Business news from Ukraine

Business news from Ukraine

KOREAN POSCO AND UKRAINIAN OREXIM OPEN NEW GRAIN TERMINAL IN MYKOLAIV REGION

Posco International Corporation Korea-based Company and Ukrainian Orexim Group have officially opened a grain terminal with a total storage capacity of over 140,000 tonnes in Mykolaiv seaport.
As Orexim reported on its website, the grain terminal was built on the base of Mykolaiv Milling Works.
“By the start of work of the new grain terminal Posco plans to increase Ukrainian grain export to 3 million per year. Also, the company has in plans to create their own park of rail wagons for grain transporting,” said the Group.
As reported, in February 2019, Posco Corporation announced that it has signed an agreement with the Orexim Group from Ukraine on the acquisition of 75% of shares in the grain export terminal being built at the Mykolaiv maritime merchandise port.
Orexim Group started its activity in 2004 as a small trading company having transformed over several years of continuing successful activity into a market leader with around 1,000 employees. The group incorporates over 20 enterprises.
The core business is exports of agricultural products, port and logistics services. The company has invested over $100 million in fixed assets.
In August 2016, the group finalized a deal to acquire Mykolaiv Grain Terminal.
In February 2018, the Black Sea Trade and Development Bank (BSTDB) is providing EUR 31 million to Orexim Group to reconstruct and modernize private joint-stock company Mykolaiv Grain Terminal.

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FIRST BATCH OF INFLUENZA VACCINES PRODUCED BY SANOFI PASTEUR (FRANCE) AND GREEN CROSS CORPORATION (KOREA) ARRIVE TO UKRAINE

The first batch of influenza vaccines produced by Sanofi Pasteur (France) and Green Cross Corporation (Korea) in the amount of 103,55 dosages were delivered to Ukraine, the press service of the Public Health Center of Ukraine reported on Facebook.
According to the report, vaccines are currently at the stage of quality and safety control.
The approximate deadline for state quality control is October 1, 2019, after which the vaccines will be sold.
In general, Ukraine is to accept 500,000 of dosages of vaccines for influenza immunoprophylaxis.

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STATE-RUN UKRZALIZNYTSIA LAUNCHES THREE NEW REGULAR CONTAINER TRAINS FOR CARRYING GRAIN

PJSC Ukrzaliznytsia in September 2019 has launched three new container trains for grain transportation running on a fixed schedule from Chornomorsk-Port station (Odesa region) to Balin station (Khmelnytsky region), and from Hnivan station (Vinnytsia region) to Starokostyantynivka station (Khmelnytsky region).
This follows from the report of Ukrzaliznytsia press service as quoting company’s head Yevhen Kravtsov as saying on September 24.
The railway operator has already put 27 container trains, of which 22 are regular ones.
“Now Ukrzaliznytsia operates about 150 grain containers used to transport grain cargo from elevators to seaports. The design of these containers allows to unload grain directly onto the vessel, which significantly speeds up the transportation process, and, therefore, reduces its cost,” the press service quotes Kravtsov.
According to him, in general, from the beginning of 2019, 248,280 containers (TEU) were transported, which is 10% more than over the same period in 2018.
Besides, Kravtsov said that since the beginning of 2019, the company launched extra ten container trains, of which four are international ones.
“Such service allows reducing the turnover of rolling stock more than three times and, as a result, helps to reduce the final cost of cargo transportation by 25%,” Ukrzaliznytsia head said.

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DIGITAL TRANSFORMATION MINISTRY OF UKRAINE TO EXAMINE REAL INTERNET COVERAGE

Digital Transformation Ministry of Ukraine is going to examine a real Internet coverage of entire Ukraine and to create a respective online map, Deputy Premier and Digital Transformation Minister of Ukraine Mykhailo Fedorov reported.
“One of the ministry’s aims is within three years to provide all settlements, without exception, and their social facilities with high-speed Internet access … But a problem arose. As in all areas, so far there is no accurate and relevant analytical information in this direction in our country: what exact penetration of the Internet is now, what methodology studies this issue, what are solutions of this issue, what is the real network speed in each region/village/house,” he wrote on Facebook on Tuesday.
According to him, damage to the state from lack of information in this industry can be measured in billions. “Once money was already allocated for connecting schools to the network. As a result, tenders were won in the establishments, where ten operators have been working already. The price is also suspiciously high. Probably, a feature of the local market,” he said.
Fedorov reported that on September 24, the ministry’s team signed a memorandum with interested parties (associations, international business, the regulator, relevant deputies) who are ready to help in creating a real map of the country’s coverage with the Internet.
The deputy prime minister noted that during the meeting the parties determined the format of communication, as well as those responsible. A methodology for studying the problem is already being prepared.
“A valuable final product is an online map with real network coverage, the ability to see the situation right up to the village. Of course, with the ability to give feedback, does the speed correspond to the results of the study or not,” he said.
As reported, according to Fedorov, the introduction of 5G communications in Ukraine today is unrealistic and impractical. The initial goal of the ministry is to complete the introduction of 3G and 4G in the next year or two and provide social infrastructure and all settlements of the country with Internet within next three years.

