The members of the American Chamber of Commerce in Ukraine expect the continuation of growth of the Ukrainian economy and the increase of profits in 2019 despite the elections, the co-founder and executive director of Horizon Capital, Lenna Koszarny, has said at a press conference of the organizing committee of Ukraine House Davos.
“We asked the members of our chamber, investors who invested huge money in Ukraine, what they expect in 2019. Some 74% answered growth and profits. That is, they will continue to invest, and these are the investors who understand what is happening in the country, that there will be elections,” she said.
She also noted about raising $200 million to the Horizon Capital investment fund – Emerging Europe Growth Fund III, L.P.
“This is a signal for the market that investors are interested in Ukraine. The investors who entered the fund are $350 billion of total capital,” she said.
Alexa Chopivsky, the Executive Director of Ukraine House Davos, also noted the success of the campaign at the economic forum in Davos.
“Three main conclusions can be drawn from our experience in Davos. First, Ukraine House Davos has created a powerful investment brand. Second, we have opened a window for foreigners and sponsors. Third, we have shown a positive image of Ukraine as a country of creativity, innovations and great opportunities,” the expert said.
Natural gas production in Ukraine in 2018 increased by 0.5% (by 106.3 million cubic meters) compared to 2017, to 20.898 billion cubic meters, the Ministry of Energy and Coal Industry has told Interfax-Ukraine. According to the ministry, the enterprises of Naftogaz Ukrainy increased gas production by 0.9% (by 152.9 million cubic meters), to 16.506 billion cubic meters during this period. In particular Ukrgazvydobuvannia increased gas production by 1.2% (by 176.2 million cubic meters), to 15.420 billion cubic meters, while Ukrnafta reduced it by 2.1% (by 23.3 million cubic meters), to 1.078 billion cubic meters. Chornomornaftogaz retained production at the level of the previous year at 8.7 million cubic meters.
Other oil and gas producing companies operating in the country in 2018 reduced gas production by 1% (by 46.5 million cubic meters) compared to 2017, to 4.391 billion cubic meters.
Ukraine International Airlines (UIA, Kyiv) has been assigned with the right to fly on the Kyiv-Addis Ababa route, the Ukrainian Air Transport Association (UATA) has reported.
The press service of the airline confirmed the fact to Interfax-Ukraine, adding that at present, they cannot say when the airline will start flying to Ethiopia, as the negotiations have not yet been completed.
The airline will fly from the Boryspil international airport.
As reported, in December 2018, the State Aviation Service of Ukraine approved all applications of UIA for servicing regular flights from Kyiv to Riyadh (seven flights a week), Dammam and Jeddah (Saudi Arabia) three times a week with unlimited duration.
UIA was founded in 1992. According to the National Commission for Securities and the Stock Market and the public register, 100% directly or indirectly is controlled by Cypriot-based Ontobet Promotions Limited which beneficiaries are not disclosed. The fleet consists of 45 airplanes of different modifications.
The Nova Poshta Group delivered 174 million parcels in 2018, which is almost 20% more than in 2017.
Co-owner of the company Volodymyr Popereshniuk said at a press conference late on Tuesday, in 2019, the company also seeks to achieve 20% growth in the number of deliveries.
The company also said that the number of items generated by business customers grew by 25% over the year, and online stores registered 36 million parcels in a year.
In 2018, Nova Poshta delivered 2.7 million international shipments, while the growth in deliveries from the United States doubled, and from Europe it increased by 3.5 times.
“In 2018, we opened about 350 new branches and installed more than 200 pick-up and drop-off points, which work not only in our branches, but also in the Epicenter, Lotok, Auchan and Leroy Merlin retail networks. We have grown to almost 3,000 points of presence and we will expand the network in small towns,” Director of Nova Poshta Oleksandr Bulba said.
He also said that the average speed of delivery of a parcel was reduced by 50 minutes.
In addition, in 2018, Nova Poshta transferred over UAH 3 billion in taxes and fees to the budget of all levels, which is 43% more than in 2017.
As reported, Nova Poshta in 2017 delivered 145.8 million parcels, which is almost 30% more than in 2016.
