Business news from Ukraine

Business news from Ukraine

GLOVO INTERNATIONAL DELIVERY SERVICE LAUNCHES IN MYKOLAIV

Glovo international delivery service started its operations in Mykolaiv, a company’s press service reported.
“Since August 12, residents of the city using a mobile application can receive their ordered favorite food, necessary products in less than an hour or to please close ones with a pleasant gift,” the report said.
Glovo couriers deliver almost everything that fits the size of a backpack.
Mykolaiv is the eighth Ukrainian city to welcome Glovo. The service also was launched in Kyiv, Kharkiv, Dnipro, Odesa, Lviv, Vinnytsia and Zaporizhia.

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UKRAINE INCREASES IMPORTS OF COPPER BY 22%

Ukrainian enterprises increased imports of copper and copper products in terms of money by 22.1% in January-July 2019 compared with similar period of 2018, to $63.366 million.
Exports of copper and copper products decreased 48.3% over the year to $52.164 million, according to customs statistics released by the State Fiscal Service of Ukraine.
In July, copper and copper products were imported to the tune of $10.336 million, and copper exports were estimated at $5.990 million.
In addition, through seven months of 2019 Ukraine decreased imports of nickel and products made of it by 10.1%, to $52.833 million (imports in July were estimated at $8.520 million), while imports of aluminum and products made of it increased 8.4%, to $228.420 million ($40.390million). Imports of lead and products made of it decreased by 1.7%, to $7.481 million ($1.143 million) and imports of tin and products made of it decreased 17.4%, to $2.038 million ($377,000). Imports of zinc and zinc goods decreased 18.7%, to $41.868 million ($9.384 million).
Exports of aluminum and products made of it decreased 27.4% in January-July 2019, to $60.540 million ($9.177 million in July alone), while shipments of lead abroad decreased 34.1%, to $14.914 million ($2.432 million). Exports of nickel fell by 39.8%, to $3.267 million ($0.274 million in July).
Zinc exports in January-July 2019 amounted to $385,000 ($28,000 in July) compared to $148,000 in January-July 2018.
Exports of tin and products made of it in January-July 2019 were estimated at $30,000 (some $1,000 in July) compared to $269,000 in January-July 2018.

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DNIPRO INTERNATIONAL AIRPORT INCREASES PASSENGER FLOW BY 11.5%

The Dnipro International Airport increased its passenger flow by 11.5%, to 187,800 people, in January-July 2019 compared with the same period in 2018, according to a posting on the company’s website. The airport serviced 38,400 passengers in July that is 24% more a year ago.
As reported, in June 2019 Cabinet of Ministers allocated UAH 200 million for the reconstruction of a new runway at the airport in Dnipro.
Infrastructure Ministry of Ukraine supported the allocation of UAH 1 billion from the 2019 national budget for the construction of a new runway at the Dnipro International Airport within the framework of a public-private partnership project under which a private investor would build a new terminal and put it into service in 2020.
Ukrainian businessman, owner of the DCH Group Oleksandr Yaroslavsky, who had earlier invested in the renovation of the Kharkiv International Airport, has announced his plans to modernize the international airport in Dnipro.
Dnipro Mayor Borys Filatov called on Ukrainian President Petro Poroshenko to influence the situation with the airport in Dnipro.
The Dnipro International Airport was founded in 1943. It became an independent enterprise in 2011. The airport is situated 5 kilometers southeast of the Dnipro.

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LLENTAB GROUP FROM SWEDEN BUILDS WAREHOUSE IN KYIV REGION

Llentab Group of Companies (Sweden), designer and manufacturer of multifunctional steel buildings, has completed building of the warehouse premises with a total area of 5,500 square meters in town of Baryshivka in Kyiv region. As the company reported on its website, the premises was built for the Dutch HatchTech incubation equipment producer. The warehouse is equipped with gates and reloading platforms with dock shelters.
The Llentab Group designs, manufactures and markets multifunctional steel buildings for a wide range of industries and purposes.
The parent company Llentab AB is headquartered in Kungshamn, Sweden. Llentab is currently present in seven European countries. LLENTAB operates in Sweden, Norway, Germany, Poland, the Czech Republic, Slovakia and Ukraine. Kyiv-based Llentab LLC was created in 2006.

