Business news from Ukraine

TURKEY AGREES ON CONTRACT TO BUILD SUBWAY IN DNIPRO – MAYOR

KYIV. July 20 (Interfax-Ukraine) – Turkey has agreed on a contract for building subway in the city of Dnipro, City Mayor Borys Filatov has said.

“Turkish colleagues have brought an agreed contract for subway construction,” Filatov wrote on his Facebook page.

He also published his photo with a weighty bookbinding in the hands, which was signed in the following way: “And this large book is not the Great Encyclopedic Dictionary but our contract. We are waiting for press at a ceremony scheduled for July 28.”

As reported, on December 30, 2015 the Cabinet of Ministers of Ukraine passed the integrated property complex of state enterprise Dnipropetrovsk Subway Construction Directorate to the mayor’s office of Dnipropetrovsk.

In November 2015 the customer of building the first metro line in Dnipro [at that time Dnipropetrovsk] was the city council.

 

NOVA POSHTA SEES 55% RISE IN DELIVERY IN JAN-JUNE

KYIV. July 20 (Interfax-Ukraine) – Nova Poshta (Kyiv) delivered 49 million packages in January-June 2016, which was 55% up year-over-year, and over 60% of them are documents and parcels weighing up to two kilograms.

“The results of the second half of the year are evidence of growth and strengthening of the e-commerce market. During the six months of this year the company delivered 10.9 million orders from online shops – this is 68% up year-over-year. Automatic parcel terminals are popular too: the number of parcels received via the terminals almost tripled compared to the first half of last year,” the company said in a press release.

Development Director Maksym Rabynovych said that the company’s strategy is to ensure high-quality service in all points of contact with clients.

“We hear their wishes and develop top-priority directions. Among them are improvement of address servicing, expansion of the range of financial and logistics services for individuals and business. Special attention is paid to easy and affordable international delivery. We are designing new products in this direction for various categories of clients,” he said.

The company said that at present its fleet consists of over 3,300 trucks. The chain of depots delivering parcels up to 30 kilograms is being expanded.

Today the Nova Poshta chain consists of 37 transloading terminals with gross area of 82,600 square meters and almost 2,300 depots and over 1,400 automatic parcel terminals. By the end of the year it is planned to open up to 200 automatic parcel terminals in regional centers.

The company delivered over 12,300 humanitarian parcels with gross weight of over 1,000 tonnes in cooperation with 120 volunteers in January-June 2016.

“Nova Poshta supports initiatives aimed at medical rehabilitation of ATO troops. The company plans to implement projects focused on social and psychological adaptation of military servicemen,” the company said.

UKRTSUKOR PREDICTS SUGAR PRODUCTION GROWTH BY ALMOST 40% IN 2016/17 AGRI-YEAR

KYIV. July 20 (Interfax-Ukraine) – The national sugar producers’ association Ukrtsukor predicts that sugar production would grow by 40% in the 2016/17 agricultural year (September-August), to 2 million tonnes.

“We could receive around 2 million tonnes of sugar this year,” Ukrtsukor Head Andriy Dykun said at a press conference in Kyiv on Tuesday.

He said that Ukraine made 2.08 million tonnes of sugar in the 2014/15 agri-year and 1.43 million tonnes in the 2015/16 agri-year.

Sugar production would expand, as the areas planted with sugar beats this year expanded by 25-30% and the yield improved thanks to good weather.

Ending sugar stocks are estimated at 600,000 tonnes.

Dykun expressed alarm with the intents of the Agrarian Fund to sell 60,000 tonnes of sugar on the domestic market, as this would push down the prices.

He expressed hope that the Ukrainian government would annul sugar price regulation and declaration of prices.

He said that since early 2016 Ukraine has exported 46,000 tonnes of sugar, and 40% of it went to Romania.

According to the association’s forecasts, the cash cost of sugar production in the 2016/16 agri-year could be UAH 15 per kilogram, and now wholesale prices of sugar are UAH 12.50-14 per kilogram.

EU, KYIV TO SET UP EXPERT GROUP ON INCREASING GAS TRANSPORT ACROSS UKRAINIAN TERRITORY

KYIV. July 20 (Interfax) – The European Union and Ukraine intend to work on stepping up the utilization of Ukraine’s gas transport capabilities, the Ukrainian government press service said in a statement following Prime Minister Volodymyr Groysman’s meeting with European Commission Vice-President for Energy Union Maros Sefcovic.

“Volodymyr Groysman and European Commission Vice-President for Energy Union Maros Sefcovic agreed to set up an expert group on enhancing the use of Ukraine’s gas transport capabilities,” it said.

On the Ukrainian side, the group will be led by Naftogaz CEO Andriy Kobolev, it said.

Sefcovic stressed the willingness to form such an expert team without delay, saying that there is a consensus in Europe regarding the utilization and support of Ukraine’s gas transport system.

VOLUME OF CONSTRUCTION WORKS ACCOMPLISHED BY REGION IN 2016 (MLN.UAH)

17

Excluding the temporarily occupied territories the Autonomous Republic of Crimea, the city of Sevastopol and part of the anti-terrorist operation zone. Data can be corrected. Source: State Statistics Services

UKRENERGO TO ANNOUNCE TENDER TO BUY 25 MORE TRANSFORMERS

KYIV. July 20 (Interfax-Ukraine) – Ukrenergo intends to announce a tender to buy 25 more transformers, the company’s press service reported on Tuesday.

The press service said that acting Director Vsevolod Kovalchuk on July 21 will hold a press conference devoted to the announcement of the tender.

The press service told Interfax-Ukraine that the official tender procedure will be announced at the press conference.

The tender will be held via the ProZorro procurement system.