Business news from Ukraine

Business news from Ukraine

VACANCY OF SHOPPING CENTERS IN KYIV FALLS TO 2.8% IN Q1

The share of vacant space on the shopping centers market in Kyiv in January-March 2019 fell by 0.2 percentage points, to 2.8%, according to a study of CBRE Ukraine (Kyiv). “Despite the commissioning of new facilities, the average vacancy rate decreased by 0.2 percentage points from the beginning of the year and amounted to 2.8% of vacant premises,” the company said in the study.
According to the company, in January-March this year, rents for the best retail premises increased 7-16% and ranged from $80-110 per sq. m. a month. At the same time for other retail premises, the rates remained unchanged, at around $42-60 per sq. m. a month.
The volume of retail turnover in Kyiv in January-February 2019 (the latest available data) increased 6.9%, with a slowdown in consumer price index growth from 8.8% in February to 8.6% in March.
During this period new brands entered the retail real estate market, including Decathlon in Retail Park Petrivka, Claudie Pierlot and Weill in the shopping center Gulliver and Missha in the shopping center Lavina Mall. A new supply of shopping centers was presented by the Oasis shopping center and the Smart Plaza Obolon shopping center, which led to an increase in the total supply by 2.1%, to 1.13 million sq.m.

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FAO PREDICTS GRAIN HARVEST IN UKRAINE AT 65.3 MLN TONNES

The Food and Agriculture Organization of the United Nations (FAO) predicts that grain harvest in Ukraine in 2019 will be 65.3 million tonnes, which is 5.6% lower than in 2018.
According to the May report, FAO forecasts an increase in wheat production in Ukraine in 2019 by 7.7%, to 26.5 million tonnes and a decrease in corn production by 19%, to 29 million tonnes.
Wheat exports in 2019/20 agricultural year (July-June) will decrease compared to the previous agri-year 0.3%, to 17 million tonnes, corn by 1.2%, to 21 million tonnes, and barley by 0.3%, 4.2 million tonnes.
According to the Ministry of Agricultural Policy and Food, Ukraine since the beginning of the 2018/2019 agri-year as of May 13, 2019 exported 43.77 million tonnes of grain and leguminous plants, which is 24.5% more than on the same date of the previous agri-year.
Grain exports in 2018/2019 agri-year, according to the estimates of the ministry, are projected to be 49 million tonnes.

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HVIZD-MP INTENDS TO BUILD 9 MW WIND FARM IN UKRAINE

Hvizd-MP LLC (Ivano-Frankivsk region) intends to build a wind power station with a capacity of 9 MW in Nadvirna district of Ivano-Frankivsk region.
Information on the developed project was posted in the single register of environmental impact assessment.
In January 2019 Nadvirna District State Administration approved urban planning conditions and restrictions for the project implementation on a site of 0.09 hectares.
Within the framework of the project, it is planned to install three modern wind electrical turbines with a capacity of 3 MW each. The planned height of the tower is 80-140 meters.
In addition, it is planned to build a 110 kW underground power grid with a length of about 3.5 km. Electricity generated at the wind power station will be transported to the 35 kV Starunia 35/10 distribution substation.

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BALTIC BEVERAGES INVEST WILL BUY 12.6 MLN SHARES OF CARLSBERG UKRAINE

Baltic Beverages Invest AB (BBI, Sweden) will buy 12.583 million shares of PrJSC Carlsberg Ukraine (Zaporizhia), one of the largest brewing companies of Ukraine, within the framework of squeeze-out for UAH 14.7 per share.
According to the report in the information disclosure system of the National Securities and Stock Market Commission, this price is defined as the market value of shares as of March 25, 2019. Thus, the total amount of the repurchase of 12.6 million shares of Carlsberg (1.2% of the total number of shares) will be about UAH 185 million.
As reported, Baltic Beverages Invest AB at the end of March 2019 announced its intention to exercise the right to compulsory redemption of shares from the minority shareholders of PrJSC Carlsberg Ukraine.
Carlsberg Ukraine in 2018 increased its net profit by 1.5 times compared with 2017, to UAH 1.634 billion.
Carlsberg Ukraine is part of Carlsberg Group, one of the leading brewing groups in the world, whose products are sold in more than 150 countries.
Carlsberg Group in Ukraine includes three breweries in Zaporizhia, Kyiv, and Lviv.

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UKRAINE’S SEAPORTS INCREASE CARGO HANDLING

The seaports of Ukraine in January-April 2019 handled 48.8 million tonnes of cargo, which is 5 million tonnes, or 12% more compared to the same period of 2018.
According to the Ukrainian Sea Ports Authority, most of all, the positive dynamics of increase in transshipment was influenced by exports, which during the reporting period grew by 20% compared to the same period last year, whereas imports and transit decreased by 5% and 18.5% respectively.
Grain handling grew by almost one-third or 4.4 million tonnes compared to January-April 2018, to 18 million tonnes. Transshipment of ore rose by more than a quarter, to more than 10.5 million tonnes.
The growth trend in container handling is also kept: in the first four months of 2019, compared to the same period of 2018, Ukrainian seaports transshipped 47,800 TEU more (18.6% up).

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A-BANK SEES NET PROFIT RISE BY 45.4%

The net profit of JSC Aktsent-Bank (A-Bank, Dnipro) in January-March 2019 amounted to UAH 93.885 million, which is 45.4% more than in the same period of 2018, according to a quarterly report of the bank.
According to the report posted on the website of the financial institution, net interest income in the first quarter of this year decreased by 42.1% compared with the corresponding period of 2018, to UAH 294.278 million.
The bank’s assets grew by 8.1%, to UAH 5.24 billion, in particular loans to customers by 9.4%, to UAH 3.802 billion.
Since the beginning of the current year, liabilities of the bank have increased by 7.4%, to UAH 4.234 billion, net worth by 11%, to UAH 1.007 billion.
Charter capital in the first quarter remained at the level of UAH 323.191 million.
Accent Bank was founded in 1992.

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