Business news from Ukraine

Business news from Ukraine

OFFICIAL RATES OF BANKING METALS FROM NATIONAL BANK AS OF JANUARY 14

Official rates of banking metals from national bank as of January 14

One troy ounce=31.10 grams

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NATIONAL BANK OF UKRAINE’S OFFICIAL RATES AS OF 14/01/20

National bank of Ukraine’s official rates as of 14/01/20

Source: National Bank of Ukraine

GRAIN HARVEST IN UKRAINE TOTALS 75 MLN TONNES IN 2019

Grain and leguminous crop harvest in Ukraine in 2019 was around 75 million tonnes compared with 70.1 million tonnes in 2018, according to the Ministry of Economic Development, Trade and Agriculture.
“According to the ministry, the grain harvest amounted to about 75 million tonnes, of which 54 million tonnes will be exported to foreign markets. We will receive final forecasts for grain production in March according to the State Statistics Service,” Deputy Minister of economic, Economic Development, Trade and Agriculture Taras Vysotsky said.
The ministry said that as of January 10, 2019 and from the beginning of the 2019/2020 agricultural year (July-June), Ukraine exported 32.08 million tonnes of grain, which is 7.8 million tonnes more than in the same period of the previous agri-year.
In particular, the following crops were delivered to foreign markets: 15.1 million tonnes of wheat, 12.8 million tonnes of corn, 3.8 million tonnes of barley, and 5,000 tonnes of rye.
In addition, 197,000 tonnes of wheat flour and other crops were exported, which is 68,500 tonnes more than in the corresponding period of the previous agri-year.

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ERNEST AIRLINES FROM JANUARY 11 SUSPENDS ALL FLIGHTS

Ernest Airlines from January 11 suspended all flights over the suspension of its license, the airline has reported on its website.
“Following the provision of the National Civil Aviation Authority (ENAC) of 29 December 2019 regarding the temporary suspension of our operating license, we find ourselves unable to operate flights as of 11.01.2020,” the airline said in a press release.
Ernest Airlines said that the license can be restored following the demonstration by Ernest S.p.A. to be in possession of the requirements prescribed by the current legislation on the matter and to obtain the revocation of the provision issued by ENAC.
“We have activated all the actions aimed at obtaining the revocation of the same provision, and we need time to provide all the necessary evidence as per Regulation (EC) n.1008 of 2008 to demonstrate our financial sustainability necessary for the resumption of our operation. We know that nor a simple apology, or just the reimbursement of the ticket, will be enough to remedy the problems caused, but I can assure you, that we all at Ernest Airlines are doing our best to assist all our passengers that have experienced delays or cancellations in this difficult moment,” the airline said.
The Lviv International Airport also posted information on the cancellation of the Rome-Lviv-Rome flight ERN237/238 on its Facebook page.
Earlier Ernest Airlines said that the airline blocked sales of transport contracts for all flights departing from January 13, 2020 over the suspension of the airline’s operating license.

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DONBASENERGO PAYS UAH 701.5 MLN OF TAXES IN 2019

PJSC Donbasenergo in 2019 paid UAH 701.5 million of taxes and other mandatory payments to the national and local budgets, the press service of the company has reported. Thus, UAH 665.7 million of VAT, environmental tax, the royalty for the use of water resources and other taxes was paid to the national budget. Some UAH 35.8 million (land tax, property tax and other taxes) was paid to the local budget.
The company said that according to the Tax Code, starting from July 2019 Donbasenergo as an electricity generating company paid UAH 80.8 million of the excise duty, which is set at 3.2% of the cost of each kWh of electricity generated.
Donbasenergo owns Starobesheve (located in the occupied territory) and Sloviansk TPPs with a total installed capacity of 2,880 MW, in particular Sloviansk TPP’s capacity is 880 MW. At the end of March 2017, the generation company announced the loss of control over the operation of Starobesheve TPP, as well as part of structural units located in the temporarily uncontrolled territory.
PrJSC Energoinvest Holding owns a 60.86% stake in Donbasenergo, another 25% is owned by the state.

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TURKISH RETAILER PLANS TO OPEN 60 STORES IN 2020-2023 YEARS

Turkey’s fashion retailer LC Waikiki will open the largest store of the chain in Ukraine in River Mall in Kyiv in the first quarter of 2020, and plans to open another 60 stores in the country by 2023.
“In the first quarter of 2020, a two-level store of the Turkish brand LC Waikiki with a total area of 1,880 square meters will open in the River Mall. The store will become the largest in the Ukrainian network of the company,” the retailer said in a press release on Saturday, January 11.
According to the report, the company also plans to open up to 60 new stores in Ukraine. According to information on the retailer’s website, as of January 11, 2020, there were 34 chain stores in Ukraine, in particular in Kyiv, Chernihiv, Zhytomyr, Kharkiv, Lviv, Dnipro, Kryvy Rih, Zaporizhia, Odesa, and other cities.
LC Waikiki is originally a French clothing brand founded in 1988 by two French. In 1997, the brand was purchased by Turkish investors. It is engaged in the production and retail sale of clothing, shoes and accessories for children and adults.
The chain has more than 990 stores in 47 countries and plans to become one of the three most successful clothing dealers in Europe by 2023. In Ukraine it has been operating since 2013.
The LC Waikiki network is developed by Theme Fashion Ukraine LLC (Kyiv), established in 2006.

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