The following is the Dec. 10, 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.
It’s a persistent problem with the drone supply to Ukrainian troops: Imported Chinese drones are often laden with defective parts, Kyiv Independent reporter Kollen Post writes in his latest.
While they have typically been cheap enough to merit replacing, China is actively cutting off its exports of components and materials critical to drone building.
China made headlines in Ukraine for restricting drone components at the outset of September. Recent reports show China has already begun curbing sales to American and European drone makers and is readying more sanctions.
The measures are only expected to spell more trouble for Ukraine’s war efforts.
In the face of these threats, Ukraine’s drone industry is increasingly onshoring the production of more ambitious components. And they’re getting better than anyone expected at building even the trickier gadgets needed to keep Ukraine’s army of drones in flight.
"We cannot rely on a Chinese supply chain," says Denys Nikolayenko, who makes high-end thermal cameras for drones, from an office in Kyiv.
Read the full article here.
Egg prices are spiking
The price of eggs just won’t quit. In October, the price of eggs skyrocketed 60% from the previous month up to around Hr 50-75 ($1.20–1.80) for a carton of eggs (10 eggs in Ukraine), Ukrainian media outlet NV reported, citing Ukraine’s largest grocery chain ATB.
Over the last three years, the price of eggs has increased 101%.
As eggs are a staple of my diet, I have a personal stake in asking — what’s going on? Before we get too carried away, the price of eggs is typically higher in winter than in summer months when chickens produce more eggs. A higher supply and temperatures force farmers to get rid of their eggs quicker, driving down the price.
Nonetheless — a combination of drought and frost, a smaller harvest, a rise in feed prices and higher electricity prices brought on by Russia’s attacks on the country’s energy system is contributing to the price spike.
Not everyone is convinced, however. According to Yuri Gaidai, senior economist at the Kyiv-based Center for Economic Strategy (CES), Ukraine’s antimonopoly committee has an ongoing investigation into egg prices.
“Perhaps, in addition to objective economic reasons, someone was trying to earn more. This is being checked: requests are sent to feed and egg producers to compare their data,” Gaidai said on Inter, a news channel.
No relief can be expected soon, says CES on its Telegram channel — holiday demand will only drive the prices further up. They should stabilize in 2025, but not return to previous lows, the center wrote.
Beyond diesel generators
As Ukraine begins yet another winter with rolling blackouts and freezing temperatures, businesses are increasingly looking beyond diesel generators to fuel their operations during power cuts, business leaders said at the Energy Security Dialogue 2024 on Dec. 4.
CEO of Nova Energy Andrii Lytvynenko said the company is moving away from diesel generators and plans to equip around a thousand branches of the popular Nova Poshta postal chain with battery power supplies that allow for uninterrupted electricity during outages.
Around 400 branches already use these systems, he said.
"The simplest, fastest solution is, of course, generators," Lytvynenko said. "Today, we have around 4,000 generators in the company."
However, the noise and carbon emissions — as well as the work needed to refuel and maintain them — led the company to look for alternative emergency power systems, Lytvynenko said.
Read full article here.
Ukrainian gift guide 2024
If you’re unsure what to get your loved one for a gift this holiday season, look no further than Ukraine.
Despite Russia’s ongoing war, Ukrainians have maintained their entrepreneurial spirit, and the country is brimming with exciting brands and products that are guaranteed to bring cheer to the people in your life.
The Kyiv Independent has gathered a list of ideas that we hope will make thoughtful gifts and help others discover what Ukraine has to offer.
Not to worry if your home is thousands of miles away from Ukraine — all of these companies and items can be purchased and shipped internationally.
Check it out here. A lot of these brands are some of my personal favorites. Happy shopping!
What else is happening
US announces $20 billion loan for Ukraine as part of G7 initiative
The U.S. Treasury Department announced on Dec. 10 that it will provide $20 billion in loan assistance to Ukraine, marking its contribution to a broader $50 billion initiative supported by G7 countries. The loan will be repaid using proceeds from frozen Russian assets.
Ukraine approves Droid TW robotics system for combat operation
The Defense Ministry has approved the new Droid TW 12.7 robotics complex, used on a tracked platform with a Browning 12.7 mm machine gun, for combat operations, the ministry announced on Dec. 9. Meanwhile, successful tests of a new Ukrainian missile, dubbed Ruta (Rue), are underway, President Volodymyr Zelensky announced, also on Dec. 10.
Owners, top managers of popular online casino in Ukraine suspected of collaborating with Russia
The owners of the casino, Pin-Up, who are Russian citizens, allegedly collected personal data and information about the location of their users, including military personnel of the Ukrainian Armed Forces and other military formations, the State Bureau of Investigation (DBR) and the Prosecutor General's Office announced on Dec. 5.
Ukraine, EU sign agreement on up to 35 billion euro loan covered by Russian assets revenue
The European Commission unveiled the 35-billion-euro loan in September within the framework of the G7's broader $50 billion loan, which is covered by proceeds from frozen Russian assets. The final amount of the EU's contribution will be determined "after all parties to the initiative approve the amount of loans, Ukraine's Finance Ministry said on Dec. 4.
Ukraine’s gas transit operator prepared for Russian attacks after transit deal expires, operator says
With a deal to transport Russian gas through Ukraine set to expire at the end of the year, Ukraine’s gas transit network could soon come under Russian attacks, warned Dmytro Lyppa, CEO of the Gas Transmission System Operator of Ukraine, though the probability that gas transport is halted is “very low,” he said at the Energy Security Dialogue 2024 in Kyiv organized by the DiXi Group think tank.
