Ukraine in January-March 2018 increased its own production of petroleum products by 12%, in the petrol segment Ukrainian oil refineries reached a leading position in the domestic market, according to a study conducted by the A-95 Consulting Group (Kyiv). “For the first time since 2015, Ukrainian producers became leaders in the petrol market: in the first quarter of 2018 they accounted for 45.3% of the market, while in the same period of 2017 it was 42%. The largest supplier of petrol, Belarus, by the end of the quarter had 40.8% of the market, while in 2017 it had 47% of the market and in 2016 – 54%,” the press service of the A-95 group said.
In general, according to the company experts, the production of petrol by Ukrainian refineries in the first three months of the year increased 3.5%, to 195,400 tonnes.
In turn, domestic production of diesel fuel for this period increased by 23.6%, to 178,100 tonnes. Thus, the share of domestic manufacturers in the diesel fuel market increased to 14.2% in the first quarter of 2018 from 13.2% in the first quarter of 2017.
In general, in 2017, Ukrainian producers occupied 13% of the diesel fuel market, in 2016 – 11%.
The main increase in production, according to the A-95 group, was provided by the Kremenchuk oil refinery (Ukrtatnafta), increasing the output of diesel fuel by 27%, to 155,100 tonnes, petrol – by 7.7%, to 169,000 tonnes. In turn, Shebelynka gas refinery (Ukrgazvydobuvannia) increased diesel fuel production by 5.5%, to about 23,000 tonnes, but reduced petrol output by 17%, to 26,300 tonnes. “This was caused by a situational switch to the release of more liquid export positions in conditions of overstocking of the domestic market with petrol and a protracted winter with a reduced consumption of motor fuels,” the A-95 group said.
The petrol market in the first quarter of this year continued to decline: in comparison with the same period last year, the volume of deliveries decreased by 4.1%, to 431,000 tonnes. “The main reason for the decline is the switch of car owners to liquefied gas: its supplies increased by 17.3%,” the press service said.
The market of diesel fuel in January-March 2018, according to experts, increased 14.7%, to 1.252 million tonnes. The largest supplier of diesel fuel to the Ukrainian market was Russia, providing 42% of the balance sheet, the share of Belarusian producers was 33%, other suppliers – 10.5%. According to the A-95 experts, Ukrainian producers have all the opportunities for further growth in the market.
A-95 CONSULTING GROUP, INNER PETROL MARKET, LEADER, OIL REFINERIES
The three largest Ukrainian mobile communications operators have received licenses authorizing them to implement 4G technology (LTE) in the 1800 MHz band. According to reports of the operators, the National Commission for Communications and Informatization Regulation (NCCR) on April 12, 2018 issued licenses for the use of radio frequency spectrum in the 1800 MHz band to launch 4G communications from July 1, 2018.
Kyivstar, Vodafone Ukraine and lifecell won lots at a tender, according to the right of first refusal. The three companies bought lots of 25 MHz, 20 MHz and 15 MHz for UAH 1.325 billion, UAH 1.06 billion and UAH 795 million respectively. In addition, Kyivstar bought the fourth and sixth lots for UAH 612 million and UAH 900 million. Vodafone Ukraine bought the fifth lot for UAH 742 million.
As reported, the three operators after the tender held early March paid UAH 5.434 billion for 75 MHz in the 1800 MHz band for the right to deploy 4G communications standard. Earlier the companies paid UAH 2.456 billion for 40 MHz in the 2600 MHz band after a tender held at the end of January 2018 for the introduction of 4G. Then lifecell bought two lots for 15 MHz for UAH 909.25 million, Kyivstar – three lots for 15 MHz for UAH 916.3 million and Vodafone Ukraine – two lots for 10 MHz for UAH 631 million.
The operators plan to launch 4G in the 1800 MHz band in July 2018.
The Aurum Group, a multi-profile industrial and investment group, plans to invest in development of some sectors to increase its competitiveness, in particular, some UAH 100 million in development of wagon building and some UAH 50 million in agricultural business, the group has said in a press release. “According to the long-term development strategy of Aurum Group, this year we plan to invest about UAH 100 million in the development of the private rolling stock of the country in order to minimize the existing acute shortage of gondola cars and grain carriers,” the group’s founder Alona Lebedieva said in a press release.
