Business news from Ukraine

OFFICE SUPPLY IN LVIV DOUBLES IN 2 YEARS

The new supply of offices in Lviv to be commissioned in 2019-2021 will be 176,100 square meters, which is almost comparable to the current offer, UTG consulting company (Kyiv) has told Interfax-Ukraine. “By mid-2019, the growing demand for office space, triggered mainly by favorable conditions for the development of the IT sector, led to a shortage of quality space in the market and, as a consequence, to a decrease in vacancy to 2.2%, an increase in rental rates and a surge in developer activity,” UTG analyst Oksana Havrylevych said.
According to her, office premises with a leased area of 56,400 square meters are expected to be commissioned in 2019 (33.6% of A class, 66.4% of B class), 31,500 square meters in 2020, and 88,200 square meters in 2021.
“With the timely commissioning of the declared facilities by the end of 2021, the total leased office space will be about 378,000 square meters, which corresponds to 500.8 square meters per 1,000 citizens, which may bring the Lviv office market to the phase of oversupply,” she said.

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VOLUME OF MONEY TRANSFERS TO UKRAINE EXCEEDS AMOUNT OF FUNDS SENT ABROAD BY 6.5 TIMES

The volume of money transfers to Ukraine using international money transfer systems in January-June 2019 exceeded the amount of funds sent abroad by 6.5 times. According to the website of the National Bank of Ukraine (NBU), the share of transfers to Ukraine from the United States was 15%, from Israel 8%, from Russia 9%, from Italy 14%, from Poland 11%, from other countries (202 countries) some 43%.
In the first half of 2019, the volume of remittances using money transfer systems created by both residents and non-residents was as follows: to Ukraine some $1.099 billion in equivalent (23.23% of the total amount of transfers), outside Ukraine some $168 million in equivalent (3.54% of the total amount of transfers), within Ukraine some UAH 93.28 billion, or equivalent of $3.465 billion (73.23% of the total amount of transfers).
This data does not include information on transfers made through banks, card payment systems and post offices.
The volume of domestic transfers through money transfer systems in the first half of 2019 increased by 33.5% compared to the same period of 2018.
The predominant amount of domestic transfers (90%) is implemented by systems created by non-banking institutions.
Almost 68.2% of domestic transfers accounted for two systems of money transfers: Forpost (Post Finance LLC) and Mail Transfer (Poshtovy Perevod, Ukrposhta).

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PRESIDENT’S PARTY GETS 254 SEATS IN NEW PARLIAMENT

Some 130 of 199 member of parliament candidates who won majoritarian races in early parliamentary elections came ran on the Servant of the People ticket, Ukraine’s Central Election Commission (CEC) has said. Some 23 MPs, who won in majoritarian races, represent other parties, including Opposition Platform – For Life and Opposition Bloc – 6, Holos – , European Solidarity and Batkivschyna – two each, Svoboda, Samopomich, Bila Tserkva and United Center – one each.
Some 46 more MPs from majoritarian races were self-appointed and did represent any political party.
With 100% of electronic protocols processed, Servant of the People (43.16%), Opposition Platform – for Life (13.05%), Batkivschyna (8.18%), European Solidarity (8.10%) and Holos (5.82%) enter parliament. The remaining parties did not surpass the 5% barrier required for entry.
Servant of the People will receive 124 mandates according to the party list vote, followed by Opposition Bloc – For Life – 37, Batkivschyna – 24, European Solidarity -23 and Holos – 17.
The Servant of the People Party faction in the parliament of the 9th convocation will be represented by 254 MPs, Opposition Bloc – For Life – 43, Batkivschyna – 26, European Solidarity – 25, Holos – 20 and Opposition Bloc – 6. Svoboda, Samopomich, Bila Tserkov and United Center will be represented by one MP each, and there will be 46 self-appointed MPs.
Early parliamentary elections were held on Sunday, July 21 according to a mixed system: 225 candidates were elected by party lists in the state-wide multi-member constituency and 199 by the majority system (majoritarian) in single-member constituencies.
The current edition of the Constitution does not contain a requirement for the mandatory entry of a deputy to party’s Rada faction. Therefore, it is possible that in addition to factions of parties that overcame the 5% barrier, deputy groups will be created in the future parliament, which may include majoritarian deputies.
According to the law on elections of deputies of Ukraine, the CEC establishes the results of the elections of deputies in the national district and in single-member districts no later than the fifteenth day from the voting day (no later than August 5). Not later than on the fifth day (no later than August 10) from the day the election results are established, the CEC officially publishes the results in the newspapers Holos Ukrainy and Uriadovy Kurier (the list of elected deputies is published in alphabetical order).

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U.S.-BASED TRIDENT ACQUISITIONS ANNOUNCES VICTORY IN TENDER FOR PSA IN UKRAINE

U.S.-based Trident Acquisitions Corp. has been recognized the winner of the tender for the development of the Dolphin hydrocarbon section on the Black Sea shelf on the basis of a production sharing agreement (PSA), company CEO and one of its shareholders Ilya Ponomarev has said. “It was a difficult struggle, but our application was significantly more profitable for Ukraine,” he said on Facebook.
Ex-State Duma deputy Ponomarev, to whom Petro Poroshenko granted Ukrainian citizenship in May of this year, thanked the government and personally Minister of Energy and Coal Industry Ihor Nasalyk for the trust. “We promise not to let you down and to do everything possible to start production as soon as possible!” he said.
As reported, on April 12, 2019, the Cabinet of Ministers announced a tender for the development of hydrocarbons within the Dolphin section on the Black Sea shelf under PSA terms. The term of the agreement is 50 years.

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IMF CONFIRMS READINESS TO SEND MISSION TO UKRAINE

The position of the International Monetary Fund (IMF) on negotiations with Ukraine on the resumption of funding remains the same: the Fund is awaiting the formation of a new government and wants to see priorities of its policy.
IMF Spokesperson Gerry Rice said at a press briefing in Washington, D.C., on Thursday that the IMF team was ready to return to Kyiv to continue discussions after the parliamentary elections as soon as the new government is able to decide on its policy priorities.

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OFFICIAL RATES OF BANKING METALS FROM NATIONAL BANK AS OF JULY 26

Official rates of banking metals from national bank as of july 26

One troy ounce=31.10 grams

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