Page 64 - UKRRptFeb24

• Other country Aid
Ukraine and Japan are increasing their trade volume and planning to cooperate in renewable energy. Trade between the countries averaged $1.5B per year. At the beginning of the full-scale invasion, trade volume decreased to half of the current indicator. Still, in 2023 it increased, approaching almost $1B, Ukrainian Ambassador to Japan Serhii Korsunskyi said. He noted that the export volume of Ukrainian alcoholic beverages and feather down to Japan has increased significantly. According to him, in April, there will be a large-scale exhibition of food products in Tokyo, where a Ukrainian delegation will participate. A separate topic is cooperation in the field of IT. But, frankly, it's not yet the scale I'd like to see. We will continue to work," added Korsunskyi. At the same time, Japan plans to share biofuel production technology and the necessary equipment to produce renewable energy with Ukraine. Biofuel production can provide promising exports for Ukraine and potentially help increase the country's earnings in foreign currency.
• Private sector Aid
6.1.4 Budget dynamics - privatisation
The State Property Fund of Ukraine completed nearly 371 successful auctions bring in UAH3.83bn ($101mn) of revenues for the budget, Interfax Ukraine reported on January 11.
The competitive nature of these auctions, with an average of 5.2 bids over the year, drove up the average value of sold assets to more than 2.7 times their starting prices.
The economic impact of these successful auctions contributed over UAH 2.69bn to the state budget. Additionally, VAT payments from privatisation deals reached almost UAH 538mn, while new owners took on the obligation to repay debts of UAH 602mn, including debts to the budget and salary payments to employees. The head of the fund estimates the total economic impact of privatisation in 2023 surpassed UAH 3.83bn , Interfax Ukraine reported.
There was widespread market interest in some of the deals that attracted 30 to 40 bids. Among these, properties in Uzhhorod, Zakarpattia region, Kyiv, and Volyn region stood out. The year saw more than 1,500 participants engaging in privatisation auctions, submitting around 2,100 bids, with over 320 unique participants emerging as winners.
The success of the privatisation initiatives extended across diverse assets, ranging from smaller values to significant amounts. Eight auctions generated revenue exceeding UAH 100mn, while another hundred fell within the UAH 1 to 100mn range. Notably, auctions involving the "Hermitage" hotel in Kyiv, SOE "VolynTorf," and SOE "Ukroboronresurs" earned the government the highest returns.
As of mid-December, Lviv, Rivne, and Vinnytsia regions emerged as the most active in the privatisation process, accounting for a third of all successful auctions. However, Kyiv secured the top spot in revenue, selling state assets for UAH 750mn by December 15.
64 UKRAINE Country Report February 2024 www.intellinews.com