Gas Transmission System Operator of Ukraine LLC (TSO of Ukraine) and Romania’s Transgaz have signed an interconnection agreement meeting European rules to start cooperation from January 1, 2020. The Ukrainian operator recalled that the negotiations with the mediation of the European Commission have been going on for three years. Operators of Bulgaria, Greece and Moldova have also been involved in them.
“This means that all suppliers have the opportunity of freely transporting gas with a new supply route – from Southern Europe and Turkey – through Bulgaria and Romania – to Ukraine and further to Moldova. That is, from January 1, at the Isaccea 1-Orlivka 1 interstate point a daily capacity on the Ukraine-Romania route in the amount of 17.8 million cubic meters will be available, as well as 15.8 million cubic meters per day in the opposite direction,” the operator said.
The first auctions for booking capacities at the Isaccea 1-Orlivka 1 point should be held in the coming days.
The operator said that the agreement previously signed between the gas transmission system operators of Ukraine and Romania did not allow gas to be transported in the reverse mode, and also did not provide European rules for interaction, since such an opportunity was blocked by the current contract between Naftogaz Ukrainy and PJSC Gazprom.
In addition, such an agreement creates an additional technical opportunity for Moldova to alternatively import gas for its own needs from Turkey and Greece if Gazprom stops transit to Europe through Ukraine.
“This decision is historic and extremely important, because it allows you to create an additional route for gas imports to Ukraine, primarily to provide gas to Moldovan consumers and border consumers of Ukraine in Odesa region. This will allow winter to pass uninterruptedly, even if the gas transit could be stopped from the Russian Federation,” Director General of TSO of Ukraine Serhiy Makohon said.
Three companies from Qatar and Ukraine have announced that they will participate in a competition for concession of the Olvia stevedoring company, according to a posting on the website of the Infrastructure Ministry. According to the report, two of the three companies are prequalified to participate in the next stage. “As for the third, the tender committee has not yet made a decision, since the application was submitted on the last day,” the ministry said. Tender proposals for participation in the tender were submitted by QTerminals company (Qatar) and associations of Peters Maritime Agency LLC and Protti-Gasoline LLC (both from Mykolaiv).
Infrastructure Minister Vladyslav Krykliy said that $66 million of investments and at least $3 million of government investments over the next 35 years are expected from the implementation of the concession project in the Olvia stevedore, as well as $3 million of annual concession payments.
The next stage, during which the competitive bods of the participants will be evaluated and the winner determined, will be held on January 21, 2020.
As reported, four companies will participate in the Kherson seaport concession tender.
Enterprises of the State Forest Resources Agency of Ukraine this year plan to sell over 500,000 New Year trees at an average price of UAH 60-70 per linear meter, Deputy Director of state-owned enterprise (SOE) Forestry Innovation and Analytical Center of the State Forest Resources Agency Yuriy Sotnyk has said. “This year, the forestry enterprises of the State Forest Resources Agency are planning to sell more than 500,000 New Year trees. These trees are grown on plantations or harvested in the process of logging during a forest rehabilitation campaign,” he said at a press conference at Interfax-Ukraine. According to him, the average selling price for the enterprises of the State Forest Resources Agency, depending on the region, breed and age of the New Year tree, ranges from UAH 60 to UAH 70 per linear meter (at the level of last year). For spruces grown in pots, the price starts from UAH 100.
Sotnyk said that in addition to enterprises of the State Forest Resources Agency, there will also be municipal enterprises, enterprises of collective and private forms of ownership, farms, which will have about 200,000-300,000 trees, in addition to enterprises of the State Forest Resources Agency.
He said that the enterprises of the State Forest Resources Agency are harvesting trees from special forest plantations with a total area of about 5,000 hectares, where more than 14 million New Year trees are grown.
“This year, as last year, raid brigades will be created. They, in addition to employees of the forest guard service, also include officers of the National Police, environmental inspectorates and media representatives,” the deputy director of the Forestry Innovation and Analytical Center said.
Sotnyk said that in 2018, during the New Year holidays, about 700 violations were revealed, administrative reports against the illegal harvesting of more than 1,000 trees were recorded. Violators paid fines in the amount of more than UAH 250,000.
