Business news from Ukraine

HUNGARIAN LOW-COST WIZZ AIR STARTS FLIGHTS FROM KYIV TO PARIS AND BRUSSELS

Hungarian low-cost airline Wizz Air will soon start flights from Kyiv to Brussels-Charleroi and Paris-Beauvais Airports.
“Our newest added destinations of Wizz from Kyiv include: Dortmund, Memmingen (Munich West,) Brussels-Charleroi, Paris-Beauvais and Copenhagen,” says a message sent to the airline’s customers on Thursday.
At the same time, flights from Kyiv to Brussels-Charleroi and Paris-Beauvais are not currently shown in the booking system, while flights to Dortmund and Memmingen (Munich West) have been serviced by the company for several years, and those to Copenhagen since August 2017.
As reported, Wizz Air in January-May 2018 transported 425,000 passengers to/from Ukraine, which is almost twice as many as in the same period of 2017. “From Kyiv, we offer 1.3 million passenger seats this year, which is 79% up. And in total from Ukraine this year, we offer 1.67 million passenger seats,” Head of Corporate Communications at Wizz Air Sorina Ratz said late in June.

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REGAL PETROLEUM SEES 58% RISE IN PRODUCTION IN Q2 2018

Regal Petroleum Plc with assets in Ukraine in Q2 2018 increased average daily production of gas, condensate and LPG at the Mekhediviska-Golotvshinska (MEX-GOL), Svyrydivske (SV) and Vasyschevskoye (VAS) gas and condensate fields by 58.6% or 1,045 boepd, to 2,829 boepd.
The company reported on the website of the London Stock Exchange (LSE) on Wednesday, average daily production of gas, condensate and LPG from the MEX-GOL and SV fields for the period from 1 April 2018 to 30 June 2018 was 281,599 m3/d of gas, 55.4 m3/d of condensate and 27.5 m3/d of LPG (2,220 boepd in aggregate).
Average daily production of gas and condensate from the VAS field for the period from April 1, 2018 to 30 June 2018 was 86,728 m3/d of gas and 6.2 m3/d of condensate (609 boepd in aggregate).
At the VAS field, the VAS-10 well has reached a depth of 3,380 metres, where drilling has been concluded. Subject to successful testing, it is intended to hook the well up for production testing by the end of the third quarter of 2018.
In addition, the company said that At the MEX-GOL and SV fields, workover operations are underway on the SV-12 well. This well is a suspended well owned by NJSC Ukrnafta. The company has entered into an agreement with NJSC Ukrnafta under which the company has agreed to workover the well, and if successful, gas and condensate produced from the well will be sold under an equal net profit sharing arrangement between the company and NJSC Ukrnafta.
At 30 June 2018, the company’s cash resources were approximately $40 million, held as $15.9 million equivalent in Ukrainian hryvnia.

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LARGEST SUGAR PRODUCER TO OPEN THREE NEW SILOS IN POLTAVA REGION

Astarta agroindustrial complex, the largest sugar producer in Ukraine, in July will launch three grain storage complexes in Poltava region: Yareski grain silo (with the capacity of 100,000 tonnes), Lutovynivka grain silo (100,000 tonnes) and Skorokchodove grain silo (30,000 tonnes)
According to the press release of the company, total CAPEХ for the projects was around EUR 32 million.
“Two intake lines with 150 mt/hr capacity each are in operation at Yareski and Lutovynivka silos and one 150 mt/hr line at Skorokchodove silo. All are equipped with an automatic control system and necessary transport infrastructure,” the company said.
The new silos are to operate starting from this harvesting campaign. New facilities are aimed to cover both Astarta subsidiaries’ and local partners’ needs.
With the launching of these three silos, Astarta’s grain storage investment program (started in 2015 aiming at over 500,000 tonnes) is around 70% fulfilled. Thus, the company operates five modern grain silos in Poltava, Vinnytsia and Khmelnytsky regions and plans to undertake further steps aimed at meeting the mentioned program target.

