Business news from Ukraine


Horizon Capital, an asset management company, that invested over $500 million via private equity funds, plans to invest $100-200 million more in the country in the coming five years, Horizon Capital founder and CEO Lenna Koszarny has said.
“We continue investing after this difficult 2013-2014 period – more than $50 million over this period. Our plans for the next five years are to invest another $100-200 million. Now we see many opportunities,” she said in an interview with the Business weekly.
According to her, at present the company is discussing the possibilities of entering into the charter capital with more than 30 companies, trying to find “founders-visionaries”.
Koszarny said that the offer of lending to Ukrainian business has recently increased. It must be supplemented with foreign direct investment (FDI), and its volume today is only $1-1.5 billion per year.
“For five years, I would like to see investments at $6-7 billion annually: from America, Europe, but also from the Middle East, Asia, India and China,” the Horizon Capital CEO said.
According to Koszarny, the IT industry can be the driver of export for Ukraine due to the switch from the model of export of raw materials to the model of export of goods and services with high added value.
Horizon Capital was established in 2006. It manages private equity funds Western NIS Enterprise Fund (WNISEF, established in 1994 with a capital of $150 million), Emerging Europe Growth Fund, L.P. (EEGF, established in 2006 with a capital of $132 million) and EEGF II (EEGF, established in 2008 with $370 million capital).
The money of these funds is invested in projects in Ukraine, Moldova, and Belarus.
The founding partners of Horizon Capital are Jeffrey C. Neal, Mark Andrew Iwashko, Natalie Jaresko and CEO Lenna Koszarny.
In June 2016, OPIC (Overseas Private Investment Corporation) said that the OPIC would provide up to $37.5 million to EEGF III launched by Horizon Capital for the period of up to 10 years.


The Antimonopoly Committee of Ukraine (AMC) has permitted International Hotel Licensing Company S.à r.l (Bertrange, Luxembourg), a subsidiary of the international hotel operator Marriott International, to indirectly manage the first Aloft brand hotel in Ukraine.
According to the AMC, the Aloft hotel belongs under the terms of lease to Solelat Palace LLC (Kyiv).
According to the unified state register, Solelat Palace LLC was established on June 22, 2017. Its core business is real estate management.
The only owner of the company is Volodymyr Kravets.
The charter capital of the company is UAH 500,000.
As reported, in early 2018 Marriott International postponed the opening of the first hotel under the Aloft brand in Ukraine from February 15 to May 1, 2018. The hotel has 310 rooms.
Marriott International unites more than 6,000 hotels under 30 brands in 122 countries. The central office is located in Bethesda (the suburb of Washington, the United States). The company’s revenues in 2016 exceeded $17 billion.
Some 250 hotels operate under the Aloft brand in the countries of America, Asia, Europe, the Middle East, and the Caribbean.


The Antimonopoly Committee of Ukraine (AMC) has permitted PJSC Sberbank (Kiev) to purchase two Chorne More hotels in Odesa.
According to the press service of the AMC, the matter concerns buying assets in the form of the integrated property complex owned by PJSC Chorne More tourist-production firm (Odesa).
As reported, in late 2017 the state executive service of the Justice Ministry of Ukraine put up the Chorne More Rishelyevska hotel (Odesa) for sale in the SETAM electronic system of trading in seized property for debts on mortgage.
The total area of the hotel complex is 12,000 square meters. It has 225 rooms. It is part of the Chorne More hotel chain, which belongs to an Odesa businessman, the ex-owner of Imexbank and the incumbent owner of the Chornomorets football club.
According to the website of the Chorne More hotel network, it includes nine objects in Odesa, Odesa region, and Kyiv.
PJSC Chorne More tourist and production firm was established in 1997. Its core business is leasing and operating own or leased real estate.


Hungary’s New Work Labs has signed a contract to open a co-working place with a gross area of 1,000 square meters on the third floor of the Globus shopping center in Maidan Nezalezhnosti (Independence Square) in Kyiv, the press service of the shopping center has reported.
“For Hungarian company New Work Labs this is the first project of a joint office space in a shopping center. The spacious and comfortable office in the Globus shopping center will be up to date for residents and guests of Kyiv, and it will significantly complement the variety of services in the shopping center,” the press release quotes the manager. the department of rent of the Globus TC Elena Semochkina.
The Globus shopping center was put into operation in 2001. It consists of two parts: Globus 1 and Globus 2. Its total area is 35,400 square meters, retail space – 18.580 square meters. Three legal entities are the owners of Globus shopping center since 2008: Delight LLC, Delight Plus LLC and Delight City LLC, which are owned by a major European investment company London & Regional Properties.
New Work Labs (Hungary) was established in 2012. It is engaged in providing premises in the format of co-working for the needs of growing companies and individuals. Currently, the company operates seven working locations in Hungary with a total area of more than 12,000 square meters


The volume of sales of services by telecommunications and postal communications enterprises in Ukraine in 2017 amounted to UAH 66.04 billion, which in absolute prices is higher than the level of 2016 by 6.7%, according to the State Statistics Service of Ukraine.
According to its data, the volume of services provided to the population amounted to 57.6% of the total volume of services sold.
At the same time, in comparable prices compared to 2017 the volume of services sold as a whole decreased by 3.6% and in terms of providing services to the population grew by 3.7%.
In particular, in absolute prices over the past year the volume of sales of postal and courier services grew by 11.7%, to UAH 5.521 billion, of which services rendered to the population amounted to UAH 1.342 billion.
The volume of sales of mobile communications services last year grew by 3.3%, to UAH 35.217 billion, of which services provided to the public amounted to UAH 23.444 billion.
The volume of sales of Internet services in 2017 also rose by 18.9% and amounted to UAH 10.818 billion, of which the population was provided with services worth UAH 7.419 billion.


Sugar production in Ukraine in the 2017/2018 marketing year (MY, September-August) increased by 6.5% compared to the previous season, to 2.14 million tonnes, the Ukrtsukor National Association of Sugar Producers has reported.
According to the report, for the same period last year this figure was 2.01 million tonnes.
The rise in production is due to the expansion of areas under sugar beets and the launch of four more sugar refineries in addition to last year’s 42 plants.
“The production season is completed. Some 46 sugar plants manufactured 2.14 million tonnes of sugar, which is 6.5% more than last year. It should be noted that the increase in sugar production could be even higher, but weather conditions during the growing season did not contribute to the increase in the yield of sugar beets,” the association notes.
The leader in production remained Vinnytsia region with 445,600 tonnes of sugar. The second position was held by Khmelnytsky region with 290,200 tonnes, the third one by Ternopil region with 283,500 tonnes.
As reported, with reference to the data from Ukrtsukor, exports of sugar from Ukraine for the 2016/2017 MY (September-August) amounted to 769,300 tonnes, which is 6.8 times more than a year earlier (112,960 tonnes).