Business news from Ukraine

Business news from Ukraine

COMMERCIAL VEHICLE MARKET INCLUDING HEAVY VEHICLES 11% UP IN UKRAINE

Sales of new commercial vehicles (including heavy vehicles) in July increased by 11% compared to July 2019, to 1,163 vehicles, reports the Ukrautoprom association.
According to the association, the July sales result is 53.3% higher than the June one of the current year.
This increase in sales is primarily due to the results of the rating’s leader – Fiat, whose primary registrations grew 2.7 times by July 2019 and 2.3 times compared to June of the current year, to 257 units.
According to the data provided by Ukrautoprom, Peugeot moved to the second position in July from the fourth in June, pushing aside Renault. The demand for Peugeot vehicles doubled both compared to July 2019 and June 2020, to 164 units.
Renault has lost 38.6% of sales, ending the month with 127 registered vehicles (20% more than in June 2020). Mercedes-Benz came fourth (from the 11th position in July of the previous year) with 80 registrations against 43.
Ford entered the top five market leaders, having sold 72 vehicles in Ukraine – one unit more than a year ago.
Among the Ukrainian brands, only ZAZ entered the top twenty best-selling commercial vehicles with sales of 11 vehicles against 28 units in July 2020.
According to the statistics of the association, the market of buses of all classes in Ukraine in July decreased by almost 20% compared to July of the previous year but increased by 7.4% compared to June 2020, to 101 units.
The first place, as well as the last month, is occupied by Otaman buses of Cherkasy Bus Plant with the registration of 43 buses compared to 24 in July of the previous year and 45 buses in June of the current year.
Ford takes the second position climbing from the fourth in June, the demand for buses of this brand increased to 25 units – from 19 units in July 2019 and 10 units in June 2020, and the Ukrainian Etalon, which takes the third position, sold 10 buses comparing to six and 11, respectively.
The Ukrainian Ruta was fourth (five units against eight a year earlier), Hyundai was fifth with five buses (and none in July 2019).

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UKRAINE INTERNATIONAL AIRLINES MAKES ADJUSTMENTS TO AUGUST FLIGHT SCHEDULE – FULL LIST

Ukraine International Airlines (UIA), due to the extension by the European Union of the ban on free crossing of the Schengen border for Ukrainian citizens, is making new adjustments to its August flight schedule.
The press service of UIA reported on Tuesday that in particular, until the end of August, flights to the following destinations are completely canceled: Larnaca (LCA), Frankfurt (FRA), Baku (GYD), Prague (PRG), Vienna (VIE), Chisinau (KIV), Berlin (TXL), Athens (ATH), Rome (FCO), and Barcelona (BCN).
Domestic flights in August, the airline will operate to the following destinations: Odesa (ODS), Kherson (KHE), and Lviv (LWO).
Flights to Kherson will be operated every Wednesday, Friday and Sunday, and back – every Monday, Thursday, and Saturday.
Flights from Kyiv to Odesa will be operated daily, and the Kyiv-Lviv-Kyiv flight will be performed in the Lviv direction on August 21 and August 28 with a return on August 24 and August 30.
UIA plans to operate international flights to the following destinations: Kyiv – Amsterdam (AMS) – Kyiv, Kyiv – London (LGW) – Kyiv, Kyiv – Paris (CDG) – Kyiv, Kyiv – Toronto (YYZ) – Kyiv, Kyiv – Nice (NCE) – Kyiv, Kyiv – Dubai (DXB) – Kyiv, Kyiv – Istanbul (IST) – Kyiv, Odesa – Istanbul (IST) – Odesa, Kyiv – Tel Aviv (TLV) – Kyiv, Odesa – Tel Aviv (TLV) – Odesa, Kyiv – Milan (MXP) – Kyiv, Kyiv – Naples (NAP) – Kyiv, Kyiv – Munich (MUC) – Kyiv, Kyiv – Yerevan (EVN) – Kyiv, Kyiv – Madrid (MAD) – Kyiv, and Kyiv – Cairo (CAI) – Kyiv.
Frequency changes will take place on the following routes: Kyiv – London (LGW) – Kyiv (due to unstable demand on the route, there are flights to London on August 9, August 28, August 30 and August 31); Kyiv – Nice (NCE) – Kyiv (return flights every Saturday); Kyiv – Toronto (YYZ) – Kyiv (flights are planned on August 1, August 15 and August 29 with the return to Kyiv on August 2, August 16 and August 30, respectively); Kyiv – Milan (MXP) – Kyiv (weekly return flights); Kyiv – Naples (NAP) – Kyiv (return flights every Saturday); Kyiv – Dubai (DXB) – Kyiv (on Fridays and Saturdays until August 28, with an additional frequency on August 5 and will operate on Thursdays between August 13 – August 27); Kyiv – Istanbul (IST) – Kyiv (every Tuesday, Thursday, Saturday and Sunday, as well as on August 5 and additionally on Fridays from August 7 to 28); Kyiv – Tel Aviv (TLV) – Kyiv (every Thursday, Saturday and Sunday, as well as August 31); Kyiv – Madrid (MAD) – Kyiv (on Fridays from August 7 to August 28, as well as August 31).
All other routes remain unchanged, UIA said.

