The following is the Nov. 6, 2024 edition of our Ukraine Business Roundup weekly newsletter. To get the biggest news in business and tech from Ukraine directly in your inbox, subscribe here.
Ukraine is launching a 5G pilot project in three cities over the course of the next two years as it looks to catch up with the global shift to fifth-generation (5G) mobile network technologies, Digital Transformation Minister Mykhailo Fedorov announced on Nov. 1.
According to the minister, the purpose of the trial period is first and foremost to test 5G’s compatibility with the operation of military networks.
The first trial will take place in the western city of Lviv, and if successful, will be expanded to Kyiv and Odesa, Ekonomichna Pravda (EP), the business publication of Ukraine’s largest news outlet Ukrainska Pravda, reported, citing its sources.
Don’t get too excited. There will be no fully-fledged launch of the 5G network in the above-mentioned cities — instead, it will first be carried out at a limited number of base stations, telecommunications expert Roman Khimich told EP.
"The deployment of the network will start from individual locations, so users will have the opportunity to connect to the 5G network in test locations," Khimich said.
But also — Ukraine has been trying to get 5G off the ground for the last five years, to no avail, and while the country is fighting Russia’s invasion and the domestic demand required to cover the costs of implementing the technology remains dampened, it’s unlikely the rollout of 5G will happen any time soon.
"We also have to take into account what the demographic situation and the state of the economy will be at the time of the end of the war, especially in the post-war recovery period, since all these factors will affect the prospects, and most importantly — the need for the rapid implementation of 5G,” Oleksandr Hlushchenko, a former member of the Ukrainian Internet Association (UIA), told EP.
5G offers significantly faster data transmission speeds than its predecessor, 4G, creating new opportunities for exchanging large amounts of information at ultra-high speeds. The government is hoping to complete the launch of 5G by 2030, according to Fedorov.
Ukraine, Belgian company to produce anti-drone missiles
The Thales Belgium manufacturer signed a memorandum of cooperation with the Ukrainian defense industry on the joint production of missiles to counter drones, Strategic Industries Minister Herman Smetanin said on Nov. 2.
More than 2,000 strike drones were launched against Ukraine during October, the General Staff reported on Nov. 1, which breaks the previous record set in September by nearly 700.
"This cooperation will strengthen the Ukrainian defense industry and the protection of critical infrastructure from enemy drones," Smetanin said.
The work between Kyiv and Brussels is expected to expand to technology transfer and the production of missile components in the future, the minister added.
Thales is reportedly the only company worldwide developing, manufacturing, and supplying complete rocket systems, including fire control systems, weapons, and ammunition. It specializes in the field of air-to-ground 70mm rocket systems.
Kyiv International Economic Forum
The Kyiv International Economic Forum (KIEF) — one of the largest international forums in Eastern Europe — will take place on Nov. 7, with the Kyiv Independent as a media partner.
KIEF brings together representatives of business, government, and society to promote Ukraine's integration into the global community.
Register here.
History-making ski resort
Ukraine’s gas station network OKKO Group says it’s planning to invest $1.5 billion in a new ski resort in western Ukraine in what could potentially be the country’s largest investment in history.
OKKO Group has said it started construction of the Goro Mountain Resort near Slavske — the company is putting $500 million into the resort and plans to attract an additional $1 bn from external investors.
The resort is set to open for skiing in the winter of 2026–2027, with plans for full completion by 2039, and is envisioned as a premium destination to rival Bukovel, Ukraine’s leading ski resort. The project was first announced eight years ago but was delayed. The resort will span 75 kilometers of ski slopes.
The construction is supported by a partnership with the Ukrainian government through its "investment nanny" initiative that provides expedited land allocation and tax exemptions to enhance the project’s viability.
Despite challenges from Ukraine’s shrinking fuel market due to population displacement, OKKO has expanded operations by renovating fuel stations, establishing rapid EV charging stations, and targeting growth in non-fuel retail.
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Global entrepreneurs come to Ukraine
The New York-based global entrepreneur network Endeavor has opened its first office in Ukraine, signaling confidence in the country’s business potential, the organization announced on Oct. 31.
