Business news from Ukraine


The State Architectural and Construction Inspectorate has annulled a permit to build the Podol Grad Vintage residential complex at 28-30, Voznesensky Uzviz Street in Podilsky district of Kyiv. “The permit to carry out construction works on one of the scandal-ridden sites in the historic center of Kyiv has been annulled. This is the Podol Grad Vintage residential complex being built on the land of… the blind association,” MP Serhiy Leshchenko wrote on his Facebook page.
According to a copy of the decision posted by the lawmaker, the inspectorate annulled the permit for the contraction project ordered by Kyiv training and production enterprise No. 3 of the Ukrainian Blind Association on March 16.
According to a posting on the website of the Podol Grad Vintage residential complex, developers of the project are Edelburg Development (Budgroup Project LLC) and Ukbud, and the contractor is All Trade private enterprise (all based in Kyiv). No details on the project are posted on its website.


Vitaliy Melnyk, who worked as project manager at the development company UDP, has been tapped to become CEO of the company. The top manager has been working at UPD since 2005, has a considerable background in the development of large-scale infrastructure facilities of commercial and residential property. Under Vitaliy Melnyk’s management, big projects have been developed or built, or are being built, such as the Maristella club house in Odesa (a Luxury Lifestyle Awards 2011 winner), as well as a gated residential community on the Black Sea coast, and innovation parks UNIT.City in Kyiv and LvivTech.City in Lviv.
“I wish Vitaliy success. He has a lot of important and interesting work ahead. The company will continue to participate as an investor in joint projects with partners. But the emphasis will be on the development of innovative business areas of the UFuture Group with development of innovation and industrial parks ranking first,” founder of the investment group UFuture Vasyl Khmelnytsky said.
“The portfolio of UDP projects for the coming years includes about one million square meters of industrial, office and residential real estate. As part of the concept of developing innovation parks, the company will actually build mini-towns with commercial and social infrastructure, which will be of great importance not only to our group, but to the country in general,” the company said, citing Vitaliy Melnyk.
Along with ongoing projects, UDP plans to complete the construction of 30,000 square meters of office space in UNIT.City and build the first two plants in the Bila Tserkva industrial park by the end of the year. Currently, the company is analyzing the possibility of building an innovation park in Kharkiv.
UFuture is an investment group founded by businessman Vasyl Khmelnytsky. It incorporates the development company UDP, Kyiv International Airport (Zhuliany), the national outdoor advertising operator RTM-Ukraine, the pharmaceutical producer Biopharma. UFuture also develops innovative businesses, such as alternative energy asset (via UDP Renewables), the Bila Tserkva industrial park, as well as the innovation parks UNIT.City and LvivTech.City. What is more, UFuture also coordinates social projects, supported by Vasyl Khmelnytsky through his K.Fund.
UDP is a leading development company in Ukraine. It has been working on the market since 2002. It has initiated and has successfully been developing long-term investment projects. Among the most well known are the development of Kyiv International Airport (Zhuliany), the construction of the shopping mall OCEAN PLAZA and residential complexes Novopecherski Lypki, Boulevard of Fountains, RiverStone, Parkove Misto. As of today, UDP has implemented 11 projects whose total area is three million square meters.


Public joint-stock company Kharkiv biscuit factory saw a 22.4% rise in net profit in 2017, to UAH 161.35 million. According to a company report posted in the information disclosure system of the National Commission for Securities and the Stock Market, undistributed profit grew by 17.8%, to UAH 1.06 billion. Noncurrent liabilities soared 1.6-fold, to UAH 5.19 billion and current liabilities – 1.5-fold, to UAH 129.1 million.
Total bills receivable rose by 18%, to UAH 470.04 million.
Kharkiv biscuit factory produces flour confectionery. Its annual capacity is around 40,000 tonnes of products. The enterprise is part of Biscuit-Chocolate Corporation founded in 2004. It also incorporates public joint-stock company Kharkivchanka confectionery factory, Prestige Trade House LLC, public joint-stock company Pervukhinsky sugar refinery, Krasnohradsky Mlyn LLC and public joint-stock company Skovoroda Agrofirm.


National joint-stock company Naftogaz Ukrainy plans to enter the eurobond market in 2018 and expects that investors would positively react to this step, as the company sees profits, Naftogaz Ukrainy CEO Andriy Kobolev said on Bloomberg TV Europe. “We hope that Gazprom would execute the decision of the arbitration tribunal,” he said. Kobolev also said that Ukraine and Naftogaz insist that Nord Stream 2 gas pipeline cannot be built, as Russia does not want to divide the politics and gas supplies.


Group DF, uniting assets of businessman Dmytro Firtash, has denied accusations of the Ukrainian Prosecutor General’s Office (PGO) of the alleged tax evasion by some enterprises of the group using pseudo insurance on the Ukrainian market. “Observing the requirements of the legislation, the group’s enterprises operate on market conditions with a number of insurance companies and insure risks in strict compliance with Ukrainian legislation,” the Group DF said in the statement forwarded to Interfax-Ukraine on Tuesday.
The group said that its chemical enterprises belong to a group of facilities with an increased level of danger and are required to insure the risks of economic activity under the law on insurance.
Group DF recalled that in August 2017, the PGO had already put forward charges similar to the current ones, and the group then claimed and now confirms that the information disclosed is untrue.
The group insists that its enterprises pay taxes in full amount and considers the accusations of optimizing tax payments as a bias of law enforcement agencies against Group DF and the attempt to put pressure on its shareholder.
According to the statement, the group is ready to appeal to courts and human rights institutions to restore justice. Earlier on Tuesday Prosecutor General Yuriy Lutsenko and his spokesperson Larysa Sarhan said that the PGO raided some enterprises under control of Firtash on March 19 in a criminal case regarding the tax evasion in the amount of over UAH 500 million.