Business news from Ukraine

Business news from Ukraine

UKRAINIAN ELECTIONS COMMISSION PROCESSES 99.9% OF E-PROTOCOLS

After the Ukrainian Central Elections Commission (CEC) has processed 99.9% of electronic protocols, the Servant of the People Party gained 43.16% of the vote, the Opposition Platform – For Life Party – 13.04%, the Batkivschyna party – 8.18%, the European Solidarity Party – 8.1%, and the Holos (Voice) Party – 5.82% and won seats on the Verkhovna Rada of the 9th convocation on the party lists.
The Radical Party with 4.01%, the Strength and Honor Party with 3.82%, the Opposition Bloc with 3.03%, Groysman’s Ukrainian Strategy with 2.41% failed to overcome a 5% electoral threshold, the CEC website published its data as of 13:00 on Thursday, July 25.
The Party of Sharij received 2.23% of the vote, Svoboda 2.15%, Civil Position 1.04%.
Parties gaining less than 1% of the vote are the Party of Greens of Ukraine (0.66%) and Samopomich (0.62%).
The snap election to the Verkhovna Rada was held on July 21.

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PEUGEOT CITROEN OPENS ONE MORE DEALER CENTER IN UKRAINE

Peugeot Citroen Ukraine, the official importer of PSA Group in Ukraine, which has been managing the sales and service of Opel in Ukraine since January 1, 2019, as part of the renewal of its dealer network has opened six new dealer centers since the start of 2019: in Kyiv, Zaporizhia, Lviv, Kharkiv, Khmelnytsky, and Dnipro.
According to the press service of the company, at the beginning of summer the Opel Autohaus VIPOS dealer center opened near the center of Kyiv. The salon is designed for ten cars. There is also a service station with 14 posts for car maintenance/repair, a body repair shop and painting works will be organized.
In addition, the Opel Autocentre on Stolychne dealer center opened in the capital in April (as part of the UkrAVTO auto city), which has now become a large car dealer center with an exposition of ten cars and a service station with an area of 2,400 square meters with 24 lifts and the ability to serve up to 60 cars per day. The automobile center works with clients from the capital and the nearest cities and towns, namely Obukhiv, Vasylkiv, and Ukrainka.

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NEW CINEMA OF PLANETA KINO NETWORK TO OPEN IN KYIV’S RIVER MALL TRADE CENTER

The opening of a new cinema of the Planeta Kino network in the River Mall shopping and entertainment center on Dniprovska Embankment in Kyiv is scheduled for August 1, Dmytro Derkach, the co-owner of the chain, said on Facebook. “Many of you ask me when is the opening in River Mall. Now I can answer – in a week, on August 1 (if no force majeure happens). Our cinema and the entire mall were ready to open for almost a month, but state agencies did not issue the necessary documents. Yesterday we received everything,” Derkach said.
He told Interfax-Ukraine the cinema will be the first facility to open in River Mall. “Most likely, we will be the only one who will open in the mall, stores will open from August 8,” he said.
Triumph Media Group LLC is developing the Planeta Kino network of cinemas. According to the unified state register, the owner of the company is Moviemax Limited (Cyprus), the ultimate beneficiaries are Dmytro Derkach and Andriy Shpyh. The charter capital is UAH 43 million.
The Planeta Kino network as of July-2019 had seven cinemas in Kyiv, Odesa, Lviv, Kharkiv, and Sumy. This year it is planned to open new cinemas in the Apollo shopping center (Dnipro), the River Mall shopping center and the Ocean Mall trade center (Kyiv).

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PRESIDENT OF UKRAINE ACCEPTS CREDENTIALS FROM AMBASSADORS OF GERMANY, FINLAND, KOREA, SOUTH AFRICAN REPUBLIC, SLOVENIA

