Business news from Ukraine

Business news from Ukraine

SKYUP AIRLINES RESUMES FLIGHTS FROM BIGGEST UKRAINIAN CITIES

SkyUp Airlines (Kyiv) on May 28 resumes flights on the route Kyiv – Odesa – Kyiv.
As the press service of the company said on Tuesday, flights will be operated daily, except for May 30. The plane will depart from Kyiv at 08:00 in the morning, and from Odesa at 09:50. The flight duration is one hour.
SkyUp said that it also plans to operate flights to Odesa from Kharkiv, Lviv and Zaporizhia from the end of May.
Domestic flights from Kyiv to Odesa are also operated by Windrose, UIA and Motor Sich airlines.

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PHARMACEUTICAL COMPANY FARMAK INTENSIFYING DIGITALIZATION DEVELOPMENT

The pharmaceutical company Farmak (Kyiv) is intensifying the development of digitalization in order to scale up its business and build up its presence in world markets.
“Farmak is one of the largest exporters of domestic medicines. To scale up the business and build up its presence in the world, the company digitalizes all production and management processes. A transparent IT system for reporting, budgeting, production planning, sales, workflow, personnel assessment and training has been implemented at Farmak,” the company said in a press release.
According to Chief Information Officer at Farmak Denys Krestov, Farmak focuses on deep industrial digitalization processes.
“We are gradually switching to electronic quality certificates, electronic research protocols, electronic dossiers, e-serialization of products, and so on. Every day the system administration department maintains 30 physical platforms and more than 150 virtual ones that support the operation of business applications,” the company’s press service said, citing Krestov.
Farmak is the leader of the Ukrainian pharmaceutical market, produces medicines in all 14 therapeutic groups.
Over the past five years, Farmak’s investments in the scientific and technical complex, production equipment, and research activities amounted to UAH 3.4 billion.
JSC Farmak is a member of the Association of Manufacturers of Medications of Ukraine (AMMU).

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UKRAINIAN AGRARIAN MINISTER PROPOSES TO CUT VAT RATE TO 14% ON ALL TYPES OF AGRIPRODUCTS

Minister of Agrarian Policy and Food of Ukraine Roman Leshchenko proposes to reduce the VAT rate from 20% to 14% on all types of agricultural products in order to reduce the cost of socially significant food products, while the ban on exports of sunflower seeds is, in his opinion, an illegal measure.
“Responsible state policy in this case is systemic measures to reduce prices for all socially significant food products that are included in the food basket of the Ukrainian consumer. All over the world and, above all, in the EU, this is achieved by the introduction of a reduced VAT rate for such products. Our proposal is to establish a 14% VAT rate on all types of agricultural products without any exceptions,” the minister wrote on his Facebook page on Friday, April 23.
Leshchenko noted that the “Soviet” practices of administrative regulation, like the draft resolution banning exports of sunflower seeds from May 15 to September 30, 2021, published for discussion on the website of the Economy Ministry, have a negative effect in a market economy.
“The ban on sunflower exports is an illegal measure, because, according to the current legislation, the basis for its introduction is a violation of the market equilibrium. However, there is no sunflower deficit in Ukraine!” he wrote.
Leshchenko said that the export ban also creates the preconditions for a monopoly conspiracy – concerted anti-competitive actions that the state must fight against. “An attempt to reduce the cost of a separate product at the expense of Ukrainian farmers is a dangerous measure that not only threatens the development of the agricultural industry and does not solve the problem comprehensively, but can also lead to the fact that the state will be forced to compensate farmers for losses caused by such unreasonable decisions,” Leshchenko said.

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SUPPLY OF PROFESSIONAL OFFICE SPACE IN UKRAINIAN CAPITAL INCREASES TO 2.147 MLN SQUARE METERS

