Business news from Ukraine

AUCHAN TO LAUNCH NEW FORMATS OF STORES IN UKRAINE

Auchan Retail Ukraine, part of French-based Auchan Holding, in April 2018 will open the first store in the “superstore” format (supermarket) under the name Auchan Zoriany with an area of 3,500 square meters in the Dafi shopping center, the press service of Auchan has told Interfax-Ukraine.
“We position this store as a “superstore,” a supermarket where, in addition to practical goods and everyday purchases, you can find products for pleasure, gastronomic specialties, our exclusive brands … “Proximity” is also one of the directions we plan to develop in Ukraine. The concept and location are now under consideration and development,” the press service noted.
According to its data, the focus in the new supermarket will be made on food and own production. In addition, the infrastructure of the facility will include a cafe.
In general, Auchan plans in 2018 to open several outlets in the “supermarket” format in Kyiv.
In addition, the French retailer plans to actively develop exclusive brands, which are represented only in the Auchan network, namely Cosmia (cosmetics), In Extenso (textiles), Actuel (household goods), and Qilive (electronics).

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INTEGRATION OF UKRAINIAN POWER GRID WITH EUROPEAN NETWORK IS STRATEGIC DIRECTION OF COOPERATION

The harmonization of the Ukrainian power grid with the European Network of Transmission System Operators (ENTSO-E) is a strategic direction of cooperation between Ukraine and the European Union (EU) in the electricity sector, Director General of the Directorate-General for Energy of the European Commission Dominique Ristori said at a press conference in Kyiv on Friday. He said that for the merger of the power grids additional studies of static and dynamic stability are to be conducted and some technical measures are to be taken to ensure the full integration. Amendments to the market legislation and integration of the power grids should move as synchronously as possible.
As reported, in June 2017 Ukrenergo Head Vsevolod Kovalchuk signed an agreement on the conditions for the future integration of the energy systems of Ukraine and Moldova with ENTSO-E. In July the agreement came into force after it had been signed by the necessary number of European system operators.
The deadline for Ukraine’s fulfilling the requirements for accession to the united energy system of continental Europe is July 2022.
The document consists of three main parts: a catalog of requirements (unconditional fulfillment of which is necessary for making a decision on the merger of the power grids); a list of necessary additional research; and a road map.

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UKRHYDROENERGO WANTS TO ATTRACT PARTNERS WITH EXPERIENCE TO EXTEND OPERATING LIVES OF HYDROELECTRIC FACILITIES

Ukrhydroenergo by the end of this year seeks to hold a tender to attract a partner with experience of extending operating lives of hydroelectric facilities, Ukrhydroenergo CEO Ihor Syrota said at a press conference in Vyshgorod (Kyiv region). “The scientific and technical panel would soon determine the terms of reference: what research and works should be carried out to make decisions on extension of operating lives of hydroelectric facilities. After receiving the terms of reference we will hold a tender to select persons who have the respective experience. It is likely that they would be foreigners. There might be a Ukrainian company, but with the involvement of foreign experienced experts,” he said.
Syrota said that the projected operating life of hydroelectric facilities of Ukrainian hydroelectric power plants (HPPs) is 100 years. For the Dnipro HPP it would expire in 15 years and for the rest of the plants – later. “However, we start working on the issue of the extension of the operating lives now,” he said. He said that Ukraine need to design a core document regulating the extension of operating lives of hydroelectric facilities and have approved it by the Cabinet of Ministers or the Energy and Coal Industry Ministry.
Ukrhydroenergo operates all large hydroelectric power stations located in the Ukrainian sections of the Dnipro and Dniester rivers. The total installed capacity of the company’s hydroelectric power plants is 5,748 MW. The state represented by the Ministry of Energy and Coal Industry fully owns the company’s shares.

