Business news from Ukraine

Business news from Ukraine

ZELENSKY ORDERS TO COMPLETE NEW AIRPORT TERMINAL IN ZAPORIZHIA

The construction of a new terminal of Zaporizhia Airport should be completed in December 2019 to handle flights of Dnipro Airport during the reconstruction of the latter. President Volodymyr Zelensky set the task when visiting the terminal construction site, the president’s official website said.
The terminal is designed to receive 1 million passengers per year.
According to Zaporizhia Mayor Volodymyr Buriak, the airport has more than UAH 50 million in net profit.

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77% RUSSIANS POSITIVE ABOUT UKRAINE, 21% NEGATIVE – POLL

More than three quarters of Russians (77%) are positive about Ukraine, according to the results of a Russian Public Opinion Research Center (VCOIM) survey seen by Interfax. According to the poll, 12% of respondents said their attitude to Ukraine is very good, while 56% said they feel generally good about Ukraine.
As many as 21% of the poll’s respondents are negative about Ukraine, 9% are very negative about it, and 12% are generally negative about it.
The survey shows that 30% of the respondents consider Ukraine to be a fraternal country, 28% consider it just a neighbor, and 8% of the respondents see Ukraine as a country friendly to Russia.
Twelve percent of respondents believe Ukraine is a source of threat to Russia, while nine percent see Ukraine as a hostile country.
The sociologists said that there are more things between residents of Russia and Ukraine that divide them (48%). Thirty-six percent of the respondents believe there are more things between the people of the two countries that unite them.
The poll was conducted on June 20, 2019. It surveyed 1,600 respondents aged 18 and older.

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ANNUAL PAYMENTS FOR ELECTRICITY FROM RENEWABLE SOURCES ON FEED-IN TARIFF IN UKRAINE COULD EXCEED EUR 1.3 BLN OVER NEXT 10 YEARS

Annual production of electricity from renewable energy sources, taking into account objects commissioned until 2020, will exceed 7.5 billion kWh, while annual payments for energy resources at feed-in tariffs will be EUR1.3 billion, according to the presentation posted on the website of the Ministry of Energy and Coal Industry.
It is reported that by the end of 2019 some 2.7 GW of renewable energy capacity will be additionally commissioned. Taking into account ‘green’ capacities put into operation by 2021, annual payments could amount to about EUR 1.8 billion, which corresponds to the payments made by Energoatom for 55% of electricity it generates (in 2018 prices).
The ministry said, with reference to the calculations of Ukrenergo, that additional costs to cover unbalances in the power system, which will arise due to the difficult predictability of alternative generation, could amount to EUR 300-900 million (depending on the price in the balancing market).
According to the ministry, in 2018, the total amount paid to producers of electricity from renewable energy sources on feed-in tariffs was EUR 560 million (including VAT), which corresponds to 7.9% of the total cost of electricity generated in the country with the share of sales being 1.9%

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UKRAINIAN PARLIAMENTARY ELECTIONS WON’T AFFECT HRYVNIA EXCHANGE RATE

Parliamentary elections in Ukraine will not affect the hryvnia exchange rate, Governor of the National Bank of Ukraine Yakiv Smolii has said. “Double elections did indeed carry some risk expectations in the financial markets, but this absolutely did not affect the exchange rate in any way. It was formed by demand and supply and continues to do so now. The strengthening of the hryvnia was caused primarily by the factors of favorable conditions for our exports, as well as the inflow [of funds] of foreign investors in domestic government securities, which led to an increase in currency supply in the market and, consequently, to the strengthening of the hryvnia,” Smolii said at a press briefing.

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RENAULT PLANS TO KEEP 15% SHARE OF UKRAINIAN CAR MARKET IN 2019

The sales of Renault cars, the leader of the Ukrainian market of passenger cars and light commercial vehicles, increased by 35% in January-June this year compared to the same period of 2018, to 6,600 units, while the market during this period grew by 0.2%, to 42,600 units, Director General of Renault Ukraine LLC Francois Marriott has said.
“Renault’s share of the passenger and commercial auto market has grown to 15.5% compared with 11.5% in the first half of last year, and we want to keep these rates until the end of this year. We are confident that we will be able to remain the market leader for the fifth year in a row [in 2018 the share was 12.5%],” he said at a press conference in Kyiv.
At the same time, he stressed that the Ukrainian market of new cars today is in a state of stagnation, and the main reason for this is a significant increase in registrations of used cars. He said Renault had the best dynamics of market share growth among all car brands.
The expert noted that the company’s forecast for the market of new passenger and commercial cars for the current year is 90,000 units (in 2018 some 87,000 cars).
“If to analyze the situation for 2018 and the six months of this year, then for one sold new car there are three registered used imported vehicles, which are unsafe on the roads and do not meet environmental standards,” he said.

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UKRAINIAN LOW-COST CARRIER SKYUP CARRIES 668,500 PASSENGERS IN H1

Ukrainian low-cost carrier SkyUp Airlines (Kyiv) in January-June 2019 carried 668,500 passengers, including 484,900 (72%) transported on charter flights and 183,700 (28%) – on regular. The airline currently operates flights to 47 destinations, the company’s press service told Interfax-Ukraine. Among them, 31 destinations are regular routes and 16 are charter flights.
The most popular destinations of regular flights for the six months of 2019 were: Barcelona (Spain), Tbilisi, Batumi (both in Georgia), Alicante (Spain), Larnaca (Cyprus).
Popular charter flights were Sharm el-Sheikh, Hurghada, Marsa Alam (all in Egypt), Antalya (Turkey), Monastir (Tunisia).

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