The following is the October 30, 2024 edition of our weekly Ukraine Business Roundup newsletter. To receive the biggest business and technology news from Ukraine straight to your inbox, subscribe here.

Ukrainian companies hoping to be able to “reserve” their employees to protect them from military service may not be able to do so starting in mid-November.

The kyiv government said last week that it is currently carrying out an audit of the exemption process until November 15 to determine which companies qualify for “critical business status” which allows them to prevent certain employees from working.

Since the start of the large-scale invasion, Ukraine has allowed some men of conscription age to be spared from conscription in order to keep strategic sectors, including the defense industry, afloat and to reduce costs. consequences of the Russian war on the economy.

But as the war enters its third year, Ukraine is struggling to mobilize enough troops to make up for its troop losses and the need to rotate soldiers who have been fighting since 2022.

This is a thorny issue in Ukraine, Some feel it is unfair that others are not required to serve based on their profession. This also led to abuse of the system.

In Ukraine, around 1.5 million people were exempt from military service as of mid-August.

President Volodymyr Zelensky is said to be unhappy with the high figure, as well as the fact that the figure has almost doubled in a few months, said an unnamed senior official in the presidential office. said to NVleading to the decision to carry out the audit.

“The reason for the audit is the abnormal increase in the number of critical companies and the number of reserved employees. This is done in the interests of strengthening the country’s defense capacity and preventing abuse,” declared the Council of Ministers.

The government also said this weekend that employees in “strategic sectors of the economy” who benefited from an exemption from military service before May 31, 2024 could extend this status.

Stay tuned for more developments on this front.

Naftogaz wins against Russia

A Finnish court has ruled in favor of Ukraine’s state-owned oil and gas giant Naftogaz to seize Russian assets in Finland worth tens of millions of dollars in a lawsuit against Russia over its annexation of Crimea, Naftogaz said on October 28.

A court in The Hague ordered Russia in 2023 to pay $5 billion to Naftogaz in compensation for assets illegally seized during Russia’s 2014 occupation of Crimea, but Russia had not yet done so.

“Since Russia refuses to voluntarily pay Naftogaz the funds stipulated by the Hague decision, we continue to use all available mechanisms to collect them. Today we are on the verge of restoring justice,” said the Naftogaz CEO Oleksii Chernyshov following the Finnish court ruling.

Finnish authorities began confiscating Russian state property on October 28, reports the Finnish daily Helsingin Sanomat. reportedtaking over the Russian Center for Science and Culture in Helsinki.

Russia said it would challenge the decision in court, along with the Russian president’s spokesman, Dmitry Peskov. tell the journalists that Moscow would “use all legal mechanisms to protect our interests.”

Real estate mogul dies at 61

Businessman Adnan Kivan, owner of the Kadorr group and the English-language Ukrainian media Kyiv Post, died on October 28, the group said in a statement.

The Odessa-based millionaire and investor of Syrian origin would have turned 62 in December. The press release did not specify the cause of death.

The Kadorr Group is mainly known for its construction and real estate projects. In 2021, Forbes Ukraine listed Kivan as the 42nd richest person in Ukraine with a fortune of $240 million. His group was also involved in agriculture and media.

Kivan purchased the Kyiv Post in 2018 from British-Ukrainian businessman Mohammad Zahoor. Conflicts over editorial independence with the newsroom led Kivan to suspend the Kyiv Post and fire staff in November 2021.

The former Kyiv Post editorial team founded the Kyiv Independent immediately after their dismissal. It is now the largest English-language media outlet in the country.

Cash for everyone

Late last week, President Volodymyr Zelensky’s government made a decision that gave everyone Covid flashbacks: every Ukrainian, including children, would receive a one-time payment of 1,000 hrs (about $24 ) “to support the population in winter”.

But wait, aren’t the Ukrainian budget and army short of money? According to the government, the payments will come from funds provided to kyiv by its international partners, which must be exhausted before the end of the year and cannot be allocated to the army.