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UKRAINIAN SEAPORTS SEES 16% RISE IN CARGO HANDLING

Ukrainian seaports in January-July 2019 handled 85.499 million tonnes of cargo, which is 15.8% more than a year ago. The Ukrainian Sea Ports Authority said on its website that in January-July the volume of transshipment of bread cargos totaled 28.313 million tonnes, which is 34.8% more than a year ago.
Transshipment of ore increased 29.5%, to 20.153 million tonnes, and oil – 12.3%, to 3.586 million tonnes.
According to authority, the total volume of transshipment of imported chemical and mineral fertilizers for the period amounted to 670,190 tonnes, which is 14.5% higher than the same indicator last year.
Over the period, the volume of exports increased 22.3% to 65.547 million tonnes, while imports 4.4%, to 13.247 million tonnes, while transit decreased 11.2%, to 5.687 million tonnes.
Container handling in January-July 2019 increased 20%, to 545,800 TEU (twenty-foot equivalent unit).
As reported, in 2018, sea ports of Ukraine handled more than 135 million tonnes of cargo, which is 2.4 million tonnes more than in 2017.

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UKRAINIAN METINVEST SIGNS FIRST PROCUREMENT TRANSACTION THROUGH BLOCKCHAIN PLATFORM

Metinvest, the vertically integrated steel and mining group of companies, has signed its first smart contract on we.trade blockchain trade finance platform supported by UniCredit.
According to a press release provided by Metinvest Group, this blockchain transaction demonstrates the importance of digitalization in the steel industry.
“Importantly, this is the first blockchain transaction provided by UniCredit to Metinvest Group and is a new digital instrument for us. Blockchain technology allows for the creation and management of a large distributed transaction management database that can be shared across multiple nodes of a network. Such transactions demonstrate the Group’s willingness to work in a trusted environment with secure technology, improved risk mitigation and enhanced visibility,” a press service quotes Head of Corporate Finance at the European Re-rolling Business Unit of Metinvest Group, Jamilya Baimukhambetova, as saying.
According to the press release, the underlying transaction is the purchase of equipment for one of Metinvest’s production re-rollers from a European supplier. One of the pilot project’s objectives is to try the new platform from the client side, so that the Group can evaluate its potential as a new type of payment terms that it can offer to some of its major customers.
Exploring the potential of blockchain trade finance is one way that Metinvest Group is implementing its digital innovation strategy, the Group said in its press release.
The we.trade platform works in partnership with major European banks (Austria, Belgium, Denmark, Finland, France, Germany, Great Britain, Greece, Italy, Netherlands, Norway, Spain, Sweden and Switzerland) and is based on distributed ledger technology, the major underlying elements of which include blockchain and smart contracts. When a smart contract is created on the we.trade platform, the payment will be automatically triggered according to the terms agreed by the counterparties once the buyer has confirmed the delivery of the goods, making the transaction considerably faster and more transparent.
According to the press release, we.trade is a truly successful inter-bank collaboration that can help to redefine business relationships among companies, removing obstacles that typically make international transactions costly and complex while delivering benefits for corporates.
Metinvest Group is a vertically integrated group of steel and mining companies that manages every link of the value chain, from mining and processing iron ore and coal to making and selling semi-finished and finished steel products. It comprises steel and mining production facilities located in Ukraine, Europe and the US, as well as a sales network covering all key global markets. Metinvests business is divided for financial reporting purposes into two segments: metallurgical and mining. The Group ended the first quarter with revenues of $2.9 billion and an EBITDA margin was 15%.
Metinvest Holding LLC is the management company of Metinvest Group.

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