Business news from Ukraine

UKRAINE’S PROFITS FROM FERROUS METALS EXPORTS EXCEEDS $7 BLN IN JAN-AUG 2018

Ukrainian metal companies saw a growth of 27.7% in foreign currency revenues from exports of ferrous metals in January-August 2018 year-over-year, to $7.001 billion. According to customs statistics published by the State Fiscal Service, the share of ferrous metals of total income from exports was 22.65% compared to 19.93% from a year ago.
In August 2018 alone, receipts from ferrous metal exports amounted to $803.263 million.
In January-August 2018, Ukraine increased imports of similar products by 25.7%, to $896.765 million including imports reaching $144.565 million in August. In January-August 2018, Ukraine increased metal products exports by 32%, to $729.444 million including August deliveries being $91.404 million. During this period, imports of metal products grew by 19.9%, to $598.239 million, including August imports worth $94.603 million.
As reported, in 2017 Ukraine saw its forex earnings from ferrous metal exports rise by 20%, to $8.666 billion. Ukraine saw imports of these products increase by 42%, to $1.135 billion. Ukraine experienced a 30% rise in metal products exports, up to $896.7 million. Metal imports grew by 25% last year, to $806.8 million.

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DUBAI-BASED FLYDUBAI TO OPERATE DOUBLE DAILY FLIGHTS FROM KYIV TO DUBAI

Dubai-based flydubai on September 6 announced that it would move its existing operations from Kyiv Sikorsky International Airport to Boryspil International Airport with effect from October 28, 2018. “Ukraine remains an important market for the airline. From October 2, double daily flights will be available between Kyiv and Dubai,” the company said in a statement on its website.
flydubai launched its operations to Ukraine in 2013 and offers 17 weekly flights from Kyiv and Odesa to Dubai.
“Through flydubai’s expanded codeshare partnership with Emirates, Ukrainian passengers also are offered unmatched travel options via Dubai’s aviation hub,” the company said.
According to the announcement, the company will use a new Boeing 737 MAX 8 on the Kyiv route.
Emirates will codeshare on this route as part of the Emirates flydubai partnership announced in July 2017.
“Another good news for Boryspil and its passengers. Terminal F will still be filled from next year,” Ukrainian Infrastructure Minister Volodymyr Omelyan commented on the announcement.
flydubai carries out more than 1,700 flights per week to more than 90 destinations in 48 countries.

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UKRAINE CUTS CRUDE OIL TRANSIT TO EUROPE BY 4.5% IN 2018

Transit shipments of crude oil by pipelines through the territory of Ukraine to European countries in January-August 2018 decreased by 4.5%, or 409,500 tonnes, compared to the same period in 2017, to 8.692 million tonnes, PJSC Ukrtransnafta has said. The volume of oil pumping to the country’s oil refineries in January-August 2018 increased by 5.5%, 71,900 tonnes, 1.386 million tonnes, according to estimates of Interfax-Ukraine. Thus, the share of transit shipments in the total volume of oil transportation (10.077 million tonnes) in the eight months of 2018 was 86.2%, the share of pumping to the country’s oil refineries was 13.8%.
In August 2018, transit shipments of crude oil by pipelines through Ukraine decreased by 10.4% (125,000 tonnes) from August 2017, 1.08 million tonnes, pumping to the country’s refineries fell by 0.6% (1,100 tonnes), to 184,700 tonnes.
As reported, transit of oil through Ukraine to European countries in 2017 increased by 0.8% (by 114,900 tonnes) compared to the same period in 2016, to 13.937 million tonnes. The volume of oil transportation to the refineries of Ukraine in 2017 amounted to 2.097 million tonnes, which is 1.5-fold (690,600 tonnes) more than last year.
The growth of supplies inside the country is connected with the resumption of work of the Odesa-Kremenchuk section from March 10, 2017, which supplies Azeri Light oil to PJSC Ukrtatnafta. As reported, Ukrtransnafta, 100% managed by NJSC Naftogaz Ukrainy, is the operator of the country’s oil transportation system.
Ukrtransnafta’s trunk oil pipeline system, which includes pipes from 159 mm to 1,220 mm in diameters, stretches 4,767 kilometers and through 19 Ukrainian regions. It has annual capacity to accept 114 million tonnes for shipment and to supply 56.3 million tonnes to Europe.

