Business news from Ukraine

Business news from Ukraine

Ukrzaliznytsia launches test train to Warsaw to increase seats on this route by 2-3 times

“Ukrzaliznytsia” (UZ) is launching a test flight of the “Kyiv-Warsaw” train with standard “wide” passenger cars in order to obtain the Polish side’s final permission to increase the number of trips and, respectively, seats on this route by two or three times, the press service of UZ said.
According to its data the purpose of the test is to confirm the compatibility of standard passenger cars of UZ with the modernized infrastructure of Polish Railways. The current stage of the project is the final one.
On Wednesday, May 31, 14 standard passenger cars of size 1-BM leave Kiev, which in Jagodina will be converted to euro bogies for “narrow” europeways (1435 mm).
“During my first trip to Poland as chairman of the board of Ukrzaliznytsia in the delegation headed by Deputy Prime Minister for Reconstruction of Ukraine – Minister of Development of Communities, Territories and Infrastructure Alexander Kubrakov, we agreed to finalize this project. Earlier, all the tests were carried out, and we realized: our standard cars can freely pass the test run, after which we will get the “green light” from the Polish side. This will allow in two or three times to increase the supply of seats for direct communication between the Ukrainian and Polish capitals, “- quoted in a press release, the head of the board of UZ Eugene Lyashchenko.
Reportedly, UZ has already engaged all RIC-class cars in its fleet (Regolamento Internazionale Carrozze – Italian). In addition, the company asked European partners to transfer new “narrow” cars, but it will take more than two years to order and build such cars. “This did not stop Ukrainian railroad workers, as the demand of our passengers prompts them to find non-standard solutions. Almost a year ago UZ initiated and conducted work with Polish railroad workers on this project realization”, – words of the UZ board member Alexander Pertsovsky are cited in the report.
There were several rounds of negotiations and agreements between the two sides on the issue of compatibility, received technical approval of the Polish regulator UTK (Urząd Transportu Kolejowego). At the request of the Polish side, measurements of the dimensions of each car were carried out jointly.
As noted, the number of seats on the direct flight of the train “Kyiv-Warsaw” is limited at the moment, as the Polish railroaders let in only a train equipped with “narrow” RIC-cars with three-seat compartments.
According to the press service, the direct flight Kiev-Warsaw-Kiev continues to enjoy a rush demand. “Every day only in the mobile application UZ registers more than 3 thousand requests from passengers who are looking for tickets in this service, which is 10 times more than the availability of seats,” – states the company.
As reported there are 42 RIC cars in the fleet of UZ, two of which have been purchased from Krukiv Wagon Works.
In order to increase the number of trips to Poland from Ukraine after the full-scale invasion of Russia, UZ has launched new routes. In particular, “wide” routes have been retained on the route from Kiev to Chełm. Two daily flights conveniently connect with Polish flights to Warsaw. There are also night flights between Kiev and Peremyshl (two sleeper flights in addition to the two Intercity+ flights). Direct flights are launched from Kharkiv to Chelm, from Zaporizhzhya, Dnipro, Odessa, Vinnitsa, Khmelnitsky, Ternopil and Lviv to Peremyshl.

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China plans to land its astronauts on Moon by 2030

The China Manned Spaceflight Program Administration (CMSA) on Monday announced plans to send astronauts (Chinese taikonauts) to the surface of the moon before 2030.
“According to the plan for a project to explore the moon by taikonauts, Chinese taikonauts will land on the moon for the first time before 2030, with two taikonauts driving a lunar rover to conduct scientific research,” the administration said in a statement on its website.
China has previously announced plans to land taikonauts on the moon and build a lunar research base there in the 2030s. The South Pole was suggested as a preliminary landing site because of the abundance of sunlight in the area and the presence of ice reserves from which water could be extracted.
China’s main rival in the “moon race” is the United States. In April, Bill Nelson, head of the U.S. National Aeronautics and Space Administration (NASA) said that the U.S. space agency expects to send astronauts to the moon in late 2025 or 2026 under the Artemis national lunar program.

