Business news from Ukraine

President of Kyivmiskbud announced new schedules for completion of objects

Detailed schedules of construction of objects of PJSC “HC “Kyivmiskbud” will be ready in 1.5-2 months, the search for sources of financing is the priority of the company, said the newly appointed Chairman of the Board – President of HC “Kyivmiskbud” Vasyl Oleinik.

“We do everything to work closely with the city, process together the directions we generate with the team, and support is promised to us. The main thing we are working on is attracting financial resources,” the press service quotes Oleinik’s words after the meeting with investors.

According to him, the company is also negotiating with banks on crediting, as well as dialoguing with institutions established to provide citizens with housing.

As reported, the mayor of the capital Vitali Klitschko at the end of December 2023 instructed to form a new composition of the nabsovet and board of PJSC Kyivmiskbud in a short time. Earlier, the head of the company Igor Kushnir announced his resignation from the post of chairman of the board – president of the company after 12 years of work.

According to the results of the audit of Kyivmiskbud conducted by Baker Tilly Ukraine Consulting, NHD-AUDIT Audit Firm LLC and Ernst & Young LLC, it was found that there were no signs of actions to bring the company to bankruptcy, concealment of financial insolvency or mass transactions by related parties. At the same time, the auditors found that the activities of Kyivmiskbud were disrupted due to external factors: COVID-19, a full-scale war, the factor of Ukrbud.

On November 17, 2023, the commission approved an interim report with recommendations and proposals for further work of the developer, among which – the implementation of the purchase of apartments in the objects of “Kyivmiskbud”, consideration of the possibility of a financial loan or additional capitalization of the company. The TCC also recommended the Kyiv City Council to apply to the Cabinet of Ministers to compensate Kyivmiskbud for the total planned damage associated with the completion of projects of the construction corporation Ukrbud in the amount of UAH 2.28 billion.

On January 29, 2024, Vladyslav Andronov, Deputy Head of Kyiv City State Administration, was appointed Head of the Supervisory Board of Kyivmiskbud instead of Mykola Povoroznik. In February 2024 the newly formed supervisory board appointed its vice-president Vasyl Oleynik as the chairman of the board – president of the company.

HC “Kyivmiskbud” was established on the basis of the property of the state municipal construction corporation “Kyivmiskbud” in 1994 by combining in its authorized capital controlling stakes in 28 enterprises and other assets. The HC includes 40 JSCs, in which the company holds shares, six subsidiaries and 51 enterprises on the rights of associate member.

The main shareholder of PJSC HC Kyivmiskbud, according to the National Commission on Securities and Stock Market (NCSSM), is the Kyiv City Council (80%).

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Baykar starts construction of plant in Ukraine

Turkish defense company Baykar has begun construction of a plant near Kyiv that will employ about 500 people and produce TB2 or TB3 drone models, the company’s CEO told Reuters on Tuesday.

The Turkish-made Bayraktar drones gained widespread popularity worldwide after the Ukrainian military began using them to counter Russian forces, destroying armored vehicles and artillery systems.

Baykar said it has signed export agreements for its TB2 drone with 30 countries. Among them are Ukraine, Ethiopia, Libya and Azerbaijan since 2018, according to the SIPRI think tank.

“Our plant is under construction… we need about 12 months to finish the construction, and then we will move on to the internal machinery, equipment and organizational structure,” Baykar CEO Haluk Bayraktar said on the sidelines of the Riyadh World Defense Exhibition.

“The plant in Ukraine is large, we plan to employ about 500 people,” he said. Bayraktar noted that the production capacity will be about 120 units per year, but said it is not yet clear whether production at the Ukrainian plant will focus on the TB2 or TB3 drone model.

Asked if security issues related to the ongoing conflict would be a concern for the plant, he said that plans are “fully progressing” and “nothing” can stop them.

As reported earlier, Ukraine’s Defense Ministry and Turkish company Baykar Makina signed an agreement to build a service center for the repair and maintenance of unmanned aerial vehicles in Ukraine.

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“Ukrnafta” starts construction of first of 30 planned wells

PJSC Ukrnafta is starting construction of a new directional well in the northeast of the country with a design depth of 3314 m and a projected initial oil production rate of 26.5 tons per day.

According to the company’s CEO Sergiy Koretsky on Facebook, the drilling is planned to explore the productive horizon of the Lower Carboniferous Visean deposits and its further exploitation.

