Here is the November 6, 2024 edition our weekly Ukraine Business Roundup newsletter. Subscribe here to receive the latest news on business and technology from Ukraine in your inbox.
Ukraine will launch a 5G Pilot Project in three cities within the next two-years to catch up to the global shift towards fifth-generation (5G mobile network technologies), Digital Transformation Minister Mykhailo Fedorov said on Nov. 1.
According to the Minister, the purpose of this trial period is to test 5G compatibility with military networks.
Ekonomichna Pravda – the business magazine of Ukraine’s largest media outlet Ukrainska Pravda – reported that the first trial would take place in Lviv, a city located in western Ukraine. If successful, the trial could be expanded to Kyiv or Odesa.
Don’t get too excited. Roman Khimich, a telecommunications expert, told EP that there will not be a full-scale launch of the 5G in the cities mentioned above. Instead, the network will be launched at fewer base stations.
Khimich said that the network would be deployed in individual locations so that users could connect to the 5G network at test locations.
It’s also worth noting that Ukraine has been trying for five years to get 5G up and running, but to no avail. And while the country is battling Russia’s invasion, and the domestic demand to cover the costs to implement the technology remains dampened it’s unlikely 5G will be rolled out any time soon.
“We have to consider the demographics and the economic situation at the end of war, particularly in the post-war period of recovery, as all these factors will impact the prospects and, most importantly, the need for rapid implementation of 5G,” Oleksandr hlushchenko told the European Parliament.
5G offers significantly faster data transfer speeds than its predecessor 4G. This creates new opportunities for exchanging large quantities of information at ultra high speeds. Fedorov says that the government hopes to launch 5G by 2030.
Ukraine and Belgian company to manufacture anti-drone missiles
Herman Smetanin, Minister of Strategic Industries, announced on Nov. 2 that Thales Belgium had signed a Memorandum of Cooperation with the Ukrainian Defense Industry on the production of missiles against drones.
The General Staff reported that more than 2,000 drones were launched in October against Ukraine, breaking the previous record of nearly 700.
Smetanin stated that “this cooperation will strengthen the Ukrainian defence industry and protect critical infrastructure from enemy drones.”
The minister added that the work between Kyiv-Brussel is expected to expand in the future to include technology transfer and production of missile components.
Thales is the only company in the world that develops, manufactures, and supplies complete rocket systems including weapons, ammunition, and fire control systems. It is a specialist in air-to-ground rocket systems of 70mm.
Kyiv International Economic Forum
The Kyiv Economic Forum (KIEF), one of the largest forums in Eastern Europe, will be held on November 7, with the Kyiv independent as a media sponsor.
KIEF brings together representatives from business, government and society to promote Ukraine’s integration into global community.
Register Here
History-making ski resort
The OKKO Group, a Ukrainian gas station network, has announced plans to invest $1.5 billion into a new ski resort located in western Ukraine. This could be the largest investment ever made by the country.
OKKO Group announced that it has begun construction of the Goro Mountains Resort near Slavske. The company will invest $500 million in the resort, and hopes to attract an extra $1 billion from external investors.
The resort will open for skiing during the winter of 2026-2027. It is planned to be completed by 2039. It is envisioned as an exclusive destination that will rival Bukovel – Ukraine’s largest ski resort. The project was announced eight years ago, but was delayed. The resort will have 75 kilometers of slopes.
The construction project is supported by a partnership between the Ukrainian government and its “Investment Nanny” initiative, which provides expedited land allotment and tax exemptions in order to increase the viability of the project.
OKKO has expanded its operations despite the challenges of Ukraine’s shrinking market for fuel due to population displacement. It has renovated fuel stations, established rapid EV charging station, and targeted growth in non-fuel retail.
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Global entrepreneurs come to Ukraine
The New York-based global entrepreneur organization Endeavor announced on October 31 that it has opened its first Ukrainian office, a sign of confidence in the country’s potential for business.
Endeavor is an organization that connects entrepreneurs, investors, and mentors to develop projects and grow. The network has 45 offices around the world that have supported over 2,800 entrepreneurs and created over 4.1 millions jobs.
The group plans to focus its efforts on high-growth technology companies that are currently in the scaling-up phase, and who are looking to expand internationally.
