Art of the deal: Top 5 business events in 2017
For Ukraine, a country struggling to change its oligarch-run economy to a competitive one, 2017 has been one more example that the country has a long way to go. Here are the top five deals of the year:
After the government guaranteed $5.6 billion in cash allegedly e embezzled by billionaire oligarch li Igor Kolomoisky and Gennadiy Bogolyubov from PrivatBank, it’s hard not to conclude that the year’s biggest deal was the government’s decision to neither investigate nor prosecute the pair for this massive theft through insider loans, and to block attempts to retrieve the money in
Ukraine raised $3 billion on international capital markets in a September Eurobond issuance, reflecting either optimism among foreign investors or a dearth of options in the global bond market or both. The government proved it could find financing other than from the International Monetary Fund, its main backer, leading to backsliding in IMF- IMF-mandated ma reforms.
Billionaire oligarch Rinat Akhmetov lost control of 4 40 factories in Russianoccupied Donbas, while his energy company DTEK saw a huge • Mineral fuels, including oil and products from its refining (23.2 percent), are imported n large quantities. This includes natural gas, which Ukraine brings in from Europe. • Chemical products (13.4 percent) are used in industrial processes, and are
imported wholesale by the country’s factories. • Nuclear reactors, boilers, and machine tools (11.7 percent). are imported from Germany for use in factories across the country. Ukraine’s nuclear reactors are relics from the Soviet era. • Ground transport vehicles, not including trains (8.3 percent), account for a large portion of imports due to Ukraine’s weak domestic automaking industry. • Electronics (8.2 percent) are largely imported from China, with Ukrainian consuming phones and computers produced by Huawei, Lenovo and Alcatel. spike in profits thanks to the country’s Rotterdam+ scheme — a generous pricing formula which seems to have no economic rationale beyond enriching coal-producing oligarchs. Under the lavish subsidy, Ukraine prices coal at Netherlands rates plus the cost of transportation to Ukraine. Akhmetov added $1 billion in 2017 from his 2016 net worth, according to a Bloomberg calculation.
Russian companies exit Ukraine, selling off at least $150 million in assets. Russian insurer Ingosstrakh, Lukoil, and Evraz all sold out this year to Ukrainian investors.
Tigipko’s Ti return
Businessman and PrivatBank founder Sergiy Tigipko bought Sberbank s subsidiary VES Bank, $43 million in liabilities of the defunct DiamantBank and two factories from Russian investors this year.
A worker cleans windows of PrivatBank in Kyiv on June 1. (Volodymyr Petrov)