Office of the National Investment Council of Ukraine presents weekly reports as handy tools to keep track of the key news in business and investment climate in Ukraine and the world. The following report covers events dated May 27-June 2, 2019

1. WEEKLY REPORT
May 27th → June 2nd, 2019

2. On May 31, the Ukrainian-Estonian Chamber of Commerce (UECC) started to work in Tallin to
facilitate the establishment of a partnership between the two countries. The Chamber, together
with the embassies of both sides, will collect information on the investment climate between
Estonia and Ukraine, legislation and bilateral business contacts
The average salary in Ukraine has grown by USD 170, from USD 210 in December 2015 up to
USD 380 in April 2019. In April in private sector the average salary was nearly USD 438,
accounting for about UAH 11,700 (at the exchange rate of the National Bank of Ukraine)
The session of the Inter-Parliamentary Assembly of the Verkhovna Rada of Ukraine, the Seimas
of Republic of Lithuania and Senate of the Republic of Poland will be held in Kyiv on June 7-8
Following the last meeting of the National Security and Defense Council on May 31, the launch of
the new electricity market on July 1 was mentioned as envisaged by current legislation and
possible, and therefore it is necessary to make the necessary arrangements for its launch
Ukrainian agriculture companies have completed the grain sowing season. The sown area
totaled 14.8 million ha which is almost the same as in 2018, but this year’s harvest can exceed
last year’s record crop of 70 million tons
The NBU has expanded grounds and rules of taking disciplinary actions on banks aiming at
enhancing the protection of interests of depositors and other creditors of banks and in relation to
the introduction of additional requirements to banking operations. Updated version of regulation
provides measures for non-compliance of banks with the obligatory economic standard –
liquidity coverage ratio (LCR), as well as for non-compliance with the requirements regarding the
procedure for the formation and storage of reserves to cover foreign exchange derivatives
(forward and futures contracts)
WEEKLY REPORT May 27th → June 2nd, 2019
Business climate in Ukraine
GDP growth +3.3%
Export $14,905
Import $16,918
Industrial output -0.9%
CPI 8.9%
Oil
Coal
Natural
Gas
Iron Ore
Copper
Corn
Wheat
USD/bbl
USD/ton
USD/MWh
USD/ton USD/bushel
2018, y-o-y
Jan - Jan 2019
Jan-Jan 2019 y-o-y
Jan – Jan 2019
Jan-Jan 2019 y-o-y
Jan - Feb 2019, y-o-y
Feb 2019
Macroeconomic indicators
Jan - Mar 2019, y-o-y
Mar 2019
UAH/USD (NBU, average) 26.34
Source: Ukrstat, NBU
64.49
55.55
13.46
98.76
USD/ton
USD/bushel
5806.00
4.27
5.03
million
+7,8%
+7,3%
+2,1%
8,8%
million

3. Guris, the leading Turkish renewables holding, plans to invest in construction of 120
MW wind farm in Zakarpattya region. Total investments are about USD 120 million.
Guris is implementing energy projects in different countries around the world. The
total capacity of all power plants built by company is about 4 GW
Dragon Capital announced the sale of its entire stake in Chumak, Ukrainian leading
producer of processed food products, to Delta Wilmar – subsidiary of Wilmar
International, one of the leading Asian agriculture business groups
Ukrainian agricultural holding AgroVista received a 7-year EUR 7.2 million credit line
from German Landesbanken and will invest in the purchase of German equipment,
reconstruction of sugar factory, agricultural equipment and energy efficiency
Vermilion Ukraine Exploration, a subsidiary of the Canadian oil and gas company
Vermilion Energy, and Ukrgazvydobuvannya (UGV) signed a memorandum of joint
participation in tenders for production sharing agreements. Companies have
already submitted joint applications for participation in 4 tenders on Balakeyvska,
Ivanivska, Zinkovska and Sofiivska areas
T.B.Fruit, Ukrainian leading berry and fruit processing group, is building its new
processing plant in Poland. Total investments in project are around EUR 45 million.
The processing capacities are about 335 ths tons. Operational launch is scheduled
for July 2020
Well-known European lowcost bus operator FlixBus plans to start full-scale
operations in Ukraine from June. Company started its first bus operations in 2017 –
from Kyiv, Lviv, Zhytomyr and Rivne to Poland and Czech Republic
WEEKLY REPORT May 27th → June 2nd, 2019
Ukrainian Business News
Vocational training company China East Education Holdings plans to
raise up to USD 680 million in Hong Kong, what would be the world’s
largest education IPO, surpassing the USD 490 million float of US-based
Laureate Education on Nasdaq in 2017
Dutch chipmaker NXP Semiconductors will buy Marvell Technology
Group’s wireless connectivity business for USD 1.76 billion in cash to
offer its customers a bigger product portfolio. The unit brought USD 300
million in revenue in 2019
Alibaba is considering raising USD 20 billion through a listing in Hong
Kong, lining up a second blockbuster deal following its 2014 record USD
25 billion float in New York. The deal, the biggest follow-on share sale in
7-years globally, would give Alibaba a war chest to keep investing in
technology
Total will take over Toshiba’s U.S. LNG business and get USD 800
million in cash from the Japanese group as part of the deal. The French
energy major is paying USD 15 million for the shares in the Texan
assets. Toshiba will also pay Total USD 815 million to take over all the
contracts linked to the business
Goldman Sachs is set to buy Capital Vision Services which manages
MyEyeDr. optometry centers, in a deal valued at USD 2.7 billion. The
bank will buy Capital Vision from private equity firm Atlas Partners and
Canadian pension fund Caisse de dépôt et placement du Québec
Japan’s flash memory maker Toshiba Memory Holdings would borrow
900 billion yen (USD 8.28 billion) from Sumitomo Mitsui Banking. The
company’s board has also decided to issue 300 billion yen worth of non-
convertible-bond-type preferred stock to Development Bank of Japan
World Business News