Business news from Ukraine

Business news from Ukraine

UKRAINIAN PRESIDENT MEETS WITH NEW BRITISH AMBASSADOR TO UKRAINE MELINDA SIMMONS

Ukrainian President Volodymyr Zelensky has discussed the importance of negotiations on a new agreement between Ukraine and the United Kingdom, which will guide relations after Brexit, with British Ambassador in Ukraine Melinda Simmons. The press service of the president reported that on Wednesday after accepting credentials Zelensky thanked the United Kingdom for help in conducting reforms and strengthening Ukraine’s defense during the conversation with the ambassador.
High intensity of political dialogue was noted, in particular at the level of leaders of the two countries.
“The importance of continuing negotiations on a new agreement between Ukraine and the United Kingdom, which will determine the political and economic relations between the two countries after the United Kingdom leaves the EU, was also discussed,” the press service said.
In turn, according to the British Embassy in Ukraine, Ambassador Simmons said that she is looking forward to welcoming Zelensky to the U.K. later this year to discuss Ukraine’s progress and consider how the U.K. can support the Ukrainian president further in his ambitious program for the development of Ukraine.
She said that The United Kingdom remains Ukraine’s steadfast friend and partner on your path of reforms, as well as in your efforts to defend your sovereignty, independence and territorial integrity.

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BAKER TILLY UKRAINE TO AUDIT STATE CONCERN UKROBORONPROM

Baker Tilly Ukraine LLC from the Baker Tilly international audit network, has won a tender to select an auditor of consolidated statements of the Ukroboronprom state concern.
According to the ProZorro platform, where the auction was held on Thursday, Baker Tilly initially offered UAH 29.988 million for its services, while Ernst & Young LLC, its only rival, offered UAH 32.5 million, which corresponded to the starting price, and the total price amounted to UAH 29.336 million.
“This will be the first consolidated audit of the concern in the entire history of its existence,” the Ukroboronprom said in a statement.
The state concern said that earlier international audits were carried out only at individual enterprises –members of the concern. In particular, Baker Tilly Ukraine has already conducted an independent financial audit of the state-owned company for the export and import of military and special-purpose products and services Ukrspecexport, which is the largest Ukrainian special exporter and part of the Ukroboronprom group of companies.
Ukroboronprom recalled that the search for an auditor has been ongoing since 2017 and was unlocked in the summer of 2019, when Ukrainian President Volodymyr Zelensky reshuffled the concern’s supervisory board.

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SIXTEEN UKRAINIAN HOTELS RECEIVE RATING CERTIFICATES

Sixteen hotels had received the hotel rating certificates issued by the Economic Development and Trade Ministry as of August 19, 2019. The respective information is outlined in data from the register published by the ministry on September 2. The following hotels were placed to the register: five star hotels Opera in Kyiv, California and Black Sea hotels (Odesa), Black Sea and Gold Buhaz (Hribovka of Odesa region), two four-star hotels: Black Sea in Odesa, Taor Karpaty in the village of Korotysche of Lviv region.
Seven three-star hotels, such as Reikartz Zaporizhia, Reikartz Kharkiv, Optima Rivne, Optima Cherkasy, Boryspil in the village of Hora of Kyiv region, Voskresensky in Sumy, Bon Hotel in Dnipro, one two-star Airport hotel in Boryspil and two one-star hotels, received respective certificates.
As reported, the assignment of stars to hotels was suspended on January 1, 2018 due to the termination of the certification authority UkrSEPRO.
Under the decree of the Cabinet of Ministers, the agencies, which are accredited by the National Accreditation Agency of Ukraine, are authorized to issue certificates to the hotels.

EBRD TO FINANCE UKRZALIZNYTSIA’S INFRASTRUCTURE PROJECT VIA BUYING OF EUROBONDS WORTH $100 MLN

The European Bank for Reconstruction and Development (EBRD) will finance the modernization of infrastructure of JSC Ukrzaliznytsia via the purchase of eurobonds worth almost $100 million, Ukrzaliznytsia Board Chairman Yevhen Kravtsov wrote on his Facebook page. “Today we signed the framework agreement: the EBRD finances the Ukrzaliznytsia infrastructure project via an additional issue of eurobonds. We received up to $100 million exclusively for infrastructure modernization. Against the background of permanent headline-grabbing tenders for the purchase of anchoring beams, switches this is a signal to the market: tenders will be held in accordance with EBRD rules,” Kravtsov wrote.
He said that the funds raised will go exclusively for the purchase of materials. Ukrzaliznytsia will carry out the work on its own.
The head of Ukrzaliznytsia recalled that over the past two years, the company’s attention has been focused on updating the rolling stock and locomotive fleet.
“Now it is the turn of the railroad track. Firstly, it is safety, secondly, we will increase the throughput, and thirdly, it is a possibility of increasing speed in some sections for both freight and passenger trains, thereby reducing energy-consuming stops,” Kravtsov said.
He also thanked the EBRD and the new Cabinet of Ministers team for helping to implement this agreement.

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HUNGARY’S LOW-COSTER WIZZ AIR TO LAUNCH FLIGHTS FROM KHARKIV, LVIV TO BUDAPEST

Hungary’s low-cost airline Wizz Air has announced its plans in June 2020 to launch direct flights from Kharkiv and Lviv to Budapest (Hungary). According to a posting on the official page of the airline in the Facebook social network, the possibility of servicing the respective flights will appear thanks to the allocation of another state-of-the-art Airbus A321neo aircraft at the airline’s base in Budapest.
From Kharkiv the flights will be launched on June 1, 2020. According to a posting on the Kharkiv International Airport in the Facebook social network, they will be performed on Mondays and Fridays. The fare starts from UAH 289 (without luggage).
The launch of the flights from Lviv is scheduled for June 3, 2020. They will be performed on Wednesdays and Sundays. The fare starts from UAH 289 (without luggage), according to a posting on the Facebook page of the Lviv International Airport.

JYSK FROM DENMARK PLANS TO BOOST SALES IN UKRAINE

Jysk Ukraine LLC (Kyiv), developing the JYSK furniture and household goods store chain of Jysk Group (Denmark), plans next fiscal year (September 1, 2019 – August 31, 2020) to boost sales in Ukraine by 20% compared with the previous year figure. “We plan sales growth in the next fiscal year by 20% thanks to better service, better range of products choice and prices. In this case, we are talking only about growth in comparative stores. Plus, there is a plan to open 12 new stores,” Jysk Executive Director Yevhen Ivanitsa told Interfax-Ukraine.
According to him, the net sales growth (for comparative stores) of the network in Ukraine in 2018/2019 fiscal year amounted to 23.6%. In general, according to the results of the year, the gross increase in the network’s turnover amounted to more than 45%, being more than UAH 2 billion. Payment of taxes grew by a third, to UAH 200 million.
According to Jysk, last year the network expanded by 12 outlets and now has 54 stores in 25 cities of Ukraine.