Business news from Ukraine

Business news from Ukraine

SKYUP-BOEING $624 MILLION CONTRACT ON SUPPLY OF FIVE AIRCRAFT TO UKRAINE IS DIRECT ONE

A contract on supply of five Boeing 737 MAX aircraft, which the new Ukrainian airline SkyUp (Kyiv) ordered from the Boeing concern, is a direct order of the airline, the press service of the airline told Interfax-Ukraine, answering a question about the mechanism of buying of the planes. “This is the direct order from the airline on supply of planes,” the press service said.
The press service said that information about the source of financing is commercial and confidential.
As reported, on March 20, 2018, SkyUp Airlines announced that the airline and Boeing Corporation had signed a contract for the amount of $624 million for production of five Boeing 737 MAX planes for the Ukrainian airline. Some experts told Interfax-Ukraine that it is likely that these planes will be delivered not directly, but via a leasing company, which is traditional for the aviation market. SkyUp airline was registered in Kyiv in June 2016. The founder of SkyUp was ACS-Ukraine LLC belonged to Tetiana Alba and Yuriy Alba, who also own the JoinUp! tour operator.

KYIV POST NEWSPAPER IS SOLD FOR $3.5 MLN TO SYRIAN MILLIONAIRE

Kyiv Post newspaper owner Mohammed Zahoor has entered into a preliminary agreement with a Syrian businessman in Odesa to sell the publication for more than $3.5 million. The buyer is Adnan Kivan, a Syrian millionaire. The sale is expected to be completed before April 1, 2018.
Kyiv Post employees cite Zahoor saying that Kivan will sell the newspaper “for much more” than $3.5 million, but could not give the price. Zahoor said Kivan has already made a substantial prepayment installment.

STATISTICS SERVICE IMPROVES UKRAINE’S GDP GROWTH IN 2017 TO 2.5%

The State Statistics Service reported an increase of 2.5% in Ukraine’s real gross domestic product in 2017, whereas earlier the agency estimated its growth at 2.2%.
According to the website of the service, GDP growth in 2016 was also revised upwards to 2.4% from 2.3%.
According to statistics data, the annual estimate of GDP growth in the fourth quarter of 2017 was improved to 2.2% from 1.8%, quarterly to 0.5% from 0.4%, the annual estimate in the third quarter was improved to 2.4% from 2.1%, quarterly to 0.5% from 0.2%, the annual estimate in the second quarter was raised to 2.6% from 2.3%, quarterly to 0.8% from 0.6%, the annual one in the first quarter was improved to 2.8% from 2.5%, and quarterly downgraded to 0.1% from 0.3%.
Nominal GDP for the past year amounted to UAH 2.983 trillion, the deflator change stood at 22%.

UKRZALIZNYTSIA SEES UAH 20 MLN OF PROFIT IN 2018

Public joint-stock company Ukrzaliznytsia tentatively saw UAH 20 million of profit in January and February 2018, the company’s press service has reported.
The press service said that revenue from transportation totaled UAH 12 billion, which is UAH 1.3 million or 12.2% more than a year ago.
In January and February 2018, freight flow grew by 1.6% of the target and passenger flow – by 5.2% year-over-year.
“The upward pace in the financial performance of Ukrzaliznytsia in the first months of 2018 was achieved thanks to well-coordinated work of the team, constructive relations with customers and government support of the industry,” acting Board Chairman of Ukrzaliznytsia Yevhen Kravtsov said.
According to the report, among other things, one of the strategic tasks for the industry is capital investments in the renewal of fixed assets. So, in the two months of 2018, at own expense, almost UAH 1.7 billion of capital investments were made, which is 2.5-fold more than in the same period of 2017. This includes more than UAH 94 million sent to the construction of the Beskydsky tunnel. Another UAH 304.2 million was allocated for modernization and UAH 156.7 million for capital repairs.

NCCR TO LICENSE BANDS FOR NEW COMMUNICATIONS TECHNOLOGIES

The National Commission for Communications and Informatization Regulation (NCCR) expects that the next stage of introduction of 4G communications in Ukraine will be for the 900 MHz band.
“The next priority is the 900 MHz band. We are working on it. As soon as all preparation works are completed, we will present a plan how to introduce 4G communications for this band to the sector and government. We see three spectra of 5 MHz each in duplex not occupied by military, but we require additional studies and approvals,” NCCR Chairman Oleksandr Zhyvotovsky told Interfax-Ukraine.
He said that operators need “low frequencies” in the 800-900 MHz bands to improve communication in remote areas and cover a wide area with stable signal.
Zhyvotovsky said that the situation with the 900 MHz band is significantly complicated by the fact that many different users are working there with different technologies. Refarming and amendments to Ukrainian legislation are required to create the conditions for launching 4G communications in this band.
He said that the commission is also working on a tender for the 2300 MHz band.
“We have applications from two operators for the 2300 MHz band – Giraffe and Datagroup [Krayevyd belonged to Datagroup]. At present, the applications have been sent to the Cabinet of Ministers,” Zhyvotovsky said.
He said that these companies own the frequencies in this band and seek to receive a chance of introducing 4G services there using the same scheme designed for telecom operators for the 1800 MHz band.
As for the last band announced by the commission where it is planned to introduce 4G – the 800 MHz band (the so-called “digital dividend”), Zhyvotovsky failed to name the approximate date.
He said that all questions on the launch of mobile communications for this band should be asked from the profile regulator responsible for release of these frequencies from analog television signal – the National Council for Television and Radio Broadcasting.