Business news from Ukraine


Customs payments to the national budget in January 2018 increased by 43.5% compared to January 2017, to UAH 27.1 billion, which is UAH 4 billion, or 16.8% more than the target set by the Ministry of Finance, the State Fiscal Service said on its Facebook page.
Acting Head of the State Fiscal Service Myroslav Prodan said the increase in these figures was influenced by inflation, higher import volumes, and the factor of customs clearance of larger volumes of imported gas.
“However, without combating corruption and smuggling, without effective work on de-shadowing, we would not have achieved such results,” he wrote.


The Foxtrot Household Appliances network of household appliances and electronics, part of the Foxtrot group of companies (Kyiv), seeks to invest some UAH 150 million in restyling of 40 stores in 2018, the company’s press service has reported.
“Our plans for this year are to modernize all flagship stores. These are over 40 stores. Next month we will start upgrading first stores,” Foxtrot Household Appliances Executive Director Viacheslav Povroznik said.
Commercial Director Tetiana Moiseyenko said that the new concept foresees the division of the retail area into category sectors depending on the groups of goods. The company also plans to hold master classes and events for visitors.
The first restyled Foxtrot store was opened on January 25, 2018 in the GorodOK shopping center in Kyiv. Its retail area is 1,300 square meters.
In addition, Foxtrot plans to open up to 10 new stores in 2018, the press service said.
The network as of January 2018 had 158 supermarkets in 90 cities and towns of Ukraine with a total retail area of 151,000 square meters.
Foxtrot Group LLC was registered in 2004.
According to the unified pubic register, the ultimate beneficiary of the company is Ivor Omson (Seychelles).


The Ukrainian media Internet advertising market expands by 40% in 2017, to UAH 2.51 billion, the Ukrainian Internet Association (UIA) has said.
In U.S. dollars the figure exceeded the level of 2012 ($94.46 million against $74.33 million), but it have not yet reached the 2013 level ($114.6 million).
The UIA said that the figures do not include search advertising and some other elements, which jointly with media advertising comprise the digital advertising segment.
“According to the pace of growth, Internet advertising is much ahead of other segments of the media advertising market in Ukraine. According to the Ukrainian Advertising Coalition, the growth of the TV advertising segment in 2017 was 29% compared to 2016, advertising in the press – 18%, radio advertising – 20%,” the association said in a press release.
The share of direct sales in the media Internet advertising market according to the UIA survey in 2017 was 52.5%.
The largest segment of media Internet advertising was banner advertising, which occupies 49.67% of the market (51.2% in 2016). Advertising in the video player (pre-roll, mid-roll, post-roll, pause-roll, overlay-advertisement, picture-in-pause) was – 26.24% (in 2016 28.7%), in-page video advertising (content-roll) – 2.16% (last year 4.8%), other non-standard solutions (pop-up and pop-up pop-ups, catfish and screen-glide formats, synchronous banners, frontlines, full-screen advertising, sound advertisement in a digital audio stream and other types) – 12.09% (in 2016 12.3%).
The share of sponsorship grew from 3% to 9.83% in a year.
The share of mobile media Internet advertising (targeted at mobile device users) of the total turnover of media Internet advertising was the following: 14% for banner advertising, 11.55% for in-stream video, 5.55% for in-page video (content-roll), 3.36% – for non-standard solutions and only 1% fell on sponsorship.
The share of social media and instant messengers (FB, VK, Odnoklassniki, Instagram, Twitter, YouTube, Skype, Viber and other applications) was also determined in advertising – 26.49%.
The methodology for measuring the volume of media Internet advertising was based on a cross-sectional analysis of survey data from the largest advertising agencies, websites and sales houses.
“The survey involved leading online advertising agencies: Dentsu Aegis Network Ukraine, ADV Group Ukraine, ITCG, IPlace, Qreachers, Publicis Groupe Media, TMGU, AdWork, Dievo, MediaHead, Neos, Promodo, newage, WebPromo, SeoMarket, and representatives of the largest sites, holdings and sales-houses: Autocentre, Edipress, Lux (24 channel), RBC, RIA,, UMH/Digimedia, Admixer, DMDim/Go2Net, FISH, DigitalDecisions, Adwise, T-Sell, Rontar,,, Novoye Vremia, RST and Obozrevatel,” the association said.


