Business news from Ukraine

Business news from Ukraine

OFFICIAL RATES OF BANKING METALS FROM NATIONAL BANK AS OF OCTOBER 16

Official rates of banking metals from national bank as of October 16

One troy ounce=31.10 grams

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GAS STOCKS IN UNDERGROUND GAS STORAGE FACILITIES OF UKRAINE EXCEED 21 BCM

Ukraine boosted its natural gas stocks in underground gas storage facilities (UGS) by 23.28 billion cubic meters (bcm), to 21.026 bcm from April 4 to October 13, 2019, according to JSC Ukrtransgaz.
Interfax-Ukraine’s estimates show that this volume exceeds the inventory indicator as of October 13, 2018 by 26.4%, that as of October 13, 2017 by 25.5% and of October 13, 2016 by 42.7%.
Some 594.48 million cubic meters (mcm) was pumped into the country’s storage facilities on October 1 through October 13, which was 45.7 million cubic meters (mcm) per day on the average. The average daily amount in September was 72.5 mcm, it was 77.5 mcm in August, 74.4 mcm in July, 71.9 mcm in June, and 62.9 mcm in May.
Some 44.5 mcm of natural gas was pumped into the country’s UGS facilities on October 13, 2019, alone, while gas import totaled 60.4 mcm and domestic production was 54.9 mcm.
Earlier, Chairman of Executive Board of Naftogaz Ukrainy Andriy Kobolev said that the company planned to pump additional volumes of natural gas into the Ukrainian underground storage facilities in the event that Russia’s Gazprom ceases gas transit through the country in 2020.
As was reported, during the heating season from November 6, 2018, to April 4, 2019, Ukraine’s gas stocks in the UGS facilities shrank by 8.45 bcm (from 17.195 bcm to 8.745 bcm).
Ukrtransgaz, fully owned by Naftogaz Ukrainy, operates a system of gas pipelines and 12 underground gas storages in the country. Their total capacity is 31 bcm.

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UKRAINE AND CHINA APPROVE VETERINARY CERTIFICATE FOR EXPORTING UKRAINIAN BEEF

Authorized bodies of Ukraine and Chine have approved an international veterinary certificate for exporting frozen beef from Ukraine, according to a posting on the website of the State Service for Food Safety and Consumer Protection of Ukraine.
As reported, the authority expects that in 2019-2020 some 24 states would open their markets for Ukrainian poultry products.
In 2018, Ukraine opened 85 new markets for various types of products and increased the number of companies authorized to export animal products.

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UKRAINE CUTS PIPE OUTPUT IN NINE MONTHS

Ukrainian enterprises reduced steel pipe production 4.4% year-on-year in January-September, to 806,700 tonnes.
The country produced 69,300 tonnes of pipes in September, compared with 75,800 tonnes in August, the Ukrtruboprom association told Interfax-Ukraine.
Khartsyzsk Pipe Mill in Donetsk region idled, as it did in 2018.
Interpipe Nyzhniodniprovsky Pipe Rolling Plant reduced output 16.7% year-on-year in January-September, to 182,200 tonnes, including 12,800 tonnes in September, Interpipe Novomoskovsk Pipe Plant produced 86,300 tonnes, up 1.4%, including 9,800 tonnes in September, and Interpipe Niko Tube raised production by 1.45% to 280,600 tonnes, including 19,700 tonnes in September.
Kominmet pipe mill reduced output 12.5%, to 111,600 tonnes in the nine months, including 14,100 tonnes in September, Centravis raised stainless steel pipe production 10.8%, to 15,700 tonnes, including 1,900 tonnes in September, production rose 4.4% to 111,700 tonnes including 9,900 tonnes in September at Illich Iron & Steel Works in Mariupol, it jumped 35.8%, to 16,700 tonnes, including 1,000 tonnes in September, at Dnipropetrovsk Pipe Mill, and fell 9.1% at Trubostal, to 2,000 tonnes, including 200 tonnes in September.
Ukrainian pipe production fell 0.5%, to 848,000 in 2016 but it had risen ever since, growing 5.2% in 2018, to 1.103 million tonnes.

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UKRAINIAN KERNEL PLACES $300 MLN EUROBONDS

Kernel, one of the largest Ukrainian agricultural groups, has placed $300 million eurobonds with a coupon rate of 6.5% and maturity in 2024, one of the market participants has told Interfax-Ukraine.
According to him, the pricing was set at 6.625%, the securities were sold at a price of 99.475% of the face value.
The organizers of the placement were ING Bank, JP Morgan.
The company did not comment on this information to the agency, saying that the details were planned to be released on October 17.
As reported, in January 2017 Kernel placed eurobonds worth $500 million. The maturity date of Kernel’s debut eurobonds was January 31, 2022, and the coupon rate was set at 8.75% per annum.
Kernel is the world’s largest producer and exporter of sunflower oil, the leading producer and supplier of agricultural products from the Black Sea region to world markets.

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LOW COST AIRLINE RYANAIR PLANS TO INCREASE PASSENGER TRAFFIC ON UKRAINIAN FLIGHTS BY 33%

The Irish low cost airline Ryanair (Dublin) intends to carry more than 2.1 million passengers on Ukrainian flights in 2020, which is 33% more than in 2019.
This was announced by Ryanair Chief Commercial Officer David O’Brien at a briefing with Infrastructure Minister Vladyslav Krykliy in Kyiv.
According to him, in 2020 Ryanair plans to open 18 routes in Ukraine, two of which are new from Lviv to Budapest and from Kharkiv to Warsaw (twice a week). In 2020, the company will operate 43 routes from Ukraine.
Ryanair entered the Ukrainian market in 2018. The first months the low cost carrier operated flights from Boryspil and Lviv airports. In June 2019, the airline began flights from Kharkiv and Odesa.
Ryanair daily operates over 2,400 flights to/from 200 airports located in 37 countries. Last fiscal year, the company transported 130.3 million people. Its fleet has 460 Boeing-737 aircraft.

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