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LVIV REGION EXPECTING 20% INCREASE IN TOURIST FLOW

The number of tourists visited Lviv region in 2018 would increase by 20% compared with 2017, the press service of the tourism and resorts department of the Lviv Regional Administration has reported. “Lviv region is expecting over 3 million guests this year. Over 70% would be Ukrainians and the rest – foreigners: Poles, Germans, French, Belarusians, Chinese, Turks and Spaniards. It is projected that the tourist flow would increase by 20%. Most of tourists would arrive in summer – around 35%,” the department said in response to the inquiry of Interfax-Ukraine.
The department said that the increase in tourist flow in summer is linked to hosting Tu Stan, Skhidnytske Lito, Zaxid Fest, Radostno Fest, Leopolis Jazz Fest, LvivMozArt and other festivals. According to a poll conducted by the tourism and resorts department, average annual occupancy of hotels in Lviv region is around 70%.
According to the information of the department, the tourist fee in the summer period of 2018 is expected at the level of UAH 3.4 million, which is 26% more than in the same period of 2017. The tourist fee for the whole of 2017 was UAH 10.7 million, which is 22% more than a year earlier.
Popular tourist destinations in Lviv region are: the Carpathians (Skole and Turka districts, the Skolivski Beskydy national park), health resorts (Truskavets, Morshin, Skhidnytsia), as well as castles of Lviv region. The average length of stay of tourists in the region is 12-14 days in resorts with mineral waters, three days in mountain areas and one day in small tourist cities (Zhovkva, Drohobych, Belz and Sambir).
According to the department’s estimates, the average budget per holidaymaker for a weekend in the region is UAH 2,500 (including accommodation, meals, transportation and souvenirs).

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BILL ON EXIT CAPITAL TAX REGISTERED IN PARLIAMENT

Ukrainian President Petro Poroshenko has submitted a bill on exit capital tax to the Verkhovna Rada. According to a posting on the official website of the parliament, bill No. 8557 amending the Tax Code of Ukraine regarding exit capital tax was registered in the Rada on July 5.
As reported, Poroshenko at a meeting with representatives of business in Kyiv on July 4 said that Poroshenko has signed and intends to register a bill on exit capital tax in the Verkhovna Rada in the near future. He said that the bill, if adopted, will take effect only jointly with compensators for revenue of the national budget.
“I declare that this bill does not and will not enter into any contradictions with the International Monetary Fund, since this bill will come into effect only when appropriate compensators are provided for the budget,” the president said.
Poroshenko also said that the rapporteur on the bill in the Verkhovna Rada would be his representative in parliament, Bloc of Petro Poroshenko MP Iryna Lutsenko.

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TURBOATOM AND JAPANESE TOSHIBA SIGN MEMORANDUM ON TURBINES MODERNIZATION

Kharkiv-based JSC Turboatom and Japanese Toshiba Energy Systems & Solutions Corporation have signed a memorandum of understanding in the field of nuclear energy, the press service of SE NNEGC Energoatom has said. The companies agreed on the beginning of cooperation aimed to implement projects of turbine equipment modernization of machine halls at nuclear power plants (NPPs), it said.
“The cooperation between Turboatom and Toshiba will be based on high potential and great experience of both companies in studying and realizing new engineering and technical solutions in the field of nuclear energy,” the press service said in a statement.
According to Turboatom’s CEO Viktor Subotin, his company together with Toshiba will soon determine priority projects and will be able to agree on a plan of joint actions at the 10th International Economic Forum in Kharkiv in September. “Our company implements large-scale programs for improving safety, reliability and performance of the power units at Ukrainian NPPs. I am confident that the cooperation of our partners, Turboatom and Toshiba, will contribute to the development of energy engineering in Ukraine and consequently boost the efficiency of modernization of the Ukrainian NPPs’ equipment,” Energoatom President Yuriy Nedashkovsky said.
“The signed memorandum is a step that gives the possibility to contribute to the uprate of energy equipment for Ukrainian NPPs as well as for nuclear energy facilities in other countries. I am really happy that Toshiba will contribute to making more complete decisions in the field of nuclear energy together with Turboatom due to the fact that our companies are leaders in NPP equipment manufacturing,” Vice President of Toshiba Energy Systems & Solutions Corporation Goro Yanase said.
As reported, a memorandum of understanding in the nuclear power industry was signed between Energoatom and Toshiba Energy Systems & Solutions Corporation in October 2017 to develop cooperation on the modernization of turbines and generators at Ukraine’s nuclear power plants.
Turboatom is the only manufacturer of turbine equipment for hydro, thermal and nuclear power plants in Ukraine. It exports commodities to 45 countries and regions in Europe, Asia, America and Africa.

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