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UKRAINE APPROVES STRATEGY FOR REGIONAL DEVELOPMENT

The Cabinet of Ministers of Ukraine at a meeting on August 5 approved the State Strategy for Regional Development for 2021-2027.
“The document was prepared by the Ministry of Regional Development. This important document is filled with new content, European approaches to the development of regions. I see this as one of the vectors of our movement and direction to the European Union,” Prime Minister of Ukraine Denys Shmyhal said during the meeting.
He added that the document took into account the issue of a new administrative-territorial structure, while stressing that there is no talk of any liquidation of some of the social infrastructure facilities.
According to the presentation of the strategy made by Minister of Communities and Territories Development Oleksiy Chernyshov, new functional types of territories were identified, as well as regions that are in the focus of regional policy: the mountainous territories of the Carpathians, the coastal zones of the Black and Azov Seas, nature reserves, border areas, including those on the contact lines, rural areas in unfavorable conditions, agglomerations, centers of economic growth, mono-functional cities, as well as temporarily occupied territories. For each functional region, the ministry has identified important development aspects.
The Ministry of Regional Development also began developing plans of measures to implement the strategy for the next three years, as well as aligning regional strategies. In addition, a draft law has been prepared on reforming the State Fund for Regional Development to finance the implementation of the state strategy.
“To achieve the set goals, the targeted use of funds from the state budget is critically important. Therefore, it is necessary to improve the system of financing regional development, including at the expense of the State Fund for Regional Development,” Chernyshov said

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CREATION OF INVESTMENT COURT IN UKRAINE WILL HELP DOING BUSINESS

The creation of an investment court, an idea promulgated by Ukraine’s Justice Minister Denys Maliuska, could facilitate doing business in Ukraine, Omerta Organized Law Group head Yevhen Fedoseyev has said.
“The declared creation of an investment court will greatly facilitate doing business in Ukraine, because if investors have a virtually unconditional guarantee that in any case, their property rights and interests are practically not threatened, they will start investing more in our country,” he told Interfax-Ukraine.
The lawyer noted that this initiative is not new, and similar courts already exist in a number of countries.
“Investors from all over the world are increasingly turning to investment arbitration as a way of resolving a dispute with the state every year. This mechanism for protecting the rights of an investor has proved to be effective, which is confirmed by both the number of international bilateral and multilateral agreements containing clauses on investment arbitration, and the number of initiated cases, “he said.
Fedoseyev recalled that a permanent arbitration institute, the International Commercial Arbitration Court at the Ukrainian Chamber of Commerce and Industry, has been operating in Ukraine for more than 25 years, however, appeals to him are not too popular, since none of the Ukraine agreements concluded on mutual assistance and protection of foreign investment provides for the ICAC at the Ukrainian Chamber of Commerce and Industry as an institution for resolving investment disputes, as well as because of general legal nihilism. ”
“Of course, the new court in Ukraine will need to develop a practice that has been built in the courts of Western Europe for decades, however, the transparency of the creation of such a body, its competence, objectivity can create a positive image not only for the body itself, but also for the state as a whole, which will ensure inflow of new investors into the country, “the lawyer emphasized.
As reported, in early July at a meeting with European business representatives, Maliuska announced an initiative to create a concept for creating a separate court that would deal with investors’ cases – arbitration or a separate court that would consider cases with the participation of business.

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MIROPLAST FROM UKRAINE PLANS TO INVEST IN MODERNIZATION

The Miroplast plant (Dnipro), part of the Alef corporation of businessman Vadym Yermolaev and one of the largest producers of PVC window profiles in Eastern Europe, is investing more than UAH 60 million in the modernization of production facilities, planning to upgrade its facilities by the end of 2020.
“As a result, the number of extruders will increase to 31, the monthly production capacity will grow up to 5,870 tonnes of PVC profiles, and the maximum annual capacity will be 70,440 tonnes, which is 30% more than in 2019,” Yermolaev said on his Facebook page.
He said that part of the investments will be committed to modernizing warehouse equipment and improving warehouse logistics in general.
According to information on the company’s website, from 2012 to 2018, the number of extruders increased from 27 to 29, and the maximum monthly capacity – from 4,000 tonnes to 4,500 tonnes.
According to the company’s press service, high-speed extrusion lines for the production of PVC profiles and window sills have been purchased, and the increase in capacity is due to an increase in demand for Ukrainian-made products among domestic and foreign consumers.
Miroplast began its operations in 2006. In 2007, seven extruders with a monthly capacity of 780 tonnes were installed. The company manufactures profile systems for windows and doors under the WDS trademark.

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MASS HORSE BATTLES WILL TAKE PLACE NEAR KYIV

On August, 8 and 9 in the «Kyivan Rus Park» the Festival of Medievality «Bylinas of Ancient Kyiv» will take place. A rich program with the performances based on ancient legends, big horse shows, the reconstructions of the medieval battles, horse-trick shows, a lot of colorful medieval amusements, master-classes, delicious food prepared on open fire, horse riding and a lot of interesting things from the life of the Middle Ages will be waiting for the guests.
Ancient Kyiv opens at 10:00. The program starts at 14:00.
The ticket price: a full adult ticket – 250 UAH, for pensioners and students – 150 UAH, for schoolchildren – 80 UAH, for preschool children – for free.
Ancient Kyiv in the «Kyivan Rus Park» is located in Kyiv region, Obukhiv district, the vill. Kopachiv.
Details on the website www.parkkyivrus.com
The Interfax subscribers can save money with the “openbusiness-20” promo code for a 20%-discount for a full price adult ticket to the Principality of Kyivan Rus:
– by previous order by tel.: +38 044 461-99-37, +38 050 385-20-35
– or at the cash desk at the entrance to the «Kyivan Rus Park».

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