Business news from Ukraine

UKRAINE ANNOUNCES 12 TENDERS TO DEVELOP HYDROCARBON FIELDS

Ukraine has announced 12 tenders for signing production sharing agreements (PSA) for the development of hydrocarbon deposits. The relevant resolutions of the Cabinet of Ministers dated December 18, 2018 were published in the Uriadovy Kurier newspaper on January 5, 2019.
Some 12 fields were put up for auctions, including Hrunivsky, Varvynsky, Rusanivsky, Okhtyrsky, Buzivsky, Zenkivsky, Ivanivsky, Ichniansky, Balakleisky, Sofiyevsky, Berestiansky, and Uhnivsky.
The fields are located in Ivano-Frankivsk, Lviv, Poltava, Chernihiv, Sumy, and Kharkiv regions.
The term of the PSA is 50 years. Applications for participation in the tenders are accepted within three months from the date of publication of the announcement. It is assumed that the state’s share in profitable products should be at least 11% of its total volume, the maximum investor’s share – 70% of total production (until full reimbursement of investor expenses).
At the first stage of exploration (within five years) the minimum investment in Varvynsky, Ichniansky, Sofiyevsky areas amounts to UAH 1 billion, Hrunivsky not less than UAH 850 million, Rusanivsky, Ivanivsky, Balakleisky not less than UAH 800 million, Okhtyrsky, Buzivsky, Uhnivsky not less than UAH 600 million, Zenkivsky not less than UAH 500 million, and Berestiansky some UAH 450 million.
Tenders on the first ten sites were initiated by the U.S.-Ukraine Business Council (USUBC) and the investment company SigmaBleyzer, and the rest of deposits by Ukraine’s Navigator Komplekt LLC.

,

AGROVALLEY RAISES SHARE IN IMC AGRICULTURAL HOLDING TO 72.22%

Agrovalley Limited, controlled by the chairman of the board of directors of IMC agricultural holding, Oleksandr Petrov, on December 28, 2018 acquired 156,500 shares of IMC S.A. (Luxembourg). According to a report by IMC on the website of the Warsaw Stock Exchange (WSE), the purchase price of one share was PLN12.8 ($3.41 at the rate of the National Bank of Poland on January 7). Agrovalley Limited after the transaction increased the total stake to 23.962 million shares.
IMC specializes in cultivation of grains, oilseeds and milk production in Ukraine. The agricultural holding cultivates about 130,000 hectares of land in Poltava, Chernihiv, and Sumy regions. It owns facilities to store 554,000 tonnes of grains and oilseeds.

, ,

MULTIPLEX CINEMA CHAIN PLANS TO EXPAND NETWORK BY 35% IN 2019

PJSC Multiplex-Holding, which develops the Multiplex cinema chain in Ukraine, plans to expand the network in Ukraine by 30% in 2019, co-owner of the Multiplex cinema network Volodymyr Trofymenko has told. “Today Multiplex is the leader in the cinema market of the country: the company has 129 cinema halls and occupies more than 35% of the country’s film screening market. Our main goal for 2019 is to expand the network by 30%,” he outlined the company’s plans for the coming year.
He also reported on the updated membership of the Multiplex-Holding supervisory board. Vladyslav Burda (RedHead Family Corporation) became the head of the supervisory board, e-commerce is supervised by Vladyslav Chechotkin (Rozetka), Oleksandr Pochkun (Baker Tilly Ukraine) is in charge of finance and audit, Maksym Bakhmatov (UNIT.City) for business development and sales, Oksana Semeniuk (Сhangers) is responsible for personnel management, and Ksenia Trofymenko (Multiplex) for the construction of new cinema halls of the network.
According to him, the tasks of the supervisory board include building a strategy for the sustainable development of the network, the formation of a top management team, principles and processes of work with staff, organizational structure and design. “Now our task is to approve plans for the year and monitor their implementation so that in six months we will report on the results. The client service will gradually improve, the mobile application and the company’s fixed assets will be updated, another 40 network cinema halls will open and so on. It’s better to talk about the rest later – when the results of work are visible,” he added.

