Business news from Ukraine

UKRTRANSGAZ SEEKS TO FINISH RECONSTRUCTION OF BAR COMPRESSOR STATION FOR EUR 80 MLN

Public joint-stock company Ukrtransgaz seeks to finish reconstruction of the Bar compressor station (Vinnytsia region) of the Soyuz gas pipeline being implemented jointly with German companies, Ukrtransgaz Chief Engineer Yuriy Ziabchenko has said. He said that after the approval of the blueprints by the government the company will carry out all the required works in 18 or 18 and a half months. Some 60% of the equipment required for reconstruction has been shipped.
The projected cost of construction is around EUR 80, including EUR 53.6 million of a loan provided by Deutsche Bank and EUR 26 million of Ukrtransgaz’s own funds. Ferrostaаl Industrieanlagen is the general contractor of the project.
As part of the reconstruction of the Bar compressor station, the company plans to replace two gas-pumping units (GPU) with modern production facilities made by General Electric, install a new fuel gas preparation unit, automatic control systems and generate compressed air with a receiver, and reconstruct fire safety, ventilation and heating systems.
As a result, the GPU efficiency will increase from 25% to 36%. The annual fuel gas saving will be 76 million cubic meters. The project payback is nine years based on 25 years of operation.
In general, two of seven GPUs of the Bar compressor station will be replaced, two will be used as backup, another three will be decommissioned.
During the visit to the site, Naftohaz Ukrainy CEO Andriy Kobolev said that cooperation with international companies in the modernization of the Bar compressor station is a key component for successful work in the oil and gas sector and improving efficiency. Therefore, Ukraine intends to expand cooperation, attract European companies to manage the country’s gas transport system, signing contracts for the transportation of gas not only with Gazprom.

UKRAINE BOOSTS COAL IMPORTS 80% AND OIL IMPORTS 36.9%, IN JAN 2018

Ukraine imported 73,933 tonnes of crude oil (according to foreign economic activity code 2709 – petrol, diesel fuel, fuel oil, jet fuel, etc.) worth $38.515 million in January 2018, respectively 36.9% and 57.3% more than in January 2017, the State Fiscal Service has reported.
Ukraine imported oil worth $36.174 million from Azerbaijan, $1.844 million from Iran, $277,000 from Russia and $221,000 from other countries. Ukraine did not export any oil in the period. As reported, Ukraine imported 5.826 million tonnes of oil worth $4.384 billion in 2011, 1.544 million tonnes worth $1.233 billion in 2012, 761,000 tonnes worth $630 million in 2013, 178,000 tonnes worth $147 million in 2014, 248,000 tonnes worth $89 million in 2015, 516,000 tonnes worth $174 million in 2016 and 1.013 million tonnes worth $442 million in 2017. Ukraine imported 570,685 tonnes of petroleum products (foreign economic code 2710 – petrol, diesel fuel, fuel oil, jet fuel, etc.) in January 2018, 0.9% more year-on-year, for a total of $344.072 million, 22.1% more. Russia supplied petroleum products worth $146.006 million (42.43% of the total), Belarus some $130.958 million (38.06%), Lithuania some $37.032 million (10.76%) and other countries $30.075 million (8.74%).
Ukraine exported 25,876 tonnes of petroleum products worth $14.981 million in January, of which $3.694 million to Latvia, $3.669 million to Lithuania, $2.451 million to Greece and $5.167 million to other countries. Ukraine imported petroleum products worth $6.954 billion and exported $3.339 billion in 2011, $7.607 billion and $1.389 billion respectively in 2012, $6.418 billion and $811 million in 2013, $6.698 billion and $511 million in 2014, $3.857 billion and $116 million in 2015, $3.267 billion and $87 million in 2016 and $4.159 billion and $181 million in 2017.
Imports of coal (foreign economic code 2701) rose to 2.250 million tonnes in January 2018, an 80% year-on-year increase, worth $281.161 million, 64.5% more.
Ukraine imported coal (including anthracite) worth $170.579 million from Russia (60.67% of the total), $91.017 million from the United States (32.37%), $13.1 million from Canada (4.66%) and $6.465 million from other companies (2.3%).
Ukraine exported 43,316 tonnes of coal worth $7.798 million in January, including $4.597 million to Russia and $3.201 million to Slovakia.
Ukraine imported coal worth $2.761 billion and exported coal worth $775 million in 2011, respectively $2.637 billion and $609 million in 2012, $1.974 billion and $737 million in 2013, $1.773 billion and $521 million in 2014, $1.632 billion and $54 million in 2015, $1.467 billion and $45 million in 2016 and $2.744 billion and $105 million in 2017.