Ukroliya (Poltava region) in January 2018 sent a first batch of organic sunflower meal to the Netherlands.
The company said in a press release that the batch was 272 tonnes.
The company seeks to increase supplies of organic products to the EU in February.
Ukroliya said that organic meal is used by farmers as fodder for birds, cattle and production of mixed fodder.
As reported, in November 2017, Ukroliya invested about UAH 50 million in the new Ukroliya Organic plant for production of organic oil in the settlement of Dykanka in Poltava region.
Ukroliya was founded in 2001. The company produces and sells bottled and bulk sunflower oil, sunflower meal and husk.
The company said that its share of the Ukrainian bottled sunflower oil is around 15%.
Ukroliya exports products to over 40 countries.
According to the unified register of legal entities and private entrepreneurs, the ultimate beneficiaries of the company are Bohdan Yesypov, Vadym Shvachka and Yuriy Shevchenko.

National Bank of Ukraine: UKRAINE’S GDP 2.1% UP IN 2017

The National Bank of Ukraine (NBU) has estimated growth of real gross domestic product (GDP) of Ukraine in 2017 at 2.1%.
“The negative impact from stopping trade with government uncontrolled territories for real GDP in 2017 was lower than expected at the beginning of the year – 0.9 percentage points compared with 1.3 percentage points respectively,” the central bank said in an inflation report on Friday.
The NBU explains this by a more rapid reorientation of metallurgical enterprises to new sources of raw materials supplies amid the improvement of the external situation and the growth of domestic demand.
According to the report, in the fourth quarter, according to the estimates of the National Bank, GDP growth slowed to 1.5% against the same quarter of the previous year, while in the third quarter it was 1.5%.
“This, first of all, was due to a significant decline in crop production due to low yields of late grain crops and industrial crops,” the regulator said.
The NBU said that there was an increase in production in the processing industry, particularly in machine building, chemical and metallurgical production, which almost completely compensated for the further decline in output in the mining and power generation sectors, primarily reflecting the impact from the gap in the production and logistics ties with the government uncontrolled territories in Donbas at the beginning of the year.
As reported, the NBU late January raised its forecast for GDP growth in 2018 to 3.4% from 3.2%, while worsening the forecast for 2019 to 2.9% from 3.5%.
In 2016, the Ukrainian economy grew by 2.3% after a decline of 9.8% in 2015 and 6.6% in 2014. According to the State Statistics Service, in 2017, quarterly GDP growth gradually slowed down – from 2.5% in the first quarter to 2.3% in the second and 2.1% in the third. Data of the State Statistics Service for the fourth quarter and entire 2017 are not yet available.


The joint project of PJSC Ukrzaliznytsia represented by the branch Lisky, Maersk Line and TIS LLC (Odesa region) – a container train that runs from the Kyiv-Lisky station to the Chornomorska station (TIS) at Yuzhny port – was launched on January 31.
According to an Interfax-Ukraine correspondent, Ukrzaliznytsia Acting Chairman Yevhen Kravtsov, State Secretary of the Infrastructure Ministry of Ukraine Andriy Haluschak, TIS co-owner and Director General Andriy Stavnitser, Maersk Ukraine LTD Director General Roman Koloyanov, Director of the Lisky branch Ruslan Husak and Deputy Head of the Kyiv customs service of the State Fiscal Service Irakli Katamadze took part in the event on the occasion of the train departure.
The train will run weekly to provide a comprehensive service for the delivery of goods in containers directly to recipients under a “door-to-door” scheme within the global delivery system of Maersk.
The TIS head said it is planned to carry 500 containers by the train per month.