Large-scale privatization object in Ukraine

Dear all,

The State Property Fund of Ukraine, in line with the decision of the Cabinet of Ministers of Ukraine dated September 25, 2019 № 883-r, has completed preparations for privatization of the large-scale privatization object – JSC “United Mining and Chemical Company”. Auction for sale 100% of shares will take place in the third quarter of 2021 (late July).

This would be the first auction of large-scale privatization in the last many years, which is important for Ukraine’s economy, as well as a significant image basis for building Ukraine’s reputation as a country, which is open to large investments and foreign investors.

 

For More info click here

Presentations from the Development of Extractive Industries in Ukraine event

On April 22, 2021 CUCC in cooperation with US-Ukraine Business Council (USUBC) hosted a webinar “Development of Extractive Industries in Ukraine”. More information about the event, including a recording you may find here.

An event gained a big audience and as a response to numerous requests, we are posting the presentations of the event speakers:

1. Presentation by Sergiy Tsivkach, Executive Director of UkraineInvest

UkraineInvest

 

2. Presentation by Taras Yeleyko, Deputy Chairman of the State Property Fund of Ukraine

SPFU

 

3. Presentation by Roman Opimakh, Head of State Service of Geology and Subsoil of Ukraine

Derzhgeonadra

Should you have more questions please inquire at skavetskyi@cucc.ca

Statement on the case between TIU Canada and the Nikopol Ferroalloy Plant (NFZ)

The Canadian-Ukrainian Chamber of Commerce (CUCC) continues to closely monitor developments surrounding a lawsuit in which the Canadian renewable energy investor TIU Canada is defending its rights against the Nikopol Ferroalloy Plant in connection with the illegal shutdown of its Nikopol solar power plant from the power grid.

The company, also a member of CUCC, appealed the initial decision of the Commercial Court of Kyiv. The first hearing in the appeal process was supposed to take place on April 12, 2021, but was postponed due to the judge’s illness and a reported bomb threat towards the Northern Commercial Court of Appeal in Kyiv. The next meeting is scheduled for May 17, 2021, at 11.40 AM. According to TIU Canada, they are fully committed to asserting their rights, including with the Supreme Court of Ukraine.

As the largest Ukrainian Canadian business association, we cannot stand aside and express our hopes that the rule of law will prevail in this matter. What is also important is the continued public discourse this situation has gained abroad, especially in Canada, where high-ranking politicians have published direct statements on the matter. This continued attention may cause further negative impacts on Ukraine’s investment image and exacerbate the tendency to reduce foreign investment due to further negative signals regarding the investment climate.

We call on the Government of Ukraine to bring further attention to this case, promote equal conditions for doing business for all stakeholders in compliance with the norms and provisions set forth in the legislation of Ukraine. We also call on the Government of Ukraine to adhere to their own prior public statements on foreign investment protection.

Development of Extractive Industries in Ukraine

April 22, 2021, marked an unprecedented online discussion of 2021 development opportunities for Ukraine’s extractive industries sector between UkraineInvest, State Geologic and Subsoil Survey of Ukraine and State Property Fund of Ukraine and mining business representatives and investors.

The discussion was opened by Zenon Potoczny, President, Canada-Ukraine Chamber of Commerce (CUCC) and Morgan Williams, President/CEO, U.S.-Ukraine Business Council (USUBC) and moderated by Morgan Williams and Emma Turos, Managing Director for Ukraine, CUCC.

The event was attended by over 300 participants representing the North American and global investment community.

Sergiy Tsivkach, UkraineInvest’s Executive Director, made a presentation on the role and activities of UkraineInvest as an investment promotion agency and the institution designated to provide support for investment in Ukraine, as well as on investment climate improvements, recent regulatory developments, and work in the regions in various fields.

Roman Opimakh, Director General of the State Geological and Subsoil Survey of Ukraine presented investment opportunities in the subsoil sector of Ukraine and Taras Yeleyko, Deputy Head of the State Property Fund of Ukraine, made the presentation on state property privatization objects in Ukraine’s extractive industries sector.

The presentations were followed by a lively and candid discussion with the participation of three companies who already invested in operations in Ukraine and are at various stages of their projects. The business community noted the progress which Ukraine has made recently in oil & gas upstream, mining and other areas and confirmed interest in further exploring investment opportunities which Ukraine has to offer.

