Business news from Ukraine

Permits for construction of 14 residential complexes on territory of National Aviation University have been revoked

The State Inspectorate of Architecture and Urban Development of Ukraine (SIAU) has revoked the construction permits for 14 residential complexes on the territory of the National Aviation University (NAU) in Kyiv.

“The State Inspectorate of Architecture and Urban Development of Ukraine has canceled the permit for construction works on the territory of the National Aviation University upon the application of the acting rector of NAU Ksenia Semenova. The cancellation of the construction was preceded by a corresponding decision of the NAU Supervisory Board,” the university’s press service said.

It is noted that at the meeting of the Supervisory Board of the National Academy of Sciences, all documents on the investment agreement for the development of the territory, which was concluded in 2007, were reviewed and studied in detail.

“Taking into account all the available facts and materials, it was decided to take the following actions: to conduct claim work on the investment agreement, which is contrary to the interests of the university, to cancel the permit for the construction of 14 residential complexes, to hold officials responsible for making decisions that led to the loss of state property and stagnation of the university,” the statement said.

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Andrey Yermak met with top management of CRH international group of companies

The head of the Office of the President of Ukraine, Andriy Yermak, has met with a delegation of the international group of companies CRH, which is the largest producer of construction materials in North America and Europe, the press service of the Office of the President said on Tuesday evening.

It is noted that the delegation was headed by the group’s chief operating officer Randy Lake, and also included Peter Buckley, president of CRH in Europe, and Guillaume Cavalier, director of CRH in Southern and Eastern Europe.

During the meeting Yermak emphasized that Ukraine is ready to facilitate investments from such powerful global players in every possible way and to discuss all necessary issues with foreign and domestic businesses. According to him, today it is important to understand what exactly needs to be changed to improve the business climate. Strong institutions are needed, and Ukraine even during the war continues reforms, heading towards full membership in the EU.

“For our part – the President, the Office, and the Government of Ukraine – we are ready to fully support you. We are interested that such large investors work in our country and have comfortable conditions. It is very important that despite all the circumstances, the war, you are here and ready to continue to work,” – said Yermak.

As reported, the Antimonopoly Committee of Ukraine AMCU on January 23 reported on the beginning of consideration of the case on concerted actions in the form of implementation of provisions on refraining from competition, enshrined in the concentration agreement between the Irish group CRH and Dyckerhoff GmbH, owning assets in Ukraine.

In June 2023, Italian cement producer Buzzi, listed by the National Agency for the Prevention of Corruption (NAPC) as an international sponsor of war, through its subsidiary Dyckerhoff GmbH, reached an agreement to sell part of its business in Eastern Europe to Irish group CRH, including Ukrainian assets in the form of two cement plants. The transaction is expected to close in 2024.

Later, in September 2023, the AMCU returned CRH’s application for concentration without consideration due to non-compliance with the requirements, and also noted that the group occupies about one-third of the Ukrainian cement market. In October of the same year, the agency reopened the case.

CRH has been operating in Ukraine since 1999. Since November 2021, its cement enterprises in Ukraine have been operating under the Cemark brand: Podolsk Cement JSC (Khmelnytskyi oblast), Cement LLC (Odessa) and Mykolaivcement PJSC (Lviv oblast).

A separate line of CRH business in Ukraine is production of concrete and reinforced concrete products. PoliBeton Energo’s Bila Tserkva Reinforced Concrete Plant is a specialized enterprise that produces supports for power transmission lines. PoliBeton’s concrete unit in the north of Odessa joined CRH in 2020.

CRH is the world’s leading manufacturer of construction materials. The company employs about 71,000 people at its 3,200 plants in 28 countries. It is the largest producer of building materials in North America and Europe. The company is also present in Asia. CRH’s American depositary shares are listed on the New York Stock Exchange.

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Ukraine will focus on construction of small-scale generation facilities for cities

As part of its preparations for the next heating season, the Ukrainian government will focus on the speedy construction of small-scale generation facilities for Kharkiv and other cities, with a further transition to the construction of large gas turbine plants in the medium term.

This was announced by Oleksandr Kubrakov, Vice Prime Minister for Recovery of Ukraine, on the air of the national telethon “United News” on Friday evening.

“We will try to build urgent low-capacity facilities for cities such as Kharkiv before the next heating season together with our partners. There are cogeneration units already provided by some governments. This may be the main solution for Kharkiv for this season,” he said.

According to the Vice Prime Minister, an action plan is currently being drawn up at the government level and in close consultation with local authorities, which should be implemented by the beginning of winter.

“In the medium term, large gas turbines with high efficiency are our future. We need several gigawatts of such capacities across the country,” Kubrakov said.

As he explained, gas turbine construction projects are quite attractive to investors due to, among other things, their high efficiency and low cost of electricity production.

“I hope that the export credit agencies of those countries that produce such equipment – the United States, Germany, and Japan – will be able to provide us with financing for their equipment, and we will be able to implement this plan,” the Deputy Prime Minister stated.