, ,

ONE SECOND OF POLITICAL ADVERTISING ON UKRAINIAN TV COSTS UAH 5,700

The political advertising for the period of presidential election is the most expensive on Ukraine, Football 1 and Football 2 TV channels – UAH 5,658 per second in prime time, while on radio the largest rates are UAH 4 per second in Kyiv. According to the announcements of Ukrainian television and radio companies in the Holos Ukrainy newspaper last week, advertisements in the interval from 1:00 to 6:00 will cost the cheapest for presidential candidates from UAH 0.24 on Otse TV channel to UAH 1,498 on Ukraine, Football 1 and Football 2 TV channels. A second of advertising at night on Novy, STB, M1 and ICTV will cost UAH 1.2, while on NewsOne it costs UAH 520.
Advertising in the interval from 18:00 to 19:00 is the most expensive: from UAH 8.4 (on Sunday) on the M2 channel to UAH 5,658 on the Ukraine, Football 1 and Football 2 (on weekdays).
A second of advertising in this hourly space on Novy will cost UAH 872.4 on Sunday and UAH 495.6 on weekdays; on STB – UAH 1,296 and UAH 668.4, respectively.
On ICTV one will have to pay UAH 886.8 for a second on Sunday and UAH 927.6 on weekdays, and on Inter and NewsOne – UAH 2,660 and UAH 650 respectively, regardless of the day of the week.
Advertising in the interval from 7:00 to 8:00 starts from UAH 2.4 (on Sunday) on the M2 channel to UAH 839 on the Ukraine, Football 1 and Football 2 TV channels.
A second of advertising in this one-hour period on Novy will cost UAH 75.6 on Sunday and UAH 135.6 on weekdays; on STB – UAH 247.2 and UAH 182.4 respectively; ICTV – UAH 334.8 and UAH 320.4, on Inter and NewsOne – UAH 510 and UAH 420 respectively, regardless of the day of the week.
Pryamiy TV Channel offers to buy a second from 1:00 to 17:00 for UAH 500 and from 17:00 to 1:00 – for UAH 700.
On radio airtime in Kyiv remains the most expensive – up to UAH 4 per second in the daytime and UAH 2 per second at night at the Shanson radio. Airtime in cities with population of more than 1 million and Lviv city costs from UAH 0.3 per second up to UAH 1.5 per second, in other regional centers and cities of regional importance – from UAH 0.1 to UAH 0.8 per second.

, , ,

UKRAINE REDUCES OIL TRANSIT TO EUROPEAN COUNTRIES IN 2018

Oil transit through the territory of Ukraine to European countries in 2018 decreased by 4.3% (602,400 tonnes) compared with 2017, to 13.335 million tonnes, according to Ukrtransnafta. According to Interfax-Ukraine calculations, the volume of oil pumping to the refineries of the country in 2018 increased by 0.2% (4,500 tonnes), to 2.101 million tonnes.
Thus, last year the share of transit in the total volume of oil transportation (15.436 million tonnes) amounted to 86.4%, the share of pumping to the country’s refineries was 13.6%.

,

LVIV INTERNATIONAL AIRPORT INCREASES PASSENGER TRAFFIC BY 48%

Lviv International Airport in 2018 increased passenger traffic by 48% compared with 2017, to 1.598 million people, according to the airport’s official page on Facebook. The number of serviced flights in 2018 rose by 29%, to 15.429. Some 1.39 million passengers were transported on international flights, and 207,300 people on domestic flights.
The airport in December 2018 carried 129,600 passengers (113,800 on international flights and 15,800 on domestic flights), which is 58% more than in December 2017.
The number of flights made in December reached 1,282 (1,067 international, 215 domestic), which is 34% more than in December last year.
As reported, Lviv airport in January-October 2018 increased passenger traffic by 46.3%, to 1.343 million people.
Lviv International Airport is located 6 km south of the city center.

, ,