Business news from Ukraine

Business news from Ukraine

Ukrzaliznytsia wants to attract EU grants for construction of 80 km of European gauge railway to Lviv

Ukrzaliznytsia (UZ), subject to European and state co-financing, plans to implement the Mostytska-Sknyliv project in the next two years and further develop the Lviv-Uzhhorod -Chop and Lviv-Chernivtsi-Vadul-Siret (Romania), which will allow Ukraine to begin restoring and realizing its unique geographical status, said Oleg Yakovenko, director of the strategy and transformation department at Ukrzaliznytsia.

“We also plan to obtain grant funds for the Mostyska-Sknyliv project, which will connect 80 km of European gauge track between the Polish border and Lviv. Next, we are currently conducting technical and economic studies on the corridors connecting Lviv, Chernivtsi, and Romania,” Yakovenko said during the Kyiv International Economic Forum (KIEF) on Thursday, October 16.

According to him, as part of Ukraine’s integration into the European Union, UZ plans to develop 1435 mm gauge railways and European transport corridors on the territory of Ukraine. The European integration reform of the railway industry also envisages a radical change in the functioning of the entire railway model in Ukraine.

“First of all, we are talking about market reform, which involves separating the infrastructure operator within Ukrzaliznytsia from the transport operators. This will allow us to liberalize the market in the future. It will also allow us to create market mechanisms specifically for transport,” Yakovenko explained.

He named the introduction of European rules on technical compatibility and interoperability as another element of the reform. This concerns technical safety standards, as well as changes to the safety management system.

The director of the strategy and transformation department at Ukrzaliznytsia noted that a draft law “On the safety and interoperability of Ukraine’s rail transport” is currently planned to be submitted for adoption by the end of the year, while next year the company expects a law on market liberalization to be introduced.

As Yakovenko explained, it is expected that a so-called infrastructure access tariff will be formed, according to which market participants will be able to purchase certain access to transport routes from the infrastructure operator on a competitive basis.

“These tariffs will be regulated, i.e., they will be formed in accordance with the tariff formation procedure and will reflect economically justified tariffs in accordance with European rules,” emphasized the representative of Ukrzaliznytsia.

It is noted that the new system will introduce separate PSO (Public Service Obligation) contracts between passenger carriers and the state at the national level, as well as between carriers and local authorities. This should remove the financial burden from freight transport.

As reported, in September, a section of standard (“European”) 1435 mm gauge railway was opened between Uzhhorod and Chop in Zakarpattia Oblast, which will allow for direct rail connections between Uzhhorod and a number of European capitals.

In addition, in January 2025, it was reported that the reconstruction of the railway track on the section “Polish State Border – Mostyska II – Sknyliv (Lviv)” would be postponed until 2026, although in February 2024, the then Deputy Prime Minister for Recovery – Minister of Community, Territory and Infrastructure Development Oleksandr Kubrakov announced the start of construction by the end of 2024. Later it became known that Ukraine had failed to attract Connecting Europe Facility (CEF) funding for the project. It was reported that the US Agency for International Development (USAID) was considering financing 50% of the project’s cost, but it has since been liquidated.

 

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Serial production of new electric bus launched in Lviv – Kysilevsky

The Lviv-based Electronmash plant has unveiled a new model of electric bus, the Electron E181. The main feature of the model is its compact length of 10.2 meters. The electric bus can carry 90 passengers and has 30 seats. In particular, there is one seat for a passenger in a wheelchair.

One battery charge is enough for 300-350 kilometers. Battery charging takes up to 5 hours. The electric bus can operate in recuperation mode, i.e., when braking, some of the electrical energy is returned to the batteries.

This was announced by Dmytro Kysilevsky, deputy chairman of the Verkhovna Rada Committee on Economic Development and coordinator of the “Made in Ukraine” policy in Parliament.

The Electron concern implemented this project based on the Made in Ukraine policy instruments. In particular, localization requirements apply to public procurement for urban transport. The new electric bus has also been included in the register of equipment for which the state compensates the buyer for 15% of the cost.

The localization level of the new model is over 40%. More than 250 Ukrainian companies located in all regions of the country are suppliers of components and spare parts for the Electron E181 electric bus. The production of such a vehicle provides thousands of jobs throughout the supply chain.

“By purchasing Ukrainian equipment, customers not only receive modern and high-quality products, but also have access to proper service and the ability to adapt a specific vehicle to the customer’s wishes. Up to 40% of the funds spent on Ukrainian goods are returned to budgets at various levels in the form of taxes, financing both communities and the Armed Forces. Therefore, replenishing the passenger fleet with Ukrainian rather than foreign vehicles means comfort and safety for passengers, confidence in service, and a return of part of the funds through taxes to the budget,” said Dmytro Kysilevsky.

The policy of developing Ukrainian manufacturers, “Made in Ukraine,” was announced by President Volodymyr Zelenskyy in February 2024. It is aimed at supporting production, industrial investment, and exports.

Legislation on localization in public procurement came into force in July 2022. In 2025, it will require that at least 25% of certain types of products purchased by government agencies, state-owned companies, and communities be of Ukrainian origin. In 2028, the localization level for public procurement will be 40%.

 

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Record passenger traffic at Lviv border: queues of up to 150 cars

The State Border Service of Ukraine reports a 40% increase in passenger traffic through checkpoints in the Lviv region on the border with Poland since the start of the summer season, and on weekends – by another 16% compared to weekdays.

“One of the busiest checkpoints remains Shehyni due to repair work on the Ukrainian side,” the agency said in a Telegram channel on Thursday.

