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Ukraine Country Partnership Strategy 2012 - 2015 17.02.2012

Ukraine is emerging from the 2009 economic and financial crisis, but serious structural weaknesses remain unaddressed. Fiscal imbalances are significant and large social transfers, inefficient public services and considerable quasi-fiscal subsidies threaten sustainability. The financial sector is fragile and the business climate ranks persistently as the weakest in the region.

Despite export led recovery over the past two years, output is still below pre-crisis levels and the economy remains vulnerable to volatile commodity prices and dependent on foreign financing. The public sector is large, but the quality of many public services has been deteriorating.

Surveys conducted on the eve of Ukraine's 20th anniversary of independence, as well as recent social protests, reveal widespread discontent with the economic situation and with poor public governance. Nevertheless, the gap between public expectations and economic reality masks some underlying strengths and achievements, such as progress in poverty reduction over the past decade, relatively good medium-term growth prospects and low levels of public debt by regional standards.

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For investors: new entry
Novokahovskyi Lime-Sand Brick Plant

Purposes of company: Investments
Company description:

Market Overview:  Construction volume is increasing 20-25% annually, creating an increased demand for high quality façade bricks. The industrial capacity of façade bricks is estimated at 200 million bricks per year. In 2006, a construction boom is expected in southern Ukraine, where the plant is located. The product is used mainly by construction companies and private companies.

Project Overview:

  • Using KSE-400 (Germany)
  • Equipment supplier offers trainings for the buyer’s staff
  • Can produce 30 million bricks per year including high quality hollow façade bricks, ordinary bricks, molded bricks, white and colored bricks

Competitive Advantages:

  • Production of lime-sand bricks is considerably more energy efficient than the production of ceramic bricks. Moreover, the project envisions the reconstruction of one of the two pit-type 50-ton lime-burning kilns; using coal, automatic blending, loading, and burning will save on gas
  • Plant produces its own lime; a sand-pit is located close to the plant
  • No high quality lime-sand hollow bricks are produced in southern Ukraine
  • Due to the considerable decrease in the weight of the bricks, delivery and transportation becomes much easier; bricks can be transported by auto, railway (via the plant’s rail track), or by water (a river port is 8 km away)
    Investment Project Progress:  Market research has been conducted

Key Financials:

  • Total Investment - € 1.5 mln
  • Investment Needed - € 1.5 mln
  • Payoff period - 5 years

Branch: Construction materials
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Purposes of company: Investments
Company description:   
Branch: Construction materials
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For Buyers: new entry


Purposes of company: Export
Company description:  
Branch: Construction materials
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«Венбест»

Purposes of company: Distribution
Branch: Furniture
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