The top management of the state agencies and the business community agreed to continue discussion of and cooperation in resolving various issues which are important for international and domestic businesses alike to further improve Ukraine’s attractiveness for investment.

The recording of the event is available at USUBC’s YouTube channel: https://www.youtube.com/watch?v=Pv2fd5fvFKg

Kherson region of Ukraine presentation

Dear all,

We would like to share with you the presentation of the Kherson region of Ukraine that was shared with the CUCC during the International Council of Business Associations and Chambers (ICBAC) where our Managing Director-Ukraine Emma Turos is currently serving as a General Secretary.

Should you have any questions regarding the presentation or would like to contact Kherson region investment office, please contact our team at info@cucc.ca

3. Презентація Херсонської області_eng

Ukraine-Canada Opportunities information session

Friends,

We would like to invite you to the online information session “Ukraine-Canada Opportunities”, organized by CUCC in partnership with the Province of Manitoba, Canada and WTC Winnipeg, that will take place on March 03, 2021, at 18.00 CET (10 AM CST). This event is addressed first of all at the Canadian business but may be of interest for Ukrainian entrepreneurs as well. Speakers are the representatives of Ukrainian Embassy in Canada and the Canadian Embassy in Ukraine, AGI, UkraineInvest and the CUCC team. To find out more, click the link

We would like to take this opportunity and announce the next online event with the Province of Manitoba, which is aimed at Ukrainian businesses and will take place at the beginning of April. More details on this event will follow.

President of Ukraine Volodymyr Zelenskyy signed the law on Investment “Nanny”

Today, on February 10, 2021, the President of Ukraine signed the Law “On State Assistance to Investment Projects with the Significant Investments in Ukraine”.

The Law is aimed to increase state support for large investment projects exceeding EUR 30 million and lure international business to the country.

The law will offer tax benefits to big investors and provide them with so-called “investment nannies,” managers who will help them communicate with state officials, provide advice and generally help them navigate Ukrainian bureaucracy.

The law will focus on the following sectors:

  • processing industry (with some exceptions);
  • infrastructure;
  • waste management;
  • logistics;
  • education, science;
  • healthcare;
  • sports and tourism

Investors will also be able to have money allocated from state or municipal budgets to build the infrastructure needed for an investment project, including highways, communication lines, heat, gas, water and electricity supply facilities, and utilities. The total amount of state support won’t exceed 30% of the investment in a project.

https://www.president.gov.ua/news/prezident-pidpisav-zakon-shodo-derzhavnoyi-pidtrimki-investi-66453

Emma Turos, CUCC and ICBAC members met with the Head of State Property Fund of Ukraine Dmytro Sennychenko

The meeting was dedicated to discussion of a proposed amendments to the Law of Ukraine “On State Property Fund of Ukraine” and other legislative acts of Ukraine to promote investment through privatization and lease of state property”.

The purpose of the bill is to accelerate privatization by: improving the institutional mechanisms of privatization, establishing an efficient organizational structure of State Property Fund of Ukraine and clarifying certain aspects of legislation concerning privatization and corporate governance of state assets to ensure effective and responsive management while an SOE is being prepared for privatization.

According to Dmytro Sennychenko, Head of State Property Fund of Ukraine, suggested novelties will allow to protect state property rights, interests of foreign investors and make the privatization procedure more user-friendly. The Fund expects to attract a record sum of 12 bln UAH from privatization in 2021.

We will continue to follow the news on this.

More info on this meeting (in Ukrainian) http://www.spfu.gov.ua/ua/news/7179.html

Investors ready to support Dnipro river development

The EBRD and EIB intend to invest up to 50 million euro in the development of the Dnipro river as transport route. The institutions announced this yesterday at the conference ‘Dnipro as European Waterway’, hosted by the Netherlands embassy in Kyiv and the Ministry of Infrastructure of Ukraine. During the conference, taking its participants to the river on the boat ‘Silver Wave’, Ukrainian government representatives, members of parliament, international water experts, business and the International Financial Institutions (IFI) discussed the potential of the Dnipro river for transport.

