Business news from Ukraine

Result of 4G tender coincide with Kyivstar’s plans – company president

The largest mobile communications operator of Ukraine Kyivstar at a tender of the National Commission for Communications Regulation (NCCR) bought the right to use radio frequencies in the 2,530-2,535/2,650-2,655 MHz, 2,525-2,530/2,645-2,650 MHz and 2,520-2,525/2,640-2,645 MHz ranges for UAH 916.3 million to develop 4G network, which was in line with the company’s plans.
“As we planned we bought three lots providing for the continuous frequency range of 2×15 MHz, which allows providing services at the highest speed as possible, understanding that… we soon would need additional frequencies for the full-featured launch of IoT products, developing Mobile ID and other services,” the company said in a press release, citing Kyivstar President Peter Chernyshov.
He said that the auction turned out to be competitive, which underlines the good preparation of the regulator and the interest of the market.
Kyivstar has by now prepared more than 500 towers in the largest cities of Ukraine, sea resorts, at border crossing points to launch 4G in the 2,600 MHz band, and in 2018 plans to install another 600 towers, the press service said.
The company recalls that NCCR will officially announce the winners of the tender on its website within five days, and in the next 30 days the operators are required to pay the full amount of the license cost. The operators are obliged to start the provision of 4G communication services in one of the regions within a period not later than six months after receiving the license, and deploy the network in all regional centers – no later than 54 months from the date of obtaining the license.
Late August last year, Kyivstar reported that in 28 months after receiving the license for 3G communications, the operator built and put into commercial operation more than 7,300 3G towers.
Kyivstar is the largest Ukrainian mobile communication operator, serving about 26.4 million subscribers as of the end of the third quarter of 2017.

Results of 2017: Ukrainian airlines see 27.5% rise in passenger transportation, passenger flow at airports 27.6% up

The Ukrainian market of passenger and cargo transportation was serviced by 32 Ukrainian airlines in 2017. The airlines serviced 93,000 commercial flights, which is 17% more than in 2016.
According to the State Aviation Service of Ukraine, the number of passengers carried by Ukrainian airlines rose by 27.5%, to 10.555 million people.
“The Ukrainian market of passenger air transportation for the second consecutive year showed high growth rates, while in the previous year, 2016, the market recovered after the recession that took place in 2014-2015. If in 2016 the volume of passenger transportation by domestic airlines exceeded the pre-crisis indicator of 2013 by 2.1%, then for 2017 – already by 30.1%,” the State Aviation Service said.
During the past year, 18 domestic airlines carried passengers. According to statistics for 2017, 93% of the total volume of passenger traffic was carried out by five leading air carriers. In addition to the airline Ukraine International Airlines (UIA), the leaders of the market were also Windrose, Azur Air Ukraine, Atlasjet Ukraine and Bravo.
Windrose has achieved growth of passenger traffic by 2.5 times as compared to the previous year, Atlasjet Ukraine by 73.8%, Bravo by 49.9%, Azur Air Ukraine – by 17.2% and UIA – by 16.5%.
“The positive trend that has been created in the last two years is primarily thanks to the successful development of the international air transportation sector. Throughout 2017 regular flights between Ukraine and other countries were carried out by 10 domestic airlines to 43 countries and 29 foreign airlines to 27. Among the new foreign airlines are Qatar Airways from Qatar, Ernest SpA from Italy and Kish Air from Iran,” the State Aviation Service said.
In 2017, in accordance with the approved timetable, exploitation of 20 international airlines was started on a regular basis, of which 10 international airlines by domestic airlines. Ukrainian airlines on international scheduled flights carried 5.837 million passengers, foreign airlines – 4.976 million (an increase of 18.1% and 29.3% respectively).
“The largest growth in the number of passengers carried by domestic airlines was observed in the following segment of the air transportation market – international flights on an irregular basis (49.2%): in the reporting year, 15 Ukrainian airlines transported 3.777 million passengers. Four airlines, in particular, Windrose, UIA, Azur Air Ukraine and Bravo carried out 85% of passengers,” the authority said.
During the year, the activation of regular traffic within Ukraine continued. Regular domestic passenger transportation between nine cities of Ukraine was serviced by five domestic airlines: 930,900 passengers were transported, which is 17.6% more than in 2016.
Some 23 Ukrainian airlines carried cargo and mail mainly servicing charter flights in other states under humanitarian and peacemaking UN programs and under contracts with other customers.
A total of 20 Ukrainian airports and airfields serviced commercial flights of Ukrainian and foreign airlines in 2017. The airports serviced 159,900 aircraft, which was 20% more than in 2016.
The Boryspil airport saw a 22.1% rise in the number of serviced passengers in 2017.
The Ukrainian State Air Traffic Services Enterprise (UkSATSE) serviced 254,000 flights, which is 18.5% more than in 2016. The number of flights performed by Ukrainian airlines’ aircraft and helicopters grew by 18.8% and by foreign airlines – by 18.4%.

