Business news from Ukraine

Business news from Ukraine

UTG CONSULTING COMPANY LEASES 70,000 SQ M OF RETAIL SPACE IN UKRAINE

Over 70,000 square meters of retail space in trade and entertainment centers in Kyiv and regional centers were leased in 2019 with the participation of UTG consulting company (Kyiv) as a broker, the press service of the company has said. “During the company’s activity and as of the end of 2019 about 4.7 million square meters of space have been leased in various shopping centers in Kyiv and regional centers of Ukraine, of which more than 70,000 square meters this year,” the company said.
As reported, in 2018 space commissioned with the participation of UTG amounted to 72,000 square meters, and in 2017 some 54,000 square meters.
In particular, in 2019 with the assistance of UTG, agreements were signed with Leroy Merlin Ukraine and Multiplex cinema in the Odesa shopping center Riviera.
In addition, the new Kyiv shopping centers Smart Plaza Obolon, Cherry Mall, and others were launched with a 100% occupancy rate.
UTG (Kyiv) was established in 2001. It specializes in consulting commercial and residential real estate, brokerage of retail premises and comprehensive support of development projects.

,

ANALYSTS AT CREDIT SUISSE BANK FORECAST ECONOMIC GROWTH OF UKRAINE AT 4% IN 2020-2021

Analysts at Credit Suisse Bank forecast the economic growth of Ukraine at 4% and higher in 2020 and 2021, according to a bank report. “Our main expectation from the Ukrainian economy is that in the coming years it will grow at or above 4%, which is slightly higher than its potential,” the report said.
“If our viewpoint is correct, investors should consider the possibility of a higher payout ratio for GDP warrants from 2021 (40% instead of 15% if real GDP growth reaches 4%),” analysts said.
At the same time, interest in the Ukrainian securities market will continue this year, which will support the national currency rate. However, the NBU will continue to participate in foreign exchange interventions, restraining the further strengthening of the hryvnia, Credit Suisse suggests.
“In the future, we expect a moderate weakening of the hryvnia against a background of a lower difference in interest rates, a wider current account deficit and a more active NBU policy to curb the strengthening of the hryvnia,” the report said.
The central bank will also continue to steadily lower the discount rate in 2020, analysts suggest.

,

MILK PRODUCTION IN UKRAINE IN JAN-DEC 2019 DECREASES BY 3.7%

Milk production in Ukraine in January-December 2019 decreased by 3.7% compared to 2018, to 9.69 million tonnes.
According to the State Statistics Service, 3.48 million tonnes of meat (live weight) was produced in 2019, which is 4.8% more than in 2018.
Egg production in January-December increased by 3.4%, to 16.68 billion.
As reported, with reference to statistical data, milk production in Ukraine in 2018 decreased by 1.8% compared to 2017, to 10.1 million tonnes.
Egg production in 2018 increased by 4.1%, to 16.14 billion, meat (in live weight) by 1%, to 3.3 million tonnes.

RUBIZHNE MILL CUTS CORRUGATED CARDBOARD BOXES OUTPUT IN 2019

Rubizhne cardboard packaging mill in Luhansk region, one of Ukraine’s largest cardboard packaging producers, produced 251.07 million square meters of corrugated cardboard boxes in 2019, including goods from its subsidiary, Trypilsky packaging plant in Kyiv region, which was 2.5% down year-over-year.
Since early 2019, the two enterprises demonstrated a slight increase in this indicator compared to the previous period of 2018, though started to decline following the results of the first half of 2019.
The UkrPapir association said that last year the mills reduced production of components of corrugated cardboard (cardboard and fluting) by 26%, to 216,600 tonnes.
The total commodity amount produced by both enterprises in the period in monetary terms decreased almost 21%, to UAH 4.44 billion.
The Rubizhne cardboard packaging mill has been working on the packaging market since 1991. It produces components for corrugated cardboard (cardboard and fluting) and corrugated cardboard boxes. It also produces cardboard for gypsum boards.
Its most important customers are large confectioneries, juice and tobacco producers.
The Rubizhne cardboard packaging mill acquired Trypilsky packaging plant in 2002 and subsequently began producing corrugated cardboard and corrugated packaging.
In 2018, they produced 257.53 million square meters of corrugated cardboard boxes, which was 13.6% up on 2017.

,

MARIUPOL SEAPORT INCREASES CARGO HANDLING

Mariupol seaport (Donetsk region) increased cargo transshipment by 10.12% in 2019 compared to 2018, to 6.484 million tonnes.
According to the Ukrainian Sea Ports Authority, the port increased transshipment of exported cargo by 6.81%, to 5.266 million tonnes, imported goods by 33.27%, to 1.209 million tonnes, while significantly reducing transshipment of cabotage cargo, to 8,800 tonnes. The port did not handle transit cargo.
According to the nomenclature of cargo in 2019, Mariupol port increased transshipment of liquid cargo by 5.1 times, to 144,100 tonnes, dry bulk cargo by 47.02%, to 2.512 million tonnes, but reduced transshipment of packaged goods by 7.78%, to 3.828 million tonnes.
As reported, the volume of cargo transshipment in Mariupol seaport in 2018 decreased by 9.62% compared to 2017, to 5.89 million tonnes.

,

STATE-RUN OSCHADBANK TO EXTEND UAH 2 BLN LOAN OF NAFTOGAZ FOR FOUR AND HALF YEARS

Oschadbank and NJSC Naftogaz Ukrainy have approved the extension of the term of the loan agreement, the debt on which is UAH 1.97 billion to December 24, 2024, while the loan agreement was to expire on June 9, 2020, according to an explanatory note to the draft government resolution available at Interfax-Ukraine.
The Cabinet of Ministers, which had previously provided government guarantees for this loan, agreed on such a prolongation at a meeting held on Wednesday, MP Oleksiy Honcharenko said in his Telegram channel.
According to the Naftogaz report, as of September 30, 2019, about 98% of its cash and balances in bank accounts, the total amount of which amounted to UAH 24.96 billion, were placed in state-controlled banks. At the same time, these banks accounted for approximately 59% of Naftogaz’s loans with a total volume of UAH 60.79 billion the company has.
At the end of 2018, these indicators amounted to 96% of UAH 14.22 billion and 76% of UAH 56 billion, respectively.
The amount of provided government guarantees for Naftogaz’s obligations for January-September last year decreased from UAH 15.44 billion to UAH 2.91 billion.

,