The money will only be able to be spent on things like utilities, medicines, transportation, cell phone plans, purchasing Ukrainian books and other miscellaneous services. The government also said citizens could donate their money to the military if they wanted.

It is not yet clear how much funds will be disbursed, but a deputy economy minister said a similar measure during the Covid-19 pandemic cost the government around 8 billion rupees, or almost 200 million of dollars.

“The final amount of this program for three winter months will depend on the number of Ukrainians wishing to benefit from this program. It is not possible to set the final amount at the moment,” said Deputy Minister Oleksiy Sobolev. Those who “don’t want” to use the program may not want to have to go to the trouble of open the special account they should have in order to receive the funds.

There were many reactions, with some wondering why the government isn’t earmarking the funds for investments or low-income families, others wondering how it would work logistically to get money to children and to older people who do not. I don’t have easy access to banking services.

The government defended its decision, with Prime Minister Denys Shmyhal saying the move pursues three major goals: financially supporting Ukrainian families, activating domestic demand for Ukrainian services and “demonstrating the unity of Ukrainian society for our stability and victory “.

If you live in Ukraine, especially kyiv, you know that $24 doesn’t get you very far. Personally, I suspect that many people will give their money to the military.

Russia gets a pass, again

After days of discussions, the Financial Action Task Force (FATF), the world’s leading anti-money laundering watchdog, chose last week not to blacklist Russia, despite efforts by kyiv to convince its members to do so due to the Kremlin’s increasingly close ties with blacklisted North Korea. and Iran.

The FATF’s decision not to blacklist Russia has instead highlighted the West’s lack of leadership when it comes to restraining Russia, said emerging markets sovereign strategist Timothy Ash ( ME) at BlueBay Asset Management, Kyiv Independent.

“It should have been a breeze,” he said.

Learn more here.

What else is happening

Ukrainian agricultural giant secures $150 million loan from international lenders

Kernel — one of the largest agricultural holdings in Ukraine — said in a statement post on Facebook that for the first time since the start of the large-scale invasion, it had received a loan of $150 million from a group of European banks, including the Dutch commercial banks ING Bank and Coöperatieve Rabobank, and the Banque de Commerce and development of the Black Sea. The funds will be used to support operations aimed at increasing exports of Ukrainian agricultural products, including sunflower oil, the company said.

G7 to grant Ukraine $50 billion in loans backed by frozen Russian assets

The Group of Seven (G7) has reached an agreement to provide Ukraine with around $50 billion in loans guaranteed by earnings from Russian assets abroad, the G7 announced. announcement on October 25. “Our goal is to start disbursing the funds by the end of the year,” said a statement from the G7 leaders.

Germany’s Rheinmetall plant in Ukraine a ‘legitimate’ target for Russia, Kremlin says

The new factory of the German arms manufacturer Rheinmetall, inaugurated at the end of October in Ukraine, is a “legitimate” target of Russian attacks, declared Kremlin spokesperson Dmitri Peskov. said The Russian pro-state news agency Ria Novosti, October 29. The factory, which is already operating in Ukraine at an undisclosed location, is expected to produce a batch of Lynx infantry fighting vehicles by the end of the year, according to Rheinmetall CEO Armin. Papperger.

EU to increase electricity export capacity to Ukraine to 2.1 gigawatts before winter

Continental European transmission system operators increase their export capacity to Ukraine and Moldova from 400 megawatts (MW) to 2.1 gigawatts (GW) from December 1, allowing Ukraine to rely more on electricity imports this winter, while power outages are expected. Russia carried out a massive campaign of air attacks against Ukraine’s energy infrastructure in the spring, destroying 9 GW of Ukraine’s grid capacity.

‘We can’t have a bad outcome,’ says JP Morgan Chase CEO on nuclear threats from Ukraine and Russia

“Nuclear proliferation is the greatest risk facing humanity,” said Jamie Dimon, CEO of JPMorgan Chase. said during an Institute for International Finance (IIF) event on October 24. According to Dimon, the West needs to be clear and subordinate many things “to make sure everything goes well.”