Business news from Ukraine

Business news from Ukraine

RESEARCH AND MARKETS MAKES TOP 10 ELITE REAL ESTATE AGENCIES’ LIST FROM KYIV

Research and Markets Ltd. has made a list of leading elite real estate agencies from Kyiv out of 280-300, which are operating on the real estate market in the city, according to the company’s data.
According to a report of Research and Markets on the Business Wire website, the top 10 agencies includes Blagovist, Park Lane, Lipki, Lux-Estate, IDGroup Premium Real Estate Brokerage&Investing, The House, Kiev Standard, Elit Realty and Colliers International
The company said that some 280-300 companies are operating on the Kyiv real estate market, including consulting companies, and the number of employees reaches 4,000-5,000 people.
According to the study, average price in the premium real estate segment in Kyiv in 2017 was $2,600 per square meter.
“In 2018, prices could rise by 2-3%, which will not affect the overall picture of the real estate market in Kyiv,” the company analysts said.

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EBRD COULD PROVIDE EUR 51 MLN LOAN TO UKRGAZVYDOBUVANNIA

The European Bank for Reconstruction and Development (EBRD) is mulling a project to provide a debt funding of EUR 51.9 million to PJSC Ukrgazvydobuvannia to finance the procurement of workover rigs and a package of energy efficiency investments.
According to a report on the bank’s website, the Board of Directors will discuss the project on December 12, 2018.
According to the document, the loan will benefit from a sovereign guarantee by Ukraine.
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.
As reported, the EBRD recently defined operational and strategic priorities in Ukraine for the next five years: privatization and improved governance in the public sector, energy security and energy efficiency.
The EBRD is the largest international financial investor in Ukraine. To date, the bank has made a cumulative commitment of almost EUR 12.1 billion across some 400 projects since the start of its operations in the country in 1993.

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UKRAINIAN GRAIN FARMERS CANNOT TIMELY EXECUTE CONTRACTS FOR EXPORTS DUE TO LACK OF UKRZALIZNYTSIA’S LOCOMOTIVES

Ukrainian grain farmers cannot timely execute contracts for exports of products due to a shortage of locomotives at Ukrzaliznytsia, the Ukrainian Agribusiness Club has reported. “The main problem of PJSC Ukrzaliznytsia, which impedes the efficient transportation of grain, is a shortage of locomotives. Due to a lack of traction, wagons stand idle at stations and elevators, while the turnover of cars of Ukrzaliznytsia’s Transport Logistics Center has increased from five to 11 days over the last two years, private to 13 days,” the report says.
According to the association, delays in the transportation of grain crops lead to a breach of export contracts, while transportation rates are declining, and gross production is rising. According to the union, only 500 out of 2,500 Ukrzaliznytsia locomotives work, while the overhauls of many of them were carried out in the 1990s.
At the same time, the association noted an increase in the number of grain wagons in the country: about 11,500 cars are owned by Ukrzaliznytsia, about 10,000 are private.
According to the Ukrainian Agribusiness Club, it’s not worth expecting a speedy improvement in the situation with rail transportation because of a lack of funds at Ukrzaliznytsia for the purchase of locomotives in the near future.

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METRO CASH & CARRY UKRAINE TO OPEN ANOTHER FORMAT OF STORES

Metro Cash & Carry Ukraine LLC (Kyiv) plans to start opening the Beri-Vezi store with an area of 1,500-2,000 square meters from 2019. The stores will be small wholesale bases for traders, Metro Cash & Carry Ukraine CEO Olivier Langlet has said. “Since we have 25 stores in each regional center of Ukraine, we decided that from 2019 we will continue our expansion in the country and will open satellite stores. These are small shops under the METRO brand, which will provide goods for clients-traders,” he said at a press conference on Tuesday.
According to Langlet, the cost of opening one store of the new format will be EUR 150,000-300,000. These stores are already operating in Lutsk and Ternopil under the METRO Base brand.
The area of the stores of the new format will be 1,500-2,000 square meters, the number of commodity items – no more than 3,000 SKU. The range will include groceries, pastries and beverages.
According to him, the company does not plan to develop large formats like hypermarkets in Ukraine.
“I can’t say now which cities we will probably go to, but we believe that we will open about 15-20 stores of this format… It is better to open more than 20 stores in the regions than one big one, since these are large costs that do not provide return on investment in a short time,” Langlet said.

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UFUTURE GROUP OF BUSINESSMAN VASYL KHMELNYTSKY PLANS TO ATTRACT UP TO $150 MLN INVESTMENT TO BILA TSERKVA 2 INDUSTRIAL PARK

The UFuture Group of businessman Vasyl Khmelnytsky plans to attract around $150 million of investment in the Bila Tserkva 2 industrial park registered by the Economic Development and Trade Ministry last week, creating a food industry cluster on its territory, Director of Bila Tserkva industrial park Volodymyr Khmurych has said. “But this [the amount of investment] is no more than forecasts. It is difficult to predict which customer will enter,” he told the Interfax-Ukraine, commenting on the need to create a second industrial park in the territory of the Shakrivka Village Council of Bila Tserkva district, where in April 2018 the first Bila Tserkva industrial park of the UFuture group was registered.
According to Khmurych, the decision to create a second park was dictated by the interest of food industry companies.
“We see the intentions of food processing companies. Today, two memorandums have already been signed, and we want to place these clients separately in the food cluster, taking into account the fact that they have special requirements for the sanitary zone and environmental requirements. And since we have a vacant land parcel, we have decided create a new industrial park on it,” he said.
As reported, the first Bila Tserkva industrial park in the territory of the Shakrivka Village Council was registered by the Economic Development and Trade Ministry in April 2018, the construction of the first plant for the production of Plank Electrotechnic electrical installation systems is currently being completed on its territory.
Khmurych said that if the main focus of the second park is the food industry, then the first one will be focused on other industries.
“Of course, if some customers of the food industry will meet the conditions of the first park, we will not deny them, but we will offer the second one first of all,” he said.
He also said that in the first Bila Tserkva park, in addition to completing the construction of Plank Electrotechnic, the signing of an agreement with another client is at the final stage, but he did not name it.
“Activity is high, almost every day meetings with new clients are held, but projects are complex and decisions are not made quickly,” the park director said.
According to him, it is planned to attract at least $100 million of investment in both parks.
“Only for buildings: this is 10–15 hectares of 35 hectares of the park’s area. This is already $50 million, and plus equipment and other things,” Khmurych said.

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UKRAINE EXPORTS 10.173 MLN TONNES OF GRAIN SINCE START OF MARKETING YEAR 2018/2019

Ukraine since the beginning of the 2018/2019 marketing year (MY, July-June) and as of October 10 had exported 10.173 million tonnes of grain, which is 9% less than on the same date of the previous MY.
According to the Ministry of Agrarian Policy and Food, the country exported about 6.03 million tonnes of wheat, 2.23 million tonnes of barley, and 1.73 million tonnes of corn.
In addition, 52,800 tonnes of flour had been exported on the date.
As reported, with reference to the ministry, Ukraine exported 39.4 million tonnes of grain in the 2017/2018 MY. Export of grain in the 2018/2019 MY is projected to be 42 million tonnes.

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