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Business news from Ukraine

UKRAINIAN ALEXANDER GROUP PLANS TO BUILD LARGEST TRADE CENTER IN ZAPORIZHIA WORTH UAH 1.4 BLN

Alexander Trading House LLC (Zaporizhia) plans to build a three-storey shopping and entertainment center with a total area of 104,000 square meters in the center of Zaporizhia.
According to the developer of the Delta Ukraine project, the center will be located near Pushkin Park in the central part of the city, the planned construction period is 36 months.
According to the project, one floor of the building will be used for food courts and an entertainment zone, two more floors for 300 stores.
The total investment in the construction will be about UAH 1.4 billion, one of the investors will be the co-founder of Alexander Group, Volodymyr Kaltsev.
According to Delta Ukraine, the investor expects to attract large international retailers to the shopping mall, in particular, Zara, Massimo Dutti, Stradivarius, Oysho, Armani Jeans, Calvin Klein, Gucci, and Baldinini.
The general designer of the project is Megaline, which built the Lavina Mall shopping center in Kyiv.
The project also provides for the reconstruction of Pushkin Park, investments in which will amount to about UAH 64 million.

UKRTRANSGAZ WILL COOPERATE WITH FRENCH POWERNEXT TO DEVELOP EXCHANGE TRADE IN GAS

PJSC Ukrtransgaz and Powernext (France) intend to cooperate in the creation of spot and futures exchange markets for gas trading in Ukraine, the company’s press service has said, with reference to the signed memorandum.
“For Ukrtransgaz, this is another step towards integration with European gas transportation operators, a further development of the gas market in Ukraine,” the report said.
According to the press service, Powernext is the provider of the pan-European gas trading platform PEGAS, which allows market participants to sell natural gas at 12 hubs in nine countries. Today it is the main trading platform for natural gas sales in Europe. After establishing cooperation with the Central European Gas Hub (CEGH) in 2016 and integrating the Czech gas pipeline into the PEGAS platform in December 2017, Powernext began to integrate into Eastern Europe.
Ukrtransgaz notes that the main obstacle to the development of exchange trade in Ukraine is a lack of modern information systems and clearing mechanisms, which are designed to guarantee the execution of transactions concluded on the exchange and minimize counterparty risks. At the same time, the country needs to apply market mechanisms for introducing the daily balancing regime and further development of exchange trade in gas.
PEGAS is a pan-European gas trading platform. It is part of EEX Group operated by Powernext. PEGAS provides its members with access to all products on a single platform and allows them to trade in natural gas contracts in the markets of Austria, Belgium, Denmark, Holland, France, Germany, Italy, the Czech Republic, and the UK.

EBRD INVESTS EUR 800 MLN IN UKRAINE IN 2017

The European Bank for Reconstruction and Development (EBRD) in 2017 invested EUR 800 million in Ukraine, which is 37% more than a year ago, EBRD Director in Ukraine Sevki Acuner has said.
“This is a significant rise since 2016 and a strong start for 2018. We hope to reach the indicators of 2014 and 2015, when investments exceeded EUR 1 billion,” he told Interfax-Ukraine.
According to the banker, the volume of investments in 2018 will depend on several reasons, including the privatization process.
“I think that in this context the law on privatization, passed in parliament last week, will allow attracting more large foreign investors,” Acuner stressed.
Earlier, the EBRD director in Ukraine expressed opinion that the bank’s investments in the implementation of Ukrainian projects in 2017 could reach EUR 1 billion.
As reported, in 2017 Ukraine became the third largest recipient of EBRD loans following Turkey, which received EUR 1.54 billion in loans, as well as Egypt with EUR 1.41 billion loans.

KYIV ANNOUNCES TENDER FOR BUILDING SUBWAY FOR UAH 6.3 BLN

Kyiv Metropoliten has announced a tender for the construction of a section of the Syretsko-Pecherska metro line from the Syrets station to the Vynohradar residential area.
According to the announcement in the ProZorro system, it is planned to build a section with an electric depot in Podilsky district (from the Syrets station to the Prospekt Pravdy station with the two stations of Mostytska, Prospekt Pravdy) and a section towards the Vynohradar station (the first stage of construction).
Documents for participation in the tender are accepted until February 19, 2018. The auction starts at 13:16 on March 7.
The amount of tender security, as well as an increment, is UAH 31.6 million. The plan is to perform the work for a year and a half.
In 2017 some 498.4 million passengers used the services of Kyiv Metropoliten, which is 2.8% more than a year ago.

Ukraine INTENDS TO RESUME MEMBERSHIP IN WORLD TOURISM ORGANIZATION

Kyiv intends to resume membership in the World Tourism Organization (UNWTO), which currently comprises 158 countries.
The director of the Tourism Development Center, Volodymyr Tsaruk, told Interfax-Ukraine this topic was discussed at a meeting of UNWTO Secretary General Zurab Pololikashvili with the head of the tourism and promotions department of Kyiv City State Administration, Anton Taranenko, during the 38th International Tourism Exhibition FITUR (Spain).
“The capital of Ukraine, when obtains membership, will be able to organize one of the international events with the support of UNWTO in its territory and participate in international conferences and congresses under the auspices of this tourist organization,” Taranenko said.
During the 38th International Tourism Exhibition FITUR, held in Madrid, Spain, on January 17-21, Kyiv presented its tourist opportunities, as well as the most important sport event in the world of European football – the Champions League final, which will be held at the Olympiysky stadium in Kyiv on May 28.
The World Tourism Organization (UNWTO) is the leading international organization in the field of tourism, engaged in the development of sustainable and generally accessible tourism. Its supreme governing body is the General Assembly, which meets every two years.

STRATEGIC ADVISORS GROUP HEAD: FDI SHOULD BE ATTRACTED TO UKRAINE

One of the important priorities of reforms in Ukraine should be attraction of foreign direct investment (FDI), as their amount is not enough for provision of potential economic growth of GDP of 6-7% a year, Head of the Group of Strategic Advisors for Support of Reforms in Ukraine Ivan Miklos has said.
“One of the most important priorities should be to bring more FDI… Today, for example, direct investment as their share of gross domestic product in Ukraine is around 15%. To have this growth (6-7% a year), and this is not a theory, this is the experience other countries, the share of investment should be around 25% of GDP,” Miklos said on Channel 5 TV late on Friday, January 19.
He said that in 2017, FDI to Ukraine totaled $2 billion.
“This is too small for the Ukrainian economy… There are three main sources of investment: public finances… loans… and the most important source of investment is FDI. This is linked to the rule of law, privatization,” Miklos said.
He said that in 2017, the economic growth in Ukraine was less than 2.5% of GDP.
“This year we expect 3.5%. This means that there is some growth, but it is not enough: I think that Ukraine has a potential to have economic growth of around 6%, maybe 7%,” he said.