Business news from Ukraine


The Nova Poshta Group delivered 145.8 million parcels in 2017, which is almost 30% more than in 2016.
The group’s press service reported that over 5 million of parcels were received from other countries, while in 2016 Nova Poshta International, member of the group, delivered around 1 million parcels from abroad.
“The share of deliveries for Nova Poshta’s customers from the online trade segment in Ukraine grew by about one third year-over-year. In 2017, the trend continued: the company delivered about 33 million parcels for e-commerce, which is 30% more than in 2016. At the same time, demand for fulfilment from online sellers and distributors of goods is growing, for example, more than 15 million operations with cargo were carried out in NP Logistic (also member of the group) and in 2018 it is planned to double this figure,” the group said in the press release.
According to the group, targeted services also developed: during the past year Nova Posta carried out 16 million door-to-door deliveries, which is almost 40% more than in 2016.
“In order to maintain a stable quality of service in the company, its fleet has been expanded: for the year the number of trucks that deliver to doors has grown by 31% and amounted to almost 1,500 units,” the press service of the group said.
In addition, in 2017, the group attracted several successful managers, opened a new format office in Kyiv and the first branch in Italy, signed an agreement on an exclusive partnership with one of the European express delivery leaders – DPD Group. Customers also received new digital opportunities: they can make changes to the data of express invoices through online channels and receive payment for the sent goods to the bank card.
“In the plans of Nova Poshta for 2018 is to improve the quality of service and develop the network. If during the past year the company did not make a bet on the development of the network, this year it plans an active expansion throughout Ukraine,” the group said.


State-owned enterprise Pivdenmash (Yuzhmash, Dnipro) expect that the program on commercial launches using the Zenit launch vehicle under the Sea Launch international project will be resumed and the enterprise is waiting for a new order to produce the Zenit launch vehicle early 2018.
“In April 2017, a contract was signed between S7 Sea Launch Limited and Pivdenmash for the manufacture of twelve Zenit launch vehicles, which already has an order for the production of two products with a delivery period in 2018. An additional order for three products is expected in February 2018,” the company said on its website.
As reported, the Sea Launch consortium for commercial launches of satellites from a launch site in the Pacific Ocean was established in 1995. Sea Launch International Consortium used to launch Zenit-3SL rockets from the floating platform deployed in the equatorial Pacific. Following reorganization in 2010, Energia Overseas Limited (EOL), a subsidiary of Energia Corporation, acquired a 95% stake in the company, while U.S. Boeing received 3% and Norway’s Aker Solutions got 2%.
Sea Launch Group members (subsidiaries and lower-tier subsidiaries of Energia Corporation) and S7 Group entered into a contract for the purchase of the Sea Launch Commander ship, the Odyssey launch platform and gear, and the Sea Launch trademark on September 27 during the International Astronautical Congress (IAC) 2016 in Guadalajara (Mexico).
According to Pivdenmash, the enterprise and S7 Sea Launch Limited entered into a contract in April 2017 to build 12 Zenit launch vehicles for space exploration programs conducted under the Sea Launch and Land Launch projects.


Ukrainian Ambassador to the United States Valeriy Chaly held a meeting with President and CEO of U.S. General Electric Transportation Rafael Santana to joint project of Ukraine’s railway modernization, the Ukrainian Embassy to the United States has reported.
“In particular, the Ambassador stressed the importance of finalizing of the Long-term Framework Agreement between Ukrzaliznytsia and GE, that will allow to bring the American company’s world class locomotive technology to Ukraine,” the embassy said on its Facebook page on Tuesday.
Special attention Chaly paid to the issue of localization of the production of new GE locomotives in Ukraine as well as the modernization of existing fleet.
“In this regard, sides agreed that the delivery of the 30 new diesel GE Evo locomotives will be the first step for further partnership between Ukraine and General Electric, including cooperation in the energy sphere, infrastructure and healthcare,” the embassy said.


State-owned enterprise Pivdenmash (Yuzhmash, Dnipro) is expanding its participation in the programs of the European Space Agency (ESA). The enterprise seeks to supply 20 more cruise engines for the fourth stage of European Vega light launch vehicle by 2020, the press service of the enterprise has reported.
According to a posting on its website, in 2017, Pivdenmash finished a contract to produce nine units of the cruise engine for the fourth stage of Vega vehicle under an order of Italy’s AVIO S.p.A. signed in 2014.
“Totally, jointly with the previous contracts, 16 units have been shipped [to the European customer],” the press service said.
“A new contract to produce 20 more units was signed in 2017. Materials and purchased integrated parts were procured in 2017. Production will start in 2018,” the press service said.
The Vega was designed by the European Space Agency (ESA) in collaboration with the Italian Space Agency (ASI) for carrying satellites with a weight up to 1,200 kilos to a 1,200-kilometer Sun-synchronous orbit and satellites with a weight of 1,500 kilograms to a 700-kilometer polar orbit.
A contract to design and supply of the cruise engine of the fourth stage of Vega LV between Pivdenne (Yuzhnoye) Design Bureau and Pivdenmash and Italy’s Avio SpA was signed in February 2004.
In April 2012, the partners signed a three-year contract with Avio SpA to supply first batch production engines. The contract can be extended. In July 2017 the parties extended the contract until 2020.
The Ukrainian government and the ESA signed an agreement on cooperation in peaceful uses of outer space in 2008. Early 2014, the agreement was extended until 2019. The ESA unites 17 European countries.


Foreign Minister of Ukraine Pavlo Klimkin, on the results of the meeting with representatives of German business, stated their increased interest in Ukraine.
“I met with German business. They have keen interest in Ukraine. Although there are a lot of questions, but they say that a lot of work has been done during four years to make foreign business feel more comfortable,” he wrote on his Twitter page. According to Klimkin, it is necessary to tell as much as possible “success stories” for attracting foreign investments into the country.
“Business is exploring new markets mostly through “word of mouth”, so, more success stories mean more foreign investment,” the minister said.