• This issue of the newsletter looks at Ukraine's budget and economy - improving while war drags on; debt restructure cuts debts 20%; investment continues, with Odessa port and new pharmaceutical plant; foreign currency restrictions extended; privatisation delays, EU sanctions extended.
  • Plus Ukraine International Airline sponsor report (bottom of this page).

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In this month’s UBI Newsletter:

Conflict in stalemate, economy improves

Hostilities in occupied Donetsk and Luhansk remain severe despite ceasefires, but Russia’s attention has now turned to Syria, avoiding further conflict with the US and European Union, while increasing its control over its proxies who now no longer expect full integration with Russia. Instead a political limbo statelet similar to the 20 year old Moldovian breakaway region, Transnistria, is forecast for Eastern Ukraine by one rebel leader, Alexander Khodakovsky. He is reported as saying that: “The Kremlin are sending the clearest signals in months that they don’t want the conflict to escalate, at least for the moment. Nonetheless, the leaders of Germany, France and Ukraine continue to call for a peaceful solution based on the Minsk-2 agreement.


US$ 40 million pharmaceutical plant built in Kyiv region

Ukrainian pharmaceutical manufacturer Biofarma has opened a US$ 40 million new state-of-the art manufacturing facility in Bila Tserkva, Kyiv region. The project is financed by a consortium of US-Dutch-Ukrainian investors including US investment house Horizon Capital, Dutch development finance bank FMO and Ukrainian shareholders. The plant was designed by German engineering company Linde, is ISO9000 and ISO14001 certified and meets all current regulatory and GMP (Good Manufacturing Practice) requirements. The plant is the first and only Western investment of such scale in the Ukrainian pharmaceutical industry and is described as the best-in-class facility of its kind in Central and Eastern Europe.


EU sanctions extended

European Union governments agreed on a six-month extension of asset freezes and travel bans on Russians and Ukrainians accused of backing the separatist movement in eastern Ukraine. The curbs on 149 people and 37 organisations were extended until March 15, 2016.

Economy minister explains delays in privatisation

Ukrainian Economy Minister Aivaras Abromavicius says delays in privatisation were due to the need to ensure the transparency of auctions. He said that he would consider privatisation successful when the two biggest assets on the list would be sought by international strategic investors with a transparent shareholder structure.

Read more »

Cabinet of Ministers approves draft state budget-2016

According to Vice-Speaker Kyrylenko, it is not clear yet what tax base will be used for the state budget 2016. According to the government’s draft budget the revenue side of the budget will amount to: minus 30 billion UAH – according to the parliamentary variant, and minus 135 billion UAH according the Ministry of Finance.”

Read more »

Foreign currency restrictions extended

On 3 September 2015 the National Bank of Ukraine introduced the following changes to its currency restriction rules: foreign cash withdrawals increased up to UAH 20,000 per day in Ukraine or abroad; – withdrawing cash in UAH at cash desks and ATMs up to UAH 300 00 per day for one client; Authorised banks allowed to remove export operations of clients from currency control up to US$ 500,000 per one contract; compulsory exchange of revenues in foreign currency shall not apply to funds returned by a foreign bank within two days. Most of other restrictions have been extended.

Read more »

Port investment planned

The Ministry of Infrastructure of Ukraine has approved investment in a project to build a modern port terminal in Odessa, due to start in the first half of next year.

Read more »

Sponsor’s Message


UIA starts new flights this autumn

Ukraine International Airlines has carried 25 million passengers since launch in 1992, and now connects London with Europe, Middle East and Asia via Kyiv.

Now, from 25th of October 2015, the airline is introducing daily flights between Kyiv and Ivano-Frankivsk on modern Boeing 737 and Embraer 190 aircraft with Business and Economy cabins, with convenient connections from London.

“UIA has continually expanded its global operation network with its modern Boeing 737/767 fleet providing excellent service at affordable prices to both business and leisure travellers, with a generous baggage allowance and valuable frequent flyer benefits,” notes Valentina Sokolovska, Manager UIA UK & Ireland.
The new non-stop scheduled service to Ivano-Frankivsk represents great potential for winter holiday makers and corporate travellers to one of the most important cities at the foothills of the Carpathian Mountains. This year UIA passengers can also fly to Kutaisi, the capital of the ancient Kingdom of Colchis in Georgia, and to Aktau, one of the largest cities in western Kazakhstan and the country's main seaport on the Caspian Sea. Moreover, UIA plans to increase its flight frequency from London to Beijing (up to five weekly) and to New York (daily) from Summer 2016, via the modern Terminal D at Kyiv Borispol international airport.

UIA’s operations from the UK stretch to Eastern Europe, Asia and the Middle East with connecting flights from London throughout Ukraine and to Yerevan in Armenia, Baku in Azerbaijan, Minsk in Belarus, Beijing in China, Larnaca in Cyprus, Tbilisi in Georgia, Athens in Greece, Amman in Jordan, Tehran in Iran, Tel Aviv in Israel, Almaty and Astana in Kazakhstan, Riga in Latvia, Vilnius in Lithuania, Chisinau in Moldova, Moscow, St Pertersburg and Kaliningrad in Russia, Bangkok in Thailand, Istanbul in Turkey, Dubai in UAE and New York in USA via Kyiv. The airline’s fast growing partner airline network includes UK regional flights to Kyiv via Europe.

Ukraine International Airlines currently allows up to 5 days stay in Kyiv at no extra charge on transit travel to indulge in the unique Slavonic atmosphere, enjoy famous Ukrainian hospitality, visit the hottest spots of the recent Revolution of Dignity, discover the authentic world of local fashion and shop with substantial savings in designer boutiques and luxury shops in Kyiv this autumn! Experience a nightlife tour among Kyiv’s numerous clubs, discos, dance floors, pubs, bars, restaurants and other fun venues in city’s unique atmosphere.

Contact london@flyuia.com for special fares on individual or group travel. Visit Ukraine International Airlines website at www.flyUIA.com , and follow UIA on Facebook flyUIA in UK for special deals and comprehensive travel information.

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