BGV Group Management, an investment company, was listed as one of the top investors in the Ukrainian economy during the large-scale war. For the first time, Forbes released a ranking of companies recognized for their significant contributions to the country’s business growth and development over the past two years.

Thus, despite facing a full-scale Russian invasion, Gennadii Butkevych’s BGV Group remains actively engaged in business in Ukraine, investing in new projects, enterprises, and social and educational initiatives. In both 2022 and 2023, BGV Group and Gennadii Butkevych have invested 2.6 billion hryvnias in developing Ukrainian projects. This includes a 2023 fixed asset investment (CAPEX) of UAH 1.33 billion and a 2022 investment of UAH 1.25 billion.

The rating’s authors explained why this is important: “Capital investment plays a crucial role in not just the progress of individual companies but also in the overall growth and future of the economy. Before the war, the share of investments in GDP was around 15%. However, experts suggest that this figure needs to be at least 20% or higher to sustain extended growth. Anything less than that would indicate that the economy is consuming its own future, which could ultimately lead to a gradual decline in the country’s economic prospects. In 2023, strong business activity and significant state investments, particularly in the defense sector, increased the investment share to 17%.”

Based on the publishing house’s ranking, the top 20 private investors poured nearly $5 billion for development in 2022-2023. In many companies, the CAPEX for 2023 even exceeded pre-war levels. The top 20 companies in the ranking, which includes the BGV Group Management group, make up a quarter of the total CAPEX activity in the country.

Over the past two years, BGV Group Management has prioritized investing in mining, educational initiatives, development projects, processing, sports and sports infrastructure, and charitable and humanitarian efforts. These have become integral components of the company’s strategy.

One of the group’s main focuses is investing in the extraction and processing of raw materials. The company holds licenses for exploring and extracting nine different types of resources in various regions of Ukraine.

In 2023, the company began producing industrial gas at a licensed field. By the end of the year, one of the two wells was operational, producing 17 thousand cubic meters of gas per day. The second well is expected to come into operation soon. In 2021, 2022, and 2023, the company made significant investments in the project. This included developing a plan and carrying out repairs, reopening gas-bearing areas, implementing measures to increase gas inflow, constructing a temporary research and industrial facility and a network of gas pipelines, repairing damage caused by shelling on the site, and overhauling the facility to increase Ukrainian gas production. In the future, the company plans to continue drilling new exploratory and prospecting wells to unlock the field’s potential further.

In 2023, the company advanced its graphite and beryllium production development, paving the way for Ukraine’s inclusion in the global and European strategic raw materials supply chain. In recent years, the Balakhiv project has completed multiple pilot tests on the beneficiation factory, developed a production complex plan, and conducted experimental and industrial graphite tests. The ultimate aim is to construct one of Europe’s largest production complexes with a potential annual capacity of 50,000 tons of high-quality graphite concentrate, including 19,000 tons of spherical graphite specifically for lithium-ion batteries. This can fulfill a considerable portion of the EU market’s demand. The main graphite ore beneficiation scheme was confirmed as part of the preparatory phase. Funding was allocated for conducting pilot tests on approved technologies to produce high-quality spherical refined graphite (SPG) and obtain product samples. ANZAPLAN, a specialized European engineering research center, carried out these pilot tests, successfully incorporating BGV spherical graphite samples into test batteries. This demonstrated the superior quality and capacity of the samples compared to ordinary uncoated spherical graphite products. Furthermore, the sample displayed excellent reversible capacity, approaching the theoretical maximum.

BGV was the first Ukrainian investor in American University Kyiv, a leading private university established in partnership with Arizona State University, the most innovative educational institution in the United States. Since 2020, BGV has allocated $1.3 million towards this project.

For the past three years, BGV Group Management has served as the primary and sole partner for the Ukrainian football club Polissia in both its men’s and women’s teams. Over this period, FC Polissia has experienced significant progress, with its main team advancing to the highest level of competition in the country, the Ukrainian Premier League. The club diligently enhances its material and technical resources and its training facilities. It also invests in renovating the Zhytomyr stadium, which is under the ownership of the regional council. The club’s youth team competes in the prestigious Ukrainian Premier League U-19 division. FC Polissia is actively involved in implementing a comprehensive strategy for promoting children’s football in the Zhytomyr territorial community. Furthermore, in collaboration with the BGV group, the club proudly supports the annual BGV Kids tournament, a popular football competition among local schoolchildren. With a strong commitment to promoting football for all, FC Polissia also strives to develop professional women’s football in the region. The recent establishment of a women’s team within FC Polissia’s structure reflects the club’s dedicated efforts in this area. The successful development of the women’s team remains a top priority for the club.

Moreover, BGV Group Management serves as a partner to Zhytomyr Polytechnic State University. As part of this collaboration, the BGV Group, led by Gennadii Butkevych, provided funding for the enhancement of the university’s innovation hub, procurement of cutting-edge equipment essential for training and advancing technological projects, and establishment and execution of an acceleration program aimed at nurturing and aiding technological startups.

The BGV group of companies, spearheaded by Gennadii Butkevych, solely utilizes their own funds for all investments in the aforementioned areas.

Forbes Ukraine ranking can be found via the following link: https://forbes.ua/ratings/205-naybilshikh-investoriv-kraini-08052024-21006. 

FOR REFERENCE:Forbes Ukraine magazine published its inaugural ranking of the top investors during wartime in May. The magazine’s editors requested 200 major Ukrainian companies to gather information on capital investments made between 2021 and 2023. The final list was based solely on the amount of capital invested, excluding any expenses related to salaries or losses. Forbes Ukraine also reviewed the companies’ financial statements to ensure accuracy and completeness.