Week's balance: New front against Gazprom, forex easing, and new tax service chief
Naftogaz of Ukraine has opened a new front in its battle against Russian Gazprom, the National Bank raised the bar for the withdrawal of dividends by foreign investors, while the Cabinet of Ministers appointed a new head of the Tax Service – these are the main economic news of the outgoing week.
Not just grains: Ukrainian food products conquering world markets
Last year, Ukrainian producers exported agrarian products worth a record $19 billion. And although the lion's share of the supply remains raw export, domestic ready-made food products can already be found on the shelves of foreign retail chains. But for Ukraine to obtain the prestigious status of a "global supermarket," farmers and the government still have a lot of work to do.
Week's balance: Lower gas tariffs, punishment for utility debtors, and international defense cooperation
Naftogaz of Ukraine, at the government insistence, reduced by 3.5% gas tariffs for households; the new law on housing and utility services tightened sanctions against those failing to pay utility bills; while the country's defense industry boasted of success reached in international cooperation – these are the main economic news of the outgoing week.
Week's balance: Businesses voice wishes to Zelensky, Statistics Service reports increase in industrial output, and National Bank lowers key rate
President-elect Volodymyr Zelensky through his advisors told about his vision of economic policy; businesses and investors voiced their expectations from the new head of state; Deputy Finance Minister Serhiy Verlanov won the competition for the position of head of the Tax Service; the State Statistics Service reported growth in industrial output n in March; while the NBU, for the first time in the last two years, lowered its key rate and improved a number of macroeconomic forecasts – these are the main economic developments of the outgoing week.
Elections, IMF: What to expect from Ukrainian hryvnia
The Ukrainian hryvnia responded to the completion of the presidential election by slightly sliding down. But there is one more political battle ahead – parliamentary elections. In addition, due to a number of reasons, continued cooperation with the main creditor - the International Monetary Fund – could become an issue. UNIAN figured out what to expect from the national currency this year.
President-elect Volodymyr Zelensky: Face to face with old economic problems
Ukrainians have chosen their new president, the 41-year-old showman and actor Volodymyr Zelensky. According to the Constitution, the head of state does not directly oversee economic processes, but his policies should be in tune with the steps of the executive and legislative branches to address key economic problems. After polling a number of experts, UNIAN made an outline of the economic agenda of the new president.
Week's balance: Last warning to Kobolyev, victory of Ukrnafta and re-nationalization of PrivatBank
Prime Minister Volodymyr Groysman threatened with dismissing CEO Naftogaz, Andriy Kobolyev, if the company fails to reduce gas prices for the households before April 24; Ukrnafta won a court dispute with Russia to recover compensation for assets in the occupied Crimea; and the District Administrative Court of Kyiv recognized the illegal decision to nationalize PrivatBank – these are the main economic news of the last week.
Week's balance: Slower inflation, IMF forecast, and new sanctions against Russia
The State Statistics Service reported on a slower pace of inflation, Ukraine's key creditor, the International Monetary Fund, released its forecast of the country's economy prospects, while the government introduced another set of sanctions against the aggressor state, Russia – these are the main economic news of the outgoing week.
"Transit" loss in WTO: Is revenge possible?
Ukraine lost a “transit” dispute with Russia within the World Trade Organization. The WTO rejected the claims of our country, although the actions of the Kremlin practically deprived Ukraine of direct trade links with Central Asia. The fiasco in trade disputes is the third in a row for us. Why is this happening and is it possible to fix the situation?
Week's balance: markets calm following first round of elections, gas tariffs down, promises voiced of new forex easing
As the country's financial markets retained their calm following the first round of presidential elections experts expect this trend to prevail with any outcome of the runoff; the Cabinet of Ministers instructed Naftogaz to reduce the gas price for the households, while the National Bank promised another wave of forex liberalization - these are the main economic developments of the outgoing week.
Week's balance: Easing for businesses, launch of the Energy Efficiency Fund, and pre-election calm in markets
The Cabinet of Ministers made another step to simplify the conditions for doing business in Ukraine, the Energy Efficiency Fund started financing its first projects, while experts talked about the possible influence of presidential elections on the Ukrainian financial market – these are the main economic news of the outgoing week.
Week's balance: Kobolyev retains post, Ukraine launches new sanctions against Russia, and starts search for heads of tax and customs agencies
After a short delay, the Cabinet of Ministers extended for another year the contract with Naftogaz CEO Andriy Kobolyev and launched the search for the heads of the tax and customs agencies, the president issued a decree expanding the sanctions package against the aggressor state, Russia, while the State Statistics Service pleased Ukrainians with the data on economic growth in 2018 – these are the main economic news of the outgoing week.
"Quiet" IMF mission. What awaits Ukraine
The IMF mission left Ukraine "quietly" - without official statements about future cooperation. At stake are two tranches that are very important given the repayment of billions of dollars in debts scheduled for this year. The National Bank and the Ministry of Finance say there is no need to worry – everything goes according to schedule. Experts are less optimistic – the inflows may be delayed, which means that pressure on the hryvnia exchange rate is inevitable.
Week's balance: Laconic IMF, cautious National Bank, and new loans
The mission of the International Monetary Fund completed its work in Kyiv, the National Bank once again did not dare to lower its key rate, while the government continued to raise social standards and take new loans ahead of the elections – these are the key economic news of the outgoing week.
Hryvnia exchange rate: What to expect during election year
Since year-start, the Ukrainian hryvnia has strengthened against the dollar by a record 4%. This was facilitated by a number of seasonal factors - non-residents buying up domestic securities, the start of a planting season, and the repayment by businesses of tax obligations for 2018. However, on March 13, the national currency sharply lost its positions. Rumors immediately emerged of the impending devaluation. UNIAN learned from experts what to expect from the hryvnia exchange rate this year.
More lethal aid from U.S.: How Ukraine can respond to Russia's aggression
Amid the escalation of Russian aggression in the Black and Azov Seas, the United States is considering providing Ukraine with more lethal defensive weapons. UNIAN learned about the possible options of supplies and whether to expect a "response" on the part of the Kremlin.
Week's balance: Farewell to Kobolyev, fiscal service reform, and new wave of deregulation
The Cabinet of Ministers refused to renew the contract with Naftogaz CEO Andriy Kobolyev, the reform of the fiscal service has finally moved from a standstill, the government abolished 149 business regulations, while hryvnia further strengthened – these were the main economic developments of the outgoing week.
Groysman-Kobolyev row playing in Kremlin's hands
The "salary spat" between Prime Minister Volodymyr Groysman and top managers of Naftogaz escalated to the government’s refusal to renew the contract with CEO, Andriy Kobolyev. The latter stated that the Cabinet's actions were unlawful but did not specify his further moves. The whole situation is now in limbo. Experts suggest there is some pre-election fleur to it, but this will only play into the hands of Russia's Gazprom.
Week's balance: Slower slide of industrial output, election "gifts" to pensioners, and restrictions on cash payments
The State Statistics Service reported a slowdown in industrial output in January, the government allocated one-time “assistance” to pensioners on the eve of elections, while the National Bank announced its intention to impose restrictions on B2C cash payments – these are the main economic news of the outgoing week.
Week's balance: Attack on shadow employment, end of preferences for owners of cars on EU plates, and green-lighted inspections at regional gas distribution companies
The Ministry of Social Policy is initiating new restrictions on contracting "individual entrepreneurs" instead of fully hiring them; the grace period for customs clearance of cars with EU plates has ended; while the regulator has been allowed to inspect regional gas distribution companies over additional charges to their customers for gas consumed – these are the main economic news of the outgoing week.