Page 29 - UKRRptNov21

with a total value of over $8bn, including roads, tram lines, luxury hotels, and shopping centres. Road builder Onur is the most prominent Turkish construction firm in Ukraine. Onur has the second-highest turnover of all road construction companies in the country and worked on large sections of the rebuilt Kyiv-Odesa highway.
Pehlivan thinks that Turkish businesses could build their own production lines in Ukraine, such as food processing, textiles and car manufacturing.
Bolstering transport links is key. There are many small seaports on the Black Sea coast which are inefficient and could provide many more opportunities for cargo transit if they were better run. However, Ukraine’s State Property Fund intends to privatise most of the country’s small ports.
For the first time in Ukraine’s history, three state-owned ports will be put up for auction in 2021: UstDunaysk, Bilhorod-Dnistrovsky and Skadovsk. If these sales are successful, nine of the other ten ports will also be privatised.
Turkey has potential as a transit country for Ukrainian goods to enter Asian markets. The Kars-Tbilisi-Baku railway completed in 2017 gives Ukrainian stocks direct access to Central Asia and China. Before 2017, Ukraine’s only rail connection to China was through Russia, which placed heavy restrictions on Ukrainian freight. “Now, the government of Azerbaijan is investing heavily to connect ports in the Caspian Sea to facilitate more trade,” said Pehlivan.
The business association head also stressed the importance of Ukraine’s recent attempts to increase trade with Asia, stating that Asian investors were more interested in Ukraine than Western ones. China has been Ukraine’s largest single nation trading partner for two years in a row. With EU membership for both countries as far away as ever, both Ankara and Kyiv have looked past the West and began exploring opportunities closer to home and further east.
6.0 Public Sector 6.1 Budget
Budget and debt indicators
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018E
2019E
State budget revenues, UAH bln
231.7
209.7
240.6
314.6
346
339.2
357.1
534.6
616.3
793.4
928.1
1053
% of GDP
24.4%
23.0%
22.3%
24.2%
24.6%
23.2%
22.5%
26.9%
25.9%
26.6%
26.1%
26.2%
State budget expenditures, UAH bln
244.2
245.2
304.9
338.1
399.4
403.9
435.1
579.8
686.4
841.3
987.4
1121
% of GDP
25.8%
26.8%
28.3%
26.0%
28.4%
27.6%
27.4%
29.2%
28.8%
28.2%
27.7%
27.9%
State budget balance, UAH bln
-12.5
-35.5
-64.3
-23.6
-53.4
-64.7
-78
-45.2
-70.1
-47.9
-59.3
-68.4
% of GDP
-1.3%
-3.9%
-6.0%
-1.8%
-3.8%
-4.4%
-4.9%
-2.3%
-2.9%
-1.6%
-1.7%
-1.7%
Public debt, UAH bln
189
318
432
473
516
584
1,101
1,572
1,930
2142
2169
2410
% GDP
20.0%
34.8%
40.1%
36.4%
36.7%
39.9%
69.4%
79.0%
81.0%
71.8%
60.9%
59.9%
Source: SP Advisors
29 UKRAINE Country Report November 2021 www.intellinews.com