Business news from Ukraine

Business news from Ukraine

UKRAINE RAISES REQUIREMENTS FOR OPERATORS OF PRIVATIZATION AUCTIONS

The Cabinet of Ministers has raised the requirements for operators of privatization auctions, in particular, an operator must have at least six employees, a charter capital of at least UAH 1 million and its own call center for selection.
According to the draft regulation, the auction operator must also have an excellent business reputation with regard to the law on prevention and counteraction of legalization (laundering) of proceeds.
In addition, the requirement presupposes having at least a year of experience in the market for the sale of property in the form of auctions and cryptographic protection for a secure connection between the server and bidders.
As indicated in the draft regulation, the charge rate for participation in the privatization auction for an object worth more than UAH 64 million is set at 1% (previously it was set for objects worth over UAH 250 million), from UAH 4 million to UAH 64 million it is 2.5% (previously the charge rate of 2.4% was set for objects from UAH 1 million to UAH 4 million), and up to UAH 4 million it is 4% (previously the maximum charge was 3% for objects up to UAH 1 million).

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UKRAINE RANKS 13TH IN WORLD STEEL RATING

Ukraine’s metallurgical enterprises in September 2020 reduced steel production by 5.4% compared to the same period in 2019, to 1.651 million tonnes, ranking 13th among 64 countries, the world’s main producers of these products compiled by the World Steel Association (Worldsteel).
In September, a drop in steel production from September 2019 was recorded in most of the top ten countries, except for India, Japan, the United States and Germany.
The top ten steel producing countries in September are as follows: China (92.555 million tonnes, an increase of 10.9%), India (8.52 million tonnes, a drop of 2.9%), Japan (6.486 million tonnes, a drop of 19.3%), Russia (5.86 million tonnes, 0.8% up), South Korea (5.831 million tonnes, 2.1% up), the United States (5.709 million tonnes, a drop of 18.5%), Turkey (3.225 million tonnes, an increase of 18%), Germany (3.018 million tonnes, 9.7% down), Brazil (2.574 million tonnes, an increase of 7.5%), and Vietnam (2.321 million tonnes, an increase of 45.3%).
They are followed by Iran (2.26 million tonnes, an increase of 2.2%), Italy (1.894 million tonnes, a drop of 18.7%), Ukraine (1.651 million tonnes, a decrease of 5.4%), Taiwan (1.605 million tonnes, a decrease of 8.1%), and Mexico (1.4 million tonnes, minus 3.9%).
In September, 64 countries produced 156.359 million tonnes of steel, which is 2.9% more than in September 2019.
In January-September 2020, 64 countries produced 1.347 billion tonnes of steel, which is 3.2% less than a year ago.

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LOGISTICS OPERATOR MEEST EXPRESS LAUNCHES OWN AIR DELIVERY FROM UNITED STATES TO UKRAINE

The postal and logistics operator Trade House Meest Express LLC (Meest Express, Lviv) has launched air delivery from the United States to Lviv.
“Meest is the first Ukrainian postal and logistic company with its own air delivery from the United States. Today we met the charter flight we rented in Lviv – Boeing 787-9 Dreamliner of the LOT airline – with parcels of our dear customers,” President of Meest Rostyslav Kysil wrote on his Facebook page.
He also said that this flight was the first transatlantic flight in Lviv.
The Lviv international airport said in a report that the Polish airline LOT performed the first test flight for Meest Express.
“We are very pleased with the opening of long-haul cargo transportation to Lviv. Since the onset of the aviation crisis, due to the COVID-19 pandemic, we have actively switched to finding alternative sources of income… Today, we have a beautiful Boeing 787-9 Dreamliner cargo aircraft from the airline LOT, performing a test presentation flight. Next, we will continue to work on which airline will deliver goods to Lviv,” Director General of the Lviv airport Tetiana Romanovska said.
According to her, the opening of such flights will save the situation with the financial condition of the enterprise and will provide an opportunity to improve it in the winter.
“From now on, the Lviv airport becomes not only a passenger, but also a cargo aviation hub,” Romanovska said.
Meest Group is part of Meest Corporation Inc. (Toronto, Canada). It provides postal and logistics services in 20 countries: Canada, the United States, Ukraine, Australia, Germany, the UK, France, Italy, Spain, Greece, Portugal, the Czech Republic, Poland, China, Kazakhstan, Georgia, Uzbekistan, Armenia, Azerbaijan, and Israel.

