Business news from Ukraine

Business news from Ukraine

LARGEST UKRAINIAN GAS PRODUCER DISCOVERS THIRD NEW FIELD IN KHARKIV REGION

JSC Ukrgazvydobuvannia has discovered the third new field in Kharkiv region this year. The press service of the company reported that at the exploration stage the reserves total at least 0.375 billion cubic meters and the prospective resources are estimated at around 1 billion cubic meters. The field was discovered in August 2018 after the completion of drilling a wildcat well started after a seismic survey under a deposit use license issued in 2014.
Today the well is being developed and test production is started. The company continues exploration work at the new field.
Ukrgazvydobuvannia recalled that in May and June 2018 the company discovered two new fields in Kharkiv region on land parcels with mineral resources the licenses for which were received before 2017. Some issues regarding the issue of licenses for new land parcels are still unsettled. According to the government gas production boosting program, the company will receive 15-20 licenses for new land parcels every year to explore and discover new fields.
As reported, the strategy of the company until 2020 envisaged the increase in gas production from 14.5 billion cubic meters in 2015 and 2016 to 15.2 billion cubic meters in 2017, 16.5 billion cubic meters in 2018, 18.3 billion cubic meters in 2019, and 20.1 billion cubic meters in 2020. Ukrgazvydobuvannia, fully owned by Naftogaz Ukrainy, is the country’s largest gas producer, which provides about 75% of the total gas production in the country.

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UKRAINE OPENS CONSULATE IN CANADIAN PROVINCE ALBERTA (EDMONTON)

Ukraine’s consulate general has opened in Edmonton, the capital of the Canadian province of Alberta, the press service of the Ukrainian Foreign Ministry reported on Saturday. According to the report, Ukrainian Foreign Minister Pavlo Klimkin took part in the ceremonial events on the occasion of the opening of the consulate.
“This is a landmark event, through which Ukraine recognizes the special role played by the Ukrainian community in the west of Canada and which opens the door for trade and investment contacts,” Klimkin said after a ribbon cutting ceremony.
The province of Alberta is home to more than 350,000 Canadians of Ukrainian descent. The new consulate general of Ukraine will also service other provinces of Western Canada – Saskatchewan, British Columbia, as well as Yukon and the Northwest Territories.
“This is a pragmatic decision. It is based on geography and on the powerful business potential in Alberta. This is also an emotional decision – we are repaying the debt to the Ukrainians of Prairies who, for generations, built Canada, preserving the dream of an independent Ukraine,” Ukrainian Ambassador to Canada Andriy Shevchenko said.
According to the Ukrainian Foreign Ministry, the consulate general in Edmonton became the first consulate opened by Ukraine after the beginning of Russian aggression. Prior to that, Ukraine had the embassy in Ottawa and the consulate in Toronto.

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UKRAINE’S PROFITS FROM FERROUS METALS EXPORTS EXCEEDS $7 BLN IN JAN-AUG 2018

Ukrainian metal companies saw a growth of 27.7% in foreign currency revenues from exports of ferrous metals in January-August 2018 year-over-year, to $7.001 billion. According to customs statistics published by the State Fiscal Service, the share of ferrous metals of total income from exports was 22.65% compared to 19.93% from a year ago.
In August 2018 alone, receipts from ferrous metal exports amounted to $803.263 million.
In January-August 2018, Ukraine increased imports of similar products by 25.7%, to $896.765 million including imports reaching $144.565 million in August. In January-August 2018, Ukraine increased metal products exports by 32%, to $729.444 million including August deliveries being $91.404 million. During this period, imports of metal products grew by 19.9%, to $598.239 million, including August imports worth $94.603 million.
As reported, in 2017 Ukraine saw its forex earnings from ferrous metal exports rise by 20%, to $8.666 billion. Ukraine saw imports of these products increase by 42%, to $1.135 billion. Ukraine experienced a 30% rise in metal products exports, up to $896.7 million. Metal imports grew by 25% last year, to $806.8 million.

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DUBAI-BASED FLYDUBAI TO OPERATE DOUBLE DAILY FLIGHTS FROM KYIV TO DUBAI

Dubai-based flydubai on September 6 announced that it would move its existing operations from Kyiv Sikorsky International Airport to Boryspil International Airport with effect from October 28, 2018. “Ukraine remains an important market for the airline. From October 2, double daily flights will be available between Kyiv and Dubai,” the company said in a statement on its website.
flydubai launched its operations to Ukraine in 2013 and offers 17 weekly flights from Kyiv and Odesa to Dubai.
“Through flydubai’s expanded codeshare partnership with Emirates, Ukrainian passengers also are offered unmatched travel options via Dubai’s aviation hub,” the company said.
According to the announcement, the company will use a new Boeing 737 MAX 8 on the Kyiv route.
Emirates will codeshare on this route as part of the Emirates flydubai partnership announced in July 2017.
“Another good news for Boryspil and its passengers. Terminal F will still be filled from next year,” Ukrainian Infrastructure Minister Volodymyr Omelyan commented on the announcement.
flydubai carries out more than 1,700 flights per week to more than 90 destinations in 48 countries.