Sviatoslav Sviatnenko is the managing director of Endeavor in Ukraine. He said the non-profit would help Ukrainian entrepreneurs overcome obstacles such as recruiting high-end talents, setting up abroad and assisting with the transition from a privately-owned company to a publicly-owned one, and preparing for mergers or acquisitions.
Sviatnenko said, “We will connect with the right people in order to help them find answers and grow their business faster.” “It’s not about six or seven handshakes anymore — it’s only one.”
Click here to read more.
State-run television is here to remain, for now
Interfax Ukraine reported that Mykola Tochytskyi, Culture Minister, said that the Ukrainian government does not plan to stop funding the telethon before the end the war.
The comment follows the European Commission’s criticism of the telethon, which took place on October 30, in which it urged Kyiv to restore “a pluralistic media landscape.” Tochytskyi stated that Ukraine “has taken account” of the European Commission’s recommendation.
The “telethon”, branded “Yedyni Novyny”, (“United News”) was launched at the start of Russia’s full scale invasion in February 2022. It was created through the merging of coverage from Ukraine’s largest TV channels.
At first, it was seen as a legitimate reaction to the Russian invasion. Some of these oligarchs had pro-Russian opinions. Inadvertently it also robbed the oligarchs’ most valuable assets, a huge hit to their bottom line and influence, but a victory for the country’s “de-oligarchization”.
Now, the telethon has been accused of monopolizing TV coverage, stifling dissension, and even painting an overly rosy picture of front-line conditions.
Brussels is expecting Ukraine to restore all broadcasters’ work in the format of the pre-war period, and questions the telethons objectivity. The European Commission has criticised the fact that the telethon is funded by the state budget.
Tochytskyi stated that the state would stop supporting the telethon once martial law ended. Instead, it would focus on the sustainable development and improvement of media infrastructure.
What else is happening?
Ukraine’s gas output is at its highest level since the full-scale invasion began
EXPRO, a consulting company for exploration and production, reported on its website Nov. 6 that natural gas production in Ukraine increased in October to the highest level ever since the beginning of full-scale invasion February 2022. EXPRO calculated that gross natural gas production in October 2024 increased by 2.3% compared to the same period last year. It reached 1.663 billion cubic metres, the highest level ever since January 2022.
World Bank to provide $600 Million to Ukraine under RISE Initiative
Denys Shmyhal, the Prime Minister of Ukraine, announced on November 4 that Ukraine had signed agreements with World Bank totaling almost $600 million as part of the “Resilient, Inclusive and Sustainable Enterprise (RISE)” project. According to the Prime Minister, the project aims to support small and medium businesses, green initiatives and digitalization.
SPP Slovakia: Azerbaijan and Ukraine not close on a deal for gas via Ukraine
SPP, the state-owned gas importer in Slovakia, told Reuters that European firms were not close to a deal with Azerbaijan for replacing Russian gas flowing through Ukraine. This contradicted earlier media reports claiming a deal was imminent. SPP said in a statement that they regularly discuss the subject with their partners, but that the information about a gas supply agreement with SPP being concluded soon is not true.
National Bank of Ukraine maintains interest rates at 13%
The National Bank of Ukraine announced on October 31 that the interest rate would remain at 13%. Bloomberg reported that the decision was in line analysts’ predictions. The NBU stated that “given that inflation is not yet at its peak and that pro-inflationary risk has even increased in the coming months, it believes that it is appropriate to remain cautious.”
Ukraine’s 2025 budget clears first reading, allocates $53 billion for defense
The proposed budget for Ukraine 2025 passed its first reading at the parliament on October 31, allocating 26% of GDP to defense and military expenditures. The priority for the budget next year will be security and defence. All taxes paid by individuals and businesses will be used to strengthen our military and defenders, Prime Minister Denys Syhal said.
Liliane is a business editor for the Kyiv Independent. She worked previously at the Kyiv Post, first as a business reporter and then as a business editor. Liliane has a master’s in Russian, Eastern European and Eurasian Affairs with a focus in Ukrainian studies from Columbia University. She served as a Peace Corps volunteer in Ukraine from 2017-2020, and then interned at the Atlantic Council’s Eurasia Center.
Read More @ kyivindependent.com