The total supply of Kyiv’s office real estate market in 2020 increased by 7.7% compared to the previous year and reached 2.147 million square meters, and this year, 200,000 square meters have been announced for commissioning, according to the press service of Colliers Ukraine. As noted in the report “Offices. 2020,” in early 2020, developers announced the commissioning of more than 230,000 square meters in Kyiv of office space during the year.
“Development activity, for the most part, did not stop despite the pandemic. As in previous years, some projects were not commissioned on time and postponed to subsequent periods. The actual new supply amounted to 155,000 square meters,” the report said.
At the same time, it is noted that the volume of absorption amounted to 60,000 square meters.
Grade A offices were replenished with a total of 28,300 square meters: business center M8 (8 Moskovska Street, 11,000 square meters), business center Grand (98 Velyka Vasylkivska Street, 8,800 square meters) and business center Hillfort (12 Mykhailivska Street, 8,500 square meters). The new supply in Grade B offices amounted to 126,600 square meters, the largest of them – business center Platform (3 Krolenkivska Street, 19,800 square meters) and business center Avenue 53 (53 Prospect Peremohy, 16,700 square meters).
According to developers, new business centers with a combined lease area approximately 200,000 square meters are expected to be commissioned in 2021. In total, projects with a total area of approximately 350,000 square meters are currently under construction with the prospect of commissioning in a few years, according to developers.
Colliers Ukraine in the report cites some of the objects that are being prepared for opening in 2021: Grade A offices are represented by the first phase of business center MAG.NETT (137-139 Velyka Vasylkivska Street, 44,000 square meters), and Grade B offices – business center LUWR (2/10 Illienka Street, 27,000 square meters), business center at 23 Olenivska Street (21,000 square meters), and business center UNIT.City – B15 (3 Dorohozhytska Street, 7,500 square meters).
“Due to the need for social distancing, employee seating density in the workspace will decrease. As a consequence, emphasis on the formation of new office spaces will shift towards an increase. We can predict that the office segment will continue to develop. In all probability, office space will not be reduced but transformed,” Managing Director of Colliers Ukraine Oleksandr Nosachenko said.
Colliers International is a leading diversified professional services provider, including investment management in commercial real estate. The company’s offices are represented in 67 countries of the world.

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DONBASENERGO TO SEND 30% OF NET PROFIT TO PAY DIVIDENDS

PJSC Donbasenergo will send 30% (UAH 8.727 million) of the net profit received at the end of 2020 to pay dividends, the company has told Interfax-Ukraine, referring the results of the shareholders’ meeting held on Monday. Another 70% of last year’s profit will be channeled to the production development fund.
As reported, PJSC Donbasenergo saw a net profit of UAH 29.09 million in 2020 versus UAH 69.997 million of a net loss in 2019.
Donbasenergo owns Starobesheve TPP (located in the occupied territory) and Sloviansk TPP with a total installed capacity of 2.88 GW, including the capacity of Sloviansk TPP of 880 MW. In March 2017, the generating company announced the loss of control over the Starobesheve TPP, as well as part of the structural units located in the temporarily uncontrolled territory.
PJSC Energoinvest Holding owns 60.86% of Donbasenergo shares, another 25% of the company is owned by the state.

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MOST POPULAR DESTINATIONS AMONG UKRAINIANS FOR MAY HOLIDAYS ARE SHARM EL-SHEIKH, HURGHADA ANTALYA AND UAE

The most popular destinations for the May holidays were the Egyptian resorts of Sharm el-Sheikh, Hurghada and Marsa Alam, the Antalya and Aegean coasts of Turkey, and the United Arab Emirates, sales director of the tour operator Join UP! Maryna Daineko told Interfax-Ukraine.

For the May holidays Join UP! added point flights to Antalya, primarily from Kyiv.

“We are launching all other flights of the flight program to Turkey (from May 2 Dalaman, later Bodrum and Izmir) in the planned volume,” Daineko said.

According to her, Albania, Montenegro and Cyprus are actively booking by Ukrainians for the May holidays. At the same time, the company noted a sufficient revival in the direction of excursion tourism.

“Those who are interested in a rich historical, excursion and gastronomic program choose tours to Georgia, Armenia and the direction little-known by Ukrainians – Serbia,” Daineko said.

According to her, in general, Join UP! records an increase in demand by 25% to 30% for trips abroad on May holidays, as well as an increase in booking depth.

“If in 2019 Ukrainians ordered a tour on average 27 days before departure, then in 2020 this period was halved, to 13 days. In 2021, Ukrainians adapted to the new realities and began to actively plan and book holidays in Turkey and other countries for both May and summer,” Daineko said.

The company said that in all countries tourists will need a negative PCR test done no later than 72 hours before departure.

“The conditions of entry and return to Ukraine often change, so we recommend that you check the current information with a travel agent before booking the morning and departure,” Daineko said.