Business news from Ukraine

Business news from Ukraine

KYIV REGIONAL AUTHORITIES TO PRESENT PROJECT TO BUILD BIG ORBITAL ROAD AROUND KYIV TO INVESTORS BY LATE JULY

KYIV. July 22 (Interfax-Ukraine) – Kyiv Regional Administration intends to present a project to build a big orbital road around Kyiv to investors by late July 2016, Kyiv region governor Maksym Melnychuk has said.

“One of the largest strategic projects [for Kyiv region] for this year is the bid ring road around Kyiv… I think that by late July Kyiv Regional Administration would have a chance to personally present the project to investors,” he said at a meeting with the U.S.-Ukraine Business Council (USUBC) in Kyiv on Thursday.

He said that the length of this road will be around 193 kilometers. Investment could reach some $2 billion.

“We are discussing it with some countries, for example, with France and China. They are ready to join the project,” he said.

He said that the condition that the road is left in ownership of Kyiv Regional Administration after its completion is important. This would open opportunities for investors to build hotels, filling stations and other facilities near it.

“The road would not be a toll road. Then we will be able to speak about this project as social project, but with large investment and business opportunities,” he said.

GENERAL ELECTRIC SEEKS TO IMPROVE UKRZALIZNYTSIA’S EFFICIENCY

KYIV. July 22 (Interfax-Ukraine) – The U.S. General Electric Corporation seeks to improve efficiency of public joint-stock company Ukrzaliznytsia using own technologies.

An Interfax-Ukraine correspondent has reported that GE Transportation Marketing Director Adem Saglik informed reporters on this after singing a memorandum of cooperation with Ukrzaliznytsia.

“We need to understand in cooperation with Ukrzaliznytsia what type of investment and what type of cooperation would be important for them. If we speak about diesel locomotives, of course, the state of rolling stock is sad. In the past 25-30 years Ukrzaliznytsia has not bought any new locomotives. This affects its efficiency. We are confident in a possibility of using our solutions to improve Ukrzaliznytsia’s efficiency,” he said.

Saglik said that General Electric could also find financial solutions for Ukrzaliznytsia.

“We always ask Ukrzaliznytsia what rolling stock modernization plans they have. We hear about modernization of maybe 200-300 units. They would need to buy some new locomotives and new equipment, but we cannot name exact figures. Ukrzaliznytsia is to carry out own assessment. If we speak about long-term outlook, this could concern modernization or replacement of 400-500 units,” he said.

He said that this project is a long-term project. It could envisage modernization of 50-60 units a year.

Asked about the selection of the site for joint operations and the local content level, Saglik said that the company’s representatives held a familiarization tour in Ukraine, but it is early to announce any decision. The deeper assessment should be conducted.

“I want to say that Ukraine has sites with a large potential. The local content level depends on the project and its details. Usually when we speak about local content, final assembly and startup works are done at the site,” he said.

BORYSPIL AIRPORT COULD SEE TRIPLE RISE IN PROFIT IN H1 2016

KYIV. July 22 (Interfax-Ukraine) – Boryspil International Airport (Kyiv) could triple its net profit in January-June 2016 compared to the same period of 2015.

An Interfax-Ukraine correspondent has reported that acting Director Yevhen Dykhne gave the information at a press conference at the airport on Thursday.

“According to the preliminary calculations we expect that we will see a triple rise in profit in H1 2016 compared to H1 2015,” he said.

Dykhne said that the final results will be announced after July 25.

According to a financial report of the airport for Q1 2015, net profit under Ukrainian accounting standards was UAH 214.47 million. Thus, net profit of the airport in H1 2016 would be almost UAH 650 million.

Earlier Dykhne said that the airport seeks to have UAH 1 billion of net profit in 2016, according to the optimistic scenario.

Boryspil International Airport is the main airport of Ukraine. The airport has two runways: one with a length of 4,000 meters and a width of 60 meters, and the second with a length of 3,500 meters and a width of 63 meters. Four passenger terminals, postal and cargo complexes are located on the territory of the airport.

FISH CATCH IN UKRAINIAN WATER BASINS 19.4% UP IN H1 2016

KYIV. July 22 (Interfax-Ukraine) – The State Fishing Agency reports a rise in fish catch in Ukrainian water basins (inland water basins and seas) in January through June 2016 by 19.4% year-over-year, to 22,900 tonnes.

