Business news from Ukraine


Accor, operator of the Novotel and Ibis brands; Hilton; and Hyatt will not be opening any new hotels in Russia, and they are suspending all partnerships with Russian companies, though they will continue to operate existing hotels, the hotel chains said in their respective statements.
“The French owner of the Novotel and Ibis hotel chains said that it has suspended all planned openings and developments in Russia and any partnerships with Russian companies, though it will continue to operate its more than 50 hotels in the country in order to support its 3,500 Russian employees,” the Financial Times wrote.
Accor was the first international hotel chain to announce a halt, followed by Hilton, operator of the LXR Hotels & Resorts, Waldorf Astoria, Hilton brands and others, and Hyatt. Neither Marriott nor IHG has issued a statement regarding the matter.
“We have now taken the decision to suspend our development activities and any new investment in Russia, and the decision is effective immediately,” the Hyatt hotel chain posted on its official news site.
Hyatt also notes that it will continue to monitor the situation in Russia, while complying with the directives of the U.S. government, as it hopes for a resolution to the crisis.
The Hilton hotel chain said late on Wednesday that it had closed its corporate office in Moscow and would suspend construction of hotels in Russia. The company said in a statement that it would also continue to monitor the situation in Russia.
Accor CEO Sebastien Bazin had previously canceled a meeting scheduled for this week with Russian President Vladimir Putin. Accor’s plans for 2022 had included the opening of five new hotels in Russia. Overall, there are 50 hotels open in the country, with 21 of them operating in Moscow.
The online booking services of Airbnb and have also ceased operations in Russia.
The Radisson hotel chain has stated that it would remain in Russia. “All Radisson Hotel Group hotels in Russia will continue to operate. We are closely monitoring the situation in the region, we care about the well-being of all guests and team members, and continue to adhere to all instructions,” the company said in a statement.

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An Israeli investor plans to construct a hospital in Kyiv region, Head of Boryspil Regional State Administration Ruslan Diachenko said.
“We hope that next year the project implementation in the health sector will start, it will be a high-tech hospital. Now we are looking for a land plot or premises,” he told Interfax-Ukraine on during the opening of the FM Logistic new warehouses in Dudarkiv village (Boryspil district of Kyiv region) on Friday.
According to Diachenko, the area of ​​the required site for the future hospital should be 1,500 hectares or more. In addition, two independent power grids will be required.
The planned amount of investment in the project has not yet been disclosed.
According to Diachenko, over the years of independence, some $154 million has been invested in Boryspil region.

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The Azerbaijani service company SOCAR AQS is considering the possibility of investing in Ukrainian subsoil, Head of the State Service for Geology and Subsoil Roman Opimakh said following a working meeting in Kyiv on Monday.
“Representatives of SOCAR AQS are interested in investing in Ukrainian subsoil because of the presence of significant potential of both hydrocarbon deposits and raw materials for the production of batteries for electric cars and electronics in our country,” Opimakh wrote on his Facebook page
According to him, the parties agreed to continue the dialogue with the aim of introducing and implementing joint business projects.
Opimakh also invited Azerbaijani partners to pay attention to the Investment Atlas of a Subsoil User, created by the State Service for Geology and Subsoil, containing vacant subsoil areas with deposits of strategic and critical minerals, as well as a data-room of secondary geological information filled with descriptive information about subsoil use objects, land plots within the contours of deposits, and also geological reports.
According to Interfax-Azerbaijan, SOCAR AQS was established in 2007 by the State Oil Company of Azerbaijan (SOCAR), Nobel Oil Services and Abşeron Qazma Şirkəti as a joint venture providing comprehensive drilling and well management services. Nobel Oil Services is the main shareholder of SOCAR AQS.
The main activity of SOCAR AQS is the provision of services and work on the design and planning of wells, drilling oil and gas wells, drilling directional wells, drilling horizontal wells, well completion, workover, sidetracking and drilling of branched wells.



The Cabinet of Ministers has identified as a priority a project for production of ventilators, two waste incinerators and an air launch space rocket complex, a total of 103 priority investment projects in the approved list until 2023.

As the correspondent of the Interfax-Ukraine agency reports, the government approved the relevant order with a three-day revision at a meeting on Wednesday, November 18.