In particular, 150 cars have gathered at this checkpoint, 100 at the Krakivets checkpoint, 30 at the Hrushev checkpoint, 25 at the Uhryniv checkpoint, and 10 at the Nyzhankovychi checkpoint. Only the Smilnytsia and Rava-Ruska checkpoints are operating without delays.

“To speed up the processing of citizens, border guards have stepped up their work: during peak hours, the number of patrols has been increased and additional automated workstations have been deployed. Regular meetings are also held with Polish colleagues to jointly seek solutions that will help speed up border crossings,” the State Border Service said.

As reported, passenger traffic across the Ukrainian border during the week of July 26 to August 1 increased by 1.7% to 766,000, setting a new record for wartime: last year, record figures were recorded in August and amounted to 737,000. The outbound flow in the ninth week of summer remained almost unchanged at 367,000 compared to 369,000 a week ago, while the inbound flow increased from 384,000 to 399,000.

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Construction of new shopping and entertainment center has begun in Lviv

Construction of the Kvartal City shopping and entertainment center has begun at 313 Shevchenko Street in Lviv. The opening is scheduled for the fourth quarter of 2027, according to the website of the consulting company Retail&Development Advisor (RDA), which is the exclusive broker for the property.

According to RDA project manager Alina Abramtseva, Kvartal City will be a multifunctional space for the daily needs and leisure of the community, a place for shopping with international and national fashion operators, children’s markets, electronics stores, perfumes, cosmetics, etc.

The property is located directly on the M10 international highway, which connects Lviv with Krakivets on the Polish border. The Lviv ring road is also nearby.

The Kvartal City shopping and entertainment center will have three floors with a total area of almost 50,000 square meters and 20,000 square meters of leasable space. The complex will accommodate 75 stores. There will be an entertainment area for children, a cinema, a large food court and restaurants (2,000 square meters), and, of course, a shopping area with international and national fashion retailers, children’s markets, electronics stores, perfumes, cosmetics, etc.,” Abramtseva said.

An underground parking lot with an area of 8,900 square meters and a multi-level parking lot with an area of 14,600 square meters are planned, with a total of 523 parking spaces.

All the necessary documents for the construction of the shopping and entertainment center have been finalized, preparatory work has been carried out on the site, and construction of the complex will begin in September this year.

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Bank Lviv attracts EUR 103 mln to support business

Bank Lviv (Lviv) has signed agreements with the European Investment Bank (EIB), the European Investment Fund (EIF), the Belgian Development Organization for Developing Countries (BIO) and the Bank of the Council of Europe (CoE) totaling EUR 103 million, which will allow it to expand financing to the private sector through credit lines, guarantees and support for micro-entrepreneurs.

“Within the framework of international partnerships, Lviv Bank has signed four strategic agreements with international financial institutions – for a total of more than EUR100 million to support Ukrainian private companies, SMEs and entrepreneurs!” Volodymyr Kuzio, deputy chairman of the bank’s board, said on Facebook on Tuesday.

He noted that Lviv Bank has attracted EUR 60 million from the EIB in the form of a multi-currency credit line, including local currency financing, to improve access to finance for the private sector.

Another EUR 35 million was provided by the EIF in the form of portfolio guarantees, which will reduce collateral requirements for Ukrainian private sector clients to 70% and at the same time strengthen the capital of Bank Lviv.

In addition, the bank will receive EUR 5 million from the Belgian development organization BIO, the first transaction in the institution’s history in Ukraine.

Another EUR 3 million is being provided by the Council of Europe Development Bank to support micro-entrepreneurs across the country.

According to the National Bank of Ukraine, as of April, Lviv Bank ranked 23rd in terms of total assets among 60 operating banks with UAH 14.8 billion, or 0.4% of the banking sector.

 

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Record for hot dog cooking will be set at UKRNAFTA filling station in Lviv

On July 19, 2025, the UKRNAFTA filling station in Lviv will host a hot dog festival, during which a national record is planned to be set. Together with the street food brand Mr.Grill, the organizers plan to cook 1000 hot dogs in one hour.

The record will be recorded by representatives of the National Register of Records of Ukraine in the nomination: “The largest number of hot dogs cooked at a filling station in 60 minutes”.

The festival will take place at the following address:

м. Lviv, 300 Shevchenka St. (territory of the UKRNAFTA filling station).

The event starts at 12:00.

The slogan of the event: “Grab the summer by the hot dog!”

After the record is officially set, all the hot dogs will be distributed free of charge among the festival visitors.

The event will also feature a rich entertainment program, including:

  • Contests and quizzes with prizes;
  • A ra ffle for a year’s supply of hot dogs and coffee and a liter of fuel for summer travel;
  • Free coffee and chilled drinks.

Special activities have been prepared for children:

  • meeting with themed characters – Naftozavr and Giant Hot Dog;
  • aqua makeup, soap bubble show, themed photo zones.

Official rules of the campaign are available here .

UKRNAFTA and its partners invite Lviv residents and guests to spend the day off together, bring their families, witness the record setting and generally join the festive atmosphere.

“Ukrnafta is the largest oil company in Ukraine and the operator of the national network of filling stations. In March 2024, the company took over the management of Glusco’s assets and operates a total of 545 filling stations – 461 owned and 84 managed.

The company is implementing a comprehensive program to restore operations and update the format of its filling stations. Since February 2023, the company has been issuing its own fuel coupons and NAFTAKarta cards, which are sold to legal entities and individuals through Ukrnafta-Postach LLC.

Ukrnafta’s largest shareholder is Naftogaz of Ukraine with a 50%+1 share.

In November 2022, the Supreme Commander-in-Chief of the Armed Forces of Ukraine decided to transfer to the state a share of corporate rights of the company owned by private owners, which is now managed by the Ministry of Defense.

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