Business news from Ukraine

Business news from Ukraine

UKRZALIZNYTSIA TO REPAIR 300-500 PASSENGER CARS IN 2020

JSC Ukrzaliznytsia (Kyiv) is considering the possibility of repairing 300-500 passenger cars in 2020 if the developed model of repairs is supported by the government, the company’s press service has reported, with reference to company head Yevhen Kravtsov.
“Ukrzaliznytsia has invented a model according to which in 2020 overhauls of up to 500 passenger cars could be carried out … According to experts, under the formula one car can be updated for UAH 1 million. For comparison: a completely new wagon costs UAH 25 million today, overhauls cost UAH 11-12 million,” the company said.
According to Kravtsov, the company receives most complaints about the quality of passenger cars because of old windows, worn toilets and heating systems.
“We found a model of how to make overhauls on these items with minimal resources. This is replacing windows with new double-glazed windows, replacing toilets and heating,” Kravtsov said.
He said that the possibility of repairing 300-500 cars is foreseen for 2020.
“If we can maintain such a pace, then in about three years we will forget about the problem of cars in the economy segment. I hope this initiative is supported at the government level, and we can start this program,” the head of Ukrzaliznytsia said.
As reported, Ukrzaliznytsia expects profit at the level of UAH 2.5-3 billion over 2019.
In 2018, Ukrzaliznytsia saw net profit rise by 78% compared to 2017, to UAH 203.9 million

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NOVA POSHTA DELIVERY COMPANY RAISES NUMBER OF SHIPMENTS BY 22%

The Nova Poshta group of companies delivered over 212 million parcels in 2019, which is 22% more than in 2018.
Director of the company Oleksandr Bulba said in December 2019 a total of 24.5 million parcels were delivered, of which 1.3 million were actually delivered in one day.
“In 2019, we opened 3,300 new branches in more than 3,100 new settlements,” he said.
According to him, also last year the company delivered 500,000 air parcels (testing of this service was launched in August 2019).
Khmelnytsky Innovation Terminal (opened in May 2019) processed 27.6 million shipments, Lviv terminal, which opened in the fall of 2019, processed 14.2 million parcels. Kyiv Innovation Terminal handled 97.8 million shipments.
In addition, in 2019, Nova Poshta delivered 3.4 million international shipments, which is 26% more than in 2018, of which 2.3 million from China (an increase of 30%).
In 2019, Nova Poshta International increased the number of deliveries from the United States by 20%, doubled from the UK and tripled from Poland.
Most often, according to the company, Ukrainians order clothes and shoes, accessories for mobile phones and small electronics.

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PRESIDENT OF UKRAINE ZELENSKY: ‘EVERYTHING IS FINE’ IN RELATIONS WITH U.S.

President of Ukraine Volodymyr Zelensky believes that economic and geopolitical relations between Ukraine and the United States are at a good level, and they need to be improved without getting involved in internal political processes. “For me, good relations with the United States, which were different at different times, were important. I believe that the elections [in the United States] is a purely political issue, and certainly not the issue of Ukraine, but of the United States. Their president, their people, choose whom you want, we will support your choice,” he said in an interview with Israeli Channel 9.
Zelensky noted that when “some kind of story” began to develop after his telephone conversation with U.S. President Donald Trump in September, he did everything possible to prevent Ukraine from being drawn into this political issue.
“Because only economic and geopolitical relations are important between the countries that respect each other, regardless of nationality, religion, breadth, importance, availability of nuclear weapons. And I believe that in these two areas, economics and geopolitics, everything is good in our relations with the United States. This “everything is normal” needs to be improved, but certainly not worsened,” he stressed.

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STATE-RUN UKRAVTODOR TO BUILD AND RECONSTRUCT NINE ORBITAL ROADS

The State Automobile Roads Agency of Ukraine, also known as Ukravtodor, plans to build and reconstruct nine orbital roads of 101.5 km long in 2020, the press service of the agency said on Thursday. “Ukrainian cities should be freed from transit traffic, because it reduces the number of jams and improves the transit potential of the road network. In addition, it will positively influence traffic safety, air quality, the life of the road surface and reduce the number of accidents,” Head of Ukravtodor Oleksandr Kubrakov said.
In particular, in 2020, it is planned to continue the construction of the Northern orbital road of Zhytomyr, the Northern orbital road of Rivne, the South-Western orbital road of Poltava, the Southern orbital road of Dnipro, the orbital road of Dunaevtsy (on the section between Chernivtsi and Khmelnytsky). Also, work will begin on the construction of the Northern orbital road of Lviv and the Northern orbital road of Ternopil.
In addition, the company plans to build an orbital road in Kobeliaky, Poltava region during the construction of one of the priority facilities in 2020 (highway N-31 Dnipro–Reshetylivka).
The construction of an orbital road in Berehove is planned, which, according to Ukravtodor, will significantly increase the attractiveness of Ukraine in the international road transport market.
In addition, this year Ukravtodor plans to prepare a feasibility study and design documentation for additional orbital roads: the South-East road bypassing Dubno, the North-Western road bypassing Khmelnytsky, the Northern road bypassing Bila Tserkov, the road bypassing Stryi and the Kremenchuk orbital road with a bridge across the Dnieper River.

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UKRAINE LAUNCHES VIRTUAL GAS REVERSE FROM POLAND

Ukraine through the gas measuring station Drozdovychi has begun virtual reverse of natural gas from Poland, expects its launch from Slovakia and Hungary, Head of Gas Transmission System Operator of Ukraine LLC (GTSOU) Serhiy Makogon has reported. “Gas supplies from Poland have already begun by substitution (virtual reverse) through the Drozdovychi station,” he said on Facebook.
To date, the volume of virtual imports from Poland is 5.5 million cubic meters. Since now transit to this country is 9.1 million cubic meters, 3.6 million cubic meters will be physically delivered to Poland, the head of the GTSOU said.
Makogon recalled that earlier, according to the previous transit contract with the Russian Federation, virtual reverse operations were not available to Ukraine: all volumes of gas had to be physically exported to Poland through Drozdovychi, and the volume necessary for Ukraine, in turn, was returned back through Hermanowice. Currently, there are no such restrictions; the country can import the entire amount of gas that physically goes there from Poland through virtual reverse supplies.
“Import from Poland also includes import of gas from the Polish LNG terminal. That is, right now, Ukraine can commercially import up to 9 million cubic meters per day or 3.3 billion cubic meters of gas from the Polish terminal via virtual reverse. I repeat: physically, the Ukrainian gas transmission system is ready to accept up to 6.6 billion cubic meters per year from Poland, but so far Poland, until the completion of a number of works in its gas transmission system, can only physically supply about 2 billion cubic meters,” the head of the gas transmission operator said.
“We expect that in the near future virtual reverse supplies will be launched in Slovakia and Hungary. The operators of these countries are working on this task. For our par, we are ready,” Makogon said.
Virtual reverses supplies involve the exchange of natural gas between gas transmission system operators when the gas does not physically move across the border and the parties offset.

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OFFICIAL RATES OF BANKING METALS FROM NATIONAL BANK AS OF JANUARY 24

Official rates of banking metals from national bank as of january 24

One troy ounce=31.10 grams

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