Business news from Ukraine

GALICIA GREENERY OPENS SECOND PHASE OF GREENHOUSES OF 4,800 SQ M IN LVIV REGION

KYIV. April 4 (Interfax-Ukraine) – Galicia Greenery LLC, a company with 100% Dutch investments (Lviv region), has opened the second phase of greenhouses with an area of 4,800 square meters, according to the website of Lviv Regional State Administration.
According to the report, investments in this project amounted to EUR 600,000 with the total capital investment being EUR2.5 million.
Two greenhouses for growing different kinds of lettuce by the method of dry hydroponics have been built here for the money of investors. Some 6,500 kg of lettuce or 45,000 pieces per week are grown here.
“To date, the demand for lettuce is much higher than the supply, and it seems to me logical to invest in the further development of production and the enterprise,” Ambassador of the Netherlands to Ukraine Kees Klompenhouwer said.
According to Lviv Regional State Administration, Galicia Greenery plans next year to build additional premises for growing vegetables.
Galicia Greenery LLC was registered in 2011. Its founder is the Dutch company Galicia Greenery Holding B.V.

AN-132D SUCCESSFULLY COMPLETES ITS FIRST FLIGHT

HOSTOMEL. April 3 (Interfax-Ukraine) – The An-132D aircraft manufactured by Antonov state corporation on Friday, March 31, successfully completed its first flight, flying from the airdrome of Sviatoshyne to Hostomel airfield (Kyiv region).
According to an Interfax-Ukraine correspondent, after landing in Hostomel airfield, the crew of the plane was met by President of Ukraine Petro Poroshenko, Ukrainian officials and representatives of Saudi Arabia.
“The creation of this transport plane was joined by the leading enterprises of the world’s aircraft manufacturing: companies from the United States, Great Britain, France, Germany and many other countries. The An-132D is a unique example in the history of Ukrainian aviation that proves the need to develop the introduction of production cooperation with Western partners. Now this cooperation is being built up with NATO member states, which is in line with the development strategy of our state,” Poroshenko said.
The president expressed hope that with joint cooperation with foreign partners the serial production of An-132D aircraft will be launched.

METINVEST SEES REVENUES RISE BY 19.1%, EBITDA BY 17.4% IN JAN 2017 – PRELIMINARY UNAUDITED DATA

KYIV. April 3 (Interfax-Ukraine) – The revenues of Metinvest B.V. (the Netherlands), the parent company of Metinvest international vertically integrated mining and metallurgical group, in January 2017 increased by 19.1% compared to the previous month, to $598 million.
According to the company’s preliminary unaudited consolidated financial data in accordance with IFRS, its EBITDA in January amounted to $155 million, which is 17.4% higher compared to December.
According to the report, the adjusted EBITDA of the metallurgical division of the group for January 2017 was $59 million (including $13 million from participation in the joint venture), whereas in December 2016 this figure was $30 million. The mining division’s EBITDA in January stood at $137 million (including $22 million from participation in the joint venture), whereas in December it amounted to $110 million.
The expenses of the managing company were “minus” $5 million.
As a result, total EBITDA in January came to $155 million (including $35 million in total from participation in the joint venture), while in December $132 million.
Total revenues in January 2017 included the income of the metallurgical division in the amount of $477 million ($412 million in December), the mining sector $369 million ($271 million), inter-group sales were “minus” $248 million (“minus” $181 million). As a result, total revenues in January amounted to $598 million (in December $502 million).

GOVERNMENT APPROVES LIST OF WORKS TO BUILD, RECONSTRUCT ROADS IN LVIV REGION FOR UAH 250 MLN

KYIV. April 3 (Interfax-Ukraine) – The Ukrainian government has approved a list of reconstruction and overhaul of roads of general use in Lviv region and the volume of budget funds to finance the works in 2017. The works will be carried out under the investment project to improve the state of roads of general use in Lviv region.
The list is outlined in government resolution No. 2126-r dated March 29, 2017.
According to an explanatory note to the document, the project financed from the national budget was selected by the interagency commission for investment projects. Expenses under the new budget programs are foreseen for its implementation in 2017.
“The adoption of the resolution would allow using the funds of the general fund of the national budget in the amount of UAH 250 million under relevant budget-funded program to reconstruct and overhaul some sections of roads: M-11 Lviv-Shehyni, R-40 Rava Ruska-Yavoriv-Sudova Vyshnia, Т-14-16 Lviv- Pustomyty- Medenychi, Т-14-25 Mykolayiv – Horodok – Zhovkva – Kamianka Buhska – Bobrka,” reads the document.

BORYSPIL AIRPORT CONTINUES TALKS WITH RYANAIR

KYIV. April 3 (Interfax-Ukraine) – State-run enterprise Boryspil International Airport (Kyiv), the largest airport of Ukraine, continues commercial talks with the largest European low cost airline – Ireland’s Ryanair. Today the airport cannot give its consent to the conditions proposed by the airline.
An Interfax-Ukraine correspondent has reported that Boryspil International Airport Pavlo Riabikin gave the information to journalists in Kyiv last week.
“The airport cannot give the tariffs asked by Ryanair, even taking into account all discounts,” he said.
He said that Boryspil proposed its public offer to the airline, but to meet the conditions of Ryanair amendments to the resolutions of Ukrainian Infrastructure Ministry regulating the tariffs and discounts for all airlines are required.
As reported, the largest European low-cost airline Ryanair in October 2017 intends to launch its flights for four destinations flying from Kyiv and seven from Lviv.
Ryanair Chief Commercial Officer David O’Brien said at a briefing in Kyiv that flights to Eindhoven, London, Manchester and Stockholm will be launched from Kyiv. It is planned to service 15 flights a week.
From Lviv Ryanair will fly to London, Eindhoven, Berlin, Memmingen, Krakow, Wroclaw and Budapest.
O’Brien said that flights from Lviv to Eindhoven, London, Berlin, Budapest and Memmingen will be serviced twice a week and to Krakow and Wroclaw – three times a week. Flights from Kyiv to Eindhoven and Manchester will be serviced three times a week, Stockholm – four times and London – five times a week. In general, the airline intends to annually carry 250,000 passengers each from Kyiv and Lviv.
O’Brien said that Ukraine will become the 34th country in the airline’s chain.
“This year we will carry 120 million passengers and next eight years we will add 10 million passengers a year,” he said.
Asked if the airline’s planes are based in Ukraine, he said: “Not now, but this is a good issue to discuss. Another issue for the future could be cooperation with Ukraine International Airlines.”

DTEK SIGNS CONTRACT WITH MOLDOVAN ENERGOCOM FOR UKRAINIAN ELECTRICITY SUPPLY FROM APRIL 1

KYIV. April 3 (Interfax-Ukraine) – DTEK Trading (Ukraine) and Energocom (Moldova) have signed a contract for the supply of Ukrainian electricity in the period from April 1, 2017 until March 31, 2018.
Energocom won the tender for electricity supply to the Moldovan markets with its price offer of $50.2 per 1 MWh, according to a report on the website of the Economy Ministry of Moldova.
The Moldovan Regional Hydro-Electric Power Plant which is located in Transdniestria and belongs to the Russian-owned Inter RAO originally offered electricity supplies at $58.5 per 1 MWh but later reduced the price to $54.4 per 1 MWh.
According to the ministry, the difference between the final prices proposed by the participants will allow saving about 300 million lei.