Business news from Ukraine

Business news from Ukraine

IMPORT OF ELECTRICITY TO UKRAINE FIRST SINCE LAUNCH OF NEW MARKET EXCEEDS EXPORT

The total volume of imported electricity in November 2019 first since the launch of the new electricity market exceeded the total volume of exported electricity – by 5%, the press service of national energy company Ukrenergo has reported. At the same time, the total import volume amounted to 661,000 MWh, the total export volume reached 629,000 MWh, the company said. According to Ukrenergo, 370,600 MWh were imported into the Burshtyn TPP, and 290,400 MWh to the Integrated Power System (IPS) of Ukraine.
At the same time, Ukrenergo said that in order to ensure balance and operational security of the power grid, the company limited the planned import of electricity. As a result, in November, imports from Belarus were limited by 46% (from 294,700 MWh to 157,800 MWh), by 34% from Russia (from 201,500 0 MWh to 132,600 MWh), and by 1% from countries importing into the Burshtyn TPP (from 374,900 MWh to 370,600 MWh).
According to the company, in November 2019, imports increased by 10% compared with October (from 601,000 MWh to 661,000 MWh), compared to July – by 140% (from 274,600 MWh up to 661,000 MWh).
According to Ukenergo, the largest increase in electricity imports was recorded from Hungary – almost doubled. At the same time, imports from Slovakia increased by 8% and from Russia by 4%.
Electricity export from the Burshtyn TPP amounted to 483,700 MWh, while supplies to Romania almost tripled.
Exports from the IPS of Ukraine amounted to 145,200 MWh.
According to Ukrenergo, the IPS of Ukraine exported electricity to Poland and Moldova.

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UKRAINIANS OPPOSE LEGALIZATION OF GAMBLING

The majority of Ukrainian citizens do not support legalization of gambling in the country, according to a poll conducted by the Kyiv International Institute of Sociology (KIIS) on December 1 through December 12 as part of the KIIS Omnibus regular multi-targeted population survey.
To the question “Do you support the legalization of the gambling business?” 56% of respondents said they did not fully support it. Another 19% of respondents support the legalization of gambling, but on condition that special gambling zones are made for this or the places are localized. Only 18% of respondents fully support the legalization of gambling.
At the same time, the respondents were asked what games can be legalized in Ukraine. Almost half of the respondents (49.7%) believe that they can be lotteries, 22.1% – bookmakers’ odds, 18.7% – casinos, 9.5% – online casinos, 6.9% – gambling with cards. Some 37% said that none of the gambling can be legalized in Ukraine.
According to the results of the study, 52% of the inhabitants of Ukraine react negatively about the fact that President Volodymyr Zelensky approves the legalization of gambling. 35% of respondents have a positive attitude to this initiative of the president. 62% of respondents know that several bills on the legalization of gambling are under consideration in the Verkhovna Rada.
The survey was conducted in 110 populated settlements (PSU) in all regions of Ukraine, except for Crimea and the uncontrolled areas of Donetsk and Luhansk regions. During the field stage, 2,043 questionnaires were collected. The statistical error of the sample (with a probability of 0.95 and with a design effect of 1.5) does not exceed 3.3% for indicators close to 50%, 2.8% for indicators close to 25%, 2.0% for indicators close to 12%, and 1.4% for indicators close to 5%.

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SUGAR PRODUCTION IN UKRAINE AMOUNTES TO 1.375 MLN TONNES

Sugar production in Ukraine as of December 17, 2019 amounted to 1.375 million tonnes.
According to the Ukrtsukor National Association of Sugar Producers, in the 2019/2020 season some 31 sugar plants were operating. To date, they have processed 9.11 million tonnes of sugar beets.
As reported, the sugar season in Ukraine started on September 1.
Sugar production in the 2018/2019 season decreased by 15% compared with the previous agricultural year, to 1.82 million tonnes.

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GAS TRANSMISSION SYSTEM OPERATOR OF UKRAINE AND ROMANIA’S TRANSGAZ SIGN AGREEMENT