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Ukrainian parliament resumes big privatization

The State Property Fund (SPF) will be able to resume big privatization, to lease state property for up to five years and will receive sub-sanctioned property upon the decision of the SAI and independently decide on its further fate.
According to the FGI in a press release, the relevant provisions are stipulated by law number 8250, which the Rada supported by 231 votes with the required minimum of 226 votes on May 30.
The fund specified that it will independently make management decisions on the sub-sanctioned property: privatization, sale, lease or management, and all the funds received will be directed to the Fund for liquidation of consequences of the armed aggression of the Russian Federation.
In addition, the law bans unsanctioned individuals and citizens of aggressor countries from holding positions as heads of state-owned companies and members of supervisory boards and cancels the procedure for approving local authorities for directors of state-owned companies managed by the SPF, the release said.
Regarding the lease, the Fund recalled that before the full-scale invasion, it could lease state property for up to 49 years, although the vast majority of contracts were for five years: in 2021, the share of five-year contracts was 88.8%.
At the same time, at the beginning of the war there were fears that due to low competition caused by the general uncertainty, the price of the lease may be underestimated, and from April 1, 2022 the Rada limited the validity of new contracts to the duration of martial law + 12 months after its cancellation, explained the IGF. He specified that during this time has concluded 1,153 such contracts.
“But in recent months, Ukrainian business has gradually adapted to the challenges of martial law … Term limits do not encourage entrepreneurs to participate in lease auctions, so now 38% of them do not pass due to lack of demand,” explained the Fund.
After the law enters into force, the agency expects to increase the income from renting state property by 20-25%, or 100 million hryvnias per year, as well as to improve the condition of the leased property.
According to a press release, the law also aims to improve the management structure of the IGF: the head of the Fund will have the right to appoint and dismiss deputies, 12 regional offices – separate legal entities will become structural units, and the organizational structure will be built on a functional principle. “As a consequence, a clearer and more understandable responsibility for the work of the State Property Fund and the installation of the KRI for subdivisions and market salaries for employees,” the statement said.

Latvia elected new president

Foreign Minister Edgar Rinkevich nominated by New Unity has been elected president of Latvia in the third round of voting in the Saeima.
Fifty-two deputies voted for Rinkevich, the minimum required being 51 votes.
Uldis Pilens, the United List candidate, received 25 votes in the third round.

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Ukraine will reduce grain exports by third in 2023

Grain and oilseed exports from Ukraine in 2023 will drop by a third to 46 million tons per year, Agrarian Policy Minister Mykola Solsky said at a meeting of the Agriculture and Fisheries Council in Brussels on Tuesday.
“Compared to last year, this year’s exports of grain and oilseed crops from Ukraine are expected to decrease by a third to 46 million tons per year. Consequently, Ukraine will be able to export less grain than last year by 40%,” the press service of the Ministry of Agrarian Policy quoted the minister’s speech to European colleagues.
European Commissioner for Agriculture Janusz Wojciechowski also said at a press conference after the meeting of the agrarian ministers that the EU expects Ukraine to reduce its exports in 2023 because “the country has limited cultivated areas and expects a 40% lower harvest”.
He expressed confidence that this factor will improve the organization of “routes of solidarity” and send “all exports through them.
Wojciechowski positively assessed the prolongation of exports within the framework of the Black Sea Grain Initiative, which “will facilitate the export of grain from Ukraine for two months”.
The European Commissioner also recalled the need to take into account the situation with the possible blocking of exports of Ukrainian agricultural products “as it already happened before” through the Black Sea grain corridor and urged to consider the total volume of Ukrainian exports when planning the work of “solidarity corridors”.

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Oil prices continue to decline, Brent at $73.4 barrel

Oil prices continue to decline Wednesday after hitting lows over the past month the day before.
July Brent futures on London’s ICE Futures Exchange stood at $73.35 a barrel by 8:05 a.m. Wednesday, down $0.19 (0.26%) from the previous session’s close. Those contracts fell $3.53 (4.6%) to $73.54 a barrel on Tuesday.
July WTI futures on NYMEX fell by $0.24 (0.35%) to $69.22 per barrel by that time. The contracts fell by $3.21 (4.4%) to $69.46 a barrel at the end of the last session.
According to Dow Jones Market Data, both grades closed the previous day at their lowest level since May 4.
Traders’ attention is still directed to the situation with the U.S. debt ceiling. On Wednesday, it’s expected to vote in the House of Representatives on the draft agreement reached by President Joe Biden and the Speaker of the Lower House of Congress, Republican Kevin McCarthy, after which the document will go to the Senate.
In addition, the market is assessing macroeconomic data from China. The published May official value of purchasing managers index (PMI) in the processing industry didn’t justify the 49.4 points forecast of analysts, having decreased to the minimum for five months of 48.8 points from 49.2 points in April.
The weak statistics strengthened fears of a slowdown in economic growth in China, the world’s top oil importer, Trading Economics said.

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