‘With a booming agricultural industry, there is great challenge for the Ukrainian transport and logistics network to facilitate its potential. Ukraine has a unique asset which could allow it to become a strategic part of the European economy: the mighty Dnipro river,’ the Dutch Ambassador Kees Klompenhouwer said opening the conference. To which Mrs. Ivanna Klympush-Tsintsadze, Deputy Prime Minister of Ukraine for European and Euro-Atlantic Integration, added: “In addition to unloading roads and railways, the development of inland water transport will promote the ecologization of transportation by reducing road transport emissions. It is also one of the priorities of the Association Agreement between Ukraine and the EU.”

In order to identify the prerequisites to develop the river Dnipro for transport, the Ministry and Dutch Embassy started the ‘Dnipro Development Initiative’ in September 2016, after the US Army Corps of Engineers did a study of the locks. The EIB, EBRD and EU delegation were quick to join, doing different prefeasibility studies that potential investors will need in order to consider investments. Also the World Bank’s transport program for Ukraine is contributing.

Deputy Minister of Infrastructure of Ukraine Nadya Kaznacheeva, explained: “One of the projects was the study of the feasibility of implementing a public-private partnership in the port of Kherson and the development of the lower part of the Dnieper. The development of a pre-feasibility study, completed in late March 2017, was undertaken by international companies Royal Haskoning, Rebel Group and others with the support of the World Bank Group. Any development plan begins with an ambitious goal. Therefore, the Ministry of Infrastructure and the Government of Ukraine have the goal: to create as soon as possible all necessary conditions for attracting private investors to the river and implementing the Dnipro River Development and other Inland Waterways Initiative “.

These studies are the stepping stone for investments in the river, that will boost the economy. In order to benefit in full and attract real investments, Ukraine needs to embrace the development of the river and make the necessary adjustments to the governance structure on the river.

“The priority tasks facing the Ministry of Infrastructure of Ukraine are the adoption of the Law on Inland Water Transport, the introduction of norms and standards of the European Union on the rivers of Ukraine, dredging of rivers and sustainable financing for the maintenance of river infrastructure. These successive steps will allow Ukraine to increase the volume of freight, attract world investors to the development of the river infrastructure of Ukraine, which in turn will strengthen the country’s economy, “said Victor Dovhan, Deputy Minister of Infrastructure of Ukraine.

According to the experts from The Netherlands and the European Union, the river is indispensable in a healthy multimodal transport network for Ukraine. To keep in pace with the agribusiness and facilitate economic growth, infrastructure and logistics need to be modernized. This is recognized by businesses that are already investing in the river, but also by the IFI’s. Both are ready to invest in the river, as soon as the government develops the right river management structure.

The way to get there rests on a very simple principle: freedom of navigation and creating a level playing field between modes of transport. By setting the governance conditions right, Ukraine can unleash the market forces that will enable the technical improvements of the river infrastructure that are long overdue. This does mean however, that Ukraine first needs to invest in the river itself,’ Dutch experts point out.

Eventually the Dnipro river can even become part of the Trans European Transport system, E40 Rhine-Danube-Black Sea, A7 Dnipro, Pripyat, Baltic Sea. This idea was supported by Mr. Daniel Jacques, of the European Commission in Brussels. With support of the EU’s neighborhood policy and the implementation of the Association Agreement, Ukraine’s biggest river can meet the international standards of navigation. The Dnipro as part of the European infrastructure, is then more than an idea. It is a dot on the horizon.

Source: mtu.gov.ua

South Korea plans to invest in 4G and 5G development in Ukraine

The Republic of Korea announced plans to invest in the development of digital infrastructure for 4G and 5G network capability in Ukraine. This was reported by the Press Service of the Ministry of Economic Development after the meeting of First Vice Prime Minister of Ukraine Stepan Kubiv with Korean Ambassador Li Yang Gu and representatives of the Korean Investment Corporation K-Growth.

“The volumes of mutual trade and investment in Ukraine by the Republic of Korea are not yet significant. It’s time to change this situation and develop effective cooperation, especially in the development of information infrastructure for 4G and 5G in Ukraine,” Kubiv said.

According to him, cooperation is one of the overriding priorities of the work of the government and the Ministry of Economic Development, and Korea is an acknowledged world leader in mentioned field.

Towards the end of 2016, Ukraine began working on the development of 5G communication. Local mobile operator LifeCell and manufacturing companies Ericsson and Huawei, which produce equipment for communication networks, announced the joint development of the fifth generation communication standards.

Source: uawire.org