Business news from Ukraine

Business news from Ukraine

UFuture Investment Group MULLING OPENING OF INNOVATION PARK IN KHARKIV, Ukraine

UFuture Investment Group (UIG) is mulling the possibility of opening an innovation park in Kharkiv, the founder of the group, Vasyl Khmelnytsky, said on the sidelines of the Ukraine House in Davos on Wednesday.
He did not confirm earlier announced information that the group plans to build innovation hubs abroad.
“I never promise things that I cannot make for sure. We plan to finish the first stage of Unit.City in Kyiv. These are around 30,000-35,000 square meters. Then we will build,” he said.
The businessman confirmed the interest of potential foreign partners.
The park in Kharkiv could become the third park in the group’s portfolio after Unit.City in Kyiv and Lvivtech.City.
As reported, Ukrainian entrepreneur and philanthropist Vasyl Khmelnytsky has put his business projects and social initiatives under one umbrella brand, UFuture Investment Group.
Khmelnytsky develops various businesses, preferring cooperation and joint management. Among the most famous projects are the restoration of the Kyiv airport, the construction of the Ocean Plaza shopping and entertainment center and residential complexes Novopecherski Lypky, Bulvar Fontaniv, RiverStone and Parkove Misto in Kyiv. He invests in business UDP Renewables (alternative energy), Biofarma (pharmaceutical industry) and RTM (national advertising operator). Support for social projects in the field of economics and education is provided by K.Fund.

FOREIGN INVESTORS SHOW LARGE INTEREST IN UKRAINE HOUSE IN DAVOS

Foreign investors show large interest in the Ukraine House in Davos, Chairman of the supervisory board of the Ukrainian Venture Capital and Private Equity Association (UVCA) Andriy Kolodiuk has said.
“The hall is crowded during all the panels we are holding. Each second visitor is an investor,” he said on the sidelines of the Ukraine House in Davos.
Kolodiuk said that many businessmen know about Ukraine from news broadcast.
“Here we allow them to understand and show [what is going in Ukraine]… Finally, some investors have decided to arrive in Kyiv,” Kolodiuk said.
Ukraine’s first-ever Ukraine House in Davos, Switzerland, is held during the annual meeting of the World Economic Forum in January 2018. The Ukraine House will work within a week under the slogan “Ukraine: Creativity, Innovation, Opportunity” and is intended to become a dynamic discussion hub. Ukraine House will demonstrate Ukraine’s investment potential and business opportunities to global business leaders, politician and civil society representatives. Ukraine House is open from January 22 to January 26, 2018.
The project is organized by the Ukrainian Venture Capital and Private Equity Association (UVCA) in partnership with Western NIS Enterprise Fund (WNISEF) and Victor Pinchuk Foundation.
Ukraine House’s Gold Sponsor is Ciklum and Silver Sponsor is IT Ukraine.
Panels are sponsored by Horizon Capital, Bitcoin Foundation Ukraine, AgroHub powered by MHP, UNIT.City, Hacken and SocialBoost.
Ukraine House Organizing Committee (UHOC) is led by Alexa Chopivsky, Director of UHOC, Andriy Kolodiuk (UVCA), Olga Afanasyeva (UVCA), Jaroslawa Johnson (WNISEF), Svitlana Grytsenko (Victor Pinchuk Foundation), Lenna Koszarny (Horizon Capital), Marina Vyshegorodskikh (IT Ukraine). It is organized in cooperation with UkraineInvest and Office of the National Investment Council of Ukraine.

