Business news from Ukraine

Business news from Ukraine

OFFICIAL RATES OF BANKING METALS FROM NATIONAL BANK AS OF APRIL 30

Official rates of banking metals from national bank as of April 30

One troy ounce=31.10 grams

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UKRAINIAN STATE FOREST AGENCY LAUNCHES PILOT INTERACTIVE MAP WITH WOOD PROCESSING FACILITIES

The State Forest Resources Agency of Ukraine has launched a new pilot project – an interactive map with wood processing facilities, Head of the agency Andriy Zablotsky has said.
“We want to inform our citizens as much as possible about the legal places for processing wood, as well as identify sawmills that work illegally or use illegally logged wood,” he wrote on his Facebook page on Wednesday.
The head of the State Forest Resources Agency said that the facility were put on the public map according to their geographical coordinate system, information from the electronic wood accounting system and the data provided by Zakarpattia, Sumy, Poltava, Kharkiv, Kirovohrad, Donetsk and Zhytomyr regional administrations.
“The project is a pilot one. Work is underway to fill the geoportal with information. Soon, a feedback form will be created through which users can provide clarification, information about unapplied objects or other informative materials related to wood processing,” Zablotsky said.
In addition, the State Forest Resources Agency is implementing a project named “Forest in a Smartphone”, which allows studying with the general list of logging tickets or checking the legality of logging on the agency’s website on an online map using a computer or a smartphone.
The website also has a service for checking the legality and origin of wood, auction and tender portals. There is an option to check the selling prices for wood, an electronic list of certificates of origin for timber and lumber. In addition, on the website of the State Forest Resources Agency one can follow the monitoring of domestic consumption of wood.
According to Zablotsky, the State Forest Agency Resources plans to transfer the majority of registers and services to a smartphone.

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UKRAINE’S AIRPORTS REDUCE PASSENGER TRAFFIC BY 9%, AIRLINES BY 17%

Ukrainian airports in January-March 2020, according to recent data, served 4.025 million passengers, which is 8.9% less than in the same period in 2019.
According to the website of the State Aviation Administration of Ukraine, in international traffic, the passenger flow of Ukrainian airports decreased in the indicated period by 7.4%, to 3.631 million people.
According to the service, in January-March 2020 Ukrainian airlines served almost 1.954 million people, which is 17.3% less than the figure for the same period of 2019. Of these, 1.757 million people were transported in international traffic (a decrease of 17.1% compared to January-March 2019).
At the same time, for the three months of 2020 Ukrainian airlines operated 16,900 commercial flights (a decrease of 16.3%), including 14,200 international flights (a decrease of 14.5%).
As reported, in 2019 Ukrainian airports served 24.337 million passengers, which is 18.5% more than in 2018.

LOSSES OF KYIV TRADE CENTERS AMOUNT $50 MLN

The introduction of quarantine measures to combat the spread of COVID-19 dealt a significant blow to the retail real estate market in Kyiv, as in the first month of quarantine it suffered significant financial and reputation losses, loss of human capital and competitive advantages. “The Kyiv retail real estate market in the first month of quarantine suffered losses of about $50 million,” NAI Ukraine consulting company told the Interfax-Ukraine agency.
The head of the Cushman & Wakefield Ukraine retail property department, Yekateryna Vesna, noted several categories of losses for owners of shopping centers: monetary, reputational, human capital and competitive advantages.
The financial ones include loss of rental income from stores that cannot work, income from the commercialization of common areas and sale of advertising space, a decrease in turnover in stores that are allowed to operate, which leads to a decrease or absence of rental payments from sales.
In addition, according to Vesna, costs for protection and disinfection grew.
“Shopping centers now predict an increase in vacancy. The less popular the facility is, the higher the share of free space will be at the end of quarantine,” the expert predicts.
The owners of the trade malls also suffer loss of human capital, as they had to cut employees or send them on vacation at their own expense. Not all workers will be able to return after trade centers resume their work.

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BOGDAN MOTORS AUTOMOBILE COMPANY POSTS UAH 610 MLN LOSS IN Q1

JSC Bogdan Motors automobile company, combining the production assets of Bogdan Corporation, in January-March 2020 received a net loss of UAH 610.3 million, while in the first quarter of 2019 its net profit was UAH 161.61 million.
According to the interim report of the company, its net income for this period decreased by 39%, to UAH 13 million.
According to the report, the company received almost UAH 13 million of gross profit (against UAH 21.2 million a year earlier), and the loss from operating activities exceeded UAH 598 million against a profit of UAH 174.24 million for January-March 2019.
By April 1 of this year, the company’s liabilities exceeded UAH 6 billion, in particular a short-term bank loan of UAH 4.5 billion.
Bogdan Motors combines the production assets of one of the leading Ukrainian automakers, Bogdan Corporation (a bus and trolleybus plant in Lutsk and a car factory in Cherkasy).
The company, according to preliminary data, in 2019 posted a net profit of UAH 273 million, which is 10.6 times more than a year earlier, sales revenue almost doubled to UAH 1.255 billion.

UKRAINE PLANS TO EXPAND BIG CONSTRUCTION PROGRAM TO BUILDING BRIDGES

The Cabinet of Ministers of Ukraine plans to expand the Big Construction program for building bridges, Ukrainian Prime Minister Denys Shmyhal has said. “We plan to expand the program to building bridges,” he wrote in his Telegram channel.
The government intends to invest UAH 100 billion only in road construction this year, which would create at least 170,000 jobs, he said.
In addition, schools, kindergartens and stadiums are a priority for the Cabinet of Ministers. At the same time, work on such facilities should be completed before the start of the next school year.
The Big Construction program also includes the reconstruction of more than 200 reception departments in supporting medical facilities.
“A third of all funds from the program should be sent to the regions in May,” Shmyhal said.