Business news from Ukraine

Business news from Ukraine

KYIVSTAR MOBILE OPERATOR PLANS TO PROVIDE ACCESS TO 4G FOR 75% OF UKRAINIAN POPULATION IN 2019

The Kyivstar mobile communications operator plans in 2019 to expand the 4G (LTE) mobile communication network, covering the territory of Ukraine where 75% of Ukrainian population lives, President of Kyivstar Alexander Komarov told reporters in Lviv on Saturday. “We invest a lot in expanding coverage, but we invest even more in coverage capacity in order to support the growing consumption trend,” he said.
Komarov recalled that in 2018, Kyivstar invested UAH 8.3 billion in the purchase of new frequencies and the construction of a network. “We covered 68% of the population in a year with LTE services. Our goal is 75% of the LTE population this year,” he said. The president of Kyivstar also said that in Lviv, the operator had begun a program on placing micro-sites (base towers) on city lighting and electric transport pylons in order to improve network coverage and capacity. “It is very modern and incredibly efficient. We still have problems with radiophobia and access to infrastructure, and such a solution plan with the support of the city and region helps us to solve fundamental problems of infrastructure development. We can build better coverage. We more often do not face homeowner associations, permissions,” he said.
Komarov said that the situation when the operator actually deals with one or two counterparties allows it to develop the network quickly, without spending a lot of time on negotiating documents or disputes on the placement of towers.
“No 5G revolution is possible without such solutions, because the development of 5G communication is an explosive growth in the number of micro-sites, especially in the heavily built-up areas,” Komarov said.
According to him, Kyivstar plans to scale the experience of placing microsites in Lviv and other areas, thereby solving the problem of access to urban infrastructure.
“In some areas, we are confronted with opposing phenomena – when, despite the actual availability of the law on access to infrastructure, it is still not implemented, operators cannot obtain permission to locate base towers in urban infrastructure,” Komarov said.
According to him, such illegal actions on the part of a number of public utilities and state-owned enterprises significantly hamper the development of the operators’ networks.

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COMPETITION AGENCY OPENS CASE AGAINST MYRONIVSKY HLIBOPRODUCT

The Antimonopoly Committee of Ukraine opened a case against Myronivsky Hliboproduct (MHP), Committee Head Yuriy Terentyev has written on his Facebook page.
“The Antimonopoly Committee of Ukraine launched an investigation into the actions of the MHP group (five poultry farms and Private Joint-Stock Company Myronivsky Hliboproduct belonging to Yuriy Kosyuk) in the chicken market on the grounds of abusing monopoly position. The committee established that MHP sets conditions for trade partners for certain areas of sales, obliges partners to adhere to the pricing policy of the MHP group and prohibits them from selling competitors’ products. That is, MHP practices a restrictive trade policy towards distributors, sub-distributors and partners,” Terentyev wrote.
According to him, the actions of MHP can lead to a violation of the chicken distribution market structure, a significant restriction of the rights of other market players to freely choose their partners, as well as imposing their own rules of conduct on the market players.

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FEED-IN TARIFF FOR PRIVATE ROOFTOP SOLAR UNITS TO BE CUT BY 67% FROM 2025

The National Commission for Energy, Housing and Utilities Services Regulation (NCER) has set a feed-in tariff for private rooftop household solar power plants with a capacity of up to 50 kW and/or facades of buildings and other permanent facilities, as well as for private wind farms with a capacity up of 50 KW and combined wind and solar plants with a capacity of up to 50 kW.
The draft resolution was approved by the regulator on June 27.
In particular, the tariff for rooftop solar power plants with a capacity of 50 kW constructed on January 1, 2019 through December 31, 2019 is set at UAH 540.79 per kWh (without VAT), which is 18 eurocents per kWh. For the facilities constructed on January 1, 2020 through December 31, 2024 the tariff will be reduced by 10%, to UAH 486.07 per kWh (without VAT). The tariff will be cut by three times (66.7%), to UAH 157.26 per kWh (without VAT), which is 5 eurocents per kWh, for the solar power plants constructed on January 1, 2025 through December 31, 2029.
The regulator also set feed-in tariffs for wind power plants with a capacity of 50 kWh constructed during the three periods at UAH 347.65, UAH 312.24, and UAH 101.14 per kWh (without VAT) respectively, and for hybrid wind and solar power plants at UAH 489.29, UAH 366.96, and UAH 115.75 per kWh respectively.

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UKRAINIAN ALFA-BANK ISSUES TWO-YEAR EUR 50 MLN BONDS

ABH Ukraine Limited, the holders of 90.1% of shares in Ukrainian Alfa-Bank, has issued new two-year EUR 50 mln loan participation notes (LPNs), setting the coupon rate at 6.75% per annum with the quarterly payments.
The bank said on Thursday that the maturity date is July 6, 2021.
The bonds were issue under S Rules with listing on the Frankfurt Stock Exchange.
The bank recalled that the bond issue was the 16th issue by ABH Ukraine since early 2015.
As reported, at the end of October 2016, the operation was completed on the transfer of 99.9% of the shares in PJSC Ukrsotsbank from UniCredit Group in favor of ABH Holdings S.A. (ABHH), whose main asset in Ukraine is Alfa-Bank, in exchange for a minority share of ownership in ABHH in the amount of 9.9%.
Currently ABH Holdings S.A. is consolidating assets in Ukraine, which will lead to the creation of the country’s largest private bank based on Alfa-Bank.

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PARKING AREAS ON TRAFFICABLE ROOFS OF MALLS COULD BE DESIGNED IN UKRAINE – MINISTRY

Changes to the national construction standards on designing of parking areas on trafficable roofs of shopping and entertainment centers will take effect from July 1, 2019, the press service of Deputy Regional Development, Construction, Housing and Utilities Economy Minister Lev Partskhaladze has reported.
“The new changes in the construction standards on the design of parking areas and garages allow placing car parking on the trafficable roofs of public buildings and structures, for example, malls and shopping and entertainment centers, administrative and other facilities. The exception is kindergartens, schools and hospital buildings with wards. The requirement comes into force on July 1,” the press service said.
These parking areas should have emergency exits, as well as take into account the requirements of the national construction standards Planning and Development of Territories in terms of fire-fighting distances to adjacent buildings and electrical installation rules. At the same time, the placement of temporary shelters for cars on such facilities is prohibited.
The changes in national construction standard V.2.3-15-2007 Parking Areas and Garages for Passenger Cars were developed by PJSC Ukrainian Zonal Research and Project Institute for Civil Construction.

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DANISH DFU AGRO TO CONDUCT PRESS CONFERENCE DEVOTED TO POSSIBLE ILLEGAL SEIZURES OF IT’S HARVEST

On Tuesday, July 2, at 12.30, the press center of the Interfax-Ukraine news agency will host a press conference devoted to possible illegal seizure of harvest of Danish DFU Agro (subsidiary of Dan-Farm Ukraine LLC). Participants include: Director of DFU Agro LLC Vadym Shestakov, representatives of the Zhytomyr Regional Administration, representatives of the Danish Embassy in Ukraine, and representatives of leading business associations (8/5a Reitarska Street). Registration of journalists requires press accreditation.

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