Business news from Ukraine

KYIV SIKORSKY AIRPORT PLANS TO BOOST PASSENGER TRAFFIC BY 30% NEXT YEAR

Kyiv Sikorsky International Airport (Zhuliany) in 2019 plans to boost passenger traffic by 25-30% compared with the current year, when it plans to serve 2.6 million people. “We plan passenger traffic will grow by about 25-30% next year from the current level,” Chairman of the airport’s Board of Directors Denys Kostrzhevsky said at a conference at the airport. The previously announced forecast for 2018 set at 2.8 million passengers was reduced because flydubai (the UAE) had switched flights to another airport while the density of the schedule of Estonia’s Nordica had decreased.
As reported, Kyiv Sikorsky International Airport plans to complete the reconstruction and expansion of its main Terminal A from 14,000 to 23,500 square meters by until May 2019. The project is estimated at UAH 630 million.
Kyiv Sikorsky International Airport is located in the business center of the capital, seven km from the city center. It is the second largest airport in Ukraine in terms of the number of flights and passenger traffic.
The airport has three terminals with a total area being 21,000 square meters. The airport’s runway is able to handle B-737 and A-320 aircraft.
In the nine months of 2018, the airport serviced 2.165 million passengers, which was 57.3% up on January-September 2017. In September 2018 alone, passenger traffic grew by 30.6%, to 307,500 people.

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BUSINESSMAN VASYL KHMELNYTSKY’S UFUTURE GROUP TO INVEST IN RECONSTRUCTION OF KYIV SIKORSKY AIRPORT’S TERMINAL UAH 630 MLN

Businessman Vasyl Khmelnytsky’s UFuture Group plans to complete the renovation and expansion of Terminal A, which is the main terminal of Kyiv Sikorsky International Airport (Zhuliany), from 14,000 to 23,500 square meters by May 2019, the project is estimated at UAH 630 million.
“We are building a new [terminal] not to increase the number of passengers, but to create comfort for those who fly,” the businessman said at a press conference on Thursday, explaining that often one time slot at the airport can be shared by seven low-cost airlines.
He says the airport’s throughput capacity, which is about 700 people per hour, can double.
Construction works at the airport began two months ago, Chairman of the airport’s Board of Directors Denys Kostrzhevsky said. The runway will not be closed for the period of the works at the terminal.
“The existing runway is good enough, its warranty is valid. We are not going to overhaul it, sometimes we fix something, improving some processes,” Khmelnytsky said.
Both own reinvested funds of the managing company and loans are the source of financing of the works, Kostrzhevsky said.
Khmelnytsky says that the payback period of investment in the expansion of Terminal A is expected to be from eight to nine years. UFuture invested more than UAH 2.5 billion in the airport’s complex in seven years.
He also said that he was considering the possibility of building a low-priced hotel and hangars next to Terminal A, but it might happen no earlier than the end of its reconstruction.
“Our resources are not unlimited. First, we will build the terminal. I hope we will launch it. It will give us a little more income, and we will make estimates proceeding from this,” Khmelnytsky said.
UFuture Investment Group, headquartered in Brussels, was established in autumn 2017 and united the business projects of Vasyl Khmelnytsky. The group includes the Ukrainian development company UDP, whose specialization is the implementation of large infrastructure projects. In addition, the conglomerate united businesses in such areas as UDP Renewables, the Bila Tserkva industrial park, the innovation parks UNIT.City, and LvivTech.City.
Kyiv Sikorsky International Airport is located in the business center of the capital, seven km from the city center. It is the second largest airport in Ukraine in terms of the number of flights and passenger traffic. The airport has three terminals with a total area being 21,000 square meters. The airport’s runway is able to handle B-737 and A-320 aircraft.
In the nine months of 2018, the airport serviced 2.165 million passengers, which was 57.3% up on January-September 2017. In September 2018 alone, passenger traffic grew by 30.6%, to 307,500 people.
Master-Avia LLC began managing the airport after winning a tender in 2010 and leasing airport property for 49 years.
Khmelnytsky and Kostrzhevsky are the beneficiaries of Master-Avia LLC, according to the state register of legal entities of entrepreneurs, are businessmen. Master-Avia indicates it owns terminals and the apron, while the airfield and the runway are on the balance sheet of municipally owned Kyiv International Airport (Zhuliany).

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NIKA-TERA MARITIME TERMINAL INCREASES OILSEEDS STORAGE CAPACITY TO 30,000 TONNES

Nika-Tera maritime terminal (Mykolaiv), part of Group DF of Dmytro Firtash, is increasing its oilseeds storage capacity to 30,000 tonnes, according to a press release of the port. According to the company, the port is continuing work on commissioning the second phase of a transshipment complex for oilseeds.
According to the report, the volume of cargo transshipment at Nika-Tera port since the beginning of the year amounted to 3.7 million tonnes, which is 10% more than in the same period of 2017, while for the nine months of the current year 221 vessels were handled.
“A significant increase in the volume of transshipment was provided by cargo that was not previously processed in the port: oil, granulated meal and bran, as well as new items of bulk freight,” the press service said citing commercial director of the port Valeriy Salnykov.
Nika-Tera is a highly mechanized marine terminal, part of Group DF’s port business.
The terminal includes four specialized complexes: grain, for transshipment of fertilizers, bulk freight, and liquid cargo.

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UKRANIAN FARMERS RAISE UAH 3.2 BLN VIA CROP RECEIPTS IN 2018

Farmers registered 514 crop receipts for the amount of UAH 3.2 billion in January-September 2018, Ukraine’s Agricultural Policy and Food Ministry has reported.
According to the ministry’s report, crop receipts were issued with future crops used as collateral. Since the launch of the tool as of October 9, 2018, farmers registered 696 crop receipts for the amount of UAH 4.4 billion, including 290 commodity receipts for UAH 2.5 billion and 406 financial receipts for UAH 1.9 billion.
The ministry said that liabilities under 176 crop receipts for UAH 1.4 billion were completed.
The ministry said that in 2018, 74% of the total crop receipts were registered. Producers of grain and oilseeds, producers in vegetable growing, gardeners and livestock breeders used the tool.
The ministry said that 54% of crop receipts were issued to entities with a land bank of 1,000-5,000 ha, 36% – with over 5,000 ha and 10% with up to 1,000 ha.

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FOOTBALL CLUB SHAKHTAR EARNS OVER UAH 1.7 BLN IN 2017 PAYS UAH 504 MLN IN TAXES

The total revenue of the Shakhtar Donetsk football club in the 2017-2018 season, including VAT, amounted to UAH 1.732 billion, the club said in its traditional annual report. The club’s total income in the previous season was UAH 877 million. In particular, income from the sale and rental of football players in the 2017-2018 season amounted to UAH 108 million, which is almost twice more than in the previous season.
However, the report does not reflect Brazilian Fred’s transfer to Manchester United in the summer off-season, which was a record amount in the club’s history. According to British media, 52 million pounds was paid for the player.
Club revenues from UEFA and FIFA amounted to UAH 888 million. This is UAH 600 million more than in the 2016-2017 season. Last season, Shakhtar successfully competed in the Champions League group stage and made it to the last 16, where it lost to Italy’s Roma.
FC Shakhtar’s revenues from commercial activities amounted to UAH 736 million.
In the 2017-2018 season, Shakhtar paid UAH 504.506 million in taxes to Ukraine’s state budget. Personal income tax amounted to UAH 358.85 million.

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