Business news from Ukraine

UKRGAZVYDOBUVANNIA WINS AT AUCTION TO USE CONDENSATE FIELD FOR UAH 15 MLN

JSC Ukrgazvydobuvannia has been announced a winner of the auction held by the State Service for Geology and Deposits to sell a license for the use of Lypovetske gas condensate field (Lviv region). The company offered UAH 15.1 million for the license.
The authority reported that the sum is more than four times larger than the starting price – UAH 3.5 million.
Stryinaftogaz LLC (the founders of the company are Petro Hryniv, Oleh Kurochkin and Yuriy Petrushko) won at an auction to receive the license for the Chernystia gas condensate field (Lviv region). The company offered UAH 2.04 million for the license.
Five more companies participated in the auction.
This was the first auction to sell licenses for the use of oil and gas field in the past two years. Ukrgazvydobuvannia said that for the company it was the first auction in the past 10 years.

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BELARUS AND UKRAINE MAY INCREASE COMMODITY TURNOVER TO $5 BLN

Belarus and Ukraine may increase mutual commodity turnover to $5 billion in 2018, Belarusian Deputy Prime Minister Igor Lyashenko said. “Positive dynamics of trade and economic relations between our countries was observed in the past few years. We have managed to stop the fall that was in 2013 and resume growth,” Lyashenko said at a plenary session of the first forum of Belarusian and Ukrainian regions in Gomel on Friday.
The amount of bilateral trade reached $4.6 billion in 2017 and went up 20% against 2016, he said.
“We project commodity turnover at $5 billion this year [an 8.7% increase from 2017],” Lyashenko said.
Belarusian President Alexander Lukashenko and Ukrainian President Petro Poroshenko have decided to bring mutual commodity turnover to at least $8 billion in 2019.
Not only the governments of the two countries, but also the regions need to contribute to achieving this goal, Lyashenko said.

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UKRAINIAN SEA PORT AUTHORITY WANTS TO START DREDGING PROJECTS IN 2019

The Ukrainian Sea Port Authority plans to double dredging works at Ukrainian ports in 2019, bringing the volume of projects to 16.335 million cubic meters, the press service of the authority reported after Dredging day 2018 held in Odesa. “This figure reflects the amount of work that the Sea Port Authority plans to start in 2019 compared to the amount of work that was planned to start in 2018,” the press service of the authority told Interfax-Ukraine.
At the same time, the authority said that the consolidated data on the implementation of the dredging plan for the current year are now being collected, work on individual facilities is proceeding as part of the plan, and for some of them even ahead of schedule.
The plans for 2019 include the continuation of dredging at the ports of Chornomorsk and Yuzhny (both Odesa region), including work to dredge the first boot basin of the Sukhy estuary of the Chornomorsk port in the amount of 1.1 million cubic meters with a planned period of four months, as well as in Yuzhny port (second and fourth launch complexes) in the amount of 6.339 million cubic meters with a planned implementation period of 21 months.
To maintain the passport depths, it is planned to carry out work in the amount of 8.88 million cubic meters in the ports: Kherson, Reni, Izmail, Odesa, Berdiansk, Mariupol, as well as on the Buzko-Dniprovsky-Lymansky canal; Kyiv, Kamianske, Kaniv, Kremenchuk, Dniprodzerzhynsk, Dniprovske and Kakhovka water reservoirs.

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UKRAINE PLACES $2 BLN EUROBONDS

The volume of placement of the five-year tranche of Ukraine’s eurobonds will be $750 million, that of the ten-year one some $1.25 billion, a source in the banking circles has told Interfax. Thus, the country is placing eurobonds worth $2 billion. The yield of the five-year tranche (it is “long,” maturing in February 2024) was 9% per annum, the ten-year tranche some 9.75%. The initial reference point was about 9.25% and about 10% respectively.
The volume of the order book amounted to $4.9 billion.
As reported, the organizers of the issue of Ukraine’s eurobonds are BNP Paribas, Citi, Goldman Sachs and J.P. Morgan. Ukraine plans to use funds from eurobond placement to repay 2019 eurobonds worth $725 million, as well as for general budget purposes.