Business news from Ukraine

Business news from Ukraine

VOLUMES OF CARGO TRANSPORTATION, MILLION TONS

Volumes of cargo transportation, million tons

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STATE-OWNED UKRSPYRT PLANS TO DOUBLE ALCOHOL SALES IN JAN

State-owned enterprise Ukrspyrt intends to sell 440,600 decaliters of alcohol in January 2020 against 255,170 decaliters in the same period in 2019 and associates this with the results of fight against production of counterfeit alcohol.
“These figures indicate not the fact that we began to produce or consume more alcohol in the country, but the fight against the shadow turnover of alcohol. The state focused on the elimination of counterfeit alcohol production schemes that previously existed at the plants of the enterprise. We are closely monitoring the cost of alcohol and the correct purchase of raw materials. And if we see any violations, we immediately change the heads of the plants. And this is already yielding results,” acting head of Ukrspyrt Serhiy Bleskun said.
According to Ukrspyrt, in January 2020 ten factories of the state-owned enterprise will work, while seven were operating in the same period last year.
In addition, the enterprise noted that in November-December 2019 the heads of six plants were changed, and video surveillance cameras with online broadcasting were installed at six plants.
Now the company is being prepared for transfer to the State Property Fund.
As reported, the law on the abolition of state monopoly on alcohol production from July 1, 2020, supported by the Verkhovna Rada on December 3, was signed by the president of Ukraine at the end of December 2019.

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UKRAINE REDUCES OIL TRANSIT TO EUROPE IN 2019

Oil transit through Ukraine to European countries in 2019 decreased by 1.6% (by 208,200 tonnes) compared to the same period in 2018, to 13.127 million tonnes, JSC Ukrtransnafta has reported.
The volume of oil transportation to oil refineries in the country in 2019 amounted to 2.382 million tonnes, which is 13.4% (281,300 tonnes) more than in 2018.
Thus, in 2019, the share of transit volume in the total transportation of oil (15.509 million tonnes) was 84.6%, the share of pumping to the country’s refineries was 15.4%.
In December 2019, oil transit through Ukraine by pipelines decreased by 5.7% (by 69,700 tonnes) compared to the same month of 2018, to 1.160 million tonnes, while pumping to the country’s refineries increased by 18.1% (by 31,700 tonnes), to 207,100 tonnes

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UKRAINIANS SELL, BUY $1 BLN OF CURRENCY ONLINE IN 2019

The volumes of buying and selling currency online by individuals in Ukraine in 2019 were almost equal – $1 billion each, according to the website of the National Bank of Ukraine (NBU). According to the report, the abolition of restrictions on buying currency online for individuals did not lead to pressure on the foreign exchange market – about 7% of the cash market operations simply switched to online banking platforms.
“The National Bank will continue currency liberalization in the future. In particular, after the implementation of the split law, the National Bank will allow selling currency online not only to banks, but also to non-banking financial institutions that will come under the supervision of the NBU from mid-2020,” the regulator said.
As reported, on February 7, 2019 the law on currency and currency transactions entered into force. It foresees the introduction of more than 20 exemptions in the foreign exchange market. In particular, online purchase of foreign currency by individuals is allowed, while transferring funds in foreign currency between individuals (except relatives) will still be prohibited.
At the same time, from November 5, 2019 the central bank canceled the daily limit on the purchase of foreign currency and banking metals, which amounted to UAH 150,000.

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ARCELORMITTAL INVESTS UAH 320 MLN IN UKRAINE IN 2018-2019 TO RESTORE LOCOMOTIVES

PJSC ArcelorMittal Kryvyi Rih (Dnipropetrovsk region) in 2018-2019 spent about UAH 320 million on the program to restore 27 locomotives.
According to a company press release, domestic and foreign analogues were used instead of Russian components during the overhaul of locomotives, thereby neutralizing Russian sanctions regarding the ban on the supply of spare parts and engines for diesel locomotives to Ukraine.
According to the press service, the plant has one of the largest railway fleets in the metallurgical complex: 172 locomotives (126 for servicing metallurgical production, 46 for mining). A few years ago, the company adopted an import substitution program. One of the main partners was Mykolaiv Diesel Locomotive Repair Plant, which established production cooperation with a number of Ukrainian and foreign manufacturers of various railways equipment.
Thanks to joint developments, Mykolaiv plant started installing diesel engines of well-known world companies, namely U.S.-based Cummins, UK-Belgian ABC Corporation, and others, on locomotives. In addition, the latest Heinzmann engine control systems (Germany), a rotary vane compressor jointly with the Italian company Mattei, a modern traction unit of alternating current (Electrotyazhmash), a microprocessor-based locomotive control system, etc. were installed on the machines.
Thanks to the measures taken, the plant in 2018–2019 got the opportunity to restore 11 diesel locomotives, in particular with the replacement of engines and deep modernization. In addition, 16 more cars were repaired on the basis of its two diesel locomotive repair depots.

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ODESA-BASED COMPANY PLANS TO OPEN HOTEL IN POLAND

Ribas Hotels Group LLC (Odesa), the managing company of the national network of three- and four-star tourist hotel and restaurant complexes, has signed an agreement to manage the Bautzen hotel in Jelenia Gora (Poland). “The management company of Ribas Hotels Group has developed a concept and corporate style for the hospitality facility in the Polish city of Jelenia Gora and signed a management agreement. The opening is scheduled for spring 2021,” the company told Interfax-Ukraine.
According to Ribas Hotels Group, after the launch, the three-star hotel will include 23 rooms. The object will be the first one in the operator’s portfolio outside Ukraine.
The company noted that in order to increase the profitability of the facility, it was decided to reduce staff costs by creating a contactless reception desk, introducing the position of a curator of the facility, which helps conduct check-in if necessary.
“Most guests check in on their own, through the terminal, a lock system that will be installed on the doors. A specialist from the hotel will be 24/7 online chatting and communicating with guests, as well as advising guests who did not use to this service format,” the company said.
In addition, Ribas Hotels Group decided to abandon the traditional list of additional services that are not in demand. In particular, in Bautzen there will be no minibars, they will be replaced by vending machines with snacks and various prepared meals in the common areas of the hotel.
According to estimates by Ribas Hotels Group, the planned estimated return on investment in the opening of Bautzen is 5-7% per annum.

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