ZAKHIDNADRASERVICE WANTS TO SIGN PSA AGREEMENT FOR DRILLING IN 6 FIELDS

Zakhidnadraservice LLC (Bohorodchany, Ivano-Frankivsk region) of businessman Zinoviy Kozytsky wants to develop six fields in Ivano-Frankivsk and Lviv regions under product sharing agreements (PSA), the press service of the Energy and Coal Industry Ministry of Ukraine has reported.
The press service said that a working group of the interagency commission for signing PSA will consider the application of the company within two weeks.
The application was submitted for the fields Uhnivska, Lypnykivska, Tysovetska, Tershakivska, Dibrovska and Sadzhavska.
As reported, in March 2016, Zakhidnadraservice offered the largest price of UAH 2.322 million for a license to develop Bystritska oil and gas field in Lviv region at an auction held by the State Service for Geology and Deposits of Ukraine.

OKKO GROUP STARTS GAS IMPORTS FROM EUROPE

OKKO Group, including the OKKO fuel filling stations network (Galnaftogaz Concern), has imported the first batch of natural gas in the amount of 1 million cubic meters from Europe, the holding’s press service has reported.
“The resources were purchased from the international energy trader AOT Energy. And now it is being pumped into the underground gas storage facilities,” the report said.
Currently, the holding is negotiating the purchase of gas with several other international traders.
“We have already passed all the necessary compliance procedures with five of them, which necessarily precede the signing of contracts,” the head of the new products sale department at OKKO, Volodymyr Ostaschuk, said.
In future, OKKO intends to reach the volume of natural gas purchase of 30 million cubic meters monthly.
“It is planned to increase activity in European gas markets in spring, when the heating season ends, and resources can be purchased 30-40% cheaper than during the peak consumption periods. Afterwards it will be stored in underground storage facilities. OKKO Group will also buy gas from Ukrainian producers,” the press service said.

NIBULON INVESTS $6 MLN IN AGRIMACHINERY SINCE START OF 2018

Nibulon has invested $6 million in the renewal of agricultural machinery since the beginning of 2018.
According to a press release on the company’s website, agreements have been signed for the delivery of seven Fendt 1,038 tractors, five Case IH Axial Flow 6140 harvesters, five John Deere S760 harvesters, five Tiger-Mate II cultivators, three Kinze 3000 seeders and a Lemken Rubin 6 disc harrow.
In addition, the company will buy 22 MTZ 952.3 tractors, which according to the information of Nibulon, have so far been supplied exclusively to the European market.
“This machinery will replenish the fleet of all agricultural branches of Nibulon LLC and will participate in the agricultural season of 2018, which will significantly accelerate the timing of its implementation and improve the efficiency of work,” the company said.
Nibulon LLC was established in 1991. It is one of the largest operators in the grain market of the country. It has elevators with a total capacity of about 2 million tonnes, as well as its own transshipment terminal with a capacity of 5 million tonnes in Mykolaiv.

volume of CONSTRUCTION WORK IN UKRAINE GROWS BY 21% IN 2017

The volume of construction work in Ukraine in 2017 increased by 20.9% compared to 2016, while the increase in 2016 from 2015 was 17.4%, according to the revised data.
According to the State Statistics Service, the data are given without taking into account the temporarily occupied territory of Crimea and Sevastopol and part of the ATO zone.
According to the agency, the volume of construction work in December 2017 increased by 9.7%, while compared with November 2017 it soared by 46.4%.
According to the report, in 2017 the growth in the volume of construction was observed in all spheres of construction. It grew by 20.2% for non-residential construction, while the figure in construction of residential buildings rose by 11.7%. The growth of 17.8% was recorded in construction of engineering facilities.
In 2017, construction work grew in 20 regions, as well as in Kyiv city, where it was 30.1%, to UAH 24.8 billion.
According to the State Statistics Service, the largest growth was seen in Kirovohrad region (by 53.4%, to UAH 1.4 billion), Zhytomyr region (38.9%, to UAH 1.5 billion) and Odesa region (38.4%, to UAH 10.4 billion).
The decline in construction work was seen in Luhansk region (27%, to UAH 600 million), Sumy region (4.1%, to UAH 1.23 billion) and Volyn region (1.6%, to UAH 1.5 billion). Construction works did not change in Chernivtsi region (UAH 1.15 billion).