Business news from Ukraine

Business news from Ukraine

“Ukrzaliznytsia” increased passenger traffic by 13%

In January-October, Ukrzaliznytsia (UZ) increased passenger traffic by 12.7% to 23.3 million passengers compared to the same period last year, the company’s press service said on Thursday.
“In October, UZ carried 2.3 million passengers, which is 100 thousand passengers more than in September, when there is traditionally a decline in the dynamics of passenger traffic compared to the summer season,” the press service of UZ said in a statement on its telegram channel.
It is reported that the most popular flight is train #128 Zaporizhzhia – Lviv, which carried 53 thousand passengers in October. The second and third places, as in the previous month, were taken by high-speed trains of the Przemyśl direction – No. 705/706 and No. 715/716 with 51 thousand and 48 thousand passengers, respectively.
The most popular route was Lviv-Kyiv-Lviv: 125 thousand passengers traveled between these cities in October.
In October, passengers purchased 532 thousand servings of hot drinks, including tea and coffee.

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“Avtostrada” resumes construction of subway to Vynohradar

Avtostrada Group of Companies has resumed construction of the subway to the Vynohradar residential area in Kyiv, its press service has reported.
According to the press release, the construction of the Syrets-Pechersk (“green”) line is underway from the Syrets station. In total, the construction of two stations is planned – Mostytska and Prospekt Pravdy.
The section from Syrets station to Mostytska station will be laid in a closed way – by tunneling, and from Mostytska to Pravdy Avenue – in an open way.
The total length of the construction (from Syrets station to Pravdy Prospekt) is 3.78 km.
Atostrada continues construction of a two-tiered rectangular monolithic tunnel on the Mostytska – Pravdy Prospekt section. This design is due to the specifics of the infrastructure of a densely built-up residential area. A pit is being developed and a support system is being installed for further tunnel construction. A PVC membrane waterproofing system is being installed in the concrete areas left by the previous contractor, which can be restored even after the facility is commissioned. As noted, such waterproofing was used during the construction of a section of the tunnel between Lybidska and Demiivska metro stations. The finished sections of the tunnel are being backfilled with soil.
The facility includes six construction sites. Preparatory work is underway at other construction sites.
As the press service emphasizes, Avtostrada started the construction of the metro line to Vynohradar using its own working capital, without advances.
As reported, in August 2024, the Kyiv Metro utility company signed an agreement to continue construction of the Syretsko-Pecherska line in the direction of the Vynohradar residential area. The winner of the tender was Avtostrada Group LLC. The term of the works is set at 30 months and their cost is UAH 13 billion 785 million. The procurement was conducted on the Prozorro electronic public procurement platform.
According to the Kyiv City State Administration, the right turnaround tunnel has already been built with a length of almost 1,250 meters from Mostytska station to Syrets station. In addition, the construction of the main structures of the distillation ventilation unit has been completed. The wall-in-soil method of enclosing structures and the metal structures for the pit have also been partially installed. The main structures of the combined traction substation were constructed, and two-tier tunnels were partially constructed.
In December 2023, Kyiv Metro terminated the contract with Kyivmetrobud JSC in court due to the failure to meet the deadlines for construction work. The court is considering the recovery of a part of the prepayment, the use of which is not confirmed by the relevant acts of work performed, as well as penalties.

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“Nova Poshta” increases investment in development in Ukraine by 40%

In January-September 2024, Nova Poshta, the leader in express delivery in Ukraine, increased its development investments in Ukraine by 40% to UAH 4.9 billion, the company’s press service said on Friday.
Over the course of nine months, Nova Poshta opened 940 new branches and installed 4578 new post offices, for a total of 5518 new service points.
“The network grew all over Ukraine, including in the frontline areas, where 126 new service points were opened. Thus, as of October 1, Nova Poshta’s network includes 12.4 thousand branches and 20.17 thousand post offices,” the company’s press service said.
The number of parcels and cargo delivered by Nova Poshta increased by 17% to 336 million parcels. The company delivered 11 million international parcels.
“As we have been doing since the first days of the war, we are investing in Ukraine’s victory. In the period from January to September this year, the group’s charity spending in Ukraine amounted to UAH 1.4 billion, which is UAH 266 million more than in the same period last year. Since the beginning of the full-scale invasion, the volume of investments in the victory has already exceeded UAH 4 billion,” the press service of Nova Poshta said.
Every day, as part of the Humanitarian program, Nova Poshta delivers parcels for the military from charitable foundations and volunteers at its own expense. In the first nine months of this year, the company has delivered 1.2 million parcels. Since the beginning of the full-scale invasion, almost 2.5 million.
Earlier it was reported that in January-September 2024, Nova Poshta reduced its net profit by 1.9 times compared to the same period in 2023 – to UAH 1.65 billion, and increased its revenue by 16.4% to UAH 30.81 billion. The company explains the decrease in profitability by an increase in charity expenses and an increase in depreciation expenses due to a significant increase in the investment program. Inflation and general price increases also had an impact.
The amount of taxes paid by Nova Poshta in Ukraine increased by 10% to UAH 8.6 billion.