The agency said in a press release that total fish catch in the Azov and Black seas grew by almost 20.5%, to 16,000 tonnes, including a rise of 22.1% in the Azov Sea and 4.9% in the Black Sea. Fish catch in inland water basins grew by 16.8%, to 6,900 tonnes.

Goby (6,757 tonnes, a rise of 7%), Black Sea sprat (8,256 tonnes a rise of 1.5 times), Azov turbot (88 tonnes, a rise of 5.8 times), conch shell (226 tonnes, a rise of three times) and shrimps (209 tonnes, a rise of 1.9 times) prevailed among sea-water fish caught.

Freshwater fish catch grew: pike perch – by 1.5 times, Black Sea herring – by 2.3 times, roach – by 1.2 times and carp – by 1.7 times. Bream, jackfish and herbivorous fish catch decreased.

In H1 2016, fish catch grew in Dnipropetrovsk region by 60.9%, Mykolaiv region by 57.6%, Ivano-Frankivsk region – by 55%, Kherson region – by 52%, Kyiv region – by 40% and Zaporizhia region – by 27%.

The agency explained discrepancies of fish catch figures provided by the agency and the State Statistics Service.

Data of the State Statistics Service include fish catch and other marine resources catch by Ukrainian vessels outside Ukraine, which is not linked to the state of fish stock in Ukraine.

The agency paid attention that in 2016 it would not include data on fish catch by Ukrainian vessels leased to foreign companies.

PHILIP MORRIS RAISES PRODUCE SHIPMENTS IN UKRAINE BY 17.4% IN Q2 2016

KYIV. July 21 (Interfax-Ukraine) – Philip Morris International Inc. (PMI), one of the world’s largest manufacturers of tobacco products, 2016 increased shipments of cigarettes in Ukraine by 17.4% in April-June 2016 compared to the same period of 2015, to 5.95 billion pieces.

PMI said, with reference to a quarterly report by A.C.Nielsen sociological marketing company (the United States), that in January-June 2016 the company’s shipments of cigarettes grew by 19.8%, to 11.6 billion pieces.

The Ukrainian market of cigarettes grew by 2.6% in Q2 2016, to 19.4 billion units and in H1 2016 – by 9.1%, to 36.7 billion units.

The share of PMI in the Ukrainian tobacco market in H1 2016 decreased by 1.2 percentage points, to 30.5%, while it grew by 0.3 percentage points in Q2 2016, to 31.2%.

The decline in the share of Marlboro and Parliament brands in January-June 2016 was 1.2 percentage points and 0.2 percentage points, to 3.2% and 2.8% respectively. The growth in the share of the Bond Street brand is estimated at 2.4 percentage points, to 10.4%.

The total market growth was principally driven by a lower estimated prevalence of illicit trade, Philip Morris said.

Philip Morris International is one of the world’s largest manufacturers of tobacco products. It produces cigarettes at more than 50 factories, sells them in 160 countries.

The company has been operating in Ukraine for more than 15 years. It manufactures products at the factory in Kharkiv region.

NEWLY CREATED ANDA AIR GETS FIRST AIRCRAFT

KYIV. July 21 (Interfax-Ukraine) – The newly created Ukrainian airline Anda Air, which plans to perform charter flights, has received its first aircraft McDonnell Douglas MD-83.

Company co-founder Serhiy Shamenko told Interfax-Ukraine the aircraft arrived at Kyiv Airport on July 19.

Speaking about plans for the first flights, he said there are such plans, however the company needs to perform a number of procedures related to certification of the airline, perform a demo flight.

“We hope that won’t take much time, because we have already done all that is necessary, we were just waiting for the plane. We hope we will be able to make the first flight within the next 10-15 days if there are no problems,” he said.

In terms of destinations, according to him, Bulgaria will be first, the company also plans to operate flights to Albania, Georgia.

As reported, Anda Air Airline was registered in Kyiv at the end of 2015. It was founded by ex-head of Dart Airline Serhiy Shamenko and Heorhiy Avanesov. Shamenko is also the head of Anda Air.