Business news from Ukraine

Business news from Ukraine

UKRAINE AT FINAL STAGE OF NEGOTIATIONS WITH MAJOR AIRLINES ON CREATION OF NATIONAL AIR CARRIER

Ukraine is currently at the final stage of negotiations with major partner airlines in an effort to create a national air carrier, Deputy Head of the President’s Office Kyrylo Tymoshenko has said.
“As for the airline, this is not only the president’s dream. We are at the final stage of negotiations with some large airlines, with which we are planning a national air carrier together, because they have experience,” he said on the Ukraine 24 TV channel on Thursday.
Speaking about the development of the airport network, Tymoshenko said that regional hubs have been added to the Big Construction Project: Zakarpattia, Chernivtsi, Rivne, Poltava, Kryvy Rih, construction is also underway in the city of Dnipro.
“Yes, the construction of the airport in Dnipro is not proceeding at the pace that we would like, and not the way the locals want, but today we promised that in a few months you will see the construction of the runway at a greater speed,” he said.
Earlier, in February of this year, Tymoshenko expressed hope that work on the creation of the state air carrier would be completed in 2021.
Former Infrastructure Minister Vladyslav Krykliy said in an interview with Interfax-Ukraine that the concept of the state airline is based on the aircraft of the state aircraft building enterprise Antonov. Tymoshenko also said that this year it is planned to increase the state budget thanks to its filling with funds from transit air traffic, which, in turn, will be increased by transit in the sky of Ukraine by European air carriers.

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LAUNCH OF DIGITAL COVID CERTIFICATES SCHEDULED FOR JULY

The launch of digital COVID certificates is scheduled for early July, Prime Minister of Ukraine Denys Shmyhal said.
“As for COVID passports or COVID certificates. The European Union is in the final stage of agreeing on such passports. Its presence will be a prerequisite for traveling in Europe, and therefore Ukraine is acting synchronized with European partners. The launch of our digital certificates is scheduled for early July,” said Shmyhal at a government meeting on Wednesday. The prime minister stressed that these certificates would be valid in Europe.

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UKRAINE WANTS TO INCREASE STATE AID FOR CHILDBIRTH

The Cabinet of Ministers of Ukraine proposes to the Verkhovna Rada to increase the amount of state aid paid to citizens at the birth of a child by UAH 8,720 up to UAH 50,000 from January 1, 2022. The corresponding draft law was approved at a government meeting on Wednesday. According to the proposed procedure, the payment of 25% of the assistance will be carried out once, and the rest of the amount over the next 36 months in equal parts.
In addition, it is assumed that from January 1, 2023 and thereafter, from January 1, this assistance will increase annually by the projected growth rate of the consumer price index.
If this law is adopted, the amount of assistance for adoption will also increase, since this assistance is provided in the amount established for payments of assistance at birth.

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NEW UKRAINIAN AIRLINE BEES AIRLINE PLANS TO LAUNCH FLIGHTS FROM KIEV TO SAMARKAND (UZBEKISTAN)

The new Ukrainian airline Bees Airline intends to operate flights from Kyiv to Samarkand (Uzbekistan) from July 2021.
As reported on the website of the State Aviation Service of Ukraine, the company’s application will be considered by the regulator’s commission at a meeting on Thursday.
At the meeting, the State Aviation Service Commission will also consider the application of Bees Airline on granting it the right to operate the Kyiv-Helsinki-Kyiv air line from June this year.
In addition, the issue of canceling the right of Ukraine International Airlines (UIA) to operate the Odesa – Baku (Azerbaijan) – Odesa line and granting SkyUp the right to this line will be considered.
In addition, the issue of granting SkyUp the right to operate the Kyiv – Dalaman (Turkey) – Kyiv and Lviv – Bodrum (Turkey) – Lviv lines and Azur Air Ukraine the right to operate the Kyiv – Istanbul – Kyiv flights will be considered.

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HOUSING PRICES MAY GROW IN UKRAINIAN CAPITAL BY 15-20% IN 2021

The average price of apartments in the primary housing market of Kyiv may grow by 15-20% and reach $1,300 per square meter already in 2021, and by the end of 2023 it may reach $2,000 per square meter, Director General of Kovalska Group Serhiy Pylypenko has said.
“The trend continues, and this year we expect housing prices to rise no lower than last year by 15-20%. This is the minimum level of increase. The market is very active, not overheated, demand is stable. Amid rising prices for construction materials, inflationary processes, lower interest rates, affordable mortgages and other factors, we expect a rise in prices. My expectations: already this year, the average price in Kyiv may reach $1,300 per square meter, and by the end of 2023 – already $2,000 per square meter,” Pylypenko said during the discussion panel “Post-Quarantine Development” hosted by the Confederation of Builders of Ukraine in Kyiv on Wednesday.
According to him, the growing shortage of high-quality land sites for construction in the Ukrainian capital also influences the rise in housing prices.
“The old General Plan has lost its relevance, the new one has not yet been adopted, so in the next one or two years it will not be easy to find a site which is intended for residential construction, and this will create a certain shortage of sites for future development, which will also influence the rise in prices,” he said.
In addition, the expert predicts an increase in prices for construction materials on average within 15-20% during the year. According to him, this trend forces developers to take this into account at different phases of the construction.
“All developers have experienced an increase in the cost of basic construction materials, in particular metal, which has grown by 30-40%, and other materials are also growing in price. This year, I expect that the prices for basic construction materials and construction costs may rise by 15-20%. This should to be taken into account in pricing,” he said.
According to the forecast of Pylypenko, the rise in housing prices will lead to an enlargement of the development market and displace unreliable developers.
Kovalska industrial and construction group has been operating in the construction market of Ukraine since 1956. It is a leading manufacturer of construction materials, developer and builder of the country.

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