Business news from Ukraine

Business news from Ukraine

UKRAINE DOES NOT PLAN TO CLOSE AIRSPACE

Ukraine has no plans to close its airspace to civil aviation, as there are no grounds for this, Secretary of the National Security and Defense Council of Ukraine (NSDC) Oleksiy Danilov has said.
“We do not close our airspace, and we are not going to close today, and there are no grounds for this. As for some companies that lease aircraft and reinsure themselves. First of all, it is connected with the Netherlands. You remember when Russia shot down MH17 in Donetsk region. They are reinsured today. I emphasize once again: we do not see this, we will not close it,” Danilov told reporters after a meeting with representatives of the Verkhovna Rada on Monday.

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AJAX SYSTEMS WANTS TO JOIN DIIA.CITY

Ukrainian developer and manufacturer of security systems Ajax Systems (Kyiv) has applied for residency in Diia.City, Deputy Prime Minister, Minister of Digital Transformation Mykhailo Fedorov has said.
“Their product is one of the most high-tech in the world. Since its founding in 2011, the company has managed to grow 100 times, attract over $10 million in investments, and also get into the list of Ukrainian companies preparing for an IPO,” he wrote on his Telegram channel last week.
Fedorov also said that if in 2011 95% of the market was occupied by wired systems, then in 2021 about 70-80% belongs to wireless solutions, and Ajax itself occupies a leading position in this segment. Today, the company’s devices protect more than 1 million users in more than 120 countries around the world.
“It’s great that all the company’s products are developed and manufactured in Ukraine. Capacities include R&D offices in Kharkiv, Kyiv and Vinnytsia, as well as two factories in Kyiv,” he added.
As reported by Fedorov, as of February 10, a total of 44 companies have already applied for residency in Diia.City.

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UKRZALIZNYTSIA RECEIVES UAH 21 MLN IN PROFIT IN JAN

JSC Ukrzaliznytsia received UAH 21 million in net profit in January 2022 versus a loss of UAH 693 million in January 2021, Oleksandr Kamyshin, head of the company’s board, said on his Telegram channel on Monday.
According to him, revenue increased by 63%, to UAH 9.3 billion (versus UAH 5.7 billion in January 2021). EBITDA increased five times to UAH 2.6 billion (January 2021 – UAH 506 million).
“This is despite the fact that now we have received UAH 1.8 billion exchange loss, and last year there was UAH 117 million exchange income,” he said.
As reported, JSC Ukrzaliznytsia received UAH 457 million in net profit in 2021 versus a loss of UAH 11.9 billion a year earlier.

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UIA TO SEND 5 BOEING 737-800 TO SPAIN, 2 MORE AIRCRAFT TO BELGRADE

Ukraine International Airlines (UIA, Kyiv) has received an official message from insurance companies about the termination of aircraft insurance for flights in Ukraine’s airspace.
“Due to the foreign policy situation, Ukraine International Airlines has received an official notification from insurance companies to terminate the insurance of aircraft for flights in the airspace of Ukraine. In this regard, UIA, at the request of lessors, sends five Boeing 737-800 aircraft to Spain while retaining other aircraft in the company’s fleet. In addition, two aircraft of the airline are sent for scheduled engine maintenance in Belgrade,” the airline said in the official statement on Monday.
UIA also reported that negotiations are underway with insurance companies, the Ministry of Infrastructure of Ukraine and the State Aviation Service. The airline hopes for mutual understanding.
Earlier, on February 13, a working meeting was held at the Ministry of Infrastructure with the participation of the leadership of the President’s Office, the State Aviation Service of Ukraine, the state-owned enterprise UkSATSE, Boryspil International Airport and Ukrainian airlines on the situation in the air transportation market. As a result of the meeting, a solution was worked out to prevent further aggravation of the situation.
As a source of Interfax-Ukraine notes, Azur Air Ukraine and Windrose were not present at the meeting and did not request assistance with the insurance situation.
Then, also on February 13, the Cabinet of Ministers decided to allocate UAH 16.6 billion from the state budget’s reserve fund to the Ministry of Infrastructure to ensure the safety of aircraft flights in the country’s airspace. The allocated funds cover insured events for at least 23 aircraft.
According to information available to Interfax-Ukraine, SkyUp airline has submitted seven Boeing 737-800 aircraft to the list, Bees Airline – four of the same aircraft. Ukraine International Airlines (UIA) has submitted a list of 12 aircraft: four Embraer ERJ 190-100, six Boeing 737-800 and two Boeing 737-900ER.
The Verkhovna Rada Budget Committee on the evening of February 13 agreed on the redistribution of UAH 16.6 billion of state budget expenditures by reducing expenditures under the public debt service budget program to finance an additional state mechanism for flight safety insurance in Ukraine.

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MYKOLAIV SEAPORT RAISES UP CARGO TRANSSHIPMENT BY 60.8%

In January 2022, the Mykolaiv Sea Port increased cargo transshipment by 60.8% compared to January 2021, to 3.2 million tonnes.
As reported on the page of the Authority of the Mykolaiv seaport on Facebook, in general, in January there was a positive trend in the transshipment: 1.53 million tonnes of grain, 333,200 tonnes of vegetable oil, 564,500 tonnes of ore, 182,100 tonnes of ferrous metals and 108,600 tonnes of cast iron.
In addition, in January, the Mykolaiv sea port significantly increased the transshipment of export cargo to 2.41 million tonnes, import cargo to 640,700 tonnes, coastal cargo to 120,600 tonnes.
Since the beginning of the year, the port has handled 191 ships and 11,855 wagons.
As reported, the Mykolaiv Sea Port in 2021 reduced cargo transshipment by 0.9% by 2020, to 29.869 million tonnes.

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GERMANY WANTS TO PROVIDE FINANCIAL AID FOR GREEN ENERGY PROGRAMS IN UKRAINE

Germany has confirmed its intention to provide financial assistance for green energy initiatives in Ukraine, President of Ukraine Volodymyr Zelensky has said.
“The German Chancellor confirmed Germany’s intention to fill with specifics and financial assistance initiatives for green transformation, decarbonization and development of renewable energy in Ukraine. Our state is ready to offer great prospects for mutually beneficial cooperation in the field of green energy,” he said at a joint briefing with German Chancellor Olaf Scholz in Kyiv on Monday.

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