Business news from Ukraine

GEFCO SEEKS TO TRIPLE WAREHOUSE AREA IN UKRAINE THIS YEAR

GEFCO Ukraine, a logistic operator, a representative of France’s GEFCO Group, plans to triple warehouses areas in Ukraine in 2018, to 15,000 square meters, leasing new premises in Kyiv city and region, GEFCO Ukraine Director General Oksana Yakovleva has said.
“This year we are planning to triple the warehouse space in Kyiv city and region, but we are also considering Odesa and Dnipro. The main customers of these warehouses are spare parts and machinery (automobile, agricultural and household appliances), FMCG has already appeared. We are mulling the launch of the fulfillment service for one of our clients, perhaps this year,” Yakovleva told Interfax-Ukraine.
According to her, GEFCO does not have its own warehouses in Ukraine, all warehouse space in the portfolio is leased. At the same time, the company has its own truck fleet.
According to Yakovleva, the total area of storage facilities is now about 5,000 square meters, except for them there are motor transport depots in Chornomorsk, Odesa region (a port terminal for 54,000 square meters) and one in Kopyliv, Kyiv region (an automobile terminal with customs-licensed warehouse for 15,700 square meters and a commercial warehouse of 127,000 square meters), in which the process of storing and sorting cars is carried out.
“At the same time, we use a large number of Polish warehouses of the GEFCO Group, since a lot of products need to be exported from Ukraine and this service is even more in demand now, because customers do not have their own representative offices or warehouses in the EU, so we offer our solutions: export and distribution,” the general director of GEFCO Ukraine said.
GEFCO Group has more than 300 sites in 150 countries with 13,000 employees. In 2017, the turnover of the group was EUR 4.4 billion.
In Ukraine, the group started operations in 2008. In 2016, the company recorded an increase in turnover by 47% compared to 2015, UAH 230 million. The company employs 55 people.

MOBILE SUBSCRIBERS’ BASE NARROWS BY 0.75% IN 1Q

The number of mobile communications subscribers in Ukraine in January-March 2018 totaled 55.323 million, which was 0.75% down on the previous, fourth quarter of 2017, the State Statistics Service has reported. The number of households buying mobile communications services (private clients) shrank by 0.82% in the first three months of 2018 to 50.977 million people. Private subscribers accounted for 92% of the total number of mobile communications subscribers.
The number of cable TV subscribers in the first quarter of 2018 fell by 4.1%, to 2.242 million people.
The number of Internet access users as of April 1, 2018, was 23.836 million people, which was 0.86% up from the previous quarter. Private users accounted for 89.7%.
In the first quarter of 2018, broadband Internet access was available to 22.9 million subscribers (a 1.3% up on the fourth quarter of 2017).
Fixed Internet access services in the first three months of 2018 were provided to 5.16 million subscribers, wireless Internet services were available to 17.16 million subscribers.
Landline telephone communications services were provided to 5.938 million households in urban areas and to 802,500 households in rural areas.

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UKRGAZVYDOBUVANNIA TO BUY EQUIPMENT FOR $59 MLN FROM U.S. SOLAR TURBINES

Public joint-stock company Ukrgazvydobuvannia has signed three agreements with Solar Turbines International Company and Solar Turbines Europe (subsidiaries of Caterpillar Inc., the United States) to supply equipment for $59.276 million.
According to tenders held in the ProZorro e-procurement system, the cost of three turbo-compressor units with tandem compressors C61 and gas turbine engine Mars100 will be $40.01 million, turbocharger unit with compressors of C61 and C51 types and gas turbine engine Titan130 – $15.485 million, gas turbine engine Taurus70 – $3.78 million.
The equipment is purchased for the Chervonodonetska and Khrestyschenska booster compressor stations. The delivery date is the third-fourth quarters of 2018.
Ukrgazvydobuvannia, which is wholly owned by NSJC Naftogaz Ukrainy, is a large gas processing company, which accounts for about 75% of total gas output in the country.
It operates Shebelynka gas refinery, Yablunivske department to process gas, Bazylivschyna condensate stabilization unit, and 19 filling stations in Kharkiv region. The latter sells fuel and liquefied gas of its own production. Shebelynka gas refinery started production of petrol and diesel fuel of Euro 5 emission standard in 2018.

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LARGEST UKRAINIAN BANK LAUNCHES APPLE PAY SERVICE

The largest state-owned bank PrivatBank (Kyiv) launched the Apple Pay service on Thursday.
“Apple Pay in Ukraine! Today PrivatBank launched this globally popular payment service,” Ukrainian Finance Minister Oleksandr Danyliuk wrote on his Facebook page. He said that this is the indicator of the attractiveness of the Ukrainian market for global innovative companies.
PrivatBank said in a press release that a credit or debit card of the bank Visa or Mastercard should be connected via Privat24 or Wallet applications to use the new payment service.
“One can use iPhone SE, iPhone 6 and later models of iPhone, as well as Apple Watch to pay in stores,” the bank said.
PrivatBank Board Chairman Peter Krumphanzl later at a briefing said that the arrival of Apple Pay in Ukraine means in practice a breakthrough in the state cashless program.
“This is a big step for Ukraine, on the one hand, from the point of view of innovation, and on the other hand, from the point of view of the state cashless program. This is a big step forward. I think this is very important for Ukraine,” he said.
The head of the retail business at PrivatBank, Oleksiy Shaban, added that the arrival of one of the world’s leading mobile payment technologies to the Ukrainian market is becoming a decisive incentive for large and small businesses to actively switch to cashless technologies. “We expect that for the first month of Apple Pay work in Ukraine a significant increase in the share of mobile payments by our customers will be seen,” he said.
Shaban said that at present more than 2 million customers of the bank are users of the Privat24mobile application.
According to Country Manager of the representative office of Mastercard Europe in Ukraine Vira Platonova, the number of payments using a mobile phone in Ukraine in 2017 increased 14 times, and this resulted in the arrival of Apple Pay to the country.
“Ukraine is a very developed market in terms of contactless payments. In the world in 2017, the number of payments with a mobile phone quadrupled, and in Ukraine it increased 14 times. It is therefore not surprising that Apple Pay came to Ukraine – one of the first countries in our region,” she said.
Platonova said that Ukrainians often pay with the help of mobile devices in retail networks, in transport, in restaurants and at gas stations.
“Payments using a mobile phone are absolutely safe, the level of fraud in these transactions is almost a nil,” she said.

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