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MRIYA AGROHOLDING LAUNCHES INTERACTIVE MAP FOR BEEKEEPERS

Mriya agroholding launches interactive map for beekeepers
Mriya agroholding has launched a first interactive map of bee plants in Ukraine, where it has fields with all bee plants of the agroholding. The press service reported that the map also indicates variety of plants, the projected period of blooming, information about scheduled spraying works and the required number of be families for good entomogamy and other information.
Director for Public Relations and Social Projects at Mriya Nonna Shmidik said that the agroholding actively supports the cooperative movement and the share of beekeeping cooperatives among those created by the agroholding is large. This tool would allow beekeepers to effectively organize their work, gather more honey and increase income.
“Beekeepers from six regions of Western Ukraine, where Mriya operates (Ternopil, Khmelnytsky, Chernivtsi, Ivano-Frankivsk, Lviv and Rivne) using this tool will be able to access the relevant information on more than 60,000 hectares of bee plants grown by the agroholding , apply for and reserve seats for their apiaries in certain areas. In addition, users of the interactive map are provided with SMS-information about the blooming time and the application of crop protection agents,” the agroholding said.

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SD CAPITAL (TIS PORT) WANTS TO GO BEYOND PORT BUSINESS

SD Capital investment company, founded by the co-owner and Director General of the TIS port (a stevedoring company operating at the Yuzhny port) Andriy Stavnitser and TIS manager Filip Hrushko, is ready to invest in some projects not in the field of port business. “We are ready to invest not only in the port business. This vehicle, in Russian – a tool for investment, was created by Hrushko and me a little more than a year ago. There are about 15 projects in the pipeline today, but this does not mean that they will all be implemented: three or four may be left, and maybe even one. Let’s see,” Stavnitser said in an interview with Interfax-Ukraine.
According to him, the projects can be very different: the automotive industry, agriculture and natural resources.
“I would probably be happy if we made five of these projects in the next 18 months,” Stavnitser said.
Speaking about the fields of projects, he said that 70% of these projects concern food security and processing.
“This is the production of meat, dairy products, vegetables and fruits, berries, honey – simply everything is there! I think the world of those people who banned the export of sunflower seeds many years ago. Thus, the industry of oil refinery appeared,” the head of the TIS port said.
He also said that SD Capital is ready to act as a private equity investor, to buy and develop assets.
“We rely on our money, money of our friends and family, our old business partners who can also co-invest. And, of course, we want to see strategists here. The more strategists are in this country, the less space remains for corruption and more space for good lobbying and support of the best Western practices,” Stavnitser said.
Among other things, talking about the employees of SD Capital, he said that today 15 people are working.
“It’s normal. There should not be a lot of people. We have a good team. The average age is about 25 years old: all young, funny and interesting. An American girl recently joined us, who fell in love with the Ukrainian IT specialist and she moved here. She has a lot of experience. We have a lot to learn from her, because here all the experts are still homegrown, and there the traditions are completely different,” Stavnitser said.

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UKRAINE CUTS GAS PRODUCTION IN Q1, 2018

Production of natural gas in Ukraine in January-March 2018, according to live data, decreased by 0.7% (by 36.9 million cubic meters) compared to the same period in 2017, to 5.101 billion cubic meters, according to data from PJSC Ukrtransgaz. According to calculations by Interfax-Ukraine, in particular gas production by PJSC Ukrgazvydobuvannia amounted to 3.763 billion cubic meters (1.8% up from January-March 2017), PJSC Ukrnafta to 261.2 million cubic meters (16% down), by other companies to 1.076 billion cubic meters (4.8% down).
In March 2018, gas production amounted to 1.735 billion cubic meters (2.5% down compared to March 2017), in particular extraction by Ukrgazvydobuvannia was 1.289 billion cubic meters (0.1% up), Ukrnafta some 88.6 million cubic meters (16.2% down), other companies some 357.7 million cubic meters (7.3% down).
Ukrtransgaz, 100% owned by Naftogaz Ukrainy, operates a system of trunk gas pipelines and 12 underground gas storage facilities of the country with a total capacity of 31 billion cubic meters.

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