Business news from Ukraine

Business news from Ukraine

FOUR SHOPPING CENTERS TO BE SCHEDULED IN LVIV BY LATE 2021

Average vacancy of shopping centers in Lviv by the middle of 2019 was 2.9%, and by late 2021 it is planned that total supply of retail space would expand by 34,600 square meters thanks to the launch of four new shopping centers, UTG consulting company (Kyiv) has reported. “As of the end of the first half of 2019, there is a shortage of commercial premises in the amount of about 24,700 square meters. In the case of the implementation and commissioning of the announced promising projects in the market, there may be a surplus that will inevitably entail overflow of tenants from obsolete facilities that are losing popularity, as well as will have an impact on the growth of vacancy and the correction of rental rates downwards,” UTG analyst Oksana Havrylevych told Interfax-Ukraine.
According to her, in 2019-2021, shopping centers with a total leasable area of 35,600 square meters are declared to open, in particular: on July 25, 2019, the opening of Vernissage shopping center (1, Shevska Street, GLA is 1,000 sq. m), the Arsen shopping and entertainment center (60, Chervonoi Kalyny Avenue, GLA is 24,800 sq. m.), the Kinescope shopping center (Heroyiv UPA Street, GLA is 8,600 sq. m.), as well as a shopping and office center 11, Hospitalna Street (GLA is 1,300 sq. m.).
According to UTG estimates, by the end of the first half of 2019, two regional, six district, 16 microdistrict, 11 specialized shopping centers and 11 detached supermarkets and hypermarkets were operating in Lviv.
According to the ICSC classification, the total area of the city’s retail facilities is 390,200 square meters., which corresponds to 528,400 square meters per 1,000 inhabitants or 2,200 0 square meters per square kilometer of the total area of the city (excluding small shops, street retail, city markets, detached super- and hypermarkets).

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UKRAINE INCREASES EXPORTS OF POULTRY BY 38%

Ukraine in January-June 2019 increased exports of poultry by 38.4% compared to the same period of 2018, to 211,200 tonnes, the State Fiscal Service has reported.
At the same time, according to its data, in monetary terms exports of these products increased by 27.5%, to $307.15 million.
Imports of poultry in January-June 2019 slightly fell, to 60,500 tonnes, in monetary terms decreased 4.7%, to $24.4 million.
According to the service, in January-June 2019 pork exports decreased 7.6%, to 1,000 tonnes. This product was delivered for $2.4 million, a fall of 4.7% year-over-year.
During this period, import of pork to Ukraine grew by 32.7%, to 11,100 tonnes, in monetary terms it amounted to $20.7 million, which is 34.6% more than in January-June 2018.

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PUNCTUALITY OF UKRAINIAN AIRLINES DECREASES IN JUNE

Ukrainian airlines in June 2019 serviced 73.9% of flights of the total number of flights serviced at Ukrainian airports within the 15 minute deviation from the timetable, which is 10.5 percentage points (p.p.) worse than the figure for May 2019 (84.4%), according to a posting on the website of the Infrastructure Ministry of Ukraine.
According to the ministry, in June, Ukrainian airlines serviced 5,335 flights.
The punctuality of foreign airlines in June compared with May decreased to 77.4% from 82.8%, while the number of flights totaled 3,122.
Of the Ukrainian airlines that made more than 50 flights a month in June, Motor Sich remains the most punctual, with 93.7% and the number of flights 270.
Windrose is second with 88.6% and with the number of 642.
Punctuality of Ukraine’s largest airline in the market – Ukraine International Airlines – was 78%, while the number of flights serviced was 3,148.
The indicators in May for Bukovyna and Azur Air Ukraine were 57.8% and 50.7% with 206 and 420 flights respectively.
Alitalia, Aigle Azur, Aegean Airlines, Iraqi Airways, Bulgaria Air and Tarom were ranked the top of the June punctuality rating among foreign airlines with the 100% punctuality, the number of their flights was from three to 30 per month.
Wizz Air Hungary had the best performance among low cost airlines – 82.4% with 557 flights. Pegasus Airlines is second with 82.2% and 118 flights. The figure of Irish Ryanair was 76.5% with 272 flights.

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OFFICIAL RATES OF BANKING METALS FROM NATIONAL BANK AS OF JULY 10

Official rates of banking metals from national bank as of july 9

One troy ounce=31.10 grams

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NATIONAL BANK OF UKRAINE’S OFFICIAL RATES AS OF 10/07/19

National bank of ukraine’s official rates as of 10/07/19

Source: National Bank of Ukraine

APPLE HARVEST IN UKRAINE COULD FALL BY 30% OVER WEATHER CONDITIONS

The fruit and berry harvest in Ukraine this season could fall by 25% compared with the previous one due to unfavorable weather conditions, Chairman of the Ukrainian Association of Agrarian Export Dmytro Kroshka has said.
“The upcoming season will definitely become less fruitful compared to the previous one. We can see a 25% decline in production at industrial farms of pome, stone fruit and berry crops that are traditionally grown in Ukraine. Manufacturers complain of the rainy spring, dry summer, hail due to rapid temperature changes. There are still two months ahead, which, due to weather conditions, will be, like a lottery, for producers of pome crops,” he said at a press conference at Interfax-Ukraine.
According to Kroshka, the harvest of apples in Ukraine in the current season from industrial producers can fall by 30%.

“If in 2018 we collected 655,000 tonnes of apples of different quality and different varieties, today we expect a total harvest of 460,000 tonnes, which will definitely have an impact on the entire market and the production of derivative products,” the head of the association said.
In 2018, industrialists harvested 45,000 tonnes of stone fruit crops, this year the harvest could be about 38,000 tonnes.
“We expect a decline in the production of traditional berry crops in Ukraine due to weather and climatic conditions from 26,000 tonnes to 23,000 tonnes. At the same time, due to the start of fruiting of significant areas with blueberry, the production of this crop will be increased. Last year, we collected about 3,000 tonnes of this crop, this year we will reach 4,000 tonnes, which is significant for the Ukrainian market, and we predict that by the results of the next marketing year we will see export growth,” Kroshka said.

He said that it would be logical against this background to increase prices for the entire range of fruit and berry products made in Ukraine. The most tangible may be an increase in the price of apples, while the price of blueberries may remain stable or even decline. At the same time, the ratio of high and low quality of the harvested fruit and berry crops in the production structure remains unknown.
Kroshka also said that in the 2018/2019 season, Ukraine’s exports of apples increased 1.6 times, to 55,600 tonnes thanks to the demand for Ukrainian apples, at the same time, export of pears decreased 41%, to 434 tonnes.
Ukraine increased the export of walnut for this period by 45%, to 48,500 tonnes and this figure will continue to grow thanks to the entry into the fruiting of the nut trees, the area under which is expanding from year to year.
The head of the association said that a reduction in the export of stone fruit crops (cherry varieties, plums) is influenced by the lack of technology for presale preparation of products in terms of cooling, packaging of products. In addition, exports are constrained by undeveloped logistics for the supply of fresh stone fruit products.
“We have a serious drop in plum exports [from 8,000 tonnes to 133 tonnes]. This is due to the fact that the main market for Ukrainian plums was the EU, where last season local producers had large production volumes. Ukrainian producers were not able to compete with European and sold plums mainly in the domestic market,” Kroshka said.
According to him, the export of berry crops (strawberries, raspberries, blueberries) decreased in the season 2018/2019, which is due to the insufficient provision of presale preparation for fresh crops.

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