Ukraine’s poultry exports jumped by 30% in dollars last year, hitting $507 million, according to the State Fiscal Service. In volume terms, exports were up 21%, to 329,000 tons. Top buyers were: the Netherlands, Slovakia and Saudi Arabia. Last year, Ukraine rose in the world ranking of chicken exporters to 6th place, overtaking Russia and Canada.
If re-elected this spring, President Poroshenko promises to improve the rule of law, allowing Ukraine to become one of the top 50 countries in the world for investors by 2022. Currently, Ukraine ranks in 71st place, out of 190 countries, in the World Bank’s Ease of Doing Business index. In 2014, at the start of his presidency, Ukraine was in 87th place. In an interview with “Ukraine” TV channel. Poroshenko also promised to make Ukraine self-sufficient in energy. The presidential election vote will be March 31, with a second runoff round on April 21.
Determined to cut inflation in half – to 5% next year – Ukraine’s central bank retained its key interest rate at 18%, the highest level in Eastern Europe. The interest rate was hiked by two percentage points last year, contributing to inflation falling to 9.8% in 2018. Economic growth this year will be 2.5%, down from an estimated 3.3% last year, predicts the National Bank of Ukraine. High interest rates contribute to a vicious cycle: with interest rates high, local entrepreneurs can only turn to friends and family for business loans; a lack of good paying jobs prompts labor migration; wage remittances – currently $1 billion a month – fuel demand, pushing up inflation.
Russia’s new bypass pipelines will cut gas flows through Ukraine in half, calculates the National Bank of Ukraine. Transit revenues will drop in half, from the 2018 level of $3 billion, says Ekateryna Rozhkova, first deputy governor of the central bank. “A reduction in transit volume of almost half will also reduce these revenues by almost half,” she tells reporters. Nord Stream 2 and TurkStream will have a combined capacity of 86.5 billion cubic meters, virtually the same as the 87 bcm of Russian gas that flowed across Ukraine last year.
Bulgaria has pledged to build a new €1.4 billion pipeline to pump Russian gas from Turkey to Serbia. Last week, Gazprom, Bulgaria’s Bulgargaz, and Switzerland’s MET signed contracts for the pipeline, a northern extension to TurkStream. TurkStream and Nord Stream 2 are two bypass pipelines built from Russia around Ukraine.
Tender terms for Ukraine’s first petroleum sharing agreements since 2012 will be released in two weeks, reports Drilling for web site. Companies will have until mid-May to submit applications. The 12 PSAs are expected to be valid for 50 years. To stimulate investment, winners will have to spend $16 to $36 million in the first five year on seismic research and exploration wells. Foreign companies are encouraged to bid.