Business news from Ukraine

Business news from Ukraine

DTEK PLANS TO IMPORT ELECTRICITY FROM EUROPE

DTEK intends to begin importing electricity from Europe within the Burshtyn Energy Island in July 2019, according to the Facebook page of D.TRADING.
“Our company also plans to start importing electricity as early as July with the further active development of this direction of business in the coming months,” Dmytro Maliar, the director for the D.TRADING energy portfolio management, said.
According to him, imports in the new market will allow increasing the level of competition.
Earlier, on July 1, ERU Trading LLC announced the implementation of test imports of electricity from Slovakia and Hungary within the Burshtyn Energy Island.
D.TRADING conducts wholesale trade in electricity, natural gas and coal in the domestic and foreign energy markets.

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UKRGAZVYDOBUVANNIA OPENS TWO NEW FIELDS

JSC Ukrgazvydobuvannia in June 2019 opened new fields in Kharkiv and Poltava regions.
According to the press service of the company, in particular, in Kharkiv region, after testing an exploratory well with a depth of over 3,700 meters, an oil inflow was obtained. Oil resources in the field are about 130,000 tonnes.
In Poltava region, after drilling the first exploratory well with a depth of 6,300 meters, an industrial gas flow was obtained. The resources of the open gas condensate field exceed 2.7 billion cubic meters of gas.
“Ukrgazvydobuvannia significantly intensified exploration work, in particular, seismic exploration in all promising areas of the subsurface, which made it possible to open eight new fields in the last three years, six of which in 2018,” the company said.
As reported, Ukrgazvydobuvannia in 2018 increased gas production by 1.2% (by 176.2 million cubic meters) compared to 2017, to 15.420 billion cubic meters. The company’s share in total production in Ukraine in 2018 was 73.8%.

REVENUES OF UKRAINIAN POPULATION IN JAN-MARCH 2019 AMOUNTES TO UAH 803.4 BLN

The revenues of the population of Ukraine in January-March 2019 amounted to UAH 803.4 billion, expenses some UAH 852.4 billion, while savings decreased by UAH 49 billion, the State Statistics Service has reported.
According to the agency, in January-March 2019 compared with the same period in 2018, the nominal income of the population increased by 15.5%.
According to the report, real disposable income, determined by the price factor, grew by 7.7% in the first quarter of 2019 compared to the same period of 2018
Disposable income per capita for the first three months of the current year amounted to UAH 14,398, which is UAH 3,028 more than in the same period of 2018.
Expenditures of the population in the first quarter of 2019 compared to the same period of the previous year rose by 20.8%

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DANISH COMPANY CLAIMS POSSIBLE LOSS OF $300,000 OVER LAND CONFLICT WITH UKRAINIAN GORODOK-AGRO

DFU Agro LLC (Hrozyne, Zhytomyr region, belongs to Danish Berry Farm) has claimed a possible loss of $100,000-300,000 if the company loses its harvest over the land conflict with Gorodok-Agro LLC (Malyn, Zhytomyr region), DFU Agro Director Vadym Shestakov said at a press conference at Interfax-Ukraine on Tuesday. According to him, the company since 2014 has been processing 1,200 hectares of land in Zhytomyr region on the basis of an agreement with the village councils on the management of the heritage. In November 2018, Gorodok-Agro rented several parcels of land, including 250 hectares, which remained in the use of DFU Agro (until 2018, this was impossible due to legislation). DFU Agro sowed this land with winter rape and rye before it was rented to Gorodok-Agro in August-September-2018. Now Gorodok-Agro claims to harvests from this area.

“We offered the company a similar area (250 hectares) of cultivated land, but they, using an ultimatum, suggested that we sell the rest of our land in these territories. In May 2019, we appealed to the anti-raider committee. In June, most of the committee members expressed the opinion that Gorodok-Agro has no right to harvest, but has the right to compensation,” the director of DFU Agro said.
He said that DFU Agro agrees with the compensation, but it has not yet been possible to agree on the terms of compensation.
“Our losses, if the opponent takes our harvest, will amount to $100,000-300,000. We are ready to harvest the crop and transfer it to a third party for safekeeping,” Shestakov said.
DFU Agro LLC is controlled by the Danish company Berry Farm, which is the owner of Dan-Farm Ukraine LLC (Khalcha, Kyiv region), one of the largest pig breeding enterprises in Ukraine. The charter capital of DFU Agro is UAH 63.7 million.

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CHANGES IN CURRENCY EXCHANGE, UAH/RUB, 02.05.19.-27.06.19

Changes in currency exchange, uah/rub, 02.05.19.-27.06.19

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ASTARTA INVESTS $19.2 MLN IN GRAIN ELEVATOR IN POLTAVA REGION

Astarta agricultural holding in July 2019 started accepting grain at Semenivsky elevator (Poltava region) with a capacity of 120,000 tonnes and investments of $19.2 million, the press service of the holding has said. According to the report, this elevator is the largest one in Astarta’s structure. It is designed to accept grain from the agricultural holding’s farms and from partners.
The construction of the elevator lasted nine months, it can ship over 54 wagons of grain per day. According to the company, Astarta has seven grain elevators in Poltava, Vinnytsia and Khmelnytsky regions with a total capacity of 550,000 tonnes of grain. As reported, in March 2019 Astarta bought an elevator in Khmelnytsky region for EUR4.6 million.
Astarta after three years of profitable work in 2018 received a net loss of EUR21.11 million. Its revenue decreased by 18.8%, to EUR372.22 million, EBITDA by 2.1 times, to EUR56.87 million.

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