According to the draft decree, four out of 103 projects provide for financing entirely from the state budget, and another 43 projects partially from the state and/or local budget.
As indicated in the document, among the priority investment projects are the organization of the production of ventilators at the expense of the investor, the state budget and other sources, as well as the construction of a plant for solid household waste processing (ensuring environmental safety in Kyiv) at the expense of an investor.
In addition, among the priority projects is the construction of a waste sorting line in Drohobych (Lviv region) at the expense of the state budget and the local budget.
Among the investment projects that are planned to be implemented at the expense of the state budget and international technical assistance are the modernization of the An-124-100 and An-225 aircraft families at Antonov State Enterprise, an air launch rocket and space complex, the Observatory International Scientific Center on the Pip Ivan mountain – a platform for the development of the Carpathian region.
In addition, it is planned to implement a project to prepare the production of an infrared homing head for guided air missiles, as well as to expand the Yahodyn international checkpoint – exclusively at the expense of the state budget.
Also, at the expense of the investor, local budgets and the state budget, it is planned to implement the construction of waste incinerators in Kramatorsk and Mariupol, the construction of the tourist and transport infrastructure of the Shatsk National Natural Park (plus international technical assistance funds), and to build the H2O Nova Kakhovka Olympic Sports Center.

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China Gezhouba Group Corporation (CGGC), the Chinese company specializing in the construction of hydropower facilities, has shown substantial investment interests in Ukraine, the Ukrainian Embassy in China said following a meeting of Ambassador Serhiy Kamyshev and CGGC Chairman Lyu Zexiang.
“In order to successfully implement mutual interests, the CGGC leadership was provided with the embassy’s recommendations on interaction with interested authorities in Ukraine, and expressed readiness to provide diplomatic support to relevant investment projects,” the embassy said on its Facebook page.
The embassy said that the Chinese state-owned company has been operating since 1970, specializing in the construction of hydropower facilities in China and outside the country. Its calling card is the construction of the world’s biggest Three Gorges Dam in Hubei province. Today, the company is a participant in similar projects all over the world, carrying out their construction and co-financing. The Ukrainian office of the company operates in Kyiv.

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InSoft Software has increased its share in the service direction of the Kharkiv IT-company, Rozdoum, and has become one of the shareholders of the Kyiv IT-company Rademade. Therefore, currently, the investment portfolio of InSoft Software consists of three companies: Lenal, Rozdoum, Rademade.
InSoft Software also announced the change of its name to ITernal Group. Among the reasons for rebranding, the representatives of the company say about the expansion of the range of services, a change in the logic of positioning, and feedback from customers.
ITernal Group provides turnkey solutions on software development, strengthens customers’ teams with its developers, and helps foreign clients open R&D offices in Ukraine (by purchasing small companies, hiring employees, renting offices, and assisting with further service). The company is actively developing both organically and with the help of M&A strategy, consolidating controlling stakes in IT-companies.
“The creative economy of Ukraine is developing dynamically. The amount of investments and the number of startups in this industry are growing rapidly. According to experts, revenues in the Ukrainian IT-sector will amount to about $5 billion in 2019. We and our partners are convinced that ITernal Group will take a worthy place in the market and will contribute to the development of the innovative economy of Ukraine,” Vasyl Khmelnytsky, Founder of UFuture, said.
“The IT-outsourcing market has changed a lot, it has become mature. It’s getting more difficult for small companies to compete with big players in attracting contracts, customers, and employees. Therefore, offer differentiating is getting more important. We focus on ecosystem solutions. Being able to integrate small companies into one structure while preserving the brands and unique culture of the companies, we are quickly building a major player, and thus gaining the ability to attract more significant customers. On the other hand, our clients’ conversion is improving thanks to the wide range of the services provided by ITernal Group. In addition to the classic software development, we and UFuture bring M&A experience, access to a large innovative IT-school, and the most modern real estate for our clients”, Vitaly Gorovoy, Managing Partner of InSoft Partners, emphasized.
In the summer of 2019, UFuture and InSoft Partners entered into a strategic partnership agreement in IT-industry and established a joint company.
Within this business, InSoft Partners is responsible for the search and purchase of controlling stakes in IT-companies, their integration into one structure, strategic management, and development. UFuture contributes to the organic growth of the joint business and the search for strategic partners through the international network of contacts.
UFuture is a holding company of Ukrainian entrepreneur Vasyl Khmelnytsky that integrates his business and impact-investment projects. The company has a diversified portfolio of assets in the fields of real estate, infrastructure, industry, renewable energy, pharmaceuticals, and IT. Currently, UFuture’s assets are estimated at $550 million, and the total capitalization of the businesses it invested in is more than $1 billion.
InSoft Partners is a niche investment managing company that focuses on IT-business. Having a team with extensive experience in the development of IT-companies, InSoft Partners joins the operating activities of portfolio companies, contributing to their active growth (through lead generation, changing business processes, etc.). Among the counterparties of InSoft Partners are the famous American investment fund, Oak Tree Capital Management, and FinPoint/Rothschild&Co.

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