Business news from Ukraine

MYWAY AIRLINES TO LAUNCH REGULAR FLIGHTS TO KHARKIV FROM TBILISI, BATUMI IN JUNE

New Georgia’s Myway Airlines will launch regular flights to Kharkiv from Tbilisi and Batumi in June 2018, the airline has reported.
The airline will fly on the Tbilisi-Kharkiv-Tbilisi route from June 12 twice a week (on Tuesdays and Saturdays) using Boeing 737-800 planes.
The regular Batumi-Kharkiv-Batumi flights will be also serviced by Boeing 737-800 twice a week – on Wednesdays and Saturdays – from June 13, 2018.
“We should say that Kharkiv would not be the only destination in Ukraine. By the end of this year the airline seeks to launch flights to Kyiv,” the airline said.
Myway Airlines’s fleet consists of two Boeing 737-800 planes. The airline will receive the third plan early July and the fourth in December.
Myway Airlines was founded in 2018. This is a project of China’s Hualing Group.

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ZELENE MISTO ANNOUNCES TENDER TO BUILD WASTE TREATMENT FACILITY IN LVIV

Lviv-based municipal enterprise Zelene Misto (Green City) has announced a tender to build a solid household waste treatment facility in Lviv.
The respective invitation for prequalification is posted on the website of the European Bank for Reconstruction and Development (EBRD), which finances the project.
The potential participants should meet the following requirements: to have annual turnover of at least EUR 38 million in the past three years and at least two similar successful projects. These projects should be implemented in the past seven years for the amount of at least EUR 11 million each.
In addition, the potential participants should successfully operate the similar complex built by applicants for at least two years.
The prequalification documents must be duly completed and delivered on or before 17:00 local time on July 9, 2018. The prequalification is to be completed in August. The winner will be selected in October 2018.
The treatment facility with a throughput capacity up to 250,000 tonnes of waste a year should be built in 24 months.
As reported, on June 1, 2018, Lviv city and the EBRD signed an agreement for EUR 35 million to build the solid household waste treatment facility, including a EUR 25 million loan and a UAH 10 million grant.

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LARGEST TAXPAYERS INCREASE TAX PAYMENT BY 20% IN JAN-MAY 2018

Largest taxpayers increased payment of taxes to the national budget by 20% or by UAH 21.7 billion in January-May 2018 year-over-year, to UAH 132.2 billion, the Office of Large Taxpayers has said on its website.
The Office said that the largest growth was seen from payment of profit tax: it grew by 89% or UAH 18 billion, to UAH 38.2 billion.
Head of the Office of Large Taxpayers Yevhen Bambizov said in an interview with Taxlink that Naftogaz Ukrainy paid most of profit tax. The company declared record-hitting profit over this period compared with losses for the previous periods.
“This is not the only reason. We see profit tax growth every year, and this year we projected it by at least 20%. This is linked to the growth of the economy, continuation of active work on reduction of losses by large taxpayers,” he said.
The Office said that revenue from VAT payment in January-May 2018 grew by 14.4% or UAH 7.3 billion, to UAH 58.5 billion, while from payment of the excise duty on Ukrainian-made products fell by UAH 13.9% or UAH 3.4 billion, to UAH 21.5 billion.
Payments of income tax from salaries grew by 28% or UAH 1.9 billion, to UAH 8.8 billion. Single social security tax payments rose by 335 or UAH 4.7 billion, to UAH 19.5 billion. Military tax payments rose by almost 23% or UAH 332 million, to UAH 1.7 billion.

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FIRST STAGE OF GRAIN TERMINAL LAUNCHED AT OLVIA PORT

The first stage of a terminal that would handle agricultural products has been launched at the Olvia specialized seaport, the Ukrainian Sea Port Authority has reported on its website. “To date, the first stage of construction under the project has been completed, namely the construction of four silos with a capacity of 6,500 tonnes each. The construction of a storage warehouse is underway,” said BT Invest Ltd. CEO Aivaras Karalius at the Ukrainian Ports Forum 2018.
According to him, after the project is completed, the terminal will be able to handle up to 4 million tonnes of cargo per year, the throughput will be 300 trucks and 200 railway cars per day.
According to the report, the project is being implemented by the investment company BT Invest and jointly with Evrozovnishtorh LLC.
BT Invest was set up in 2008 by former stockholders in Sandora juice producer Raimondos Tumenas and the late Ihor Bezzub. The company owns the Novus chain, Stolitsa Group that implements real estate projects in Kyiv city and region and acts as an investment partner in construction of the Retroville shopping center. BT Invest also owns a business center in Lithuania. BT Invest jointly with Ukrainian partners is realizing a new infrastructure project – a seaport in Mykolaiv. Evrozovnishtorh LLC started building a grain terminal at Olvia port in 2017.

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NATIONAL BANK INTRODUCES NEW RULES OF RISK MANAGEMENT SYSTEM

The National Bank of Ukraine (NBU) has changed the form of a report on risk management in the financial monitoring sphere, which would allow better assessing the risk management systems created by banks. According to a report on the NBU’s website, the new form of the report is outlined in NBU resolution No. 59 dated June 5, 2018, which amends the rules of organizing and holding inspections to prevent and combat money laundering, financing of terrorism, and the financing of proliferation of weapons of mass destruction approved by NBU resolution No. 197 dated June 20, 2011.
The new version of the resolution also changed the frequency of submitting the reports on risk management in the field of financial monitoring – henceforth it will be provided by a bank to the NBU annually, rather than quarterly.
In addition, the NBU introduced a new procedure in case of detection of schemes for conducting risky financial transactions during the on-site inspection, the conclusion on compliance or non-compliance of which with the requirements of the law cannot be presented in the report on the field inspection (without additional consultations). Henceforth, the report would contain details of the essence of the financial transactions revealed with a detailed statement of the relevant facts. The copies of documents certifying these facts are attached to the verification materials.
In the future, the verification of the revealed facts will be continued without interruption.

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INTERGAL-BUD CONSTRUCTION COMPANY PLANS TO BUILD 250,000 SQ M OF HOUSING

The Intergal-Bud construction company (Kyiv) plans to boost housing construction 1.5-fold in 2018, to 250,000 square meters, Commercial Director Hanna Layevska has said. “In total, we plan to introduce about 250,000 square meters of housing in 2018. In 2017, we actually commissioned 170,000 square meters. This year we plan to launch at least five new facilities, which are mainly located in the downtown areas and in the Holosiyivsky district of Kyiv. These are Vystavkovy residential complex, Lukyanivsky Cascade residential complex, and a few more facilities that are in the design and construction phase,” she told Interfax-Ukraine.
According to Layevska, this year the company intends to finish the construction of Parkovi Ozera, Yaskravy, Otradny and Demiyivka residential complexes in Kyiv.
According to the commercial director of Intergal-Bud, prices for many properties in the first five months of 2018 grew by 10-12% in U.S. dollars. According to her, in the first half-year of 2018, purchases of apartments with 100% payment decreased and the share of installments and lending contracts increased.
At the same time, despite the price increase, the company’s sales pace in 2018 increased by more than one third compared to 2017, Layevska said. According to the commercial director, a major challenge for developers in 2018 is a lack of general contractors.
Intergal-Bud construction company LLC was founded in 2006. It is subsidiary of Lviv subsidiary established in 2003.

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