Banks financed 310 MW of generation for UAH 3.4 bln

In June-October 2024, Ukrainian banks financed 310 MW of generation facilities in 21 regions of the country, the Ministry of Energy reported, citing the results of a survey of banks conducted by the National Bank of Ukraine.
“The total amount of loans actually issued for the energy needs of legal entities is UAH 3.4 billion,” the statement said.
In addition, banks are reportedly lending to households. In particular, in October, 1 thousand loans totaling UAH 176 million were granted to individuals. The total gross portfolio of loans related to the energy needs of individuals increased to UAH 366 million.
According to the NBU, from June to October 2024, banks received a total of 2,927 thousand applications from businesses for loans to install energy equipment to strengthen energy independence, totaling UAH 66.2 billion. Of these, applications for UAH 11.7 billion were approved.

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Ukraine plans to resume flights by end of January 2025

Flights at one of Ukraine’s airports, Lviv or Boryspil, will resume by the end of January 2025, Marsh McLennan Senior Partner Crispin Allison said at the 10th Kyiv International Economic Forum (KIEF) in Kyiv on Thursday.
“I think if we’re lucky, in January (2025) we’ll have five or six airlines that want to fly (from Ukraine – IF-U),” Ellison said.
According to him, it will be easier to provide insurance mechanisms for aviation if planes start flying from Lviv airport, but President Volodymyr Zelenskyy insists that Boryspil International Airport should be opened first.
“The president will hate me for saying this, because he is focused on Boryspil, but the initial focus is on Lviv. It’s a seven-minute flight from Poland,” said Marsh McLennan’s senior partner.
He noted that passenger Airbus-320s and Boeing-737s, as well as a small passenger airliner, will require insurance for at least three quarters of a billion dollars.
According to Ellison, the final decision on flights will be made by the Office of the President. It will depend on the work of air defense and the security situation.
“I keep saying that Lviv is much safer than Tel Aviv. People don’t like it when I say that, but I do,” he said.
Earlier it was reported that the Ministry of Communities and Territories Development, with the support of the US Embassy, has developed a roadmap for opening Ukraine’s airspace under martial law.
Together with Marsh McLennan and a pool of insurance companies led by ASCOT, Ukraine has implemented the UNITY ship insurance program, which allows ships to operate in the “sea corridor” from Black Sea ports. The total coverage under the program is $50 million.

TAS invests in seed plant, elevator and construction of railcar building and apple processing plants

The founder of TAS Group of Companies (TAS), Sergey Tigipko, has announced new business areas for the group: the purchase of a seed plant and elevator with a storage capacity of 40 thousand tons, and the construction of apple processing plants and a railcar building plant.
“We are buying a seed plant and an elevator with 40 thousand tons of storage. We are building a railcar manufacturing plant in Kovel for the European railroad. We are building a plant for processing apples from scratch into apple concentrate,” said Tigipko at the 10th Kyiv International Economic Forum (KIEF).
TAS Group was founded in 1998. Its business interests include the financial sector (banking and insurance segments) and pharmacy, as well as industry, real estate, and venture capital projects.
“TAS Agro, a member of the group, cultivates 83 thousand hectares in Vinnytsia, Kyiv, Kirovohrad, Chernihiv, Mykolaiv, Sumy, Kherson, and Dnipro regions, where it grows soybeans, sunflower, rapeseed, wheat, barley, and corn. In addition, the agroholding is engaged in dairy farming (up to 5.5 thousand heads of cattle) and owns six elevators with a one-time storage capacity of 250 thousand tons.

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