Business news from Ukraine

Business news from Ukraine

EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT EBRD COULD PROVIDE EUR 250 MLN LOAN FOR PUBLIC TRANSPORT UPGRADING IN UKRAINE

The European Bank for Reconstruction and Development (EBRD) could provide a loan of EUR 250 million to implement Ukraine Public Transport Framework II, according to a posting on the EBRD’s website.
According to the report, the decision to provide financing the EBRD board is to discuss on July 24, 2019.
“The EBRD will be signing loan agreements with respective companies and guarantee and project support agreements with respective cities. Each loan will be guaranteed by the respective municipality,” the bank said.
The investments will primarily focus on transport renewal (acquisition of new trolleybuses, buses, trams and metro cars as applicable) and the rehabilitation and/or modernisation of public transport infrastructure including automated fare collection, automatic vehicle location and traffic management systems.
As reported, in October 2015, the EBRD approved the provision of EUR 100 million under Ukraine Public Transport Framework.

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PART OF KYIV-ODESA HIGHWAY TO BECOME CEMENT CONCRETE ROAD

Part of M-05 Kyiv-Odesa highway in Kirovohrad, Mykolaiv and Odesa regions will be built as a road with the cement concrete surface.
“A few days ago I managed to convince our colleagues from the European Investment Bank that all subsequent loan financing that we will receive is sent to M-05 Kyiv-Odesa highway in order to have a full-fledged highway in a few years. We are planning this road within Cherkasy region with the asphalt concrete surface, and within the borders of Kirovohrad, Mykolaiv and Odesa regions with the cement concrete surface,” Head of the State Agency of Automobile Roads of Ukraine (Ukravtodor) Slawomir Nowak wrote on the Facebook social network.
According to him, this year the design documentation for the overhaul of the section of the road in Cherkasy region will be ready and the designing of the cement concrete road will begin within the boundaries of three regions.
“This year we are repairing the Kyiv-Odesa highway at the expense of the national budget. We also plan to overhaul sections of this road in Kyiv region at the expense of the ISIs [international finanicial institutions]. For example, in Cherkasy region we repair the section 15 km long with funds from the Road Fund. This is half the length of the most problematic section – between Zhashkiv and Uman,” Nowak said.
In addition, the Northern bypass road in Zhytomyr, Dnipro-Reshetylivka (within the boundaries of the Poltava region with the cement concrete surface, and Dnipropetrovsk – asphalt concrete) and N-14 highway Kropyvnytsky-Mykolaiv will be concrete, the head of Ukravtodor said.

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ENERGO IMPULSE TO BUILD SOLAR POWER STATIONS IN UMAN DISTRICT OF CHERKASY REGION

Energo Impulse Ukraine LLC (Kyiv) intends to build solar power stations in Uman district of Cherkasy region for $30 million by the end of 2019.
According to the press service of Uman District State Administration, this was announced at a meeting of head of the district state administration Yevhen Danchenko with the company’s management.
According to the press service, Energo Impulse Ukraine has rented three land plots of about 80 hectares in the area of the Kolodyste village, which is part of Ladyzhynka united territorial community. It is assumed that the investor will pay about UAH 1 million per year to the local budget.
Energo Impulse Ukraine is part of the Pan Energo group of companies.

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UKRAINE IMPORTS GAS FOR $400 MLN IN THREE MONTHS

Ukraine in January-March 2019 imported 1.555 billion cubic meters of natural gas for a total of $399.313 million, in particular in March 831.367 million cubic meters for $196.101 million, according to the State Statistics Service.
Thus, the average price of gas imported by the country in March 2019 was $235.9 per 1,000 cubic meters, which is 13.7% less than in February 2019 ($273.3).
The country’s contractors in the first quarter of 2019 were companies from Switzerland with 524.087 million cubic meters of gas for $131.787 million, Germany with 332.802 million cubic meters for $87.137 million, Poland with 235.554 million cubic meters for $51.566 million, Austria with 189.426 million cubic meters worth $57.046 million, France with 71.759 million cubic meters for $17.953 million, the UK with 63.022 million cubic meters for $18.525 million, Hungary with 53.457 million cubic meters worth $11.736 million, Luxembourg with 44.049 million cubic meters for $13.262 million, the Czech Republic with 39.475 million cubic meters for $9.822 million, Slovakia with 1.792 million cubic meters for $479,000, and Bulgaria with 400,000 cubic meters for $1,000.
Gas was not imported from Russia in the period.

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UKRGAZVYDOBUVANNIA SEES NET PROFIT RISE

JSC Ukrgazvydobuvannia in January-March 2019 increased its net profit by 3% (UAH 222.065 million) compared to the same period last year, to UAH 7.546 billion.
According to the report on the company’s website, its net income for the first quarter increased by 21% (UAH 3.924 billion), to UAH 22.609 billion, gross profit by 5.7% (UAH 543.67 million), to UAH 10.150 billion.
As reported, Ukrgazvydobuvannia in 2018 reduced its net profit by 11% compared to 2017, to UAH 27.135 billion (about $1 billion). Its net income for 2018 increased by 5.2%, to UAH 78.970 billion, while gross profit decreased by 8.8%, to UAH 38.368 billion.

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PHARMACY SALES IN UKRAINE RISE BY 16.1% IN VALUE TERMS

Pharmacy sales in Ukraine in April 2019 in monetary terms rose by 16.1% compared with April 2018, to UAH 8.073 billion, but decreased by 3.7% in natural terms, to 139.8 million packages.
According to the Apteka edition, with reference to data from the analytical system PharmXplorer/Pharmstandard, in April 2019 sales of medicines in monetary terms grew by 14.6% compared to April 2018, to UAH 6.703 billion, in natural terms by 4%, to 88.9 million packs.
The Ukrainian pharmaceutical companies Farmak, the corporations Arterium and Darnitsa, as well as Teva (Israel) and Sanofi (France) are among the top five marketing organizations.
As reported, in 2018 pharmacy sales in Ukraine in monetary terms increased by 23.4% compared with 2017, to UAH 84.574 billion, sales in natural terms for the period decreased by 0.84% compared with 2017, to 1.52 billion packages.

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