Business news from Ukraine

Business news from Ukraine

UKRAINIAN DTEK BUYS 73,000 TONNES OF COLUMBIAN COAL FOR THERMAL POWER PLANTS

DTEK Energo has bought 73,000 tonnes of coal from a gas group from Columbia.
According to the company’s press release, in Yuzhny port in Odesa region W-Ace dry bulk carrier has already been disembarked, after which coal will move to DTEK thermal power plants (TPP).
As DTEK Energo Director General Dmytro Sakharuk said, Ukraine will face peak loads in October, so for the successful completion of the heating season the holding is steadily increasing coal reserves in the warehouses of its TPPs.
In total, DTEK contracted five bulk carriers with coal from Columbia. Three have already arrived in Ukraine, one more is expected next week, and the last will arrive in October.
As reported, as of September 20 DTEK already prepared 756,000 tonnes of coal in the warehouses of its TPPs.

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LAW ON FINANCING ROAD INDUSTRY OF UKRAINE IS SIGNED

President of Ukraine Volodymyr Zelensky has signed a bill No. 54-IX “On amendments into some legislative acts of Ukraine on the certain issues of implementation of the overall weight control,” which was adopted by the Verkhovna Rada on September 11, 2019, into law. “The document is meant to prevent premature destruction of the roads by overloaded vehicles, to reduce the cost of budget funds for their restoration, as well as to increase the level of road safety. It makes amendments to the Code of Ukraine on Administrative Offenses, the laws on sources of financing of the road facilities of Ukraine and on road transport,” a Press Office of the President reported.
According to the document, a violation of the rules for driving large and heavy vehicles on roads, streets or level crossings is punished by a fine of 500 tax-free minimum incomes of citizens if the overall weight and weight standards are exceeded by 5-10%. If these standards are exceeded by 10-20%, a fine in a sum of 1,000 non-taxable minimum incomes of citizens is imposed. Exceeding the overall weight and weight standards by more than 20% provides for a fine of 2,000 tax-free minimum incomes of citizens.
In addition, the head of state signed bill No. 74-IX “On amendments to the Budget Code of Ukraine regarding the sources that set up the state road fund,” which was adopted by parliament on September 12, into law.
According to law, Budget Code of Ukraine envisages transfer to the state road fund of 50% of revenues from administrative fines for violation of the legislation on road transport if exceeding the overall weight and weight norms stipulated by legislation and 50% of revenues of administrative fines for violation of the rules for movements of bulky and heavy vehicles on roads, streets or level crossings.
The President’s Office noted that the entry into force of the law would allow raising additional resources to finance the road industry and introducing measures to ensure road safety.

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DTEK OIL&GAS ACCUMULATES MAJORITY STOCK HOLDING OF DTEK KYIV ELECTROMEREZHI

DTEK Oil&Gas B.V. has acquired shares of PrJSC DTEK Kyiv Electromerezhi in an amount of 4.000395% of a charter capital and jointly with the affiliated persons became an owner of a majority stock holding of this enterprise in an amount of 97.936969% of a charter capital or 106.129 million shares.
“The highest share price at which the company or its affiliates acquired shares of the company during the 12 months, preceding the acquisition date of the majority stock holding taking into account the date of acquisition, is UAH 9.31 (at a face value of UAH 0.2),” DTEK Oil&Gas B.V. reported.
According to the new ownership structure, DTEK B.V. owns 72.934662%, Ornex Limited – 20.999605%, DTEK Oil & Gas B.V. – 4,000395% and Oil & Gas Overseas Trading B.V. – 0.002307%.
DTEK Kyiv Electromerezhi is a part of DTEK Networks (established in 2018) that deals with electricity distribution and that includes another six enterprises: DTEK Dnipro Grids, DTEK Donetsk Grids, DTEK Grid Transmission Systems, and DTEK ENE Energovuhillia, Kyivoblenergo and Odesaoblenergo. The company provides services for 5.4 million housing entities and 150,000 enterprises.

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UKRAINIAN PRESIDENT ZELENSKY ARRIVES IN UNITED STATES

Ukrainian President Volodymyr Zelensky has arrived in the United States to participate in the 74th session of the UN General Assembly (UNGA) in New York, the press service of the Office of the President reported in the Telegram channel.
“Zelensky will deliver a speech during the general debate of the UN General Assembly, and will also take part in the Sustainable Development Goals Summit,” the press service said.
In New York, Zelensky will hold a series of bilateral meetings with foreign leaders, including with U.S. President Donald Trump.
In addition, during the visit, the head of the Ukrainian state will meet with leaders of the Ukrainian community in the United States, as well as with representatives of American business circles.

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VOLUME OF CONSTRUCTION WORK IN UKRAINE 8.9% UP

The volume of construction work in Ukraine in August 2019 increased by 8.9% compared to August 2018, while in July 2019 from July 2018 this figure rose by 14.5%.
According to the State Statistics Service, the data are given excluding the occupied territory of Crimea and Donetsk and Luhansk regions.
According to the statistics agency, the volume of construction work in August 2019 decreased by 11.5% compared with August 2019, while this figure grew by 3.3% compared to June 2019.
According to the State Statistics Service, in August 2019 compared with August 2018, the volume of work increased in nonresidential and engineering construction. According to the unadjusted data, the growth in nonresidential construction was 21.8%, and in engineering some 10.4%. The decline in in residential construction was 11.5%.
In addition, the service said that in August, the volume of work in construction of residential buildings compared with July decreased by 27.8%, engineering structures by 11.9%, and nonresidential increased by 2.4%.
In January-August 2019 compared with January-August 2018, the drop in the volume of construction work was recorded in three regions of Ukraine, in particular, in Ivano-Frankivsk (9.7%, to UAH 1.767 billion), Cherkasy (by 0.8%, to UAH 1.054 billion) and Odesa (by 8.8%, to UAH 9.31 billion).
The largest growth in the volume of construction works during the eight months of 2019 was recorded in Vinnytsia (2.1 times, to UAH 4.805 billion), Chernihiv (1.68 times, to UAH 1.026 billion), and Kherson regions (1.45 times, to UAH 1.132 billion).
In Kyiv, the volume of construction work over the eight months of this year increased by 24.7% and amounted to UAH 23.084 billion.

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UKRAINE INTERESTED IN COOPERATION WITH JAPAN IN IT SPHERE – PM

Ukraine is interested in cooperation with Japan in the sphere of IT, the press service of the government has reported after a meeting of Ukrainian Prime Minister Oleksiy Honcharuk with a Japanese delegation.
“During the meeting, the issue of possible cooperation in the field of information technology was discussed,” the press service said.
The head of the Japan-Ukraine Parliamentary Friendship League Eisuke Mori said that the IT vector could be the impetus for the development of Ukraine.
In turn, Honcharuk added that today, the IT industry is one of the most progressive in Ukraine. “One of the priorities of our government is the development of IT. We would be glad to consider the opportunity of sharing experience with you,” the prime minister said.
In addition, Honcharuk said that Ukraine plans to invest in projects in the exclusion zone of the Chornobyl nuclear power plant and will be glad if Japan becomes a partner in this matter. In this regard, Mori said that the safety associated with nuclear energy should be one of the key areas of bilateral cooperation.

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