The following is the June 25, 2024 edition of our Ukraine Business Roundup weekly newsletter. This version is condensed as the author was out of the office. To get the biggest news in business and tech from Ukraine directly in your inbox, subscribe here.
Ukraine received practically no external financing in May
According to the Center for Economic Strategy, Kyiv based think tank, Ukraine's only external financing in May was a $20 million loan from the World Bank.
The situation should improve in June, with Ukraine receiving $2 billion from the EU and $2.2 billion from the IMF, the Center for Economic Strategy wrote.
In July, Ukraine is set to receive revenue payments from Russian frozen assets. "The first tranche of money will come next week, in July. The second will come some months later," said Josep Borrell, European Union's top diplomat.
EU prolongs transport deal with Ukraine on revised terms
On June 20, the European Union agreed to extend the agreement on freight transportation with Ukraine for one year, until June 30, 2025, with the option to extend it until the end of 2025.
Signed in June 2022, the agreement cancels the need for Ukrainian freight carriers to obtain permits to enter EU countries. Likewise, carriers from EU member states can import goods to Ukraine without permits.
Some adjustments were made following the recent trade disputes between Ukraine and its EU neighbors.
Now, all trucks that enter the EU following this scheme will receive a proper marking, drivers will require transportation license or other supporting documents, while carriers that enter the EU on empty trucks must require paperwork that shows their future shipment plan.
Parliament launches 'trustworthy business club,' promises less checks
On June 18, Ukraine's parliament passed a law creating a list of companies with a high level of voluntary compliance with tax legislation.
The list will prioritize companies that pay salaries and taxes transparently and keep their books clean. Companies that make this list will be subject to fewer checks by government authorities, according to the new law.
"Today, 5,000 enterprises are automatically included in this club. The list and the list of criteria that must be met will soon be published on the State Tax Service website," said Danylo Hetmantsev, the head of the parliament's tax committee.
Parliament relaunches Economic Security Bureau
On June 20, Ukraine's parliament passed the long-anticipated bill that reboots the Economic Security Bureau. The bureau was established in 2021 to replace the old state agencies that investigated white-collar crime and were suspected of being corrupt. But the new entity soon faced a similar fate, with its detectives suspected of taking bribes to turn a blind eye to illegal gambling, among other crimes.
Now, the bureau will be relaunched under the rules that are set to guarantee its quality and independence: its chief will be selected by a committee dominated by international experts; procedures will be put in place to secure the chief's independence; the bureau's detectives will be vetted.
Polish taxi market in chaos, following new restrictions
From June 24, the Polish taxi operators – Bolt, Free Now, and Uber – began laying off thousands of foreign workers following a new restrictive measure introduced by the country's parliament.
A new amendment to the Road Transport Act banned companies from hiring drivers without a Polish driving license and those who have been in Poland for less than 185 days.
According to Wprost news outlet, major cab providers have lost from 15 to 25 percent of their drivers following the new legislation. According to the Polish Social Insurance Institution, Ukrainians make up two thirds of all legal foreign workers in the country.
Over 30 new wind power projects to be launched in Ukraine
Artem Nekrasov, acting director of the Guaranteed Buyer state energy enterprise, said that estimated launch dates for some of these projects are in the next few years.
According to Nekrasov, most of these projects were launched before the start of the war. He added that the projects are financed by Ukrainian, Turkish, and German investors.
IAEA supports construction of new reactors at Khmelnytskyi Nuclear Power Plant
Rafael Grossi, director general of the International Atomic Energy Agency (IAEA), said that he supports the construction of new power reactors to expand the Khmelnytskyi Nuclear Power Plant.
"We are in contact about how the agency can support these plans. We believe that these are very timely plans," Grossi said in an interview with Ukrinform.
Ukraine currently operates nine nuclear reactors at three power plants, while the fourth and largest – Zaporizhzhia Nuclear Power Plant (six reactors) – is occupied by Russia.
Jysk to open more stores in Ukraine
Danish retail chain Jysk, selling household goods, will open its 100th store in Ukraine in August. Currently, the company owns 97 stores in Ukraine.
"In June, 17 new Jysk stores are planned to open in 12 European countries. Ukraine is part of this expansion. We already opened two new stores this month," Yevhen Ivanitsa, the company's regional director, said.
Ukraine's Nova Poshta wins top postal service award back-to-back
The World Post and Parcel Awards has named Nova Poshta as the postal operator of the year.
"Despite operating in a warzone, they increased their network in Ukraine by 20% last year, opened 2,242 branches, and installed 1,853 parcel lockers to offer 27,000 service points in over 10,000 settlements across Ukraine, even in front-line cities," the official statement said.
Created in 2001, Nova Poshta, known as Nova Post outside Ukraine, is the country's largest private postal service. It's also one of two main postal service providers in Ukraine, the other being state-owned Ukrposhta.