President of Ukraine accepted credentials from ambassadors of a number of foreign states: the Republic of Korea – Chang-Kwon Chi, the South African Republic – Andre Johannes Groenewald, the Republic of Slovenia – Tomaz Menzin, the Federal Republic of Germany – Anka Feldhusen, the Republic of Finland – Päivi Maarit Laine. During the conversation with Ambassador of the Republic of Korea to Ukraine Chang-Kwon Chi, the parties discussed issues of strengthening political dialogue at the highest level between Ukraine and South Korea as well as prospects of trade, economic and investment cooperation, the presidential press service said on Wednesday.
“The issue of introducing a visa-free regime for Ukrainian citizens was discussed, which would facilitate the development of interpersonal contacts,” it says.
The president invited President of the Republic of Korea Mun Zhe Ying to visit Ukraine.
During the conversation with new Ambassador of the South African Republic to Ukraine Andre Johannes Groenewald, the president of Ukraine emphasized the importance of strengthening political dialogue.
According to Zelensky, Ukraine considers the South African Republic as a prospective partner in Africa and is focused on more intensive cooperation in all spheres.
“Special attention was paid to the discussion of trade and economic cooperation, in particular prospects of Ukrainian-South African business forum which would be held this year,” the message reads.
President of Ukraine spoke out about the establishment of closer and constructive bilateral cooperation between Ukraine and the Republic of South Africa within the framework of its non-permanent membership in the United Nations Security Council.
The president of Ukraine also invited President of the Republic of South Africa Matamela Cyril Ramaphosa to visit Ukraine in the framework of the official visit.
The president thanked Ambassador of the Republic of Finland to Ukraine Päivi Maarit Laine for consistent support of the territorial integrity and sovereignty of Ukraine, as well as the substantial humanitarian and expert assistance provided by Helsinki to Ukraine at the bilateral level. Particular attention was paid to the practical assistance provided by Finland in implementing systemic reforms, in particular in the field of school education and energy efficiency.
During the conversation with Ambassador of the Republic of Slovenia to Ukraine Tomaz Menzin the president of Ukraine thanked Slove nia for the consistent political support of the territorial integrity and sovereignty of Ukraine. Zelensky appreciated the assistance of Slovenia in promoting the rehabilitation of 400 children from Ukraine whose parents had died as a result of Russian aggression.
During the conversation with Ambassador of the Federal Republic of Germany Anka Feldhusen the head of state thanked the German side for the continued support of Ukraine in countering Russian aggression, as well as substantial financial and technical assistance to facilitate the process of structural reforms in Ukraine.
“During the meeting, the main focus was on discussing the security situation in Donbas and a set of further steps to revitalize the peace process. The importance of continuing international pressure on the Russian Federation to ensure its implementation of the decision of the International Tribunal for the Law of the Sea was emphasized,” the presidential website says.
President of Ukraine also expressed hopes for the preservation of the traditionally active political dialogue at the highest level in the future.
In addition, the parties discussed the issue of involving German business representatives to work in Ukraine and the creation of joint enterprises.

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RENEWABLE ENERGY ASSOCIATIONS APPEAL TO UKRAINIAN PRESIDENT FOR HELPING IN DEVELOPMENT OF RENEWABLE ENERGY INDUSTRY

The Bioenergy Association of Ukraine (BAU), together with the associations uniting the leading producers of electricity from renewable energy sources, have addressed President of Ukraine Volodymyr Zelensky regarding the situation with the payment for purchased electricity from alternative sources at a feed-in tariff. According to the press service of the BAU, the decisions of the Kyiv District Administrative Court to suspend the decisions of the National Commission for Energy, Housing and Utilities Services Regulation (NCER), which set tariffs for electricity transmission for Ukrenergo, will lead to non-payments to producers of electricity from renewable sources.
The letter also emphasizes that the decision of the Kyiv District Administrative Court to satisfy the claim of Nikopol Ferroalloy Plant to secure the claim against the NCER will lead to a halt in building new renewable energy facilities, a failure to comply with the obligations to financial institutions. In addition, it will damage the investment attractiveness of Ukraine and freeze the development of the renewable energy industry.
“We are asking to support the strategic development of the renewable energy industry in Ukraine and prevent the deterioration of the investment climate due to the violation of the guarantees provided by the state,” the letter reads.

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FERREXPO INCREASES INVESTMENTS IN UKRAINE BY 71%, IN Q1, 2019

British-based Ferrexpo plc in January-March 2019 invested UAH 1.3 billion (over $47.5 million) in the development of Poltava, Yeristovo and Belanovo mining and processing plants (GOK) it controls, which is 73.6% more than the investments for the same period in 2018 in the hryvnia (over UAH 748.9 million) and 71% in U.S. dollars (over $27.8 million).
According to the investment program approved by the board of directors, Ferrexpo Group for January-March 2019 invested more than UAH 855 million, or more than $31.4 million, in Poltava GOK (Ferrexpo Poltava Mining), over UAH 438.3 million, or more than $16.1 million in the development of Yeristovo and Belanovo GOKs (Ferrexpo Yeristovo Mining, Ferrexpo Belanovo Mining).
The main capital investments of PGOK were the costs of supporting existing production in the amount of over UAH 209 million, or more than $5 million and large strategic projects worth over UAH 272 million, or more than $16.3 million, components worth over UAH 373 million, or more than $10 million.
The funds of YeGOK and BGOK were invested in processing, the development of railway tracks and objects, in projects for capital construction of infrastructure, quarrying, geological and other work.

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