Business news from Ukraine

Business news from Ukraine

FIRST MEETING OF NEW UKRAINIAN PARLIAMENT TO TAKE PLACE ON AUG 29

A group of Members of Parliament in charge of preparations for the first meeting of the Verkhovna Rada of the 9th convocation has decided to hold such a meeting on August 29. “Our political force proposes holding the first meeting of the Verkhovna Rada of the 9th convocation on August 29,” MP from the Servant of the People Party Dmytro Razumkov, who was tapped to head the group, said at a meeting on Friday.
He put the motion to the vote, and most members of the group supported it.

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NUMBER OF COMPLAINTS AGAINST UKRAINIAN INSURERS FALLS

The National Commission for the Financial Service Markets Regulation through January-June 2019 received 2,537 complaints concerned insurance companies, which was 3.1% less during the similar period of 2018.
Leaders in the number of complaints wereOmega (157, UAH 8.71 million was additionally paid), Halytska (155, UAH 1.29 million), Oranta (140, UAH 2.7 million), and ASKA (129, UAH 5.99 million).
Some 581 complaints were received against these insurance companies. These companies paid UAH 18.69 million after consideration of complaints by the commission.
Total additional payments by insurers after consideration of complaints over the period reached UAH 48.92 million.
The commission said that complaints arrived from individuals and legal entities, including people’s deputies, the Cabinet of Ministers, the Presidential Administration, parliamentary committees, ministries and agencies.

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UKRAINIAN PRESIDENT ZELENSKY INCLUDES CEOS OF GENERAL ELECTRIC, RAKUTEN, CITIGROUP TO NATIONAL INVESTMENT COUNCIL

Ukrainian President Volodymyr Zelensky has reshuffled the National Investment Council, appointing two deputies head of the Office of the President of Ukraine and introducing officials from foreign companies.
In particular, Zelensky’s decree introduces Senior Vice President, CFO of General Electric (the United States) Jamie Miller, Board Chairman and Executive Director of Rakuten Inc. (Japan) Hiroshi Mikitani, as well as CEO at Bank Citigroup Inc. (the United States) for Europe, Middle East & Africa (EMEA) David Livingston (all three by their consent) as members of the National Investment Council.
The President introduced Livingston to the National Investment Council instead of Chief Operating Officer for Europe, Middle East & Africa (EMEA) at Bank Citigroup Inc. James C. Cowles.
In addition, deputies head of the office of the President of Ukraine Oleksiy Honcharuk and Vadym Prystaiko were approved members of the council.

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BORYSPIL INTERNATIONAL AIRPORT (KYIV) SEES 21% RISE IN PASSENGER FLOW

The Boryspil international airport (Kyiv) in January-July 2019 saw a 21.2% rise in passenger flow year-over-year, to 8.3 million people, the airport’s press service has told Interfax-Ukraine.
The number of transfer passengers, according to the airport, for the period amounted to 1.915 million, which is 2.4% higher than in the first seven months of 2018.
In January-July 2019, 7,740 people were serviced on domestic flights (arrivals and departures) (a rise of 3.3% over the same period in 2018), on international ones – 54,266 people (a rise of 15.7%).
At the same time, the airport did not provide information on the number of passengers serviced on international and domestic flights.
In July 2019, the passenger flow of the airport amounted to 1.625 million people, which is 26% more than in July 2018. The share of transfer passengers of the total passenger traffic was 8.7% down, to 355,600 people.

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CYPRIOT COMPANY BUYS BUSINESSMAN VASYL KHMELNYTSKY’S COMPANY

Ziletone Limited (Nicosia, Cyprus) is going to acquire shares of UDP Industrial Projects Limited (Limassol, Cyprus) owned by businessman Vasyl Khmelnytsky and this will provide the buyer with over 50% of the voting shares on the company’s board.
The respective issue was put onto commission’s agenda.
According to the United State Register, in December 2018, Khmelnytsky via UDP Industrial Projects Limited acquired control over Lviv StandartBud LLC, with whom they accomplish a building project of LvivTech.City innovative park on the territory of industrial site of the former plant in Lviv.
As of August 8, 2019 UDP Industrial Projects own 90% stake of charter capital of Lviv StandartBud. Its charter capital is UAH 500,000.
As reported, completion of the first stage of construction of LvivTech.City was scheduled for the second half of 2018. Later on Khmelnytsky told Interfax-Ukraine the plans shifted by the end of 2019.

OCCUPANCY OF HOTELS IN KYIV DECREASES TO 48%

The occupancy of hotels in Kyiv in January-June 2019 decreased by one percentage point (p.p.) compared to the same period a year earlier and amounted to 48%, the press service of Jones Lang LaSalle consulting company in Ukraine (JLL) has reported. “The first half of this year was marked for the hotel market of the Ukrainian capital by a fall in average operating indicators both in U.S. dollars and hryvnias. Against the backdrop of the very successful first half of 2018, when the Champions League final was held in Kyiv and both occupancy and average tariffs rose, the results this year leave much to be desired. In particular, for the first time since 2014, there was a drop in occupancy between January and June,” Tetiana Veller, the head of the hotel business department at JLL, said.
According to JLL, the average rate for staying in hotels of the upper segment in January-June 2019 decreased by 15% compared to the first half of last year, to $153, the figure in the middle segment decreased by 11%, to $69 per room. At the same time, the occupancy of expensive hotels fell to 43%, while mid-range hotels raised occupancy by 1.5 percentage points, to 53%.
JLL experts explain the decline in the figures with the martial law introduced at the end of 2018, the holding of presidential elections in the country, as well as a significant increase in last year’s performance in connection with the Champions League final in Kyiv.
“Compared to a more “standard” year 2017, market indicators still rose,” the report said.
According to JLL forecasts, in the second half of the year it’s worth expecting an equalization of indicators in connection with completion of the transfer of power, as well as determining the course of the new government.

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