans for a large-scale sale of state-owned enterprises. But for their realization, after two years of various setbacks, the government will have to show remarkable ingenuity, in order to both prepare the SOEs for privatization, and refute the populists in parliament.

The Ukrainian Government has announced it is drafting a package of incentives for the revival of the national economy and hinted at the rigidity of the draft state budget for 2017; consumer prices fell again; while Europe showed interest in the Ukrainian gas transportation system – these are the main economic news of the past week.

The visit of the Ukrainian authorities to Malaysia and Indonesia resulted in reaching agreements on trade liberalization and the establishment of business contacts – the important steps aimed to diversify markets under the conditions of hybrid war with Russia.

The Ukrainian banking system has survived a deep crisis and needs investment to grow. It is actually best to buy when the market is at the bottom. But the experts doubt that in the current realities, the investors are willing to take a chance and buy Ukrainian banks.