Business news from Ukraine

Business news from Ukraine

ROBERTO BANFI RETIRING FROM MHP BOARD

Roberto Banfi, after two and half years as a non-executive director and a member of the International Government Relations and Public Affairs Committee, is retiring from the Board of Directors of MHP agricultural holding, effective immediately, the holding said on the London Stock Exchange on Tuesday.

According to the report, Banfi is becoming an Advisor to the Board with a possibility to join both Board and Committees meetings on a regular basis on invite from the Chairman of the Board and Chairmen of Committees.

As reported, in June 2018, the shareholders’ meeting of MHP agricultural holding appointed Banfi as a non-executive director with a planned contract term until 2021.

According to MHP, Banfi in 2014-2016 held the position of Chief Executive Officer (CEO) of the Brazilian company BRF in Europe and Eurasia – one of the world’s largest meat producers.

MHP is the largest producer of chicken in Ukraine.

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PRICES OF INDUSTRIAL PRODUCERS IN UKRAINE GROW BY 17.6% IN JANUARY

Prices in Ukrainian industry in January 2021 compared to January 2020 grew by 17.6%, the State Statistics Service said on Wednesday.

As previously reported by the authority, in 2020 the growth of industrial producer prices was 14.5%, in 2019 it was 7.4%, in 2018 – 14.2%, in 2017 – 16.5%, in 2016 – 35.7%, and in 2015 – 25.4%.

Within Ukraine, industrial producer prices in January 2021 to January 2020 increased by 11.2%, as for deliveries outside the country – by 46.2%.

Prices in Ukrainian industry in January compared to the previous month (December 2020) grew by 5.2%, while in December last year – by 1.8%, in November by 2%, in October – by 3.8%, and September – by 1.7%.

Prices in the mining industry in January 2021 to January 2020 rose by 38.4%, due to growth in prices in the extraction of metal ores – by 64.9%, oil and gas – by 24.6% and in the production of coal – by 1.2%.

In the manufacturing industry, prices rose by 19.8%. In the production of sugar, they grew by 63.6%, bread and bakery products – by 10.2%, dairy products – by 7.9%, meat products – by 4.1% and beverages – by 4.2%.

Moreover, in metallurgy in January 2021 to January 2020 prices rose by 34.6%, the production of intermediate goods – by 30.2%, in chemical production – by 29.4%, the production of short-term goods – by 22, 4%, production of durable goods – by 12.6%, woodworking – by 11.3%, in pharmaceutical production – by 11.4% and mechanical engineering – by 3.2%.

In the supply of electricity, gas and air conditioning prices rose by 2.3%, in the production of coke and refined products they grew by 3.8%.

OCCUPANCY OF HOTELS IN LVIV REACHES 35%

The occupancy of hotels in Lviv in January 2021 was 35%, 31% Kharkiv, 23% in Kyiv and 19% Odesa, according to Hotel Matrix.

“During the lockdown, many hotels temporarily closed and did not work. Among those who continued to work, the best occupancy results were achieved in Kharkiv and Kyiv with a pronounced tendency to higher occupancy – up to 40% – on business days,” Hotel Matrix Project Manager Olha Mischenko told Interfax-Ukraine.

According to Hotel Matrix analysts, Lviv holds the lead for the second month in all indicators. The Average Daily Room Rate (ADR) of the city is almost equal to Kharkiv (UAH 2,236 and UAH 2,222). At the same time, as for RevPAR (Revenue Per Available Room), Lviv was 14% ahead of Kharkiv with UAH 781. ADR in Kyiv hotels was UAH 1,609, Odesa – UAH 1,397. RevPAR was UAH 370 and UAH 269, respectively.

“Lviv reached high occupancy levels not only during the Christmas holidays, but also after the lockdown period. The minimum occupancy value of 10% was recorded on January 10 and 17 in Odesa, the highest – 76% – on January 2 in Lviv,” Mischenko said.

Hotel Matrix launched in May 2020 is a web product of hotel analytics, developed by specialists from Poland and Ukraine. Now 150 hotels are connected to Hotel Matrix.

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DTEK TO INCREASE COAL IMPORTS TO 450,000 TONNES IN FEB THANKS TO IMPORTS FROM POLAND AND KAZAKHSTAN

DTEK will increase coal imports to 450,000 tonnes in February, which will secure the operation of as much equipment of the company’s power plants as possible in February-March, as well as allow meeting obligations to Centerenergo, DTEK CEO Maksym Timchenko has said.

