Business news from Ukraine

Business news from Ukraine

PRODUCTS WORTH UAH 3 BLN SOLD BY UKRAINIAN AEROSPACE ENTERPRISES IN JAN-SEPT

Enterprises managed by the State Space Agency of Ukraine (SSAU) in January-September 2019 manufactured products worth over UAH 3.046 billion and sold products UAH 3 billion and almost UAH 370 million of net profit was earned, the press service of the agency has reported.
According to the information presented at the meeting of the Collegium of the SSAU, in January-September 2019, two Antares launch vehicles (LV) were launched (a joint project with the United States), two launches of Vega LV were made (a joint project with the EU), and a control system was delivered to support manned space flight missions to the Soyuz LV. The first stage of the Antares LV, which will be launched in the first quarter of 2020, was sent to the spaceport in the United States.
“Over the first nine months of this year, industry enterprises manufactured products worth more than UAH 3.046 million, sold products worth more than UAH 3 billion. Production volumes increased by 9.3%,” the SSAU said in the press release issued after the meeting.
In particular, state-owned enterprise (SOE) Pivdenne (Yuzhnoye) Design Bureau increased the volume of commodity production by 19.4%, SOE Arsenal plant by 29%, State Enterprise of Special Engineering Arsenal by 204.9%, and SOE Kyivprylad production association by 88.9%.
“Products worth UAH 2.43 billion were exported (20% more than in the corresponding period of 2018). The share of product exports of total sales is 78.8%. Import volumes amounted to 3.1% of exports. That is, the industry remains export-oriented. In January-September 2019, the enterprises received net profit of UAH 369.68 million. Their profitability was 12%. The nominal average monthly wage in the industry increased by 5.8% compared to the beginning of the year and amounted to UAH 9,296,” the SSAU said.
According to the press release, speaking to the participants of the meeting, acting SSAU Head Volodymyr Mikheev said that “in the third quarter, the industry worked in extreme conditions.”
“First of all, due to minimal financing, the lack of government procurement order for the production of space technology, the space program for 2020 that has not been approved so far. However, thanks to its powerful engineering and production potential and skillful marketing, the industry worked profitably using the production opportunities of non-space sphere,” the agency’s press service said, quoting Mikheev as saying.
“After discussing the issues on the agenda, the Collegium adopted a decision aimed at further improving the industry and successfully completing the tasks of 2019,” the press service said.

DONBASENERGO INVESTS OVER UAH 22 MLN IN SOCIAL PROJECTS

Donbasenergo has been focusing considerably upon social and economic development in
the area where there is Sloviansk TPP, a town-forming undertaking of Mykolaivka United
Territorial Community, keeping up its growth strategy as socially responsible business.
UAH 22 million of out-of-pocket expenses was placed by Donbasenergo in
development of design specifications and estimates, procuring for the state expert
appraisal of projects, along with design and survey works within the ambit of cooperation
with Mykolaivka United Territorial Community in 2016-2019.
Thus, a master plan shaping the progression of Mykolaivka was developed in 2017,
including the area zoning plan awarded a positive opinion from experts in 2018. Detailed
territorial plans for four sites have been rendered complete. There were over UAH 1
million Donbasenergo's investments.
One of the community vital projects undertaken on a turnkey basis in 2017 was the
sports ground of the comprehensive school No. 3 of Mykolaivka. The company has put
UAH 1.6 million in it.
Donbasenergo's resources were used in the full-scale renovation projects of the
infectious diseases department of the Central District Hospital and Polyclinic drafted in
2018, also covering the construction of the town temple. Today, the construction of St.
Spiridon's temple is already broadly underway.
For more than 2.5 years, a Memorandum of Understanding and Cooperation has
been in place between PJSC Donbasenergo and Mykolaivka Municipal Council, under
which priority areas for the development of the partnership have been identified: the
reconstruction of utilities infrastructure, overhaul of roads and lighting networks, amplified
facilities, public service & resources inflows in school and pre-school educational
institutions. The Energy Provider has undertaken to develop design specifications and
estimates for priority projects in respect of Mykolaivka United Territorial Community.
In 2019, Donbasenergo prepared projects for the reconstruction of municipal school
No. 1, boarding school, Avanhard town stadium, as well as reconstruction and landscaping
of the town park along Lesi Ukrainky Street totalling UAH 5.2 million.
The population of Mykolaivka United Territorial Community is 17 thousand people,
25 % of whom are children and teenagers, 55 % are of working age, and 30 % are the
elderly.
For reference: As of December 01, 2019, 60.86 % holder of PJSC Donbasenergo is
ENERGOINVEST HOLDING Private Joint Stock Company, 25 % + 1 share are held by the
state represented by the State Property Fund of Ukraine, 14.14 % holders are other
minority shareholders.
PJSC Donbasenergo unites two power plants: Sloviansk and Starobeshevo TPP
(the latter has been located in the territory beyond the control of Ukraine since 2014).
Since March 2017, due to the suspension of management, annual performance indicators
of assets located in the temporarily occupied Donetsk region are not included in
Donbasenergo records of accounts.
The installed capacity of Sloviansk TPP is 880 MW.