“New Year trees are recorded in the electronic accounting system. There is a special labeling: plastic tags, ribbons, etc. It allows getting information about the place of its harvesting, growing. For this, Yalynka.info free application has been developed, which can be downloaded to a smartphone,” the representative of the developer of the electronic wood accounting system – Austria’s Latschbacher GmbH – Volodymyr Molochko said.
In addition, the legality of the harvested New Year tree can be checked directly on the website of the State Forest Resources Agency: for this one needs to check the number indicated on the tree label in the system.
As reported, in 2018, the State Forest Resources Agency’s enterprises sold 472,800 New Year trees for the amount of UAH 32.8 million. The average price of a New Year tree was UAH 69.
Activity of international and Ukrainian retailers has revived attention of developers to building retail real estate in all large cities of Ukraine, UTG consulting company (Kyiv) has told Interfax-Ukraine. “The decline in consumer confidence in Europe, the rapid development of online commerce, the high level of competition in the clothing and footwear segment, the growth of staff salaries led to a decrease in profit margins and a pile of inventory at the largest European retailers, forced them to look for new markets, stimulated exit and the opening of stores in markets of countries not previously covered,” Head of Strategic Consulting at UTG Kostiantyn Oliynyk said.
So, after many years of negotiations, the leading international retailers presented earlier in the country began to return to the national market of Ukraine: H&M, Decathlon, Koton, Defacto, Polo Ralph Lauren, Kilian, AllSaints, PennyBlack, Tru Trussardi, Laurel, XTI, Santoni, Jo Malone, Daniel Hechter and others.
According to him, by the end of 2019, at the various stages of implementation (construction, preparatory work, concept) in Kyiv and the nearest suburbs there are 44 projects with a total rental area of 1.46 million square meters, in Odesa – 15 projects with a total rental area of 419,400 square meters, in the Dnipro – more than 100,000 square meters, in Kharkiv – more than 124,000 square meters, in Lviv – more than 80,000 square meters.
At the same time, the purchasing power and potential of retail space is limited by the size of salaries (in Kyiv – UAH 16,249; in Odesa – UAH 9,473; in Kharkiv – UAH 9,453, in Lviv – UAH 9,729), the pace of their growth, and the size of consumer expenses (in Kyiv – 62.2% of total family income; in Odesa – 67.6%; in Kharkiv – 62.9%, in Lviv – 71.80%) and the growth of the cost of housing and utility services, maintenance/rental of housing, travel, transportation, communication, education, medicine, as well as the level of inflation and the exchange rate of the national currency.
In addition, the success and functioning of retail real estate is significantly influenced by the volume and structure of the existing supply. So, in Kyiv there are five regional, 27 district, 24 micro-district, 19 specialized and 32 separate hypermarkets with a total area of just over 1.6 million square meters. The current offer of Odesa is 449,100 square meters, Kharkiv – 503,400 square meters, and Lviv – 399,100 square meters.
At the same time, the retail real estate offer is constantly increasing. In 2019 alone, the Smart Plaza Obolon micro district shopping centers (GLA is 11,800 square meters) and the Oasis shopping center (GLA is 7,800 square meters) were opened in Kyiv, and the regional River Mall (GLA is 62,200 square meters) and Blockbuster Mall (GLA is 135,000 square meters), the Araks specialized center in Khodosivka (GLA is 10,000 square meters) and street retail located at 2, Kyrpy Street (GLA is 2,500 square meters).
In addition, on December 7, the Karavan Outlet updated shopping center (GLA is 45,300 square meters) was announced for opening after restyling and reconstruction.
“As a result, in the case of the implementation and commissioning of all declared large-scale projects in local markets, a surplus of retail space may occur, which will entail a redistribution of consumer flows between facilities, an increase in vacancy and a correction in rental rates downward, especially in obsolete facilities with serious conceptual flaws,” Oliynyk said.
In his opinion, the approach of saturation and changes in the market are already becoming noticeable, and some developers have begun comprehensive modernization, redevelopment, specialization, or restyling of their retail facilities. For example, such facilities as Karavan, Metrograd, Silver Breeze, InSilver, Lukianivka Kvadrat, Gorodok, Magellan, Marmalade, Dream Town and Sirius started the update. In addition, Oliynyk said that a number of owners of the malls plan large-scale changes in the near future.
Official rates of banking metals from national bank as of December 18
One troy ounce=31.10 grams
National bank of Ukraine’s official rates as of 18/12/19
Source: National Bank of Ukraine
