Please see below weekly overview of the most important news to keep you informed about significant business developments in Ukraine.

• Ukrainian Parliament approved historical tax hikes, aimed at helping to cover the sharply increased defense spending since russia's full-scale invasion. The changes include an increased military levy, higher taxes for individual entrepreneurs and small businesses, and a rise in the income tax rate for banks and financial companies.

• On October 10, 2024, the World Bank board has approved the creation of a new fund for Ukraine, with contributions expected from the USA, Canada, and Japan. The fund supports the G7’s pledge to provide Ukraine up to USD 50 bln by year-end. The exact contributions from these countries and the specific fund parameters are still being determined.

• On October 9, 2024, the Council of the EU agreed to provide Ukraine with up to EUR 35 bln as part of the bloc's contribution to a planned G7 loan backed by frozen Russian sovereign assets. The loan proposal, which involves the EU budget, still requires approval from the European Parliament. A vote is scheduled for October 22, 2024.

• The Ukrainian government reported that from January to September 2024, Ukraine increased its physical export volumes by 36.2% compared to the same period in 2023, reaching 99.3 mln tons. The largest growth was seen in agricultural products, metallurgy, confectionery, and sugar sectors. Since July 2024, grain and legume exports have increased 1.5 times, particularly for wheat, barley, and corn.

• Sweden will assist Ukraine in reforming its national waste management system to align with European standards. The program includes ten components, to be implemented at both national and regional levels, focusing on improved management and adopting the "polluter pays" principle in Ukraine.

• The Norwegian government has authorized Norfund, its investment fund, to invest in Ukraine. The capital from Norfund will reduce risks for companies investing in Ukraine, especially Norwegian companies. In 2024, the Norwegian government plans to direct approximately NOK 250 mln to Norfund's investments in Ukraine.

• The Franco-German defense group KNDS, a key industrial partner of Ukraine's land forces and known for the Leopard 1 and 2 tanks and the CAESAR artillery gun, has opened a subsidiary in Kyiv. KNDS Ukraine LLC will strengthen cooperation between the Ukrainian government, Ukraine's armaments industry, and KNDS. Together, they plan to manufacture 155 mm artillery ammunition and produce spare parts using cutting-edge manufacturing technologies.