Business news from Ukraine

Business news from Ukraine

“DTEK RES” received positive review for construction of 650 MW Poltava Wind Power Plant

“DTEK RES received positive feedback from the architectural and town-planning council under the Department of building, town planning and architecture, housing and communal services and energy of Poltava OVA regarding the detailed territory plan (DPT) for construction, operation and maintenance of Poltava Wind Power Plant with an estimated design capacity of 650 MW.

“Also, the DPT was agreed at public hearings of Globinsky city territorial society, and approved at the session of Globinsky city council”, – reported on the website of DTEK.

As informed in the energy holding, according to the results of the developed and approved DPT at the session of Globinsky city council on April 25, 2024, decisions were made to lease to “DTEK Poltava VES” the first land plots of communal property in the amount of 120 pcs. with an approximate area of 205 hectares.

The company, together with Globinsky City Council, has already agreed and signed land lease agreements and carried out state registration of the lease right in the State Register of Rights to Immovable Property (DRRP).

In addition, a package of documents has been submitted to NEC Ukrenergo to obtain technical conditions for connecting 650 MW of generating capacity to the national operator’s network.

“We are confidently moving forward to the realization of the Poltava WPP project. Approval of the DPT is the next stage, which is necessary to extend the wind farm development and to obtain investments in the project. Among other things, ornithological studies and wind monitoring are being conducted now,” DTEK RES Deputy General Director Oleg Solovey is quoted on the website.

As reported, the net loss of DTEK RENEWABLES BV last year amounted to UAH 0.547 billion, which is 29 times less than in 2022 (UAH 15.841 billion).

“DTEK RES plans to continue its activities in accordance with its current plans and long-term strategy until 2030. The group plans to develop projects in the Poltava region (650 MW) and in southern Ukraine (up to 650 MW) over the next five years.

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“Ukrfinzhitlo” plans to increase share of loans for property rights to housing under construction to 20-30%

PrJSC Ukrainian Financial Housing Company (Ukrfinzhytlo) plans to increase the share of loans for the purchase of property rights to housing under construction to 20-30% in 2024 and to 80% or more by 2028, according to the company’s strategic goals set out in its annual financial report for 2023.

According to the report on Ukrfinzhytl’s website, the financial plan for 2024 envisages a 16.5% increase in the volume of revenues from the company’s business activities compared to the 2023 target. By the end of 2024, it is planned to form a loan portfolio (the balance of debt under eHouse program agreements and financial leasing agreements) in the amount of UAH 29.9 billion (about 20 thousand loans).

In addition, in the second half of 2024, the state budget provides for additional capitalization of Ukrfinzhytl in the amount of UAH 20 billion, the document says. The company’s capital investments for 2024 are planned in the amount of UAH 44.3 million at the expense of its own funds.

Ukrfinzhytel’s strategic goals for 2024-2028 include providing housing for 50 thousand families, developing subprograms with central and local authorities, developing and launching a transparent housing construction financing scheme to protect investors’ rights, ensuring the de-shadowing of the rental housing market, etc.

According to the results of the last year, 6325 mortgage loans totaling UAH 9.5 billion were issued during the operation of the eHouse program and by the end of 2023. 83.6% or 5289 loans were issued to privileged categories of citizens at 3% per annum, 16.4% or 1036 loans to other categories at 7%. The leader was Oschadbank, which lent 43% of the program’s clients, and most of the apartments under the program were purchased in Kyiv, Kyiv, Rivne, Volyn and Chernihiv regions, the document says.

Earlier, Yevhen Metzger, Chairman of the Board of Ukrfinzhytl, announced the company’s plans to gradually leave the secondary real estate market and focus on the primary market.

As reported, the affordable mortgage lending program eHouse was launched in Ukraine in October 2022. Contract servicemen of the Armed Forces of Ukraine, employees of the security and defense sector, healthcare workers, teachers, and researchers can apply for a preferential mortgage at 3% per annum for up to 20 years with a down payment of 20% of the cost of housing.

Starting from August 1, 2023, war veterans, combatants, internally displaced persons (IDPs) and citizens who do not have their own housing larger than the standard area can apply for the eHouse program at a 7% discount.

Eight partner banks are integrated into this program: Oschadbank, PrivatBank, Ukrgasbank, Globus Bank, Sky Bank, Ukreximbank, SENS and Bank Credit Dnipro. You can apply for participation in the program in the Diia mobile application.

As of April 30, the volume of loans issued under eHousing reached UAH 14.9 billion, with loans issued to 9,613 families. At the same time, 2.9% of apartments were purchased on the primary market, 71.7% on the secondary market, and 25.4% from developers.

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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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