“We are overcoming the lack of coal through contracts with Poland and Kazakhstan. In February, we will have 450,000 tonnes of imported coal. We are meeting our obligations to Centrenergo to supply 250,000 tonnes of coal. We extract coal in our mines as much as it is technically possible. And we bring the coal imbalance that is needed to get through February-March,” he said.

According to Timchenko, the company imports about 120,000-150,000 tonnes of coal per month from Russia.

“In Ukraine, there is no way to have our own anthracite, so we bring it from Russia. We bring our anthracite, which we extract at our Obukhovskaya mine. We bring 120,000-150,000 tonnes per month. But in order to attract additional resources quotas are to be obtained in the Russian Federation. These quotas are reduced for political or non-political reasons. That is, we have no rhythm in deliveries,” the head of the company said.

Timchenko noted DTEK’s readiness to use natural gas as a fuel in case of need for its own TPPs. “In February-March, we will declare the maximum load-bearing equipment, and this equipment composition will be provided with fuel, coal or gas, on certain days when the system requires it. We have gas burning limits, and we always understand that we can have a plan B if there are problems with the supply of coal,” the CEO of DTEK said.

UKRAINE INCREASES FX EARNINGS FROM EXPORTS OF FERROUS METALS IN JAN

Metallurgical enterprises of Ukraine in January this year increased receipts from exports of ferrous metals by 4.5% compared to the same period last year, to $745.530 million.

According to updated statistics released by the State Customs Service on Tuesday, ferrous metals for this period accounted for 18.98% of total revenues from exports of goods versus 17.16% in the first month of last year.

In December, revenues from exports of ferrous metals amounted to $714.503 million.

At the same time, in January this year, Ukraine reduced imports of similar products by 10.6%, to $57.732 million. In December, this figure was $87.321 million.

In addition, in January 2021, Ukraine cut exports of metal products by 0.5%, to $63.522 million. In December, metal products for $84.921 million were delivered.

During this period, imports of metal products decreased 6.6%, to $52.909 million. In December, metal products for $82.833 million were imported.

During New Year holidays over 300,000 Ukrainians, who are subscribers of Kyivstar, traveled across Ukraine and abroad

During the New Year holidays, over 300,000 Ukrainians, who are subscribers of the mobile network operator Kyivstar traveled across Ukraine and abroad.

Thus, the top ten cities of Ukraine, where Kyivstar subscribers most actively traveled during the New Year holidays, included: Kyiv, Lviv, Odesa, Vinnytsia, Dnipro, Ivano-Frankivsk, Kharkiv, Ternopil, Khmelnytsky, and Rivne. Tourist mobility peaked on December 28, 2020 and January 3, 2021.

The three most popular ski resorts in Ukraine among the operator’s subscribers were Bukovel, Slavske, and Dragobrat. The tourist peak of mobility of Ukrainians who went to ski resorts fell on December 31, 2020, January 1, January 2, January 8 and January 9, 2021.

According to the company, the majority of Ukrainians went abroad to Egypt, Turkey, Poland, Moldova and Romania. At the same time, in 2019, Kyivstar subscribers preferred Poland, Egypt, Moldova, the Czech Republic and Germany.

In addition, according to the data provided, in 2020, new directions appeared among the countries that were visited by Kyivstar subscribers on New Year’s holidays, such as the Maldives, Dominican Republic, Bulgaria, and Tanzania.

The company said that the number of tourists who traveled abroad in 2020 fell by 81% compared to 2019.

“Big Data remains a strategic business direction in Kyivstar. Its potential is huge, because analytics helps in the development of various smart ecosystems, including urban ones in terms of tourism potential or infrastructure improvement. And Kyivstar has everything necessary resources for developing the sector: data, technical equipment, a team of analysts and data scientists, innovative technologies and opportunities,” the press service of Kyivstar said, quoting New Business Director at Kyivstar Ilya Polshakov.

The operator said that the mobility data for subscriber groups was analyzed from December 24, 2020 to January 10, 2021.

When determining a trip within Ukraine, only one settlement was taken into account, in which the subscriber spent more time, but no less than two days. When determining a foreign trip, only one country was taken into account in which the subscriber spent the most time.

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