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KYIV AIRPORT SEES 55% RISE IN TRAFFIC IN AUG, MOST POPULAR DESTINATIONS ARE SHARM EL SHEIKH, WARSAW, MINSK, ANTALYA

Kyiv Sikorsky International Airport in August 2018 handled 358,300 passengers, which was 54.9% up on August 2017, the airport has said on its website. The number of passengers serviced on international flights totaled 350,200 people and there were 8,100 people handled on domestic flights. The number of flights in August 2018 increased by 33.2% year-over-year, 3,258 (arrivals and departures), including 2,825 international flights and 433 domestic flights, it said.
The most popular international destinations in August 2018 were Sharm El Sheikh (Egypt), Warsaw (Poland), Minsk (Belarus), Antalya (Turkey), Ankara (Turkey), Tivat (Montenegro), Batumi (Georgia); popular domestic routes were Odesa, Zaporizhia, and Lviv.
From January to August 2018, Kyiv Sikorsky International Airport increased passenger traffic by 68.9% compared to the same period of 2017, to 1.857 million passengers, including 1.8 million passengers on international flights and 57,600 passengers on the domestic routes. The number of flights in January-August 2018 increased by 37.2%, to 20,092 (arrivals and departures), according to the airport. They included 17,007 international flights and 3,085 domestic flights.
The most popular international destinations in the eight months of 2018 were Minsk (Belarus), Dubai (the UAE), Ankara (Turkey), Sharm El Sheikh (Egypt), Rome (Italy), and such domestic routes as Odesa, Zaporizhia, and Lviv.
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 is 21,000 square meters. Terminal B is separate facility for business-class service, it is part of the Fixed Base Operator (FBO) system. The airport’s runway is able to handle B-737 and A-320 aircraft. In Q1 2018, the airport serviced 442,000 passengers, which is 50.4% more than in Q1 2017. Some 423,900 passengers were handled on international routes and 18,100 people on domestic ones.

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FC SHAKHTAR AND HYPE SPORTS INNOVATIONS LAUNCHE SPORTS ACCELERATOR

FC Shakhtar has launched the Sports Innovation (SPIN) Accelerator project together with HYPE Sports Innovation, a platform that invests in the search for sports start-ups around the world. The Ukrainian club became one of 10 global partners of the project at the kick-off meeting at London’s Stamford Bridge stadium on September 5, the club’s press service said.
Along with FC Shakhtar Donetsk, the SPIN Accelerator partners are FC Koln, 1907 Fenerbahce, Maccabi Haifa FC and National Chiao Tung University in Taiwan.
“Innovative technologies in the sports area are the key driver of changes in the market. Our goal is to identify new opportunities, to support Ukrainian sports start-ups and take them to a new level,” Yuriy Sviridov, the FC Shakhtar Communications Director, has said.
The four-month program is tailored for the unique needs of sports-technology start-ups.
HYPE Sports Innovation aims to establish at least 25 accelerator host partners by 2021. The first SPIN Accelerator ran simultaneously with three partners: University of Loughborough in London, Australia’s University of Queensland and Italian Trentino Sviluppo. Out of 33 participating startups, 12 received investments totalling $3.5 million throughout the program.

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UKRAINE DELIBERATELY INITIATES REPEAL OF SWITCH TO SUMMER TIME IF EUROPEAN UNION TAKES DECISION

Ukraine’s Ministry of Economic Development and Trade (MEDT) intends to rescind switching to summer time if the European Union takes the same decision. “If the EU takes a decision to abolish the transition to summer time, the MEDT will apply to the Cabinet of Ministers of Ukraine on the possibility of making appropriate changes in the procedure for setting time on the territory of Ukraine,” MEDT’s press service said.
At the same time, the press service specified that the economic rationale for the annual transition to summer time and information on changes in electricity consumption from the transition to summer time in the Ministry of Economic Development is not available.

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