Ukraine creates National Exchange for Trade and Goods

Wednesday, June 9, 2021
Ukraine creates National Exchange for Trade and Goods

Ukraine plans to create a national exchange for trade in capital and commodities in three years with the support of the European bank for reconstruction and development (EBRD), the American chamber of commerce in Ukraine, and USAID

As the prime minister of Ukraine Denys Shmyhal concluded following the results of signing a memorandum of understanding with the indicated parties in the field of national exchange trade in capital and organized commodity markets.

"According to the agreements, in the next three years Ukraine plans to create an integrated center for capital and commodity markets - the national exchange for capital and commodity trade (NEXT)," the prime minister said in a Telegram on Tuesday.

He noted that the memorandum is "a new page in the economic history" of Ukraine.
"Ukrainians will get new opportunities in the form of financial instruments for saving and investing. Businesses will get a long-term and cheaper resource for the development of their own enterprises. The state will get increased investment, new jobs, and economic development," Shmygal added.

"Now we are talking about an agreement to create a framework for further cooperation of all stakeholders in the process and further develop the forms and essence of a universal hub, adapted to Ukrainian market realities," Ruslan Magomedov, head of the national securities and stock market commission (SSMSC) were quoted as saying in the regulator's press release.

Shmygal stressed that the signing of the memorandum is the first step toward the creation of a full-fledged stock market.
"The stock market is one of the most qualitative mechanisms of attraction of internal and external investments into the real sector of the economy. This is new opportunities for business and investors," he said.

According to Yuri Boyko, a member of the Commission, in the future, such a project may provide market participants with an opportunity to hedge their risks through derivatives trading and will be of great benefit to Ukrainian and international producers and traders.

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