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UKRAINE EXPORTS ALMOST 15 MLN TONNES OF GRAIN SINCE START OF MARKETING YEAR

Ukraine exported 14.8 million tonnes of grain and legumes since the beginning of the new 2020/2021 marketing year (MY, July-June) and as of October 23, which is 2.77 million tonnes less than on the same period of previous marketing year.
According to the information and analytical portal of the agro-industrial complex of Ukraine, to date, 10 million tonnes of wheat, 3.3 million tonnes of barley and 1.4 million tonnes of maize have been exported.
As of October 23 this year, 59,000 tonnes of flour were also exported.
As reported, Ukraine exported a record 57.2 million tonnes of grain, legumes and flour in the 2019/2020 marketing year, which is 13.5% more than in the previous one.

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UKRAINE IS PLANNING TO IMPLEMENT PILOT PUBLIC-PRIVATE PARTNERSHIP PROJECTS, IMPLEMENTATION TO ATTRACT MORE THAN $9 BLN OF INVESTMENT

Ukraine is planning to implement the first pilot public-private partnership (PPP) projects in the road industry, transferring six highways to concession.
A source in the industry told Interfax-Ukraine that the first sections and routes for PPP implementation will be offered:
– a section of the M-03 road from Boryspil to Poltava;
– a section of the M-06 road from Kyiv to Rivne;
– the route from Dnipro to Kryvy Rih and Mykolaiv (М-04, Н-11);
– the route Yahodyn – Kovel – Lutsk (М-07, М-19);
– the route Kharkiv – Dnipro – Zaporizhia (M-29, M-04, M-18);
– a section of the M-14 road from Kherson to Mykolaiv.
At the same time, a private investor will undertake the obligation to update and develop the existing road, and funds will be allocated from the Road Fund to support the investor, provided that he observes all obligations on the quality of road maintenance.
Instead of collection of fares, it is planned that the investor will earn by developing roadside infrastructure: gas stations, catering establishments, advertising space, etc.
According to Minister of Infrastructure of Ukraine Vladyslav Krykliy, the implementation of the entire program will allow in the medium term to attract more than $9 billion of private investment in the restoration and maintenance of more than 4,500 kilometers of national highways.
The first public-private partnership program in the road sector of Ukraine is planned to be presented in Kyiv on October 29, 2020.

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NEW 150 MW WIND FARM TO BE BUILT IN UKRAINE

Wind Power GSI Volyn LLC intends to build a wind power plant with a capacity of 150 MW in Ivanychi and Volodymyr-Volynsky districts of Volyn region.
According to the website of the unified register of environmental impact assessment, within the framework of the project, it is planned to install 28 wind turbines in the territory of Ivanychi district and 1 wind facility in the territory of Volodymyr-Volynsky district with a capacity of up to 7 MW each. The tower height is up to 166 meters, the rotor diameter is up to 170 meters.
It is also planned to build a high-voltage substation of 35/110 kV with an area of up to 1 hectare with transformer equipment to ensure the reception and transmission of generated electricity from the station to the network. The transmission of electricity generated at the wind farm to the unified state power grid will be carried out through the existing 330 kV Novovolynsk substation of Ukrenergo.
The wind farm is expected to generate about 540,000 MWh of “green” electricity.
According to the data of the Unified state register of legal entities and individual entrepreneurs, Wind Power GSI Volyn (Lviv) belongs to Greenville closed non-diversified venture corporate investment fund. The ultimate beneficiary is Ivan Torsky, the director general of TKS Development Holding.

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