Business news from Ukraine

Business news from Ukraine

SKODA TRANSPORTATION OPENS FIRST UKRAINIAN OFFICE IN DNIPRO

The International locomotive building conglomerate Skoda Transportation has opened the first official representative office in Ukraine in Dnipro, according to the website of Dnipro City Council.
“The Dnipro residence will develop design projects for railway and public transport for the Czech company, as well as look for suppliers for production,” the report says.
Cooperation will also be facilitated by the presence in Dnipro of a network of manufacturers and repair enterprises of locomotive and heavy engineering.
“Our goal is for Skoda to return to Ukraine. Dnipro is a non-random choice. The city has a great potential,” Skoda Transportation Director for Human Resources Tesar Lumir said during the opening of the representative office.
Skoda Transportation produces railway locomotives, subway cars, suburban electric trains, as well as trams, trolleybuses, buses, engines, traction equipment. The conglomerate is also engaged in the modernization of rail and public transport. The brand cooperates with fourteen countries of the world, including Poland, China, and the United States.

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HUNGARY’S LOW COST WIZZ AIR DOUBLES PASSENGER TRANSPORTATION IN 2018

Hungary’s low cost airline Wizz Air in January-October 2018 transported over 1.2 million passengers on flights from/to Ukraine, which is a 2.1-fold rise year-over-year. “During the first 10 months of 2018, the airline carried more than 1.2 million passengers on its low cost routes to/from Ukraine, which is 110% growth compared to last year and makes Wizz Air the largest low cost carrier in Ukraine,” the press service of the airline reported.
According to the press service, for 2019 Wizz Air announced four new routes: from Kyiv to Bremen, Billund and Riga, and also from Lviv to Copenhagen. The airline also confirmed its intention to deploy the fourth Airbus A320 at its base in Kyiv. As reported, Wizz Air offers flights on 41 routes to 12 countries from three Ukrainian cities – Kyiv, Lviv and Kharkiv.

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BELARUS AND UKRAINE MAY INCREASE COMMODITY TURNOVER TO $5 BLN

Belarus and Ukraine may increase mutual commodity turnover to $5 billion in 2018, Belarusian Deputy Prime Minister Igor Lyashenko said. “Positive dynamics of trade and economic relations between our countries was observed in the past few years. We have managed to stop the fall that was in 2013 and resume growth,” Lyashenko said at a plenary session of the first forum of Belarusian and Ukrainian regions in Gomel on Friday.
The amount of bilateral trade reached $4.6 billion in 2017 and went up 20% against 2016, he said.
“We project commodity turnover at $5 billion this year [an 8.7% increase from 2017],” Lyashenko said.
Belarusian President Alexander Lukashenko and Ukrainian President Petro Poroshenko have decided to bring mutual commodity turnover to at least $8 billion in 2019.
Not only the governments of the two countries, but also the regions need to contribute to achieving this goal, Lyashenko said.

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POLAND AND UKRAINE AGREE ON 160,000 LICENSES FOR TRANSPORTATION BY ROAD IN 2019

Ukraine, Poland have agreed on the preliminary exchange of 160,000 licenses for transportation by road in 2019, Ukraine’s Infrastructure Ministry has reported after a meeting of the Ukrainian-Polish mixed commission for international road haulage held on October 10 and October 11.
“The sides will hold a regular meeting of the mixed commission in the first half of 2019, where a decision will be made to establish the final quota,” the Infrastructure Ministry said on Friday.
In particular, there will be universal licenses for of the categories Euro-1, Euro-2 and Euro-5 – 10,000 each, Euro-3 – 50,000, Euro-4 – 20,000, and transit categories of Euro-3 – 25,000 and Euro-5 – 35,000.
According to the report, Ukraine also agreed to obtain from Poland an additional 10,000 licenses (8,000 transit and 2,000 universal) for this year, which will increase their number to 216,500.
The Infrastructure Ministry said that Poland again insists on reducing the 2019 quota to 130,000. However, this does not meet the needs of Ukrainian haulers. “Our position in relation to this proposal was unambiguous – we do not agree to any reduction of the quota!” Director of the Strategic Development Department of the road market and road transport of the Infrastructure Ministry Viktor Sasin said on Facebook.
The ministry said that the meeting on the quota increase for 2019 will be held after evaluating the effectiveness of the use of already issued licenses.

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TRANSPORTATION BY AIR IN UKRAINE COULD GROW BY 10% EVERY YEAR IN COMING 10 YEARS

Board Chairman of the Sikorsky Kyiv international airport (Zhuliany) Denys Kostrzhevsky predicts that transportation by air in Ukraine would grow by 7-10% a year in coming 10 years. “My forecast is optimistic. I think that in coming 10 years growth in the number of flights will be seen in coming 10 years by 7-10% every year. This is even more than the IATA’s forecast,” he said in an exclusive interview with Interfax-Ukraine. He said that Master-Avia that manages the airport ordered the study of the market with the depth of up to 2052. The study confirms that in the coming two years the explosive growth of the Ukrainian aviation market – by 20-30% a year – would be seen. According to the company’s forecasts, then the growth will be 5-7% until 2052.
Kyiv International Airport (Zhuliany) is located in the business center of the capital, seven km from the city center. It is the second largest airport in Ukraine in terms of the number of flights and passenger traffic. The airport has three terminals with a total area is 21,000 square meters. Terminal B is separate facility for business-class service, it is part of the Fixed Base Operator (FBO) system. The airport’s runway is able to handle B-737 and A-320 aircraft.

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