Business news from Ukraine

Business news from Ukraine

ALTIS-CONSTRUCTION TO BUILD AIRFIELD IN DNIPRO

Altis-Construction LLC has won a tender for the purchase by the state-owned enterprise Financing of Infrastructure Projects (FinInPro), a new airfield construction at the international airport of the city of Dnipro, with an offer 30.6% lower than the expected cost.
According to the information on the tender page in the state electronic trading system ProZorro, Altis-Construction offered the final cost of the work in the amount of UAH 3.95 billion, which is 30.6% lower than the expected price (UAH 5.69 billion).
“Finally, the most expensive international tender in the history of airport construction took place, for the choice of the general contractor for the construction of the airfield of Dnipro international airport […] The path to this was not easy, but we coped, despite three rounds of appeals to the Antimonopoly Committee,” Head of State Agency for Infrastructure Projects of Ukraine (Ukrinfraproekt) Kyrylo Khomiakov wrote on his Telegram channel.
He said that seven companies took part in the auction, two of which are foreign (Turkey and Belarus).
According to Khomiakov, the contract with the winner will be signed in accordance with the law on public procurement.
The next step is to start construction work.
It is planned to build a runway with a length of 3.2 km at Dnipro airport. The cost of the project, according to the state examination report is UAH 6.23 billion.
The construction period is about three years.
This year the government has allocated UAH 1.4 billion for the construction of an airfield in Dnipro.

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UKRAINIAN MHP RAISES POULTRY SALES BY 10% IN Q4 2020

Myronivsky Hliboproduct (MHP) sold 174,260 tonnes of poultry in October-December 2020, which is 10% more than in the same period in 2019.
According to the company’s report on the London Stock Exchange, poultry sales as a whole grew by 4% for the year, to 698,020 tonnes.
MHP clarified that poultry exports in the fourth quarter rose by 8%, to 94,710 tonnes, and in general for the year by 5%, to 373,730 tonnes.
According to the report, the average price of one kg of poultry last year (excluding VAT) decreased by 5% in hryvnias from 2019, to UAH 36.11, and in dollars – by 9%, to $ 1.34. In the fourth quarter, the average price was UAH 38.49, or $ 1.36, which, respectively, is 11% more and 5% less than in the fourth quarter of 2019.
“The 12-month 2020 average chicken meat price was UAH 36.11 ($ 1.34), which is 5% lower in hryvnia terms (9% less in dollars) compared to chicken price in 12 months of 2019, mainly driven by the product mix change in exports (significant decrease in sales of fillet to the EU and increased sales to MENA) and weaker prices on breast fillet in EU as many global competitors experienced reduced demand, which resulted in excess stocks,” the report says.
The company also clarified that Slovenian-based Perutnina and its production in Croatia and Serbia, whose figures will now be given separately as a European operating segment, sold 15,170 tonnes of chicken in the fourth quarter, which is 7% more than in the fourth quarter of 2019. In general, for the year its sales amounted to 63,010 tonnes against 59,800 tonnes in 2019, while prices for European chicken in the fourth quarter decreased by 6%, to EUR2.48 per kg, and for the whole of 2020 by 4%, to EUR2.52 per kg.
“After a temporary decrease in utilization of poultry production capacity in Q1 (by 10% from February to the end of March 2020 as a result of the avian influenza outbreak in Ukraine), since the beginning of Q2 all the company’s poultry production facilities have been operating at full capacity. There were several outbreaks of the avian influenza in Ukraine in December 2020, however, the company continued to export poultry meat to its major markets (except to the EU banned market). None of MHP poultry complex were affected with avian influenza by the time of pre-close trading update release,” according to the document.
“Poultry production volumes in Q4 2020 remained relatively stable, constituting 189,687 tonnes. In 2020 poultry production volumes were relatively stable and constituted 731,279 tonnes,” the company said.

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CORUM GROUP PLANS TO SUPPLY COMPONENTS TO LARGEST MINING COMPANY IN EUROPE

Corum Group (DTEK) plans to complete the supply of 400 cast components for powered supports to the largest mining company in Europe Polska Grupa Górnicza SA (PGG) by the end of March this year, Corum wrote on Facebook.
According to the statement, the first batch under the contract, the cost of which was not disclosed, has already been supplied to the customer. Cast components are produced by Corum Svitlo Shakhtaria plant (Kharkiv).
“These components will cover the Polish partner’s need for missing components for the production of powered roof support sections,” the statement said.
Corum recalls that it has been cooperating with PGG since 2018, and three mines of this company (Sośnica, Piast-Ziemowit and Mysłowice-Wesoła) use more than 400 Corum support components.
Corum Group is part of the energy company DTEK Energy and is the largest manufacturer of mining equipment in Ukraine.
The key clients of the company are 14 largest mining holdings, whose assets include 150 mines and open pits.

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NATIONAL BANK OF UKRAINE’S OFFICIAL RATES AS OF 28/01/21

National bank of Ukraine’s official rates as of 28/01/21

Source: National Bank of Ukraine

AMERICAN CHAMBER OF COMMERCE IN UKRAINE ASKS PRESIDENT TO TAKE PERSONAL CONTROL OVER IMPLEMENTATION OF MEMO WITH ‘GREEN’ INVESTORS

The American Chamber of Commerce in Ukraine asks Volodymyr Zelensky to take personal control over Ukraine’s fulfillment of the memorandum obligations between the country’s government and renewable energy investors, which were legislatively enshrined in 2020.
Such a request is contained in a letter from President of the American Chamber of Commerce Andy Hunder to the head of the Ukrainian state dated January 26.
“We ask you to take personal control over the implementation of the provisions of Law No. 810-IX and the fulfillment of obligations under the current legislation and refrain from taking decisions that undermine earlier agreements between the state and investors,” the text of the letter said.
As Hunder recalled, on August 1, 2020, the law on the amendments to certain laws of Ukraine on improving the conditions of support for electricity production from alternative energy sources (No. 810-IX) came into force.
Adoption of Law No. 810-IX was aimed at improving the feed-in tariff’s sustainability and electricity market liquidity by enshrining in law the provisions set out in the Memorandum of Understanding, signed on June 10, 2020 by the Cabinet of Ministers, the Energy Ministry, the National Energy and Utilities Regulatory Commission (NEURC) and renewable industry associations.
Inter alia, the provisions of Law No. 810-IX envisaged 20% co-financing from the state budget and issuance of government domestic loan bonds to cover the deficit in payments to renewable energy producers. However, none of these mechanisms was implemented either in the state budget for 2021 or using debt financing instruments.
“Accordingly, the American Chamber of Commerce members expected that the government will fulfill its obligations under the legislation and the memorandum by allocating at least UAH 9 billion from the attracted UAH 10.25 billion of credit funds to pay off 40% of the debt to renewable energy producers accumulated as of August 1, 2020 in the amount of UAH 22.4 billion. However, on January 16, 2021, the NEURC issued the Guaranteed Buyer an instruction to allocate not less than 50% of the funds received from Ukrenergo under the loans provided by state-owned banks for repaying other debts,” Hunder said.
He said that such NEURC decision combined with a lack of actions by the government to implement Law No. 810-IX is a clear sign of Ukraine’s unwillingness to fulfill its commitments to private investors.

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OFFICIAL RATES OF BANKING METALS FROM NATIONAL BANK AS OF JANUARY 28

Official rates of banking metals from national bank as of January 28

One troy ounce=31.10 grams

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