Business news from Ukraine

UKRZALIZNYTSIA RAISES PASSENGER TRAFFIC BY 6.5% DURING 2019/2020 CHRISTMAS HOLIDAYS

JSC Ukrzaliznytsia (Kyiv) during the current winter holidays transported more than 3.3 million passengers in long-distance and high-speed trains, which is 6.5% more than last year (3.1 million).
According to the company’s press service, Ukrzaliznytsia put on 49 additional passenger trains for this period, which carried out 403 trips. These trains transported 474,000 passengers.
In addition, 2.2 million people were transported by year-round trains, 336,000 by high-speed trains, and 263,000 by regional trains.

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UKRAINE REDUCES COAL PRODUCTION IN 2019

Ukraine’s coal producers reduced output by 6.2% in 2019 to 31.224 million tonnes.
The Energy and Environment Protection Ministry told Interfax-Ukraine that the output of steam coal decreased by 9.4% to 24.901 million tonnes, but coking coal production increased by 8.8% to 6.323 million tonnes.
A total of 2.813 million tonnes of coal was produced in December, which was 0.1% less year-on-year.
Coal mining enterprises managed by the Energy and Environment Protection Ministry reduced production by 13.9% to 3.566 million tonnes last year. Steam coal output shrank 24% to 2.719 million tonnes, though coking coal production rose by 51%, to 846,100 tonnes.
The mines of Donetsk region produced 11.259 million tonnes of coal, growth of 1.3%, Luhansk region some 328,800 tonnes, a decrease of 33.2%, and Dnipropetrovsk region some 18.208 million tonnes, or 9% less.
Ukraine decreased coal production by 4.7% in 2018, compared with 2017, to 33.286 million tonnes.

KOKHAVYNSKA PAPER FACTORY INCREASES PRODUCTION

Kokhavynska paper factory (Lviv region), a tissue and toilet paper producer (the Kokhavynka trademark), in 2019 increased production by 1.6% compared with 2018, to UAH 547.64 million.
According to the Ukrpapir association, production of paper at the factory in kind increased 2.3%, to 37,900 tonnes. At the same time, production of toilet paper rose by 2.4%, to 113.69 million rolls (a total of 677.38 million rolls was made in Ukraine in 2019, a rise of 4.4%).
Kokhavynska paper factory has been operating since 1939. The factory producers base paper for hygienic goods, toilet paper and paper towels. The capacity of paper making machines is 19,000 tonnes per year, processing equipment 90 million rolls a year.
The factory exports about 40% of the products. The main consumers abroad are the Czech Republic, Romania, as well as companies from Belarus, Moldova, Hungary, and the Netherlands.
As reported, in 2018, the factory produced goods worth UAH 538.78 million, which is 27.8% more than a year earlier, paper production grew by 11%, to 37,050 tonnes.

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UKRAINE CUTS STEEL SMELTING BY 1% IN 2019

Metallurgical enterprises of Ukraine cut steel smelting by 1% in 2019 compared with 2018, to 20.848 million tonnes.
According to the reference documents of the Ministry of Economic Development, Trade and Agriculture, which are available to the Interfax-Ukraine, the output of total rolled metal also decreased 1%, to 18.387 million tonnes, and pig iron production fell by 2%, to 20.064 million tonnes.
At the same time, the agency’s source in the ministry said that scrap metal supplies to metal enterprises last year fell by 10% to 3.011 million tonnes.
In 2019, pipe production fell by 9%, to 1.005 million tonnes, coke – by 7%, to 10.059 million tonnes, and metal products remained at the level of 188,000 tonnes.
Mining enterprises last year increased iron ore production by 4%, to 75.710 million tonnes, production of iron ore concentrate grew by 5%, to 63.084 million tonnes, but they reduced prepared iron ore by 3%, to 51.675 million tonnes, including sinter production that decreased by 2%, to 30.911 million tonnes, and pellets that fell by 3%, to 20.764 million tonnes.

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CHINA RAILWAY CONSTRUCTION CORPORATION TO OPEN REPRESENTATIVE OFFICE IN UKRAINE

JSC Ukrzaliznytsia (Kyiv) and China Railway Construction Corporation (CRCC), the largest state-owned construction company in China, have signed a memorandum of understanding and cooperation. According to the press service of the Ministry of Infrastructure, the memorandum was signed by head of Ukrzaliznytsia Yevhen Kravtsov and member of the board Remigiusz Paszkiewicz from Ukraine and the deputy director general of CRCC from China.
According to the report, the Minister of Infrastructure noted that the signing of the document is an important stage of cooperation for the development of railway connection in the direction of Ukraine-China, attracting Chinese partners to modernize the Ukrainian railways and realize the transit potential of the country on the European Union-China route.
“The fact that the Chinese corporation decided to open a representative office in Ukraine and sign a memorandum of strategic cooperation indicates that the economic situation in the country is changing, the investment climate is improving, the largest foreign technology and manufacturing giants are interested in working in the Ukrainian market,” the minister said.
According to him, the ministry expects to restart and intensify the participation of Ukraine in the project One Belt – One Road, which will make it possible to fully realize the transit potential of the country in the continental cargo turnover.

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DEUTSCHE BAHN STUDYING STRATEGIC ALLIANCE WITH UKRAINIAN STATE-RUN UKRZALIZNYTSIA

Representatives of Germany’s Deutsche Bahn railway concern jointly with the Ukrainian government and JSC Ukrzaliznytsia are working on strategic partnership, the Center for Transport Strategies reported last week, referring to Deputy Director of the Center for Eastern European Studies in Berlin, ex-member of Bundestag Dmitry Stratievsky.
According to him, representatives of the German concern plan to visit Kyiv in the coming days.
“The alliance with Deutsche Bahn is interesting for Ukraine, first of all, with technologies and investments in updating the infrastructure. Undoubtedly, the leaders of the German market have something to share with their Ukrainian colleagues. Deutsche Bank and E.ON plan to join this process,” Stratievsky said.