Global energy and commodity price reporting agency Argus Media has launched a Ukrainian natural gas price assessment to bring transparency to a rapidly evolving market.
The new assessment is an important step in the evolution of a freely traded Ukrainian gas market, which has developed since imports from Europe began at the end of 2015, replacing supplies from Russia. A growing number of international trading companies are active in the market, along with domestic gas producers, traders and consumers,” according to a report on the company’s website.
“Ukraine is a large market, and the country has ambitions to align with the EU’s rules on natural gas and electricity, which could make it a more attractive location to trade. Ukraine consumed 30.6 billion cubic meters of natural gas in 2017, placing it in line with some of Europe’s biggest markets. And Ukraine operates a gas storage system that is larger than any in Europe, at a time when market flexibility is at a premium. Trading firms and gas companies inject supply into storage during the summer when demand is low. As temperatures fall in the winter, storage withdrawals are made to meet heating requirements,” it reads.
“Argus is dedicated to providing independent coverage of the Ukrainian gas and power markets. Our focus on Ukraine is because of its growing importance to the European energy system, rapid development and size. This assessment is the culmination of dedicated research and development on the part of our editorial teams in Kyiv and London,” Argus Chairman and Chief Executive Adrian Binks said.
Argus’ Kyiv office opened in 2008, producing motor fuel, LPG and other price assessments, news and analysis.
Ernest Airlines (Italy) plans in March 2019 to begin regular flights from Kyiv Sikorsky Airport (Zhuliany) to Genoa (Italy), the press service of the airport has reported.
According to a press release, this decision was announced by the regional manager of the airline during the opening of Kyiv-Rome and Kyiv-Milan (Malpensa) flights on October 19.
Earlier, Kharkiv International Airport announced the opening of regular flights of Ernest Airlines to Rome and Milan from March 21, 2019.
At the moment, the airline’s website has a timetable until the end of March 2019, in which flights from Ukraine to Milan, Rome and Naples are made from Kyiv and Lviv airports, as well as Kyiv-Bologna and Lviv-Venice destinations.
Ernest Airlines is an Italian airline headquartered in Milan. The main operations center of the company is located in Tirana (Albania). The airline is a low cost carrier. It serves Italian and Albanian markets. Currently, the airline’s fleet includes two Airbus-319 and Airbus-320 aircraft, but it is planned to replenish it with two more Airbus-320 aircraft by the end of this year.
Naftogaz Trading gas supply company LLC on October 12 signed first contracts on the sale and purchase of natural gas using the new sales format. Gas has been supplied under all of the signed contracts.
The press service of Naftogaz Ukrainy reported that since October 2018, gas is sold to industrial enterprises via Naftogaz Trading with the introduction of the new model for selling gas, and Naftogaz sells gas only under long-term contracts.
The price of gas could change several times a day in line with the changes on the European market and hryvnia exchange rate fluctuations.
“The new gas sales model is flexible and convenient for both the supplier and the consumer. Its implementation will contribute to the development of the Ukrainian gas market and bring it to global standards,” Naftogaz Ukrainy Chief Commercial Officer Yuriy Vitrenko said.
The Bud House Group, an investment and developing group, has signed a contract to lease 550 square meters in the Liubava shopping and entertainment center in Cherkasy with CCC Ukraine LLC (Lviv), developing a chain of shoe stores of the Polish brand CCC in Ukraine. The press service of Bud House reported on Monday that the decoration of the premises has started. The date of the opening of the store is not specified.
Earlier CCC Ukraine planned to open up to 15 new stores in Ukraine in 2018.
According to the official website of the CCC brand, as of November 22, 2018, the chain in Ukraine includes 10 outlets.
Bud House Group is the developer of the Liubava shopping and entertainment center.
Ukraine’s Agricultural Policy and Food Ministry has repeatedly reviewed the grain harvest of 2018 upwards – from 63.1 million tonnes to 64 million tonnes, First Deputy Minister Maksym Martyniuk has said. “As a result of the rains, we have very good indicators for corn. And today we are ready to voice a bold forecast that we will have a gross grain harvest of 64 million tonnes,” he said during the “Money, Go!” program broadcasted on the Novoye Vremia radio.
Martyniuk said that this is the second result in history after the year before last’s record of 66 million tonnes. In addition, the ministry reviewed the outlook for grain exports from Ukraine by 0.5 million tonnes to 42.5 million tonnes, adding that the achievement of this indicator largely depends on the ability of Ukrzaliznytsia to quickly solve current logistical problems and ensure a rhythmic supply of grain in ports. According to the ministry, as of October 19, 52.2 million tonnes of grain were harvested in Ukraine from an area of 12.7 million hectares (86%) with a yield of 4.11 tonnes per hectare.
The grain harvest in Ukraine in 2017 amounted to 61.3 million tonnes. Ukraine in 2017/2018 agricultural year exported 39.4 million tonnes of grain.
Baker McKenzie has assisted with the successful formation of a private equity fund vehicle in Luxembourg and sourcing financing for the joint acquisition of a 16% equity stake in Allseeds S.A. by the Dutch development bank FMO and private equity manager Diligent Capital Partners.
The investment was made to realize Allseeds’ expansion plans of adding to its business line oilseed crushing and trans-shipment capacities, as well as to enable other value-added processing of vegetable oils and their by-products.
The transaction involved legal and tax structuring of the private equity fund vehicle to support investment in the target business as well as other future transactions with key input from Partner Catherine Martougin, Senior Associate Ali Bouhrara from the Private Equity Team and Tax Director Amar Hamouche from Tax practice Group of Baker McKenzie Luxembourg and was project-managed by Senior Associate Andrii Moskalyk under the overall supervision of Partner Viacheslav Yakymchuk from the Corporate and M&A Practice of Baker McKenzie Kyiv.
“This was a truly remarkable and exciting transaction for us and, we believe, for the Ukrainian market in general. In recent years, not so many deals have been designed for the purposes of private equity funds targeting Ukrainian business opportunities. We hope that this paves the way for transactions of a similar nature and magnitude in the near future and generally revives the interest of private equity investors in Ukrainian assets,” said Viacheslav Yakymchuk.
BAKER MCKENZIE, DILIGENT CAPITAL PARTNERS, FORMATION, PRIVATE EQUITY FUND
