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a trend towards a decrease in the volume of Ukrainian IT exports," said the IT Ukraine Association executive director, Kostyantyn Vasyuk. He noted that in the first quarter of 2023, the export of IT services from Ukraine decreased by 16% compared to the same period in 2022 and amounted to $1.68B. According to the results of 2022, the IT industry of Ukraine provided $7.35B of earnings to the Ukrainian economy and paid UAH 32.2B ($880M) in taxes.
Ukraine is way ahead of Germany in digitization. "Ukraine is economically competitive and has a good prospect of becoming a member of the European Union," said the president of the EIB, Werner Heuer. According to him, "In the field of digitalization, Ukrainians are many years ahead of most of the countries of Central Europe, including Germany," adding, "This country can easily keep up with us." Hoyer also mentioned Ukraine's agriculture, which is essential to the world's grain supply. At the same time, however, the President of the EIB pointed to Ukraine's problems, where corruption is endemic and extreme, stressing that the EU must be vigilant. However, he cautioned against underestimating Ukraine. In Hoyer's opinion, Kyiv's obstacles to preparing for membership in the European Union through reforms are "surmountable".
In May, the export of Ukrainian IT services increased by 9.5%. In May, the volume of exported IT services from Ukraine amounted to $590M, 9.5% more than the previous month, according to NBU data. At the same time, these indicators are 1.8%, or $11M, less than in May last year. The total export of IT services for the first five months of the current year amounts to $2.8B, 12% less than in the same period in 2022. This amounts to a $374M decline between the two periods. According to the CEO of the Lviv IT cluster, in May of this year, the share of IT in the structure of the entire export of services amounted to 41%. On the other hand, during this period last year, it was 47.5%. Given the current trend, there is every chance for Ukraine to end 2023 with the same revenue figure as 2022, which was $7.3B.
Ukraine will help the EU develop a digital wallet. The Ukrainian Diia digital service team will participate in developing the European digital wallet. According to Ukraine's Ministry of Digitization, this decision was made during a meeting of the international consortium, POTENTIAL (Pilots for European Digital Identity Wallet), in Paris. A digital wallet is an application for storing and using identification data. The POTENTIAL consortium is developing a service that will provide an opportunity to open an account online, have constant access to driver's licenses on a user's phone, use an electronic signature, and receive electronic prescriptions for medicines. The POTENTIAL consortium supports the national and cross-border implementation of the new European digital identity wallet. After demonstrating the capabilities of the Diia application at the meeting, French Minister of Digital Technologies Jean-Noel Barro noted that Ukraine, despite the war, creates quality services.
9.1.9 Utilities sector news
Ukraine is repairing energy infrastructure and will add 1.7 GW to the power system before the heating season. Ukraine is currently undergoing the largest repair campaign on its energy system. The task of adding 1.7 GW to the power system before the start of the heating season has already been partially implemented, announced the Minister of Energy Herman Galushchenko. According to him, the repair campaign and the increase in generation capacity should ensure a stable electricity supply to consumers
57 UKRAINE Country Report August 2023 www.intellinews.com