Business news from Ukraine

WIZZ AIR RESUMES FLIGHTS BETWEEN UKRAINE AND SLOVAKIA

Hungarian low-cost airline Wizz Air will resume flights from Kyiv and Lviv to Bratislava (Slovakia) from October 2.
The cost of tickets starts from UAH 309, the press service of the company reported on Wednesday.
“The restoration of flights depends on the decision of the authorities to leave or remove Slovakia from the list of countries in the ‘green’ zone. If it is excluded from the list, flights connecting Ukrainian cities with Bratislava will be postponed,” the company said.

, ,

JOHNSON & JOHNSON EXPECTS 7-9% GROWTH OF PHARMA MARKET IN UKRAINE

Johnson & Johnson Ukraine predicts a 7-9% growth in the pharmaceutical market in 2021, Johnson & Johnson Country Manager Denis Golubchykov has said.
“Regarding the development of the market, my forecast is average. I do not expect a fall or gains of 1-2%, but I do not expect double-digit gains either. Somewhere in the 7-9% range is what we expect,” he said during EBA Global Outlook held in Kyiv on Tuesday.
Golubchykov also said that due to the pandemic, the pharmaceutical market faced a crisis for the first time in recent years.
“We work in the pharmaceutical market and the FMCG market. They behaved completely differently. The pharmaceutical market at first gave a panic leap upwards. It is not clear why people decided to buy half a pharmacy. Naturally, this played negatively and even more in April. The market fell very dramatically and it is slowly creeping out of there. All previous crises did not affect the pharmaceutical industry, this is the first time,” he said.
“The FMCG market behaved differently. All this [the fall] happened later, by the beginning of summer, and not so dramatically downward, and respectively, it will not take so long to get out of the situation. From part of the market, a new category has formed – people have got used to using more detergents, disinfection in several months. This category is growing within the market. Beauty has dropped dramatically,” Golubchykov said.

,

DRAGON CAPITAL INVESTMENT COMPANY TO START BUILDING INDUSTRIAL PARK NEAR KYIV

Dragon Capital investment company has developed a concept for the E40 Industrial Park with an area of 200,000 square meters on the 27th kilometer of the Zhytomyr highway (Kolonschyna village, Kyiv region), plans to start the construction of the first stage in 2021.
“According to the developed concept, the total area of the buildings of the industrial park will be 200,000 square meters, including class A production and storage facilities, cross-docking terminals, office, utility and infrastructure facilities (a hotel, a truck service station, etc.),” it said in a press release.
According to the report, the project will be located on a front land plot with an area of 49 hectares.
“Thanks to the support of Makariv Regional State Administration, as well as the Regional Development Agency of Kyiv region, Dragon Capital managed to develop and approve a detailed plan of the territory as quickly as possible. This will allow the company to proceed to the next step in the implementation of the project – the development of project documentation. Our company plans to start building the first stage of the E40 Industrial Park in 2021,” the report says.
As reported, Dragon Capital acquired the relevant plots in 2018 from Europolis GmbH, which is part of the large real estate concern CA Immo Group (Vienna, Austria).
Dragon Capital is one of the largest groups of companies in Ukraine that operates in the field of investment and financial services and provides a full range of investment banking and brokerage services, direct investments, asset management for institutional, corporate and private clients.

, , , ,

ELECTRICITY TRANSMISSION TARIFF TO RISE BY 2.7 TIMES

NPC Ukrenergo proposes to increase the tariff for electricity transmission by almost 2.7 times, to UAH 640.48/MWh starting from November 1 of this year and to set green metallurgy tariff at UAH 108.83/MWh (set as of August 1 the tariff for transmission was UAH 240.23/MWh, excluding VAT).
The draft changes to the tariff for public discussion have been published on the Ukrenergo website. Hearings on the draft amendments are scheduled for September 25.
According to the hearing procedure, their minutes will be submitted to the National Energy and Utilities Regulatory Commission of Ukraine (NEURC).
According to the explanatory note for the bill, the need to revise tariffs arose as Ukrenergo projected deficit on the Public Service Obligation (PSO) amounting to UAH 9.951 billion due to feed-in tariffs compensation, increased payments for Chornobyl nuclear power plant services by court decision (from UAH 13.381 million to UAH 18.244 million per annum), and also taking into account the general deficit of funds budgeted in 2020 tariff for the payment of public commitments to the budget in the amount of UAH 586 million. With regard to the latter, in particular, it is noted that in the first half of 2020 Ukrenergo fulfilled its obligations to the state budget for paying dividends in full in the amount of UAH 559 million at the tariff of UAH 79 million, paid income tax of UAH 664 million at the tariff of UAH 557 million.
“It is proposed to include the total amount of deficit (UAH 10.546 billion) in the tariff for electricity transmission services starting from November 1,” says explanatory note.
It is also noted that tariff calculation takes into account the expected volume of transmission (consumption), electricity exports in November-December 2020 in the amount of 25.288 million MWh.

, ,

UKRAINE PRODUCES 28,000 TONNES OF SUGAR BY SEPT 22

Sugar production in Ukraine as of September 22, 2020 amounted to 28,000 tonnes.
According to a report on the website of the Ukrtsukor National Association of Sugar Producers, as of this date, nine sugar factories were operating in the country, which have processed 236,500 tonnes of sugar beets.
The sugar beet processing season in Ukraine started on September 5.
As reported with reference to Ukrtsukor, sugar production in the country in 2020 is projected at 1.2-1.3 million tonnes, which is 15% less than a year earlier.
It is expected that 33 sugar factories will operate this season, at the level of last year.

KYIVSTAR LAUNCHES 4G IN IN 75 SETTLEMENTS OF KYIV REGION

The mobile operator Kyivstar has improved 4G geographical accessibility in 75 settlements of Kyiv region by installing new base towers operating at 900 MHz.
According to the Kyivstar press office, due to the construction of a new network, 14,000 inhabitants of small settlements of Polisky, Makariv, Ivankiv and Bila Tserkva districts of Kyiv region gained access to access to the high-speed mobile Internet services.
In order to increase the territory of the 4G network coverage in Kyiv region, the operator switched on 12 additional base stations operating at GSM-900 MHz.
Kyivstar also continues to increase its 4G coverage at the expense of other bands – 1800 MHz and 2600 MHz bands. Since the beginning of 2020, the operator has connected almost 6,000 settlements to high-speed mobile Internet using LTE technology.
During the time of developing LTE technology in Ukraine, access to high-speed mobile Internet from Kyivstar appeared in 15,000 settlements.

, ,