KYIV INTERNATIONAL AIRPORT INCREASES PASSENGER FLOW IN JAN, 2018

The Kyiv international airport (Zhuliany) serviced 155,500 passengers in January 2018, which is 43.8% up than in January 2017.
The press service of the airport reported that the number of passengers serviced on international flights totaled 149,600 and on domestic flights – 5,900.
The number of flights in January 2018 accounted for 1,876 (departures and arrivals), which is 19.3% more than a year ago, including 1,552 international flights and 324 domestic flights.
The most popular international routes in January 2018 were Dubai (the UAE), Minsk (Belarus), Ankara (Turkey), Budapest (Hungary), Warsaw (Poland), Memmingen (Germany), Rome (Italy) and domestic flights – Odesa, Zaporizhia and Lviv.

UKRAINAIN CABINET STARTS REFORM OF REGULAR BUS TRANSPORTATION MARKET

The Cabinet of Ministers on February 7 approved the resolution on amendments to the rules for providing the services of passenger road transportation and on amending the procedure for conducting a tender for carriage of passengers on the public bus route, actually launching the reform of the bus transportation market.
“This is not a space flight that was watched yesterday with enthusiasm – it is a real revolution in the field of bus transportation! Transparent and fair competition will lead to the fact that millions of people in Ukraine will not only use morally and physically worn out minibuses, often illegally redesigned from cargo minibuses, but modern, comfortable, safe buses. The preparation of this reform was started in 2016. These were long two years of nerves, blocking and counteraction, fighting, but it’s worth it,” Minister of Infrastructure of Ukraine Volodymyr Omelyan wrote on his Facebook page.
According to him, the amendments made to the government’s resolutions will make it possible to change the situation in the regular bus transportation market throughout the country in the near future.
“For the first time in the last ten years, we have abandoned obsolete rudiments and introduced the norms that are primarily aimed at improving the safety and quality of transportation, as well as creating conditions for people with disabilities,” the minister said.

CANADA AND WORLD BANK WILL HELP UKRAINE FORM TELEMEDICINE NETWORK

Canada and the World Bank will assist Ukraine in the reform of rural medicine and the formation of a telemedicine network, Ukrainian President Petro Poroshenko has said.
“I am very grateful to our Canadian partners who supported my program on the development of rural medicine and the World Bank. Together they provide us with the necessary assistance for the formation of a telemedicine network in Ukraine,” Poroshenko said in a video on his Facebook page.
The president noted last autumn UAH 4 billion was allocated for a program for the development of rural medicine.
“These are the funds previously stolen by Yanukovych [former president of Ukraine Viktor Yanukovych] and returned to the budget. In addition, an extra UAH 1 billion is foreseen for rural medicine for 2018,” Poroshenko said.
The president stressed $700 million was issued by Canada for the implementation of reforms in Ukraine and more than $12 billion during 25 years are provided by the World Bank to support the reforms. According to him, some of these funds will be spent on reforming the healthcare system.
“We’ve agreed that part of the funds will be used for the reform of rural medicine, the creation of telemedicine,” the president said.
According to Poroshenko, the introduction of telemedicine is a modern technology for medical services in rural areas and also an effective world practice. According to Deloitte, about 100 million calls to doctors through the means of telemedicine are expected worldwide in 2020.

LARGEST MOBILE OPERATOR KYIVSTAR PLANS TO INSTALL 600 NEW BASE STATIONS IN UKRAINE

Kyivstar, the largest mobile operator in Ukraine, plans to install 600 new base stations in 2018, company president Peter Chernyshov has told Interfax-Ukraine.
“In 2017 the company began installing additional equipment for 4G communications at the existing base stations. In 2018 Kyivstar plans to install another 600 new base stations. We will build a network that will allow the company to remain a leader in the quality of communications and services,” he said.
Chernyshov said that, taking into account the development strategy adopted by the operator, the company plans to connect more than 500 previously installed base stations operating in the 2600 MHz band this year.
According to him, in particular, it is planned to develop the new mobile communications technology (4G, LTE) in this range in megacities and large cities such as Kyiv, Dnipro, Kharkiv, Odesa, and Lviv. He noted that Khmelnytsky is also in the list, as in the city Kyivstar occupies almost 80% of the market. In addition, this equipment has already been installed at border crossing points, in places of summer rest, such as, for example, Zatoka (Odesa region).
Chernyshov said base stations for the 2600 MHz band are needed for the operator to enhance the work of 4G in the 1800 MHz band.