Founded in 2001, Nova Poshta Group is a leader in the express delivery market in Ukraine. The company’s network consists of almost 3,000 branches throughout the country.
Four-star hotels in Kyiv in 218 systematically reduced Average Daily Room Rate (ADR) to boost occupancy and competition with five-star hotels, which committed to increasing prices. “In February 2018, compared to other months, was the highest ADR, and by the end of the year, with the exception of May (hosting the final of the Champions League), it gradually decreased,” Partner at DEOL Partners Maryna Rymarenko said at a press breakfast.
According to DEOL Partners, the average occupancy of four-star and five-star hotels in Kyiv in 2018 decreased slightly: to 47.7% from 47.6%. At the same time, the five-star hotel occupancy rate decreased to 45% from 46%, in four-star hotels it increased to 60% from 47% in 2016.
“In the four-star hotel segment, there was a significant increase in occupancy, but it occurred along with a substantial decrease in ADR, which dropped to $113-115. That is, it was necessary to significantly lower prices in order to become more competitive. This also indicates that now the market dictates the conditions,” Rymarenko said.
According to her, ADR in five-star hotels in Kyiv in 2018 increased to $195 from $178 in 2016. “However, considering the 45% occupancy, it is not economically viable to build a five-star hotel today,” the expert said.
At the same time, according to her, due to the increase in occupancy in the four-star segment and the increase in prices at five-star hotels in 2018, Revenue Per Available Room (RevPAR) increased by an average of 8% in the market compared to 2017.
“On average, it was $78: for the five-star hotels it was $89, for the four-star hotels it was $70. Compared with other countries, it is catastrophically low to talk about the prospects of opening new facilities next year. The return on investment is very long. Stable occupancy of 64% in 2012 helped to keep a balanced ADR and on average for the market it was $164.
The main clients in DEOL Partners hotels are business tourists: they make up 90-95% of the total number of guests, she said.
“We see an increase in the number of guests from Israel, Turkey, and always a significant share is occupied by Americans and Europeans, among which No. 1 is the United Kingdom, while Belgium and France are second… But if earlier we felt the movement of business for the years, at some period of time the bankers, at another period agrarians, then lawyers – that is, it was possible to distinguish a trend in the market, now it is very difficult to outline and understand what business is coming in. That is, we cannot say what particular segment of the economy is growing and how business travel will transform tomorrow,” Rymarenko said.
According to the expert, Kyiv needs a strong mix of hostels and cheap hotels.
“There is not enough a strong mix of hostels, two-star and three-star hotels in the market that could attract more tourists to Kyiv… One can single out only Dream Hostel, which is categorized on the international market and has already entered the Eastern European market. This segment can have a fast payback period – from three to five years. However, it should be located in the center of the city, and the cost per square meter is growing now,” Rymarenko said.
According to NAI Ukraine, the number of rooms in Kyiv in 2018 increased by 7% and amounted to 12,983 in 110 facilities. According to the current number of rooms, Kyiv exceeds the figures of such European capitals as Bucharest (10,000) and Sofia (8,500), but still lags behind Warsaw (15,800) and Budapest (21,800) which is the number one capital in Eastern Europe in terms of visits of guests.
Investment and development company DEOL Partners has been operating in Ukraine since 2005.
The company is a developer and operator of the first Ukrainian network of apartment hotels – Senator Hotels and Apartments – and the first Ukrainian design-hotel 11 Mirrors.
Avia Association, the Swiss international network of fuel filling stations, represented by Polish-based Unimot, has signed a memorandum of cooperation in the fuel and energy complex of Ukraine with Wexler Group, the supplier of light oil products, the press service of Wexler Group has reported. According to the group, the first Avia fuel filling stations could appear in the country before the end of 2019.
In addition, Avia is expected to launch production of motor fuels and lubricants jointly with Wexler Group this year.
As reported, Unimot received permission from Swiss-based Avia International to use the brand in Ukraine and announced the plan to open the first fuel stations in the country in 2019. Unimot reported on the receipt of a large number of applications from Ukrainian businessmen that are owners of fuel stations interested in cooperation.
Earlier, Wexler Group also announced plans to significantly increase its presence in the retail market of petroleum products in Ukraine.
