Page 54 - UKRRptAug23

Electric cars covered 10% of the new car market, 4% higher than last year. At the same time, the market share of hybrids increased by 5% up to 18%. The structure of the new car market in the first half of 2023 is composed as such: cars with gasoline engines had 49% of registrations, diesel cars 22%, hybrids 18%, and electric cars 10%.
9.1.3 Transport sector news
● Trains
The EU has prepared a strategy for Ukraine's transition to the European track standard. The European Commission concluded that the country needs to build a new railroad network with 1,435 mm track, which will work in parallel with the current 1,520 mm network. The 1,435 mm euro track will be intended for high-speed transport, while the 1,520 mm track will provide slower transport. Also, the 1,435 mm trunk network development will be carried out in stages - from west to east. The total cost of the transition will be about €11.5B. The strategy defines three stages:
1. construction of a 1,435 mm Euro track from the border with Poland to Lviv; 2. construction of a 1,435 mm Euro track between Lviv and Kyiv, creation of a second corridor in the north of Ukraine – from Poland to Kyiv and connecting Lviv with Chop;
3. continuation of the Eurotrack from Kyiv to the east - to Kharkiv and Dnipro, and expansion of the network in the west and south of Ukraine.
9.1.4 Construction & Real estate sector news
In Ukraine, during the two years of the land market's existence, from July 1, 2021, to July 1, 2023, 1% of agricultural land has been sold off, Deputy Minister of Agrarian Policy Denys Bashlyk announced on July 4, as reported by news agency Ukrinform.
The land market has lost UAH 11.5B since the war began. Since the start of the war, the Ukrainian agricultural land market has lost UAH 11.5B. Opening the market for legal entities in 2024 could bring an additional 1%-2.7% of GDP annually during the next three years, says a study by KSE. Due to the full-scale Russian invasion, more than 102,000 agricultural land purchase and sale agreements with a total volume of 282,000 hectares and a value of UAH 11.5B ($312M) were not concluded, which is 0.2% of the country's GDP. The land market in the Kharkiv region, which was the leader in the share of agricultural land, suffered the greatest losses with more than UAH 2.7B ($75M). Almost UAH 1.17B ($232M) was lost in the Kherson region land market. The smallest market losses are observed in the western areas of Ukraine. At the same time, according to the results of the first half of this year there is recovery in all regions, except the temporarily occupied regions, and the volume of transactions in Zakarpattia, Ivano-Frankivsk, and Chernivtsi regions has exceeded 2021 indicators (+16%, +22%, and +10%, respectively).
In six months, housing rent prices in Ukraine rose by 9%. The average monthly rent for a 1-room apartment in June 2023 was UAH 6,230 ($174). Since the beginning of the year, the price has increased by 9.3%, which is twice as high as the official 6-month inflation rate (4.6%) according to the State Statistics Service. The leader is the Zakarpattia region, where rent increased by 47.8% to UAH 12,867 ($350). The Lviv region is in second place with a
54 UKRAINE Country Report August 2023 www.intellinews.com