Business news from Ukraine

CONSUMER CONFIDENCE IN UKRAINE IMPROVE AFTER FIVE MONTHS OF STABILITY

KYIV. Nov 21 (Interfax-Ukraine) – Consumer confidence of Ukrainians in October 2017 improved by 3.6 points compared with the September figure, to 62.6 after five months of stability, according to a study of GfK Ukraine.
The figure grew by 11 points year-over-year.
“Positive changes in consumer confidence of Ukrainians are the result of pension increase in October 2017, planned scholarship increase in November and planned increase of the minimum wage in the beginning of the next year,” the company said.
According to a press release of GfK Ukraine, Index of the Current Situation (ICS) increased by 5 points and now equals 60, while a year ago it was 50.4. Index of Propensity to Consume increased by 6.4 points and reached the indicator of 67.6. Index of Current Personal Financial Standing equaled 52.4, which is 3.6 points higher than the indicator in September.
Index of Economic Expectations (ІЕE) increased by 2.8 points and reached 64.4 in October. Index of Expected Changes in Personal Financial Standing increased by 4.7 points comparing to September’s indicator and now it equals 59.4. Index of Expectations of the Country’s Economic Development in the Country Over the Next 5 Years equals 74.1, which is 4.1 points higher than the indicator in September. Index of Expectations of the Country’s Economic Development Over the Next Year slightly decreased and equals 59.7
According to the study, in October, the expectations of Ukrainians regarding the possibility of unemployment improved: Index of Expectations of Changes in Unemployment decreased by 2.6 points and now equals 128.3.
Also the expectations of Ukrainians regarding the hryvna’s exchange rate in the coming three months have slightly changed, too: Index of Devaluation Expectations decreased by 0.4 points up to a number of 156.6. Index of Inflationary Expectations has slightly changed. It increased by 0.6 points, reaching 185.8.

SWISS TRADER DUFENERGY INTENDS TO FORMALIZE LICENSE FOR GAS SUPPLY IN UKRAINE

KYIV. Nov 21 (Interfax-Ukraine) – DufEnergy Ukraine LLC (a subsidiary of the Swiss trader DufEnergy Trading SA) has applied to the National Commission for Energy, Housing and Utilities Services Regulation (NCER) with the request to issue a license for gas supply in the territory of Ukraine, according to the website of the regulator.
The NCER plans to consider the issue at a meeting on November 23.
The subsidiary of DufEnergy in Ukraine was established this spring.
As reported, the NCER was forced to cancel the last two meetings due to a lack of quorum, the meeting scheduled for November 23 is also under the threat of failure.

UKRZALIZNYTSIA INTENDS TO BUY SIX DIESEL TRAINS FOR UAH 1.06 BLN UNTIL MAY 2019

KYIV. Nov 21 (Interfax-Ukraine) – PJSC Ukrzaliznytsia has repeatedly announced tenders for the purchase of six diesel trains with an expected price of UAH 1.062 billion (including VAT), which corresponds to the expected purchase price of the previous canceled tender.
According to information in the ProZorro system, applications for participation in the tender are accepted until December 18 of this year, the auction is scheduled for January 23, 2018. The minimum decrement is UAH 7.434 million.
According to the press service of the company, with reference to acting chairman of the board Yevhen Kravtsov, the acquisition of diesel trains for regional passenger transportations is stipulated by the company’s consolidated financial plan for 2017.
According to technical documentation, the delivery time of diesel trains is until May 31, 2019, trains should be manufactured in 2018-2019.
As reported, in August this year Ukrzaliznytsia canceled tenders for the purchase of similar diesel trains by the end of the current year, announced in March, rejecting both submitted applications from Kriukov Car Building Works and Kharkiv Carriage Plant due to the non-compliance of the tender documents.

UKRENERGO ANNOUNCES TENDER FOR BUYING TRANSFORMERS FOR THREE 330 KV AND 750 KV SUBSTATIONS

KYIV. Nov 21 (Interfax-Ukraine) – Ukrenergo has announced a tender for the purchase of transformer equipment for the following substations: 330 kV Zaliutyne, 750 kV Zaporizka and 750 kV Dniprovska, according to the Uriadovy Kurier newspaper.
Tender proposals are accepted until January 25, they will be disclosed on the same day.
Tender participants must provide collateral for EUR400,000.
The purchase of transformers is financed under the credit of Germany’s KfW.
Ukrenergo operates trunk and interstate power grids, as well as the centralized dispatching of the unified energy system of the country. It is a state enterprise subordinated to the Ministry of Energy and Coal Industry.

UKRAINE UP FROM 84TH TO 43RD POSITION IN TAXATION RATING OVER YEAR – STUDY

KYIV. Nov 21 (Interfax-Ukraine) – Ukraine has climbed to the 43rd position out of 190 countries in the Taxation 2018 rating compared to the 84th place in the Taxation 2017 rating.
“The biggest impact on improving the positions in the rating was shown by the reduction of the social security tax from 2017. This had a positive impact on the overall tax burden in Ukraine,” Viacheslav Vlasov, a partner of PwC Ukraine, said when presenting the rating results in Kyiv.
According to the published study, Ukraine, compared to last year’s indicators, has almost twice improved its position – by 41 percentage points.
The rating is determined on the basis of four indicators: the total tax rate, time for submission of reports and tax payment, the number of payments, the index of efficiency of the tax authorities’ work after reporting (post-filing index).
According to the report, the total tax burden in Ukraine is 37.8%, in the European Union 40.5%, while the global figure is 39.6%. Ukraine shows a positive trend in terms of the number of tax payments per year: their number is five, with the average figure in the world being 24, in the EU 12.
At the same time, preparation and submission of tax reports in Ukraine takes an average of 327.5 hours per year, while in the figure in the EU is 161 hours, and the total world figure is 240 hours, according to the Taxation 2018 rating.

BORYSPIL AIRPORT SEES ALMOST 60% RISE IN NET PROFIT IN JAN-SEPT

KYIV. Nov 20 (Interfax-Ukraine) – State-owned enterprise Boryspil International Airport (Kyiv), the largest airport in Ukraine, saw UAH 1.63 billion of net profit in January-September 2017, which is 58.8% more than a year ago.
The airport’s press service reported that over the period passenger flow grew by 24%, to 8.07 million, and the number of transfer passengers – by 33%.
The airport said that it was possible to achieve the figures thanks to constructive work with airlines and an effective development model.
“In recent years, Boryspil airport has become one of the largest donors of the national budget, while at the same time, according to the benchmarks set by the regulator, the airport is moving in the direction of lowering airport charges. Undoubtedly, this will revive the market, but will also cause a significant reduction in allocations to the national budget,” the airport’s Director General Pavlo Riabikin said.
In general, at the end of 2017, the Boryspil airport plans to increase the volume of passenger traffic to more than 10 million people.