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NEW OFFER OF WAREHOUSES IN KYIV REGION IN 2020-2021 EXPECTED TO REACH 84,000 SQ M

The volume of new supply in the warehouse and logistics real estate market in Kyiv region by the end of 2021 is expected to reach 84,000 square meters, while the initiation of new projects can be expected in case of favorable macroeconomic conditions, given the increase in rental rates. “According to developers, in 2020-2021 an additional 84,000 square meters is to be commissioned in the market, among them the second stage of the Amtel warehouse complex (52,000 square meters, Amtel-Properties developer, the location is Boyarka, T-012), Mirage-3 warehouse complex (9,000 square meters, Mirage developer, the location is Hostomel, M-07/E-373), as well as SAN Factory 2 Storage Area Network (23,000 square meters, the developer is SkyLine Development, the location is Kyiv). At the same time, despite the short term for the implementation of warehouse construction projects, the initiation of new projects can be expected in case of favorable macroeconomic conditions vii taking into account the growth in rental rates,” CBRE Ukraine forecasts in a press release.
According to the report, by the end of 2019 Unilogic Park III is expected to be commissioned (22,000 square meters, the developer is MERX Group, the location is Brovary, M-01/E-95). According to the company’s experts, this will not have a significant impact on balancing the market with a new offer.
“In connection with the improvement of the economic situation, we expect a moderate growth in the warehouse real estate market. Thus, the growth of income and the value of existing warehouses is forecasted due to the limited supply of new products over the next 18 months and, as a result, growth in rental rates, given the further development of the economy and retail. As a result of outsourcing logistics and storage processes, as well as due to the growth of e-commerce, wholesale and retail companies, as well as logistics firms remain key players in the market,” the head of the department of warehouse and logistics real estate at CBRE Ukraine, Natalia Sokyrko, said.

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CONSTRUCTION OF 70,000 SQ M OF NEW OFFICES IN UNIT.CITY WILL START NEXT YEAR

UFuture and UDP companies of businessman Vasyl Khmelnytsky in partnership with KAN Development (both based in Kyiv) plan to begin the construction of 70,000 square meters of new offices and the second phase of the UNIT.Home residential complex in the Kyiv innovative park UNIT.City in 2020.
“Currently, two office buildings are being built in UNIT.City, which will be brought to the market in the first quarter of 2020 … Next year we plan to begin the construction of 70,000 square meters of business campuses and the second phase of housing,” CEO of Unit.Holdings Kostiantyn Yevtushenko said at a presentation on launching home sales in the UNIT.Home project in Kyiv.
According to him, currently 36,000 square meters of offices have been built as part of the UNIT.City project (three business campuses). As of 2019, another 20,000 square meters of offices and 40,000 square meters of housing are under construction.
According to Ihor Nikonov, the founder of KAN Development, the UNIT.Home project is being implemented in accordance with the requirements of the international system of the green standard BREEAM (the Building Research Establishment Environmental Assessment Method). Currently, the construction of the first stage of housing with an area of 40,300 square meters is being carried out. It includes sections of houses for 580 apartments. The number of floors ranges from six to 20. The project participants plan to complete the construction of the first stage in 2022.
Nikonov said the residential part of the UNIT.City project will occupy about 20% of all areas of the innovation town. In particular, in the end, the total housing area will be 174,900 square meters, while the area of the entire park is about 850,000 square meters.
UDP and KAN Development are the co-investors and developers of the UNIT.Home project. The project management company is Unit.Holdings.
UFuture is a holding company of Ukrainian businessman Vasyl Khmelnytsky, which combines his business and social projects. It has a diversified portfolio of assets in real estate, infrastructure, industry, renewable energy, pharmaceuticals, and IT.

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