UKRENERGO RESTRICTS IMPORTS OF ELECTRICITY OVER LOW DEMAND

National Energy Company Ukrenergo with continued low demand on electricity in the unified power transmission system of Ukraine restricts imports of electricity as much as possible, Ukrenergo Head Vsevolod Kovalchuk has said.
“In the unified power transmission system, we have a situation of reduced demand: due to weather and a low level of industrial production. Therefore, we almost completely limit the opportunities for importers by making adjustments to schedules: during night hours is zero imports and for daylight hours a small amount of imports,” he said at a meeting of the national energy regulator on Tuesday.
The head of Ukrenergo also said that, given the current situation, it is difficult to predict the likelihood of return of large volumes of electric energy imports to the unified power transmission system before the end of December.
“Until the end of December, it is very difficult to predict whether there will be significant volumes of imports that we observed in the first half of October,” Kovalchuk said.
According to Interfax-Ukraine, imports from Belarus, after its termination on December 2, resumed in small volumes on December 7. In the last two days it has been 350 MW, excluding the period from midnight to 8 am, when it is zero.
Imports from Russia, which stopped on December 5, are still completely absent.

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OFFICIAL RATES OF BANKING METALS FROM NATIONAL BANK AS OF DECEMBER 12

Official rates of banking metals from national bank as of December 12

One troy ounce=31.10 grams

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NATIONAL BANK OF UKRAINE’S OFFICIAL RATES AS OF 12/12/19

National bank of Ukraine’s official rates as of 12/12/19

Source: National Bank of Ukraine

SECONDARY INVESTMENTS IN COMMERCIAL REAL ESTATE IN KYIV AND SUBURBS IN JAN-JUNE AMOUNTES $131 MLN

Secondary investments in commercial real estate in Kyiv and the suburbs in January-June 2019 amounted to $131 million, while at the end of 2018 this figure was $328 million, according to a study by Cushman & Wakefield consulting company. According to the company, the main areas of investment in the first half of the year were office and retail real estate.
For the nine months of 2019, secondary investments in office real estate in Kyiv and the suburbs increased by 6% compared to the same period in 2018, to $89 million. At the same time, investments in logistics real estate decreased by 58%, to $10 million.
According to the analysis, profitability rates of high-quality facilities in January-September slightly decreased (by 0.5 percentage points), but generally remained at the level of indicators for 2018. Thus, by the end of the third quarter, the indicator for offices was 11.5%, for warehouse facilities some 12.25%.
Cushman & Wakefield (formerly DTZ) was founded in New York in 1917. The company is a consultant in the field of commercial real estate with an annual income of $6 billion. Cushman & Wakefield operates in more than 70 countries, the number of employees is 45,000 people.
Prior to the global merger of Cushman & Wakefield and DTZ consulting companies in 2015, the Ukrainian office worked under the DTZ brand.

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