This is a curated list of the largest news about economy in and around Ukraine for the past week.
This week was a weird one to say the least. Recently, the President of Ukraine Volodymyr Zelenskiy held a presser for a few hand picked media outlets. While everyone seems certain that a massive Russian invasion is on it’s way, the president was more preoccupied with a coup d’etat that was planned for yesterday, December 1.
This confused a lot of people including oligarch Rinat Akhmetov, who suddenly found himself being accused of conspiring against the president. Zelenskiy has stated, that they do posses proof of this plot, but they refused to share that with the public. The coup should have taken place yesterday, but apparently the people behind never got around to it.
A more detailed list of the things we actually do know about this rather bizarre history about the coup can be read here.
Andersson on IMF: Good news for Ukraine
This week, Ukraine Nu interviewed Kristian Andersson, the head of the Swedish bank SEB in Ukraine, about IMF’s recent decision to give Ukraine a second tranche payout.
“It is very good for Ukraine that the IMF decided to give the next tranche and extend the loan program until June next year,” says Kristian Andersson, the head of the Swedish bank SEB in Ukraine, to Ukrainenu, “It is important to international investors outside of Ukraine when an IMF program is up and running. The IMF is an anchor to them – a good signal.”
Andersson points out that it looks like that the IMF and Ukraine will try to agree on a new loan program next year as well, which could be for three or five years. It would, according to Andersson, bring even more stability to Ukraine.
“Ukraine’s IMF supported economic program aims to help the authorities address the effects of the COVID-19 shock, sustain the economic recovery, and move ahead on important structural reforms to reduce key vulnerabilities,” wrote the IMF about the new payments.
Record year for Ukraine
2021 is almost over and it has been a great year for the farmers in Ukraine, explains Andrey Novoselov, who is an analyst at the company Barva Invest, to Ukrainenu. Ukraine has, for example, had a record corn harvest this year, and Novoselov says that the weather conditions have been almost ideal all year round.
“We have seen an absolute record in the wheat harvest of about 32 million tons, and the same has been the case for the total corn harvest. Farmers have been worried that they might not be able to sell all their corn, but it has not been a problem,” says Novoselov.
He adds that the worries have been connected to the extraordinary harvest, where farmers suddenly needed to find new markets. However, due to a bad harvest in other countries such as Russia and Canada, the big Ukrainian volumes have been easy to sell.
“Right now, we see prices increase week after week, and the big harvest is creating problems in some areas,” explains Novoselov, referring to the demand for transport, which has driven up prices and made farmers look for alternative ways.
China wants lithium mine in Ukraine
The Chinese Shenzhen Chengxin Lithium Group wants to get a permit to mine lithium in Ukraine. It is exactly the kind of deal that many experts have warned about, where countries like Ukraine are exchanging long term control over strategic infrastructure and resources in exchange for short term profits.
Read more here.
Ukraine ready to open state airline
The Ukrainian government and President Volodymyr Zelenskiy are ready to invest in creating a new state airline. Currently it is going to be named Ukrainian National Airlines, and they should be ready to start flying passengers around from next year. The new carrier will start flights from two domestic and 14 international destinations.
Surprisingly easy inoculation effort
By the end of the year, Prime Minister Denys Shmyhal expects to be through half the adult population of Ukraine in the vaccination progress, which as of now seems to be the best weapon against the novel coronavirus. The optimism is surprising given the vaccine scepticism running rampant in Ukraine.
Diia becomes much more
The Ukrainian government has big ambitions for the governmental app Diia and recently revealed new features. Before, the government’s app Diia was primarily a place to store documents and IDs but it will now add a business section with the aim of becoming a marketplace for financial products and a place for investors to find investment opportunities.