Business news from Ukraine

UKRAINE OPENS DREDGING WORKS MARKET, INVITES BUSINESS TO PARTICIPATE – INFRASTRUCTURE MINISTER

KYIV. Feb 6 (Interfax-Ukraine) – Ukraine is making the dredging works market open and invites businessmen to participate in it, Ukrainian Infrastructure Minister Volodymyr Omelyan has said.

“We are opening the dredging works market for business. I hope that the market will be open and transparent,” he said at a meeting with dredging companies in the American Chamber of Commerce in Ukraine last week.

Omelyan said that the country will also open the internal water route market. He invited business to constructive work in this segment.

YANAIR ENTERING BUSINESS AVIATION MARKET

KYIV. Feb 6 (Interfax-Ukraine) – Yanair airline is entering the business aviation market and offers the YanAir Connect service: charter flights using Cessna Citation CJ1 business jet.

The airline said in a press release that corporate clients and private persons could use the service. The airline provides broker services and orders charter flights using the plane.

“Our airline is trying to provide a wide range of services. In this case this is the business aviation segment which is of great demand today on the Ukrainian market,” Yanair Commercial Director Yevhen Pushenko said.

He said that at the end of the year the airline will assess if this segment is profit-making. Then it will be decided to continue cooperation with business aviation or not. Cessna Citation CJ1 jet is based at the Zhuliany airport. Partners of Yanair provide the plane. Yanair provides broker services.

Yanair was registered in Zhytomyr on June 15, 2012. In July 2013 it received a certificate for operations.

As of January 23, 2017, the airline’s fleet consists of two Saab 340 planes, two Airbus A320 planes, one Airbus 321, two Boeing 737-300 planes and one Boeing 737-400 plane.

ALLSEEDS STARTS IMPLEMENTING OIL MEAL HANDLING PROJECT AT YUZHNY PORT

KYIV. Feb 6 (Interfax-Ukraine) – The Allseeds Group in February 2017 starts implementing the oil meal handling project at its production site at the Yuzhny port.

The company said on its website that the project will be implemented in three stages. At each stage the company will connect a warehouse with a storage capacity of 25,000 tonnes each to the existing infrastructure of the enterprise and railway tracks. There will be three warehouses with a total capacity of 75,000 tonnes.

This will allow the company to diversify supplies of own oil meal and oil meal of its partners to berths of the Yuzhny port and other operators. This will considerably cut expenses on these transactions.

“We expect that after the implementation of the logistics project we will reach around 1 million tonnes of oil meal handled a year and $10 million of income,” Allseeds Board Chairman Viacheslav Petrysche said.

Allseeds launched an oil refining plant at Yuzhny port in July 2015.

STATE STATISTICS SERVICE: VOLUME OF INDUSTRIAL GOODS SOLD IN UKRAINE 18% UP IN 2016

KYIV. Feb 3 (Interfax-Ukraine) – The volume of industrial goods and services sold in Ukraine in 2016 amounted to UAH 1.766 trillion, which is 18% more than in 2015 (UAH 1.496 trillion), in particular exports stood at UAH 466.6 billion (UAH 418.8 billion), the State Statistics Service has said.

According to the service, in the total sales the share of food, beverages and tobacco products was 21.6%, that of supply of electricity, gas, steam and conditioned air 21.5%, metallurgical production and production of finished metal goods 17.1%, mining and quarrying 13%.

In December 2016 compared to December 2015 the volume of mining and processing industry sales increased by 24.4%, in particular mining and quarrying by 48.6%, processing industry by 20.6%.

UKRZALIZNYTSIA PROPOSES TO SIGN COMPANY LONG-TERM PRICE POLICY AGREEMENT TO BUSINESSMEN

KYIV. Feb 3 (Interfax-Ukraine) – Public joint-stock company Ukrzaliznytsia has proposed to business to sign the company long-term price policy agreement, Ukrzaliznytsia Board Chairman Wojciech Balczun said when discussing a draft order of the Infrastructure Ministry to increase freight transportation tariffs by 25% at the State Regulatory Service on Thursday.

“We propose to sit and sign the agreement on the long-term price policy at Ukrzaliznytsia. The market would be able to plan. I absolutely support the expansion of our prospects for more than one year. Ukrzaliznytsia has never had a long-term strategy. The financial plans are drawn up only for one year. We can sign contracts only for one year. Tell this to Germans who sign contracts for 15 years… Now we should hold a tender to buy rolling stock during three years as we did it in Poland. I cannot do this, as even the financial plan for 2017 has not yet been approved,” he said.

Business representatives criticized the draft order to increase the tariffs during the discussion. The decision would affect both Ukrzaliznytsia due to a fall in the volume of transportation and the Ukrainian economy. They voiced support to strengthening transparency in spending the funds of the company, increasing efficiency of its operations and rational use of funds.

After the discussion the State Regulatory Service refused to approve the draft order and decided to create a working group jointly with business to set a compromise tariff.

UKRAINE BOOSTS INSTALLED GENERATING CAPACITY OF EQUIPMENT BY 505.6 MW IN 2016 – UKRENERGO

KYIV. Feb 3 (Interfax-Ukraine) – The entire installed generating capacity of equipment operating in the Ukrainian power grid in 2016 grew by 505.6 MW, to 55,331 MW, the press service of national energy company Ukrenergo has reported.

The figure takes into account 3,943 MW of generating facilities located in the occupied areas of Donbas.

Unit three of Dnistrovska hydroelectric pumped storage power plant with the installed capacity of 324 MW was launched last year.

Unit two of Trypilska thermal power plant (TPP) with the generating capacity of 25 MW, unit six of Burshtyn TPP (10 MW), unit five of Burshtyn TPP (7 MW) and units of large hydroelectric power plants (HPPs) were reconstructed.

Last year new solar power plants with the installed generating capacity of 98.8 MW, wind farms (11.6 MW), biofuel power plants (10.2 MW), new and restored HPP (2.8 MW) were launched.

Cogeneration unit with the capacity of 2.5 MW was launched last year and the capacity of one of the gas-fueled reciprocating power plants was increased by 3.9 MW.

However, Alzhyhorska wind farm with a capacity of 0.65 MW was dismantled.

In 2016, the share of TPP of the total installed generating capacity of Ukrainian power grid was 50.3% (27,845 MW), nuclear power plants (NPPs) – 25% (13,835 MW), combined heat and power plants (CHPP) – 11.7% (6,469 MW), HPP – 8.5% (4,711 MW).