Top Stories March 13: Ukraine’s electric vehicle market doubles

UKRAINE

Ukrainian online electronics marketplace Rozetka started sales in Poland. The company’s co-founder Vladislav Chechetkin said that it was possible thanks to the efforts by the Ukrainian army that has managed to secure the environment for businesses to develop and even expand. [Source: Interfax-Ukraine]

Ukraine’s eclectic cars market doubled compared to last year, with both new and used vehicles reaching 2932 in January and February 2023, twice as many as in the same period last year. The share of new cars was 23.5%. [Source: Interfax-Ukraine]

SANCTIONS

Russian hotel operator Azimut Hotels will stop all European business in 2023 because of challenges associated with Western sanctions and cross-border payments. While the company managed 20 hotels in Europe 15 years ago, it was reduced to eight in 2022 and to three in early 2023. [Source: RBC] 

Turkey has stopped transit of sanctioned goods to Russia, canceling even previously approved bookings. Vendors and logistics companies are looking for alternative routes, while Turkey’s ban is expected to lead to a hike in prices for Russian consumers. [Source: Kommersant]

THE EUROPEAN ASIAN ECONOMIC UNION

The idea of the creation of a common cryptocurrency in the form of a stablecoin for the countries of the European Asian Economic Union (EAEU) – Russia, Kazakhstan, Kyrgyzstan, Belarus, Armenia – is far from reality, CEO of Binance Kazakhstan Zhaslan Madyev said in an interview. Aside from economic and technical issues, a key barrier is that central banks of the countries are not ready to take to a decentralized system that would reduce their influence in the financial markets. [Source: newspaper Kursiv]

EAEU is negotiating with the United Arab Emirates the establishment of a logistics hub in the UAE. The facility will help intensify trade of EAEU with the countries of the Middle East and Africa. [Source: Economist.kg]

STARTUPS

Anna Money, a British fintech startup with Russian founders that helps businesses manage their expenses and pay taxes, raised an estimated $2.7 million from undisclosed investors. In 2022, co-founders of the startup bought a 34% stake in the company from structures linked to Pyotr Aven and Mikhail Fridman, Russian business tycoons sanctioned by the U.K. [Source: VC]

Kazakhstan-based Freedom Holding founded by Russian native and now citizen of Kazakhstan Timur Turlov has acquired LD Micro, a US-based pre-eminent event platform for microcap stocks, from US’s SRAX. The $8.3 million deal will enhance Freedom Holding’s assets portfolio after the company sold all its businesses in Russia last year. [Source: VC]

RUSSIAN EXPORTS

Russian premium fresh food retailer VkusVill started sales in Dubai under its own brand. Delivery is made through Dubai-based, Russian-linked delivery service YallaMarket, which was launched two years ago by Russian founders. [Source: Forbes] 

Russian online platform Vitobox that uses artificial intelligence algorithms to select vitamins for the user, began selling its products in Kazakhstan, Belarus, Armenia, the United Arab Emirates and some other countries. The company is planning to enter the European markets next, starting from the Balkans and then expanding into Western Europe. [Source: RB]

YANDEX

Yandex.Eda, a food delivery service of a Russian Internet powerhouse Yandex, started activity in Tashkent, the capital of Uzbekistan, under the brand Yandex Eats. Currently Yandex Eats works with 200 vendors and plans to increase that number as well as markets reached. [Source: TASS]  

Yandex permitted its employees to work from abroad, while some Russian companies prefer to hire only those who stay in the country. The employees are still required to visit one of the company’s offices in Kazakhstan, Armenia or Serbia two to three times a week. [Source: RB] 

KAZAKHSTAN

Kazakhstan adopted The National Protocol for Internet of Things Data Transmission. The protocol will be used to provide compatibility for gadgets in the utility industry, medicine and other tracking systems. [Source: Profit.kz]

Citizens of Kazakhstan will be able to use their digital identification cards for voting at the upcoming federal and regional elections on 19 March. An e-card is generated through the state mobile app eGov Mobile as well as apps of banks Kaspi and Halyk. [Source: Profit.kz]

Video platform TikTok introduced special measures to tackle possible spread of fakes and disinformation before federal and regional elections in Kazakhstan on March 19. Videos in Kazakh and Russian languages will be specially marked and accompanied with warnings to check information. [Source: Profit.kz]

UZBEKISTAN 

Uzbekistan will design light and extra strong carbon fibers that are used in the aviation and space industry. The two-year project will be funded by the government within a state scientific program. [Source: Edu.uz]

Uzbektelecom, Uzbekistan’s national telecommunication provider, will start to develop a 5G mobile network throughout the country in March. At the first stage, the network will cover the capital Tashkent and regional capitals. [Source: Gazeta.uz]

KYRGYZSTAN 

The government of Kyrgyzstan will invest in nanotechnologies and artificial intelligence as the country sees potential in these fields, Kyrgyzstan’s Premier Minister Akylbek Zhaparov said in an interview. Part of Zhaparov’s presentation at a digital forum held in Kazakhstan was generated by AI. [Source: E-CIS.info]

The government plans to launch a state program that will fund students’ startups. So far the state committed to a three-year pilot program. [Source: Economist.kg]