Gas Transmission System Operator of Ukraine LLC (TSO of Ukraine) and Romania’s Transgaz have signed an interconnection agreement meeting European rules to start cooperation from January 1, 2020. The Ukrainian operator recalled that the negotiations with the mediation of the European Commission have been going on for three years. Operators of Bulgaria, Greece and Moldova have also been involved in them.
“This means that all suppliers have the opportunity of freely transporting gas with a new supply route – from Southern Europe and Turkey – through Bulgaria and Romania – to Ukraine and further to Moldova. That is, from January 1, at the Isaccea 1-Orlivka 1 interstate point a daily capacity on the Ukraine-Romania route in the amount of 17.8 million cubic meters will be available, as well as 15.8 million cubic meters per day in the opposite direction,” the operator said.
The first auctions for booking capacities at the Isaccea 1-Orlivka 1 point should be held in the coming days.
The operator said that the agreement previously signed between the gas transmission system operators of Ukraine and Romania did not allow gas to be transported in the reverse mode, and also did not provide European rules for interaction, since such an opportunity was blocked by the current contract between Naftogaz Ukrainy and PJSC Gazprom.
In addition, such an agreement creates an additional technical opportunity for Moldova to alternatively import gas for its own needs from Turkey and Greece if Gazprom stops transit to Europe through Ukraine.
“This decision is historic and extremely important, because it allows you to create an additional route for gas imports to Ukraine, primarily to provide gas to Moldovan consumers and border consumers of Ukraine in Odesa region. This will allow winter to pass uninterruptedly, even if the gas transit could be stopped from the Russian Federation,” Director General of TSO of Ukraine Serhiy Makohon said.

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COMPANIES FROM QATAR AND UKRAINE TO PARTICIPATE IN CONCESSION OF OLVIA STEVEDORING COMPANY

Three companies from Qatar and Ukraine have announced that they will participate in a competition for concession of the Olvia stevedoring company, according to a posting on the website of the Infrastructure Ministry. According to the report, two of the three companies are prequalified to participate in the next stage. “As for the third, the tender committee has not yet made a decision, since the application was submitted on the last day,” the ministry said. Tender proposals for participation in the tender were submitted by QTerminals company (Qatar) and associations of Peters Maritime Agency LLC and Protti-Gasoline LLC (both from Mykolaiv).
Infrastructure Minister Vladyslav Krykliy said that $66 million of investments and at least $3 million of government investments over the next 35 years are expected from the implementation of the concession project in the Olvia stevedore, as well as $3 million of annual concession payments.
The next stage, during which the competitive bods of the participants will be evaluated and the winner determined, will be held on January 21, 2020.
As reported, four companies will participate in the Kherson seaport concession tender.

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UKRAINIANS COULD USE APPLICATION YALYNKA.INFO TO TEST ORIGIN OF NEW YEAR TREES

Enterprises of the State Forest Resources Agency of Ukraine this year plan to sell over 500,000 New Year trees at an average price of UAH 60-70 per linear meter, Deputy Director of state-owned enterprise (SOE) Forestry Innovation and Analytical Center of the State Forest Resources Agency Yuriy Sotnyk has said. “This year, the forestry enterprises of the State Forest Resources Agency are planning to sell more than 500,000 New Year trees. These trees are grown on plantations or harvested in the process of logging during a forest rehabilitation campaign,” he said at a press conference at Interfax-Ukraine. According to him, the average selling price for the enterprises of the State Forest Resources Agency, depending on the region, breed and age of the New Year tree, ranges from UAH 60 to UAH 70 per linear meter (at the level of last year). For spruces grown in pots, the price starts from UAH 100.
Sotnyk said that in addition to enterprises of the State Forest Resources Agency, there will also be municipal enterprises, enterprises of collective and private forms of ownership, farms, which will have about 200,000-300,000 trees, in addition to enterprises of the State Forest Resources Agency.
He said that the enterprises of the State Forest Resources Agency are harvesting trees from special forest plantations with a total area of about 5,000 hectares, where more than 14 million New Year trees are grown.
“This year, as last year, raid brigades will be created. They, in addition to employees of the forest guard service, also include officers of the National Police, environmental inspectorates and media representatives,” the deputy director of the Forestry Innovation and Analytical Center said.
Sotnyk said that in 2018, during the New Year holidays, about 700 violations were revealed, administrative reports against the illegal harvesting of more than 1,000 trees were recorded. Violators paid fines in the amount of more than UAH 250,000.
“New Year trees are recorded in the electronic accounting system. There is a special labeling: plastic tags, ribbons, etc. It allows getting information about the place of its harvesting, growing. For this, Yalynka.info free application has been developed, which can be downloaded to a smartphone,” the representative of the developer of the electronic wood accounting system – Austria’s Latschbacher GmbH – Volodymyr Molochko said.
In addition, the legality of the harvested New Year tree can be checked directly on the website of the State Forest Resources Agency: for this one needs to check the number indicated on the tree label in the system.
As reported, in 2018, the State Forest Resources Agency’s enterprises sold 472,800 New Year trees for the amount of UAH 32.8 million. The average price of a New Year tree was UAH 69.

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