Ukrainian grain harvest totals 61.3 mln tonnes in 2017

Grain harvest in Ukraine in 2017 totaled 61.28 million tonnes, which is 4.7 million tonnes less than in 2016.
The State Statistics Service has reported that Ukraine last year threshed 26.1 million tonnes of wheat with the yield of 41.1 centners per ha, 24.1 million tonnes of corn (54.4 centners per ha), 8.3 million tonnes of barley (33.1 centners per ha), 506,800 tonnes of rye (29.7 centners per ha), 471,000 tonnes of oats (23.9 centners per ha), 180,000 tonnes of buckwheat (9.8 centners per ha), 1.1 million tonnes of peas (26.5 centners per ha) and 63,900 tonnes of rice (50.5 centners per ha).
Average yield for grain crops was 42.3 centners per ha.
Grain and leguminous crops were harvested from 14.6 million ha.
In addition, sugar beets harvest was 14.5 million tonnes with the yield of 465.5 centners per ha, that for sunflower seeds – 12.2 million tonnes (20.1 centners per ha), soybeans – 3.9 million tonnes (19.7 centners per ha), potatoes – 22.2 million tonnes (167.8 centners per ha) and vegetables – 9.3 million (207.8 centners per ha).
Some 2.05 million tonnes of fruit and berries was harvested, and grape harvest was 403,300 tonnes.


Ukraine jointly with Italy starts designing a feasibility study for the introduction of high-speed train movement in Ukraine, the press service of the Infrastructure Ministry of Ukraine has reported after a meeting Minister Volodymyr Omelyan with President of Italferr Riccardo Maria Monti on Tuesday.
The press service said that Omelyan said that the introduction of high-speed train movement in Ukraine is a mega infrastructure project of national scale.
“This a mega project, the implementation of which would not only change the railway sector, but would influence the economic state of some regions, significantly expand the capacities of existing production spheres and launch new ones. Today, jointly with Italian partners we are making a first step on this way,” the minister said.
He pointed out the importance of the fact that Italferr, part of the Italian State Railways Group, has experience of over 30 years in its sector.
“We are attracting Italferr to the designing of the feasibility study for the Odesa-Kyiv-Lviv European route. The achievements of the company are large infrastructure projects for conventional and high-speed railway sectors both in Italy and other countries. It is important that we start changes in Ukraine with support of the leading European company,” the minister said.


Private joint-stock company Zaporizhtransformator (ZTR) has signed three contracts to supply six transformers to committed partners in Georgia, ZTR has reported on its website.
The contracts, the cost of which is not disclosed, envisage the delivery of two 40 MVA/110 kV transformers for the Vartsikhe cascade of hydroelectric power plants and two similar transformer for Kakhari substation, as well as two 6.3 MVA transformers for a resident district being built in Tbilisi.
The contract to supply transformers for the Vartsikhe cascade was signed with Georgian Manganese. ZTR has been cooperating with the company since 2014. The delivery of the transformers is scheduled for March 2018.
The contract with Sakenergoremonti (Tbilisi), which has been cooperating with ZTR since 2009, foresees the delivery of transformers for the Kakhari substation in May 2018.
Zaporizhtransformator is a large world manufacturer of transformer equipment. It has experience in deliveries to 88 countries. It produces power oil transformers, electric reactors, and controlled shunt reactors.

Top three largest mobile communications operators in Ukraine pay UAH 2.5 bln at 4G tender

The top three largest mobile communications operators Kyivstar, Vodafone-Ukraine and lifecell paid UAH 2.456 billion for 80 MHz in the 2,600 MHz frequency rate for the right to develop 4G communications standard.
An Interfax-Ukraine correspondent has reported that lifecell bought two lots for 30 MHz for UAH 909.25 million, Kyivstar bought three lots for 30 MHz for UAH 916.3 million and Vodafone-Ukraine – two lots for 20 MHz for UAH 631 million.
The budget would receive UAH 169 million more compared with the starting prices.
President of Kyivstar Peter Chernyshov, lifecell CEO Ismet Yazici and Corporate Governance Director at Vodafone-Ukraine Oleh Prozhyvalsky were authorized to participate in the tender by voice on behalf of the operators.
The winner of the first lot was lifecell, offering UAH 601.6 million with one bid increment.
The winner of the second lot was also lifecell, offering UAH 307.65 million with one bid increment.
The winner of the third lot was Kyivstar, offering UAH 293 million without any bid increment.
The winner of the fourth lot was also Kyivstar, offering UAH 293 million without any bid increment.
The winner of the fifth lot was Kyivstar, offering UAH 330.301 million with two bid increments.
The winner of the sixth lot was Vodafone-Ukraine, offering UAH 345 million with four bid increments.
The winner of the seventh lot was Vodafone-Ukraine, offering UAH 286 million without any bid increment.