Business news from Ukraine

Business news from Ukraine

VOLUMES OF CARGO TRANSPORTATION IN UKRAINE IN MLN TONS

Volumes of cargo transportation in Ukraine in Mln tons.

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UKRAINIAN COMPANIES INCREASE POULTRY EXPORTS BY 27.8% IN 2019

Ukraine in January 2020 increased export of poultry by 27.8%, to 37,350 tonnes, the State Customs Service has reported. According to its report, in monetary terms exports of these products increased by 18%, to $45.87 million. In January 2020, import of poultry and offal decreased by 20% and amounted to 9,350 tonnes, in monetary terms by 15.9%, to $3.89 million.
In addition, according to the agency, pork exports in January 2020 amounted to 101 tonnes, which is 20.2% more than in January 2019. These products were delivered for a total of $297,000 (1.7 times more).
Pork imports to Ukraine January 2020 decreased by 52.4%, to 991 tonnes. Pork was imported to the country for $1.91 million, which is 50% less than the figure for January 2019.
As reported, Ukraine in 2019 increased export of poultry by 26%, to 414,490 tonnes. Import of poultry and offal increased by 0.6% and amounted to 131,180 tonnes. Pork exports in 2019 amounted to 2,260 tonnes, which is 28.6% more than in 2018. Pork imports to Ukraine last year decreased by 18.8%, to 23,190 tonnes.

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BORYSPIL INTERNATIONAL AIRPORT SEES 17% RISE IN PASSENGER TRAFFIC IN JAN

Boryspil International airport sees 17% rise in passenger traffic in Jan
KYIV. Feb 7 (Interfax-Ukraine) – The Boryspil International Airport (Kyiv) in January 2020 increased passenger flow by 17% compared with January 2019, to 1.049 million people.
The press service of the airport told Interfax-Ukraine that 968,800 passengers were transported on international flights (a rise of 18.6%) and 81,000 – on domestic flights (a rise of 1.3%).
The number of flights (arrivals/departures) in January 2020 amounted to 7,662 (a rise of 1.3% compared to January 2019), including 6,727 international flights (a rise of 3.2%) and 935 domestic flights (a fall of 10.9%).
As reported, in 2019, Boryspil Airport increased passenger traffic by 21.2%, to 15.26 million people.
Boryspil International Airport is the largest one in Ukraine with a total area of about 1,000 hectares.

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BANK VOSTOK STARTS ACCEPTING APPLICATIONS UNDER AFFORDABLE LOANS AT 5-9% PROGRAM FOR SMALL BUSINESSES

Bank Vostok starts accepting applications under Affordable Loans at 5-9% program for small businesses
KYIV. Feb 7 (Interfax-Ukraine) – Bank Vostok has begun accepting applications for lending to micro and small enterprises under the government program Affordable Loans at 5-7-9%, the financial institution’s website reports.
“Bank Vostok develops support for entrepreneurship and begins accepting applications for lending to micro and small businesses within the framework of the state program Affordable Loans at 5-7-9%, introduced at the initiative of the president and the prime minister of Ukraine,” the statement said.
As reported, four state-owned banks, including PrivatBank, Oschadbank, Ukreximbank and Ukrgasbank, have signed agreements with the Entrepreneurship Development Fund to participate in the implementation of the Affordable Loans at 5-7-9% program.
Under the state program, entrepreneurs will be able to obtain loans for business development for up to five years in the amount of up to UAH 1.5 million, while the state will compensate entrepreneurs for part of interest on the loan.
The provision of three possible rates of 5%, 7% or 9% for loans will depend on the size of the business and the duration of its activities. Additionally, the lending rate will be reduced by 0.5% per annum for each employee, but not less than to 5% per annum.

WATER SUPPLY, SEWERAGE TARIFFS IN UKRAINE WILL GROW BY 20%

The National Commission for Energy, Housing and Utilities Services Regulation (NCER) at a meeting on February 4 approved an increase in tariffs for centralized water supply and sewerage services for 43 enterprises by an average of 20%. According to information on the regulator’s website, in accordance with the applications of enterprises, a decision was made to increase tariffs for centralized water supply by an average of 21%, tariffs for centralized sewerage by 23%.
Thus, the water supply tariff of Kyivvodokanal will rise by 13.59%, from UAH 9.86 per cubic meter to UAH 11.2. The tariff for sewerage will increase by 6.28%, from UAH 7.49 per cubic meter to UAH 7.96.
According to the materials on the NCER’s website, enterprises argued the need to increase the tariffs by raising employees’ wages, higher prices for fuels and lubricants, reagents and electricity.

2,473 PREMIUM CLASS APARTMENTS FOR TOTAL OF $419 MLN WERE SOLD IN KIEV IN 2019

Some 2,473 business and premium class apartments for a total of $419 million were sold in the primary market of Kyiv in 2019, while new De Luxe class objects are expected to enter the highest price segment of the market in 2020, according to a review by Kiev Standard. “In 2020, we pin our hopes on the De Luxe segment, which is new for the Kyiv market. According to our data, work is already underway on several projects in this class among the leading developers. The projects themselves, due to a lack of a similar supply and competition, will form a new level of demand in the high price segment,” the review says.
As a whole, in 2019 elite apartments with a total area of 217,000 square meters were sold in the capital. Of these, 25,000 square meters (181 apartments) were presented in the premium class, 192,000 square meters (2,292 apartments) in the business class.
According to Kiev Standard’s estimates, the volume of new elite housing supply in 2020 will amount to 4,000 apartments with a total area of 350,000 square meters.
As expected, foreign investors, who were previously not interested in the Ukrainian real estate market, will have a positive impact on the demand indicators in 2020.
“Negative rates on deposits in Western banks will force to consider new options for investments, including the primary real estate market of Kyiv. Unlike local investors, foreign ones are considering long-term investments,” the report says.
According to the report, in 2019 sales in 15 objects started in the market, 13 of which are new projects. The volume of the new offer amounted to 4,780 apartments with 367,900 square meters.

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