On March 3, Ukraine confirmed its first case of the coronavirus. Twenty-one days later, the number of confirmed cases has increased to over 100, with every consecutive hour now bringing in at least one more confirmed case. Ukraine’s healthcare system badly needs improvements, and Ukraine’s economy is already fragile after President Zelenskyy’s recent government shakeup. How the Ukrainian government has has responded so far, what steps do authorities need to take, and what can Ukrainians expect as the outbreak progresses.
Dr. Ulana Suprun, former acting Minister of Health of Ukraine, Andrey Stavnitser, co-owner of TiS and coordinator for the coronavirus response in the Odesa region, and Yulia Kovaliv, deputy head of the Office of the President of Ukraine, get together to discuss how Ukraine’s government is handling the situation and what it still needs to do. The Atlantic Council’s Melinda Haring, deputy director of the Eurasia Center, moderates.
During the week 1 June - 7 June there was an increased number of new COVID-19 cases reported daily, with a peak of 588 cases on 3 June, which improved towards the end of the week. On 7 June, the Ministry of Health of Ukraine reported that the epidemiological situation remains challenging in the capital city of Kyiv and four regions of Ukraine (Volyn, Rivne, Lviv and Chernivisi).
Nevertheless, people are gradually returning to their normal lives, including shopping, visiting restaurants (summer terraces) and outdoor leisure activities in view of improved weather conditions.
As witnessed by the experts at Cushman & Wakefield, in many regional cities of Ukraine the footfall in the most popular shopping centres, upon reopening of their retail galleries from 11 May, reached up to 80% of the pre-quarantine levels, while the conversion rate (buyers-to-shoppers ratio) improved compared to the same period in 2019. The restaurants without delivery and take-away services are known to demonstrate largely modest performance, as their indoor seating areas remain prohibited.
Though the business centres remained open for tenant access for the duration of the quarantine period, the vast majority of office occupiers have applied the work-from-home approach. In view of recent relaxation of lockdown restrictions and resumption of the municipal public transport, more businesses returned to work from 1 June. However, many companies (including major IT firms) continue to apply a work-from-home policy and increasingly consider desk-sharing combined with a remote work option when planning their further office operations.
23 April
Since the start of 2020 real GDP contracted for the first time since 2016. The country’s risks were seen to increase in March due to the Government’s reshuffle at the very unfavorable time of the coronavirus outbreak and no IMF deal achieved.
During Q1 transactional dynamics on the office property market in Kyiv is traditionally lower compared to the other three quarters of the year, but in Q1 2020 amid the spread of COVID-19 many deals planned for March were temporarily put on hold and postponed till after the quarantine, which resulted in low take-up and net absorption figures. Nevertheless, vacancy reached 6.7% with only a minor increase, and rents remained unchanged.
In Q1 2020, vacancy on the logistics property market in the Greater Kyiv area increased to 2.9% from 0.8% at the end of 2019, being largely attributable to a change in leasing strategy of some landlords prior to the spread COVID-19. Though many lease transactions were postponed till after the quarantine and occupiers-initiated negotiations on rent reductions, demand dynamics and rents remained stable.
As all leisure, dining and non-essential retail facilities have been closed since mid- March, the retail property market has been hit hard, with no significant support provided by the Government.