Business news from Ukraine

DCH GROUP WILL UPGRADE DNIPRO AIRPORT

The Ukrainian businessman, the owner of DCH Group, Oleksandr Yaroslavsky, who previously reconstructed Kharkiv International Airport, will update the international airport in Dnipro.
Such information was confirmed by Dnipro Mayor Borys Filatov.
“Yes, indeed, I’m doing this. Yes there will be new airport,” he wrote on his Facebook page.
In addition, a source close to the talks told Interfax-Ukraine that negotiations on participation in the renovation of the airport were also held with businessman Ihor Kolomoisky. The latter is the co-owner of Privat Financial and Industrial Group, which owns Galtera, to which in 2009 the State Property Fund sold 94.572% in Dniproavia, which manages Dnipro airport.
Filatov, among other things, said that the implementation of the project will be controlled by President of Ukraine Petro Poroshenko.
DCH Group for the 20 years of work in Ukraine has developed various investment projects, including UkrSibbank, sold to the international group BNP Paribas, Cherkasy Azot, Kyivstar, the preparation of the Kharkiv infrastructure for Euro 2012. The current priority areas of the business group are finance, construction materials production, construction, development, hotel business. The structure of DCH’s assets is represented, in particular, by Kharkiv International Airport, Kharkiv Palace Hotel, and the Karavan trade and entertainment center network.

POLISH PGNIG PLANS TO EXPAND PRESENCE IN UKRAINE

The Polish oil and gas company PGNiG intends to expand its presence in the Ukrainian market.
The company said this in the semi-annual report posted on the website of the Warsaw Stock Exchange.
“One of the strategic objectives of the group is to further expand its activities in the markets of Central and Eastern Europe. PGNiG Group will continue its efforts aimed at strengthening its presence in Ukraine, one of the most promising markets in the region,” the document says.
As reported, PGNiG has been selling gas to Ukrainian consumers since August 2016.
PGNiG is the largest oil and gas company in Poland, engaged in the development of gas and oil fields, extraction, storage and transportation of energy resources, as well as construction and development of oil and gas transport network, and export and import of gas.

AUSTRIAN PRESIDENT NOTES HIGH INTEREST OF INVESTORS TO UKRAINE

Federal President of the Republic of Austria Alexander Van der Bellen notes the high interest of Austrian investors to Ukraine and underscores the need to strengthen the fight against corruption.
“We know that some further reforms are needed to take full advantage of the Association Agreement, for example, further efforts are needed in the fight against corruption,” Alexander Van der Bellen said at a joint briefing with Ukrainian President Petro Poroshenko in Kyiv on Wednesday.
He also added that Austria is interested in Ukraine developing in the economic sphere.
Alexander Van der Bellen noted that Austria is one of the largest investors in Ukraine.
“Austrian investors provided jobs for more than 30,000 employees in Ukraine … We found out that there is a very great interest of Austrian entrepreneurs in Ukraine, which is due to the fact that Ukraine’s economic performance has significantly improved over the past two years,” the Austrian president said.

CHINESE CHEC WINS TENDER TO CARRY OUT DREDGING AT CHORNOMORSK PORT (ODESA REGION)

China Harbour Engineering Сompany Ltd. won an auction to carry out dredging at the Chornomorsk seaport (Odesa region) held on March 14 in the ProZorro e-procurement system. The company won two lots. The press service of the Ukrainian Sea Port Authority reported that the first lot included dredging in the approaching canal and the second – dredging in the operation area of first boot basin of Sukhy estuary.
China Harbour Engineering Сompany offered UAH 87.149 million (VAT not included) for the first lot and UAH 316.999 million (VAT not included) for the second lot, which were the best offers for each lot.
The Ukrainian Sea Port Authority saves UAH 4.62 million (VAT not included) for the first lot and UAH 36.033 million (VAT not included) for the second lot.
“Thanks to the high competition between the companies during the auction, it was possible to get the most attractive price and in general save more than UAH 40 million. As China Harbor Engineering Company has already proved to be a reliable contractor for the dredging project in the port of Yuzhny, we are counting on the same qualitative and responsible approach to the dredging project at the port of Chornomorsk,” Head of the Ukrainian Sea Port Authority Raivis Veckagans said.
The final results of the tender will be announced in the ProZorro system after studying the proposal of the winner for compliance with the terms of the tender documentation.

UKRAINE TO GET EUR 150 MLN FROM GERMAN KFW FOR INFRASTRUCTURE

Ukraine plans to raise a EUR 150 million loan from Germany’s KfW. The funds will be sent to infrastructure projects.
The press service of the Infrastructure Ministry of Ukraine reported that the plans were discussed at a meeting of the Ukrainian panel of the joint Ukrainian-German working group for selecting projects to financing using the KfW loan held on March 13 with the participation of representatives of the Infrastructure Ministry, Ukrzaliznytsia, Ukrainian Sea Port Authority, Kyiv City Administration, Justice Ministry, Foreign Ministry, Economic Development and Trade Ministry, Finance Ministry and Ministry for Temporarily Occupied Territories and Internally Displaced Persons.
“Now we have three priority project proposals: the completion of the automotive component of the railway and bridge crossing the Dnipro River in Kyiv, the modernization and renewal of the rolling stock of Ukrzaliznytsia, the construction of a breakwater and dredging in the water area of the port of Odesa,” Minister of Infrastructure Volodymyr Omelyan said, adding that first of all the ministry takes into account the need for the funds to complete the bridge across the Dnipro Rivere.
“I think Germany will support this project. Upgrade and modernization of the rolling stock is also a priority for Ukrzaliznytsia, it is economically viable,” Omelyan said.
After the meeting, the proposals will be forwarded to Deputy Prime Minister and Regional Development, Construction, Housing and Utilities Economy Minister Hennadiy Zubko and eventually to Germany for approval.

HIGH COURT OF JUSTICE IN LONDON ORDERS PREVIOUS OWNERS OF PRIVATBANK TO DETAIL $1.9 BLN TRANSACTIONS WITH BANK FUNDS

The High Court of Justice in London (the UK), following sessions in early March, has issued a ruling obliging Rossyn Investing Corp., Milbert Ventures Inc and ZAO Ukrtransitservice Ltd, firms associated with Ihor Kolomoisky and Hennadiy Boholiubov, to detail the information on $1.9 billion worth of transactions with PrivatBank (Kyiv) funds received from other persons.
The National Bank of Ukraine (NBU) earlier claimed that prior to its nationalization in December 2016, PrivatBank was involved in large-scale and coordinated frauds, which caused at least $5.5 billion in damage. The NBU hired Kroll to audit PrivatBank.
After the nationalization, the bank became 100% owned by the state and UAH 116.8 billion (over $4.4 billion at the current rate) in additional capital was injected into it through the issue of government bonds and an exchange of them for the bank’s shares.
Late in June 2017, the Cabinet decided to inject another UAH 38.5 billion (almost $1.5 billion) into the bank on the basis of NBU proposals and conclusions by EY, which audited PrivatBank. The first tranche worth UAH 22.5 billion was allocated in July 2017 and another UAH 16 billion in December 2017.