Business news from Ukraine

Business news from Ukraine

UKRAINE TO DESIGN MOST EFFICIENT WAY TO USE UGS FOR NEXT 20 YEARS WITH EU SUPPORT

KYIV. July 18 (Interfax-Ukraine) – Ukraine and the European Union have launched a project to forecast the demand for underground gas storage facilities (UGS) for the next 20 years and to study the possibilities of using Ukrainian storage facilities in this market, the press service of Naftogaz Ukrainy has said.
According to its data, based on the results obtained, several strategic scenarios for the best use of Ukrainian UGS will be developed.
A kick-off meeting held on July 12 was attended by the representatives of Naftogaz, Ukrtransgaz, Trunk Gas Pipelines of Ukraine, the Ministry of Energy and Coal Industry, the Ministry of Economic Development and Trade, the Energy Community Secretariat and international consultants selected by the EU.
The project will be implemented by a consortium consisting of a top global management consulting firm, French operator of underground gas storages (Storengy) and an international law firm (CMS Cameron McKenna Nabarro Olswang).
The project is funded by the European Union and is designed to build up a sustainable business case for Ukraine’s underground gas storage facilities in the context of the European and Ukrainian energy market. Naftogaz will participate in the project’s steering committee, along with other key stakeholders, including representatives of the Ukrainian government.

UKRAINE EXPORTS NITROGEN FERTILIZERS FOR $72 MLN, IMPORTS FOR $191 MLN IN H1, 2017

KYIV. July 18 (Interfax-Ukraine) – Ukraine in January-June 2017 exported 377,465 tonnes of nitrogen mineral or chemical fertilizers (under foreign activity code 3102) for $72.03 million, while imported 962,441 tonnes worth $191.418 million.
According to the State Fiscal Service, nitrogen fertilizers exports to Turkey amounted to $30.367 million, Italy to $11.579 million, Romania to $6.641 million, and other countries to $23.443 million.
Nitrogen fertilizers in the first half of the year were imported from the Russian Federation for $134.027 million (a share of 70.02%), Uzbekistan for $17.091 million (8.93%), Belarus for $9.598 million (5.01%), other countries for $30.702 million (16.04%).
In addition, Ukraine in January-June of this year exported 110,332 tonnes of ammonia (code 2814) for $33.756 million, imported 168,050 tonnes for $40.993 million. Almost 100% of ammonia was imported from the Russian Federation ($40.979 million). Exports were made to Turkey (for $14.178 million), India ($12.113 million), Jordan ($4.759 million), and other countries ($2.707 million).

GROYSMAN SUGGESTS TURNING HOSTOMEL AIRPORT INTO BASE FOR LOW-COST AIRLINES, INCLUDING RYANAIR

KYIV. July 18 (Interfax-Ukraine) – Ukrainian Prime Minister of Ukraine Volodymyr Groysman has spoken in favor of the development of Hostomel Airport, which today serves as a base for Antonov aircraft and Antonov Airlines, into a home airport for low-cost airlines, including Irish Ryanair.

UKRAINE BOOSTS PIPE OUTPUT BY MORE THAN A QUARTER IN H1

KYIV. July 18 (Interfax-Ukraine) – Major pipe producers in Ukraine increased production of ferrous pipes by 26% in January-June 2017, compared to the same period in 2016, to 500,200 tonnes, including 93,800 tonnes in June.
Ukrtruboprom’s enterprises alone manufactured 335,400 tonnes of pipes in the six months, which was 34.6% up year-over-year. Their output in June alone was 64,400 tonnes.

UKRAINE INTENDS TO ACCEPT UP TO ONE MILLION TURKISH TOURISTS

KYIV. July 17 (Interfax-Ukraine) – Ukraine intends to equalize a flow of tourists to Ukraine from Turkey with that from Ukraine to Turkey, increasing the accepting of Turkish tourists by five times, to one million people, the deputy director of the tourism and resorts department of the Ministry of Economic Development and Trade of Ukraine, Vitalina Martynovska, has said.
“We plan to equalize the flow of tourists from Turkey to Ukraine with the one from Ukraine to Turkey. Today the flow of tourists from Ukraine to Turkey is about one million tourists, while that from Turkey to Ukraine five times less,” she said, when presenting the Stopover tourist product of Turkish Airlines in Kyiv.
According to Martynovska, the ministry planned several measures to stimulate a tourist flow from Turkey to Ukraine, including holding press tours for the leading Turkish mass media in Ukraine, the presentation of Ukrainian tourist products in Turkey and Ukraine’s participation in a large tourist exhibition in Izmir.
In addition, she said the agreement on the entry of Turkish citizens to Ukraine using ID cards contributes to the increase of tourist flow from Turkey.

CONSTRUCTION OF SEVERAL REGIONAL CONCRETE ROADS COULD START IN 2017 – UKRCEMENT

KYIV. July 17 (Interfax-Ukraine) – Construction of several concrete regional roads could start in 2017 if the State Automobile Roads Agency of Ukraine (Ukravtodor) would help to realize the projects, Head of the Ukrcement association of cement producers Pavlo Kachur has said in an interview with Interfax-Ukraine.
“Today the following highways are at the design and examination stages: Kirovohrad-Mykolaiv, an orbital road around Zhytomyr, a section of the Poltava-Dnipro road near Reshetylivka and two regions roads in Lviv and Ternopil regions. This is not new construction. These are sections that are to be reconstructed,” Kachur said.
He said that in 2017 prices the cost of construction of asphalt and concrete roads is almost the same, while the life cycle of the concrete road is 25 years and that for asphalt – twice less.
“We take into the period of the road exploitation of 25-30 years, the expedience of construction and servicing the concrete road is twice higher than for the asphalt one. In addition, concrete roads are safer and more environment friendly. They are able to bear larger axial load,” he said.