As reported, more than 85% of Ukraine’s thermal generation capacity and about 50% of its hydroelectric generation capacity have been destroyed as a result of enemy massive attacks.

According to former Energy Minister Olha Buslavets, in May of this year, the electricity deficit in Ukraine may reach about 3 GW.

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Slovakia may start construction of highway on border with Ukraine

Slovakia may begin construction of a highway leading from Kosice to the Uzhhorod-Vysne Nemecke checkpoint on the border with Ukraine, the press service of the Ukrainian Ministry of Finance reported on Friday.
The project of building a new highway was discussed at bilateral talks on improving cross-border communication in Slovakia with the participation of Deputy Finance Minister of Ukraine Oleksandr Kava as part of a government delegation headed by Prime Minister Denys Shmyhal.
“The meeting also discussed the project of building a highway from the Uzhhorod-Vysne Nemecke checkpoint to the suburbs of Kosice. This is part of Slovakia’s main highway, the D1, which connects the country’s two largest cities, Bratislava and Kosice, and is also part of the pan-European network of expressways,” the statement said.
The parties also discussed the issue of opening the Uzhhorod-Vysne Nemecke checkpoint not only for cars, but also for pedestrians and cyclists. The checkpoint will be accessible by public transport from both sides of the border without the need to use a car.
“This is especially important for residents and guests of the regional center of Zakarpattia Oblast, as it will provide them with more opportunities for movement,” the press service adds.
In addition, it is planned to expand the automobile part of the checkpoint from four to five lanes, which will increase its capacity.
Kava, quoted in the report, noted that the agreements reached are a step towards creating a smooth and dynamic cross-border connection.
“They will not only improve the daily lives of our citizens, but will also contribute to overall economic growth together with partner countries,” the deputy minister said.
Earlier, Deputy Minister of Communities, Territories and Infrastructure Development Serhiy Derkach said that a passenger terminal with several lines of traffic for passenger buses would be built at the Uzhhorod-Vysne Nemecke checkpoint on the border with Slovakia by the end of 2024.

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Volume of completed construction works in Ukraine in 2023 increased by more than 40%

The volume of completed construction works in Ukraine in 2023 increased by 41.5% compared to 2022 – up to 162.7 billion UAH, according to the data of the State Statistics Service (Gosstat).

According to the statistics department, the volume of construction work in residential construction by the end of 2023 increased by 11.1% compared to the previous year, to 22.3 billion UAH; in non-residential – increased by 38.1%, to 41.5 billion UAH; in engineering – by 52.6%, to 98.8 billion UAH.

In December-2023, the volume of construction work exceeded the figure of December-2022 by 35.1%, and the previous month – by 85.8%, notes the State Statistics Service.

As reported by the State Statistics Office, in January-December 2023 to the same period of 2022, the reduction in construction  was observed in the segment of housing – by 4.6%. At the same time, non-residential and engineering construction recorded an increase in volumes – by 20% and 32.9%, respectively.

According to the seasonally adjusted data of the department, the indices of construction products in December-2023 in residential construction amounted to 49.4%, in non-residential – 88.3%, in engineering – 112.7%, and taking into account the effect of calendar days, the indicators are 71.5%, 188% and 273% respectively.

The share of new construction to the total volume of completed construction works amounted to 36.3%, repair – 42.9%, reconstruction and technical re-equipment – 20.8%.

The State Statistics Service notes that the publication of data was postponed due to martial law. Statdata are given without taking into account the temporarily occupied territories and part of the territories where hostilities are (were) conducted.

As reported, the volume of completed construction works in Ukraine in 2022 decreased by 2.2 times compared to 2021 – to 113.8 billion UAH.

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Lithuania to ban use of Chinese software in construction of solar and wind power plants

The Lithuanian Ministry of Energy intends to ban the use of Chinese software during the construction of solar and wind power plants with a capacity of more than 100 kW, said the head of the department, Dainius Kreivis.

According to him, no such restrictions are planned for low-capacity power plants installed by residents of the country.

“We are preparing documents so that all equipment, even in private investments, that generates more than 100 kW, cannot use any Chinese software,” Kravis told Ziniu radijas radio station on Thursday, answering the question whether Lithuania should abandon Chinese technology in the country’s power system.

“That is what we plan to do. I think the decisions we will make will solve the problem,” the minister said.

The Energy Minister emphasized that government agencies are already prohibited from installing Chinese-made software.

According to Kravis, despite the growing number of household electricity producers, there is currently no threat of “excessive use” of Chinese equipment at their facilities.

President of the Lithuanian Confederation of Industrialists Vidmantas Janulevicius said at a meeting of the Seimas Committee on Economics in late March that Chinese software is often used in the construction of renewable energy facilities both in Lithuania and in the rest of Europe. He suggested looking for funds to replace Chinese technology at existing power plants with Western software.

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