Business news from Ukraine

UKRAINE CUTS TRANSIT OF GAS IN JAN-SEPT

Ukraine in January-September 2018 reduced transit of natural gas through its gas transportation system (GTS) by 7% compared to the same period in 2017, to 65.449 billion cubic meters, according to live data from PJSC Ukrtransgaz. According to calculations made by the Kyiv-based Interfax-Ukraine news agency, in particular transit of gas through Ukraine to Europe during this period amounted to 63.432 billion cubic meters (7.5% down), to Moldova to 2.017 billion cubic meters (11.1% up).
In September 2018, transit of gas decreased by 13.9% compared to the same month in 2017, to 7.232 billion cubic meters. In particular transit of gas through Ukraine to Europe amounted to 7.07 billion cubic meters (14.1% down), to Moldova to 162.1 million cubic meters (0..04% down).
As reported, Ukraine in 2017 increased transit of natural gas through its GTS by 13.7% (11.257 billion cubic meters) compared to 2016, to 93.457 billion cubic meters, in particular transit to Europe amounted to 90.749 billion cubic meters, to Moldova some 2.708 billion cubic meters.
Ukrtransgaz, 100% owned by Naftogaz Ukrainy, operates a system of trunk gas pipelines and 12 underground gas storage facilities in the country.

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CHANGES IN RETAIL FUEL PRICES IN UKRAINE

Average retail prices for petrol and diesel fuel in Ukraine in the period from September 24 to October 2, 2018 grew by 2.3-3%, while prices of LPG climbed by 1.1%, according to data from the A-95 Consulting Group (Kyiv). As reported, average retail prices for petrol in Ukraine for 2017 increased by 19.2-20.1% (by UAH 4.61-4.76 per liter), for diesel fuel by 22.6% (by UAH 4.84 per liter). At the same time, average prices for liquefied petroleum gas (LPG), despite a sharp increase in August due to deficit, showed an increase of only 2.9% for the year (by UAH 0.36 per liter).
Changes in average retail fuel prices UAH per liter in Ukraine:

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TOTAL VOLUME OF CIGARETTE MARKET IN UKRAINE NARROWS BY 11-12% IN JAN-JUNE

The total volume of the cigarette market in Ukraine in January-June 2018 narrowed by 11-12% year-over-year, JTI Ukraine General Manager Paul Holloway has said. “The Ukrainian market has decreased by 11-12% compared to 2017. If in 2016, price wars were observed in Ukraine, then in 2017 the industry left them, and now the situation in this sense is more or less stable. But there is a question of purchasing power of a Ukrainian consumer,” he said in an interview with Interfax-Ukraine.
Holloway said that now the Ukrainian consumer spends on average 21% of his daily income on cigarettes. “For comparison: this is more than in the U.K., where the consumer spends on them 15% of his income,” the general manager said.
According to JTI Ukraine estimates, the share of the premium segment in Ukraine is 13%, and more than 70% of the Ukrainian cigarette market is the low-price segment, which reflects the purchasing power of consumers.
“At the same time, Winston is the fastest-growing brand on the market. It does not belong to the low-price segment. Despite the fact that the low-price segment dominates on the market, there is still room for growth in the high-price segment. We do not expect the ratio of the low-price segment to other segments to change over the next two to three years,” Holloway said. According to him, now the company is actively discussing plans to bring brands to the Ukrainian market in the segment of electronic cigarettes and tobacco heating systems.

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SKYUP PERMITTED TO FLY TO EUROPE

SkyUp airline has received a Third Country Operator (TCO) License, allowing to fly to 28 countries of the European Union (EU), as well as Switzerland, Norway, Iceland and Lichtenstein.
“We are pleased to announce that SkyUp has passed the TCO procedure, having received permission to fly to European countries! Now the sky of Europe is open for us,” the airline said on its official Facebook page.
The TCO license is a single document for compliance with safety standards that allows flights to EU countries. It is issued centrally by the European Aviation Safety Agency (EASA).
The airline announced its readiness to announce new routes to Europe.
As reported, SkyUp airline plans to expand its own fleet by two new medium-haul Boeing 737-700s by the end of 2018, as well as to get one wide-body Airbus A330 into wet leasing.
SkyUp Airline LLC was registered in Kyiv in June 2016. The founder of SkyUp was ACS-Ukraine LLC belonged to Tatiana Alba and Yuriy Alba, who also own JoinUp! tour operator.
The company began charter flights from the end of May 2018.

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