Ukraine Markets Daily (October 30, 2017)

Market news

  • Ukraine will get EUR 89.5 mn from the European Union to support reforms

Market comment

The UX index increased by 0.3% on Friday and the PFTS index increased by 0.4% (in UAH terms). The WIG-Ukraine index increased by 0.7%. On the interbank exchange market, the USD/UAH was down by 0.1% to UAH 26.78 (mid price), according to Thomson Reuters. The official exchange rate reported by the NBU was UAH 26.83.

 

Ukraine will get EUR 89.5 mn from the European Union to support reforms

On Friday, October 27, two agreements on cooperation between the governments of Ukraine and the European Union (EU) were signed. First of them includes the provision of EUR 37 mn to help Ukrainian government agencies implement the Association Agreement and a free trade area with the EU, while the second one includes EUR 52.5 mn financing to support judicial reform development. Within the first project, money will be spent on bringing Ukrainian legislation into line with EU law and on reforms’ effectiveness increase within such priority areas as public administration, agriculture, land reform, support for the private sector of the economy etc. The second agreement expects the financing of some aspects of judicial reforms, particularly, the justice system, the execution of court judgments, improving access to the justice system and reform of the law enforcement system.

Our view:

These agreements proved the confidence of the European Union in the seriousness of Ukraine’s willingness to move forward through the process of Association with the EU. The support will be aimed on some of the most important changes needed to be applied for further cooperation development. We think that external control over the funds will increase the effectiveness of their usage.

DISCLAIMER

Although the information in this report has been obtained from sources which Empire State Capital Partners believes to be reliable and was collected in good faith, we do not represent or warrant its accuracy, except with respect to information concerning Empire State Capital Partners, its subsidiaries and affiliates, either expressly or implied, and such information may be incomplete or condensed. Nor has the information and/or data been independently verified, and so is provided without further caveat regarding its reliability, suitability for commerce or specific purpose. This report does not constitute a prospectus and is not intended to provide the sole basis for an evaluation of the securities discussed herein. All estimates and opinions included in this report constitute our judgment as of the date of the report and may be subject to change without notice. Empire State Capital Partners or its affiliates may, from time to time, have a position or make a market in the securities mentioned in this report, or in derivative instruments based thereon, may solicit, perform or have performed investment banking, or other services (including acting as advisor, manager) for any company referred to in this report and may, to the extent permitted by law, have used the information herein contained, or the research or analysis upon which it is based, before its publication. Empire State Capital Partners will not be responsible for the consequences of reliance upon any opinion or statement contained herein or for any omission. This report is confidential and is being submitted to select recipients only. It may not be reproduced (in whole or in part) without the prior written permission of Empire State Capital Partners. Any recommendations, opinions, forecasts, estimates or views herein constitute a judgment as at the date of this report. This document has been produced independently of Empire State Capital Partners and the recommendations, forecasts, opinions, estimates, expectations, and views contained herein are entirely those of the research analyst(s). While all reasonable care has been taken to ensure that the facts presented herein are accurate and that the respective recommendations, forecasts, opinions, estimates, expectations, and views are fair and well considered, none of the research analyst(s), Empire State Capital Partners or any of its directors, managers or employees has verified the contents of this document and, accordingly, no research analyst, Empire State Capital Partners or any of its respective directors, managers or employees shall be in any way responsible for its contents.

Kind regards

Research Team

EMPIRE STATE CAPITAL PARTNERS