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UKRAINE CUTS CRUDE OIL TRANSIT TO EUROPE BY 4.5% IN 2018

Transit shipments of crude oil by pipelines through the territory of Ukraine to European countries in January-August 2018 decreased by 4.5%, or 409,500 tonnes, compared to the same period in 2017, to 8.692 million tonnes, PJSC Ukrtransnafta has said. The volume of oil pumping to the country’s oil refineries in January-August 2018 increased by 5.5%, 71,900 tonnes, 1.386 million tonnes, according to estimates of Interfax-Ukraine. Thus, the share of transit shipments in the total volume of oil transportation (10.077 million tonnes) in the eight months of 2018 was 86.2%, the share of pumping to the country’s oil refineries was 13.8%.
In August 2018, transit shipments of crude oil by pipelines through Ukraine decreased by 10.4% (125,000 tonnes) from August 2017, 1.08 million tonnes, pumping to the country’s refineries fell by 0.6% (1,100 tonnes), to 184,700 tonnes.
As reported, transit of oil through Ukraine to European countries in 2017 increased by 0.8% (by 114,900 tonnes) compared to the same period in 2016, to 13.937 million tonnes. The volume of oil transportation to the refineries of Ukraine in 2017 amounted to 2.097 million tonnes, which is 1.5-fold (690,600 tonnes) more than last year.
The growth of supplies inside the country is connected with the resumption of work of the Odesa-Kremenchuk section from March 10, 2017, which supplies Azeri Light oil to PJSC Ukrtatnafta. As reported, Ukrtransnafta, 100% managed by NJSC Naftogaz Ukrainy, is the operator of the country’s oil transportation system.
Ukrtransnafta’s trunk oil pipeline system, which includes pipes from 159 mm to 1,220 mm in diameters, stretches 4,767 kilometers and through 19 Ukrainian regions. It has annual capacity to accept 114 million tonnes for shipment and to supply 56.3 million tonnes to Europe.

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KYIV AIRPORT SEES 55% RISE IN TRAFFIC IN AUG, MOST POPULAR DESTINATIONS ARE SHARM EL SHEIKH, WARSAW, MINSK, ANTALYA

Kyiv Sikorsky International Airport in August 2018 handled 358,300 passengers, which was 54.9% up on August 2017, the airport has said on its website. The number of passengers serviced on international flights totaled 350,200 people and there were 8,100 people handled on domestic flights. The number of flights in August 2018 increased by 33.2% year-over-year, 3,258 (arrivals and departures), including 2,825 international flights and 433 domestic flights, it said.
The most popular international destinations in August 2018 were Sharm El Sheikh (Egypt), Warsaw (Poland), Minsk (Belarus), Antalya (Turkey), Ankara (Turkey), Tivat (Montenegro), Batumi (Georgia); popular domestic routes were Odesa, Zaporizhia, and Lviv.
From January to August 2018, Kyiv Sikorsky International Airport increased passenger traffic by 68.9% compared to the same period of 2017, to 1.857 million passengers, including 1.8 million passengers on international flights and 57,600 passengers on the domestic routes. The number of flights in January-August 2018 increased by 37.2%, to 20,092 (arrivals and departures), according to the airport. They included 17,007 international flights and 3,085 domestic flights.
The most popular international destinations in the eight months of 2018 were Minsk (Belarus), Dubai (the UAE), Ankara (Turkey), Sharm El Sheikh (Egypt), Rome (Italy), and such domestic routes as Odesa, Zaporizhia, and Lviv.
Kyiv Sikorsky International Airport is located in the business center of the capital, seven km from the city center. It is the second largest airport in Ukraine in terms of the number of flights and passenger traffic. The airport has three terminals with a total area is 21,000 square meters. Terminal B is separate facility for business-class service, it is part of the Fixed Base Operator (FBO) system. The airport’s runway is able to handle B-737 and A-320 aircraft. In Q1 2018, the airport serviced 442,000 passengers, which is 50.4% more than in Q1 2017. Some 423,900 passengers were handled on international routes and 18,100 people on domestic ones.

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