Business news from Ukraine

IT CLUSTER ABOUT TO LAUNCH FIRST STAGE OF IT PARK CONSTRUCTION

Lviv IT Cluster is about to launch the construction of the first stage of a 10-hectare Innovation District IT Park in Lviv, the press service of Lviv IT Cluster has reported.
“The tech industry has an urgent need for such a large-scale project as the Innovation District IT Park. Even before the construction of the facility, more than 60% of the area has been booked by IT companies,” head of the Lviv IT Cluster Supervisory Board and CEO of N-iX Andriy Pavlov has said in the report.
The construction project is estimated at US$160 million.
Volodymyr Zhenchak’s Gallery Center Ltd. is the developer and investor of the project, the press service said.
“We see this complex as a new, city-forming center in Lviv, a place for work, meet-ups, creativity, and a venue for family leisure on weekends. Close to it, there will be a ‘center of science for children and the youth’ and an entertainment promenade connected to Stryisky Park,” Zhenchak said.
As reported, the IT Park will occupy 10 hectares between Stryiska, Chmoly, Luhanska and Kozelnytska Streets in Lviv. The construction of the first stage of the IT Park will last about 2.5 years, which will cover about 90% of the entire project, and the first round of investment will reach $95 million. The second stage of the IT Park provides for the construction of business centers and will last about five or six years.
Six eight-storey Class A office buildings, three business centers, a hotel (5,700 square meters, 150-200 rooms), a kindergarten (2,000 square meters), a university (6,000 square meters), a health club, and a parking lot for 3,167 cars are to be built under the project.
SoftServe, N-iX, GlobalLogic, Intellias and Perfectial will be first residents of the Innovation District IT Park. They will occupy about 50,000 square meters of office space. The university block will house a department of Lviv’s Ukrainian Catholic University.
In addition, Lviv IT Cluster plans to open modern IT labs there that will be available to IT students of all Lviv-based universities.
Lviv IT Cluster is a community of IT companies in Lviv.

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UKRAINE RAISES GAS STOCKS IN UNDERGROUND STORAGE FACILITIES BY 45%

Ukraine has raised natural gas reserves in its underground storage facilities (UGS) by 3.362 billion cubic meters after the end of the heating season, PJSC Ukrtransgaz has said.
Thus, from April 8 to June 23 gas reserves in storage facilities grew by 45.2%, to 10.797 billion cubic meters from 7.435 billion cubic meters.
According to Interfax-Ukraine’s estimates, gas stocks on June 1-23 expanded by 1.231 billion cubic meters (53.54 million cubic meters per day), in May by 1.632 billion cubic meters (52.65 million cubic meters per day), April 9-30 by 500.84 million cubic meters (22.77 million cubic meters per day).
If the existing volumes of imports and current domestic production are preserved, the country will have about 11.2 billion cubic meters of reserves in storage facilities in July.
Ukrtransgaz, 100% owned by NJSC Naftogaz Ukrainy, operates the system of trunk gas pipelines and 12 underground gas storage facilities of the country with a total capacity of 31 billion cubic meters.

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UKRAINE’S STATE DEBT IN DOLLARS SHRINKS BY 1%

Ukraine’s aggregate state (direct) and government-guaranteed debt in May 2018 shrank by 1%, or $0.79 billion, to $76.26 billion, the Ukrainian Finance Ministry has said on its website.
The state debt estimated in the national currency, the hryvnia, declined by 1.4%, or UAH 27.97 billion, to UAH 1.993 trillion.

UKRAINE BOOSTS PIPE OUTPUT BY 10%

The major pipe enterprises of Ukraine in January-May 2018 boosted production of pipes by 10% compared to the same period last year, to 448,000 tonnes, including in May they manufactured 91,000 tonnes. The Ukrtruboprom association told Interfax-Ukraine that enterprises, which are members of the association, boosted production by 23.5% year-over-year, to 336,000 tonnes, including 72,000 tonnes made in May.
Khartsyzsk Pipe Plant (Donetsk region), located in the government uncontrolled zone, remained idle in January-May 2018, while it made 3,400 tonnes of pipes in January-May 2017.
Pipe production at Interpipe Nyzhniodniprovsky Pipe Rolling Plant in the period rose by 28.4% compared to January-May 2017, to 124,000 tonnes (26,400 tonnes in May 2018 alone), Interpipe Novomoskovsk Pipe Plant increased output by 16.7%, to 44,100 tonnes (10,400 tonnes in May), while Interpipe Niko Tube raised production by 30%, to 147,400 tonnes (30,900 tonnes in May).
Dnipropetrovsk Pipe decreased pipe production by 7.9%, to 9,300 tonnes, making 2,100 tonnes in May. Production at Centravis grew by 10.5%, being 8,400 tonnes of stainless pipes (1,800 tonnes in May).
Pipe production at Trubostal rose by 8.3% in the first five months, to 1,300 tonnes of pipes (200 tonnes in May 2018).
Mariupol Illich Steel Works, which is not a member of the association, reduced pipe production by 14.8%, to 50,500 tonnes (6,800 tonnes in May), while Kominmet saw an 18.8% decrease, to 61,700 tonnes (12,100 tonnes).
Luhansk Pipe Rolling Plant, created on the basis of Luhansk Pipe Plant, remained idle according to unofficial information.
As was reported, major pipe producers of Ukraine in 2017 boosted pipe production from ferrous metals by 23.5% from 2016, to 1,047,800 tonnes. Ukrtruboprom’s enterprises alone saw a 27.8% rise in output, to 705,500 tonnes.