The well will be drilled by Ukrnafta Drilling, the company’s division, using its own ZJ-40 drilling rig with a 225-ton capacity.

“This is the first of 30 wells that Ukrnafta plans to start drilling with its own drilling equipment in 2024. I am grateful to the team – geologists, drillers, engineers – who are working to ensure that the Ukrainian oil industry develops and brings the country a valuable resource,” Koretskyi said.

As reported, in 2023, Ukrnafta increased oil and condensate production by 3% (by 39.9 thousand tons) compared to 2022 – up to 1 million 409.9 thousand tons, gas production by 5.8% (by 60.4 million cubic meters), up to 1 billion 97.4 million cubic meters.

“Ukrnafta’s strategic goal is to double its oil and natural gas production to 3 million tons and 2 billion cubic meters by 2027, respectively.

“Ukrnafta is Ukraine’s largest oil producer and operator of a national network of 537 filling stations, of which 456 are in operation.

Ukrnafta’s largest shareholder is Naftogaz of Ukraine with a 50%+1 share. On November 5, 2022, the Supreme Commander-in-Chief of the Armed Forces of Ukraine decided to transfer the corporate rights of the company owned by private owners, which is now managed by the Ministry of Defense, to the state.


Rauta first facility to be built with construction project management service is business center for international IT company in historic center of Kyiv

The construction project management outsourcing is a new service in Rauta offer, but the company already has several projects in its portfolio where it performs turnkey construction works.

The new 7-storey business center has an area of about 3.000 sq.m and modern infrastructure with a comfortable workspace for IT entrepreneurs.

Performance of Rauta construction project management outsourcing includes the following stages:

  • Support at the pre-project stage
  • Development of the design and cost documentation
  • Examination of the design documentation
  • Selection of a general contractor
  • Obtaining a construction permit
  • Preliminary work at the construction site
  • Execution of construction and installation works
  • Construction and connection of external engineering networks
  • Commissioning

More information about the construction project management outsourcing

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Ukrainian Cabinet of Ministers allocates 2.5bn hryvnyas for construction of engineering and technical structures

The Cabinet of Ministers has allocated an additional UAH 2.5 billion for the construction of engineering and fortification facilities, Ukrainian Prime Minister Denis Shmygal said.

“The key task for us this year is to strengthen our defense capabilities. In this context, today there are two important decisions. We allocate additional almost 2.5 billion hryvnias from the reserve fund for the construction of engineering and fortification facilities,” Shmygal said at a government meeting on Friday.

According to him, UAH 1.4 billion of these funds will be used for fortification of defense lines, and another UAH 1.1 billion for the construction of non-intrusion strips. – for the construction of non-explosive barrier strips.

In addition, the government has allocated another UAH 120m from the reserve fund for the State Border Guard Service to strengthen the defense capability and engineering and technical arrangement of the border.

Epicenter Agro Holding has started construction of fertilizer plant

In 2023, Epicenter Agro Holding, a member of the Epicenter K group of companies, began construction of a plant for the production of urea-ammonia mixture (UAN) and liquid complex fertilizers (LCF) in Vinnytsia region, according to the official website of the agricultural holding.

According to the report, the fertilizers are to be used during the 2024 sowing campaign.

“We have very ambitious goals for 2024. Changing the sowing structure, further testing of the No-till system, our own fertilizer production, and a number of other projects are just a small part of the challenges we have set for ourselves. In addition, we are confidently moving towards the introduction of processing of our products. This means that we firmly believe in ourselves as a team of professionals, our company Epicenter Agro, and the peaceful future of Ukraine,” said Svitlana Nikitiuk, Head of the Central Office of the Agricultural Department of Epicenter Agro.

Epicenter K LLC was established in 2003 and opened its first hypermarket in Kyiv in December of the same year. It has a network of shopping centers of the same name in Ukraine. It has also been developing its agricultural business since 2016. It cultivates more than 160 thousand hectares in Vinnytsia, Khmelnytsky, Ternopil, Zhytomyr, Cherkasy and Kyiv regions. The group includes 20 livestock farms and 15 elevator complexes with a total storage capacity of 1.5 million tons.

According to the Unified State Register of Legal Entities and Individual Entrepreneurs, the shareholders of Epicenter K LLC are Oleksandr Gerega (51.3%), Galyna Gerega (47.97%) and Tetiana Surzhyk (0.73%).

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