According to her, the funds will be used to build new railway freight cars on the basis of the Diesel Plant LLC, which is part of the group, which will later be transferred to the management of the leasing company of the group – Trans Energy LLC.
According to the press release, UAH 30 million has already been allocated for technical re-equipment of the foundry, thanks to which an automatic molding line has been bought and ready for installation. It uses the method of cold-hardening mixtures produced by Omega Foundry Machinery (Great Britain).
“The modernization of the foundry production of the group will allow, with a reduction in the cost of production, to make high-precision castings with high efficiency. The line will also meet the needs of the Diesel Plant in the production of medium-carload molding, for example, parts like the front and rear stop. Later the plant plans to mold more railway products,” Lebedieva said.
She also announced the intention to more actively develop a new agricultural division for the group this year, where it is planned to invest about UAH 50 million. In particular, it is planned to build the entire production chain – from planting, storing and processing agricultural products.
Lebedieva said that if before 2018 Aurum Group planted only grain and a number of niche crops (flax, mustard, millet), then taking into account the market situation and, according to the group’s development strategy, this year efforts will focus on the creation of a product with high added value.
In addition, according to the founder of the group, transactions to invest in domestic IT projects, details of which have not yet been disclosed, are at the stage of completion. “Ukrainian IT specialists are in great need of additional financing, and we plan to invest in several projects like this in 2018. I would be happy if our participation will contribute to the fact that these talented guys will remain in the country,” the founder of Aurum Group said.
As of 4 April, the cost of Ukrainian barley on the terms of FOB deepwater ports of Ukraine increased to $208-218 per MT that is 27% higher than the price level for the same period last year, the Ukrainian Agribusiness Club association (UCAB) has reported. The association said on its website that such a price for domestic grain crop is a record since the end of 2014.
“The key factor in the steady increase in barley prices over the past few months was the unstable demand from Saudi Arabia, which is the key importer of this grain in the world. In 2017, Ukraine shipped 2.07 million tonnes of barley to this country, which accounted for 57% of total exports,” analyst of agricultural markets of the UCAB Ilha Kharabara said.
This year, demand from Saudi Arabia is not sustainable – tenders for the purchase are infrequent, but volumes are quite significant. At the last tender, the Saudi Grains Organization (SAGO) announced the purchase of 1 million tonnes of barley, at the previous one was purchased 0.96 million tonnes.
The tense world balance at the beginning of the marketing year supported the price increase for barley – world production fell to 142.4 million tonnes in 2017/2018, which is 3.5 million tonnes less than last year.
The number of apartments sold in Kyiv in 2017 reached some 40,000, while the number of commission housing last year was 33,000 apartments, Director for LUN.UA real estate portal development Andriy Mima said at a press conference. “After holding a closed access poll among developers, when the respondents roughly announced how many facilities they sold, we estimated that about 40,000 apartments in Kyiv were sold in 2017. Some 33,000 apartments were put into operation, and 40,000 were sold. This means that there is no crisis of oversupply,” Mima said.
At the same time, according to the expert, the pace of construction in Kyiv city and region remains high.
“In Kyiv city in 2017 there were about 100 names of residential complexes, and in Kyiv region – about 150. That is, several residential complexes can be launched a month or even a week,” Mima said. According to the estimates of Marketing Analyst of City One Development Olena Shyrina, the number of investment transactions in the structure of housing sales is about 40%. “We have about 40% of deals going for the purpose of investing funds,” Shyrina said.
Romania’s Tacrom and Belorusneft will conduct hydraulic fracturing at 80 wells of public joint-stock company Ukrgazvydobuvannia for UAH 486.5 million, according to the ProZorro e-procurement system. Tacrom, in particular, won a lot during a tender and conduct hydraulic fracturing at 50 wells of Ukrgazvydobuvannia for UAH 303.8 million. Belorusneft wins another lot and will conduct hydraulic fracturing at 30 well for UAH 182.725 million.
Tacrom and Belorusneft were the only rivals during the tender.
Ukrgazvydobuvannia, which is wholly owned by NSJC Naftogaz Ukrainy, is a large gas processing company, which accounts for about 75% of total gas output in the country. It operates Shebelynka gas refinery.
