Business news from Ukraine

ODESA SEAPORT SEES 14% RISE IN CARGO HANDLING

Odesa maritime merchandise port in January-July 2019 handled 13.937 million tonnes of cargo, which is 14.12% more than a year ago.
According to the Ukrainian Sea Ports Authority, over the period the port increased handling of exported cargo by 15.08%, to 10.316 million tonnes and imported cargo – by 13%, to 2.75 million tonnes, and coastal cargo three times, to 111,390 tonnes. Transit cargo transshipment fell by 2.5%, to 759,910 tonnes.
Handling of liquid cargo at the Odesa seaport over the period totaled 360,417 TEU (a rise of 9.29% year-over-year).
Odesa port is located on an area of 109.5 hectares.
The port accepts vessels with lengths of up to 270 meters and maximum draughts of 13 meters. The total length of the port’s berths exceeds 8 kilometers.

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WIZZ AIR AIRLINE TO LAUNCH FLIGHTS FROM ODESA TO BUDAPEST, BERLIN, BRATISLAVA, WROCLAW, GDANSK, AND KATOWICE

Hungary’s low cost Wizz Air airline in autumn 2019 will launch flights to seven new destinations: six from Odesa and one from Lviv, Paulina Gosk, corporate communications manager at Wizz Air, said at a briefing in Odesa. According to her, from Odesa, in particular, twice a week from November flights will be operated to Budapest (Hungary), Berlin (Germany), Bratislava (Slovakia), Wroclaw, Gdansk, and Katowice (all are in Poland).
In addition, on October 28, it is planned to launch the Lviv-Larnaca (Cyprus) flights.
“In 2019, 17 new destinations from Ukraine were opened,” Gosk said.
The airline expects that thanks to the increase in the number of destinations, 2.6 million seats will be sold this year, and in general, 53 destinations will be covered from Ukraine by the end of 2019, Gosk said.
As reported, in January-July 2019, Wizz Air transported 1.3 million passengers from and to Ukraine and this is almost twice as much compared to the same period in 2018.

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ODESA PORT-SIDE PLANT WANTS TO RESUME ITS WORK

PJSC Odesa Port-Side Chemical Plant (OPZ) started pre-commissioning and will resume its work on August 1, 2019, said OPZ Deputy Director on Economic and Financial Issues Volodymyr Vakeryak at a press conference regarding signing of give-and-take contract with LLC Agro Gas Trading (Kyiv). Agro Gas Trading Director General Oleksandr Horbunenko has said that the contract with the plant was signed by December 1, 2019 and foresees delivery of minimum 240 million cubic meters of the natural gas within four months.
For his part, Deputy Head of the State Property Fund Yevhen Astashev has said that NJSC Naftogaz Ukrainy gave a green light to resuming of the works despite plant’s debts worth UAH 1.5 billion (plus penalties). The OPZ for its part is obliged to pay off the debts to Naftogaz sharing profits received from Agro Gas Trading for providing processing services ($1,5 per each carbamide tonne and $1 per each ammonia tonne).
“Production has been standing idle for more than a year, only the ammonia transshipment complex is working at the level of 2.3 million tonnes per year. The plant signed an agreement with a supplier, for whom we will perform gas processing services. In the near future we plan to start preparing for the launch of two carbamide facilities and one ammonia complex. If all the conditions of the contract are met, we could receive products in August,” he said.
As reported, Odesa Port-Side Chemical Plant has been standing idle since the end of April 2018. Its work was stopped due to violation by the contractor, All-Ukrainian Energy Company LLC, of the agreement with Ukrtransgaz.
The plant called work on a give-and-take basis the only possible option for resuming work in the face of failure of privatization attempts and accumulated debt for gas to NJSC Naftogaz Ukrainy, which exceeds UAH 1.5 billion.

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ODESA SEAPORT BOOSTS FREIGHT HANDLING BY 12%

The Odesa seaport handled 12.084 million tonnes of freight in January-June 2019, which was 12.3% up year-over-year. During this period the port increased the handling of freight for export by 14.6%, to 9.089 million tonnes, for import by 6.6%, to 2.253 million tonnes, the Ukrainian Sea Ports Authority said. The transshipment of coastal freight tripled, to 85,690 tonnes At the same time, transshipment of transit freight decreased by 4.5%, to 655,430 tonnes.
In January-June 2019, the handling of bulk cargo at the Odesa seaport grew by 4.1%, to 799,380 tonnes, dry cargo by 20.5%, to 4.998 million tonnes, packaged cargo by 7.6%, to 6.286 million tonnes.
Container handling at the Odesa seaport in January-June 2019 totaled to 302,304 TEU (an increase by 6.4%).

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CHORNOMORETS CENTRAL STADIUM IN ODESA WILL BE SOLD ON DUTCH AUCTION

The Individuals’ Deposit Guarantee Fund plans on June 25, 2019 to hold a Dutch auction for the sale of non-residential buildings of the Chornomorets central stadium at 1/20 Marazliyevska Street in Odesa. According to the press service of the agency, the lot also includes the rights of claim under 40 contracts signed with legal entities.
“All the assets are on the balance sheet of JSC Imexbank and offered in this composition for the first time. The initial selling price is UAH 3.666 million. The total area of non-residential real estate located in the historical center of Odesa, which is sold as a single lot, is 80,300 square meters,” the report says.
It says Chornomorets stadium, in addition to the sports part, includes a business center with a restaurant with a total area of 10,700 square meters, a fitness center of 4,300 square meters, a hotel of 9,800 square meters, an underground parking lot, etc.

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SKYUP AIRLINE LAUNCHES FLIGHTS FROM ODESA TO KUTAISI

The Ukrainian airline SkyUp on June 4, 2019 launched flights from Odesa to Kutaisi (Georgia), Odesa airport said on Facebook.
Flights will be operated weekly on Tuesdays and Fridays. Departure from Odesa is at 21:20, back at 19:20. The flight duration is two hours.
The cost of a one-way ticket without baggage starts from UAH 1,800.
As reported, SkyUp launched regular flights from Kharkiv to Odesa.
As of June 2019, SkyUp’s fleet had six aircraft, including four medium-haul Boeing 737-800 NGs with 189 seats and two medium-haul Boeing 737-700 NGs with 149 seats.
In October 2018, SkyUp received the TCO certificate, which allows performing flights to 28 countries of the European Union, as well as to Switzerland, Norway, Iceland, and Liechtenstein.

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