Endeavor is a pool of entrepreneurs, mentors, and investors that connects its members to help develop projects and growth. The organization has over 45 offices globally which have supported 2,800 entrepreneurs, created over 4.1 million jobs, and generated annual revenues of over $67 billion, according to the network.
The group said it plans to focus on high-growth tech companies that are in the scale-up phase and looking to expand globally.
Sviatoslav Sviatnenko, Endeavor’s managing director in Ukraine, said that the non-profit will help Ukrainian entrepreneurs overcome challenges including recruiting high-end talent, setting up abroad, assisting the transition from a private to a public company, and preparing for mergers and acquisitions.
“We will connect them with the right people to help them find answers to their questions and grow their businesses faster,” said Sviatnenko. “It’s no longer about six or so handshakes — it’s just one.”
Read more here.
State-run TV is here to stay, for now
The Ukrainian government doesn't plan to stop supporting the telethon, Ukraine's state-run pool of TV channels created during wartime, before the end of the war, Interfax Ukraine reported on Oct. 31, citing Culture Minister Mykola Tochytskyi.
The comment comes after the European Commission criticized the telethon on Oct. 30, urging Kyiv to restore a "pluralistic media landscape." Tochytskyi said Ukraine "has taken into account" the European Commission's recommendations.
The so-called telethon, branded as "Yedyni Novyny" ("United News"), was launched at the beginning of Russia's full-scale invasion in February 2022. It was created by merging the coverage of Ukraine's biggest TV channels.
Wrangling TV stations away from their pre-war competing oligarch owners — some of whom had pro-Russian views — was originally seen as a legitimate response to Russia’s invasion. Inadvertently, it also robbed said oligarchs of one of their most precious assets, a big hit to their influence and bottom lines, but a win for the country’s “de-oligarchization” process.
But now, the telethon is being accused of monopolizing television coverage, stifling dissent, and even painting a too-rosy picture of the front-line situation.
Brussels expects Ukraine to restore the work of all broadcasters in the pre-war format, questioning the telethon's objectivity. One of the European Commission's criticisms concerns the financing of the telethon from the state budget.
"The state plans to stop supporting the telethon after the end of martial law, focusing on the sustainable development of media infrastructure," Tochytskyi said.
What else is happening
Ukraine's gas production highest since full-scale invasion's start
Natural gas production in Ukraine in October increased to the highest level since the beginning of the full-scale invasion in February 2022, exploration and production consulting company EXPRO reported on its website on Nov. 6. According to EXPRO’s calculations, gross natural gas production rose by 2.3% in October 2024 compared to the same month last year, reaching 1.663 billion cubic meters, the highest level since January 2022.
Ukraine to receive $600 million from World Bank under RISE Initiative
Ukraine has signed agreements with the World Bank totaling nearly $600 million under the "Resilient, Inclusive and Sustainable Enterprise" (RISE) project, Prime Minister Denys Shmyhal announced on Nov. 4. The project is aimed at supporting small and medium-sized businesses, green initiatives, and digitalization, according to the prime minister.
Europe, Azerbaijan not close to deal on gas route via Ukraine, Slovakia's SPP says
European firms are not close to an agreement with Azerbaijan to replace Russian gas flows through Ukraine, Slovakian state-owned gas importer SPP told Reuters on Nov. 1, contradicting earlier media reports that said a deal was at hand. "We regularly discuss the topic with our partners, but the information about the upcoming conclusion of a gas supply contract with the participation of SPP is not true," SPP's statement read.
National Bank of Ukraine leaves interest rates unchanged at 13%
The National Bank of Ukraine (NBU) has kept interest rates on hold at 13%, it announced on Oct. 31. The decision was in line with analysts’ predictions, Bloomberg reported. “Given that inflation has not yet peaked, and that pro-inflationary risks have even increased for the coming months, the NBU believes it appropriate to remain cautious,” the NBU said in a statement.
Ukraine’s 2025 budget clears first reading, allocates $53 billion for defense
Ukraine’s proposed 2025 budget passed its first reading in parliament on Oct. 31, allocating approximately 26% of the country’s GDP to defense and military spending. “The priority of next year's budget will also be security and defense. All taxes paid by people and businesses will go toward strengthening our defenders and military capabilities,” Prime Minister Denys Smyhal said.
