Business news from Ukraine

BORYSPIL AIRPORT SIGNS CONTRACT WITH RYANAIR, SENDS PAPER TO LOW COST AIRLINE’S OFFICE

KYIV. July 6 (Interfax-Ukraine) – State-owned enterprise Boryspil International Airport (Kyiv), the largest airport of the country, on July 5, 2017 signed a contract with the largest European low cost airline Ryanair and sent it to the head office of the airline, Airport CEO Pavlo Riabikin has said.
“It took less than two weeks from the moment of cutting the basic fee for passenger servicing [amendments to the resolution of the Infrastructure Ministry], which was the man hindering financial factor. The contract has been approved by all airport’s services and external auditors who validate all outbound documents and contracts,” he wrote on his Facebook page.
Riabikin said that the negotiations between the airline and the airport are process of achieving a compromise on the basis of mutual economic interest. The less politics we see the easier to find this compromise, he said.

ECONOMY MINISTRY REGISTERS LYMANSKY, NOVOVOLYNSK INDUSTRIAL PARKS

KYIV. July 6 (Interfax-Ukraine) – Ukraine’s Economic Development and Trade Ministry has placed the Lymansky (Lyman, Donetsk region) and Novovolynsk (Volyn region) industrial parks to the register of industrial parks. They are 24th and 25th on the register.
The Lymansky park is located on 27.5 ha. The park is being organized to build industrial, processing and other industrial facilities.
The Novovolynsk park is located on 20 ha. The park will be involved in machine building, tool building, logistics, light industry, agricultural industry and IT.

IEC STARTS BUILDING NEW STAGE OF EXHIBITION CENTER WITH AREA OF 80,000 SQ M

KYIV. July 4 (Interfax-Ukraine) – International Exhibition Center LLC (IEC, Kyiv), the owner of the eponymous exhibition complex in Kyiv, starts building new exhibition pavilions and facilities with a gross area of 80,000 square meters.
The press service of IEC reported on Tuesday that the project envisages several construction stages.
The first stage of 12,000 square meters would be finished in autumn 2018. It would have a new two-story exhibition pavilion, several conference halls and the administrative premises.
Other exhibition halls, a universal hall for 2,500 seats that could be used as a congress hall and concert hall, a 13-story office and hotel section, underground parking areas for 736 cars, auxiliary technical and other premises will be also built.
The press service said that energy saving solutions will be used in the new buildings.
IEC said that construction of new facilities will create around 700 jobs.

UBER LAUNCHES UBERBLACK PREMIUM SERVICE IN KYIV

KYIV. July 5 (Interfax-Ukraine) – Uber international technological company, the developer of the eponymous mobile application for calling cars with drivers, has expanded the service lines available for Kyiv residents and launched the UberBlack premium service.
Uber General Manager for Ukraine, Azerbaijan, Belarus and Kazakhstan Alexei Stakh said at a press conference in Kyiv on Tuesday devoted to the Uber one year anniversary in Ukraine that the service focuses on clients who want to travel the city using cars of enhanced comfort.
The premium service is available in Kyiv since July 4. The fare for UberBlack will be calculated using the following formula: UAH 85 for booking a car, UAH 10 per kilometer and UAH 1 per minute. The base fare is UAH 130.
Audi A6, Mercedes E-class, BMW X5, Toyota Land Cruiser, Toyota Camry XV07and other premium class cars will be used for the service.
Stakh also said that Uber is now servicing five cities in Ukraine since its launch in June 2016. Over 1 million of application downloads were recorded.

EBRD COULD PROVIDE EUR 150 MLN LOAN TO MODERNIZE RAILWAYS IN SOUTH UKRAINE

KYIV. July 5 (Interfax-Ukraine) – The European Bank for Reconstruction and Development (EBRD) could provide a EUR 150 million loan for the electrification of 253 km railway line Dolynska- Mykolaiv-Kolosivka, in south Ukraine.
The bank said that the main purpose of the project is to improve the efficiency of the railway operations and to support the ongoing railway reform process.
The project will be discussed by the EBRD board on September 6, 2017.
The borrower is the Ukrzaliznytsia, a vertically-integrated railway company fully owned by the government of Ukraine.
The senior loan could consist of a tranche of up to EUR 124.5 million for the electrification of Dolynska-Mykolaiv railway line (148 km) and a tranche of up to EUR 25.5 million for the electrification of Mykolaiv-Kolosivka railway line (105 km).
The total cost of the project is estimated at up to EUR 367.9 million, expected to be cofinanced by the European Investment Bank (EIB) in an amount equal to the EBRD loan, the company’s own contribution and grant funding of the technical cooperation assignments.
As reported, the EIB on November 23, 2016 approved a EUR 150 million loan under the project on the modernization of around 250 km of railways in south Ukraine.
In October 2016, Ukrzaliznytsia approved the last details of the loan from the EIB and EBRD for the electrification of the railway line Dolynska- Mykolaiv-Kolosivka.

UK TO PROVIDE UKRAINE WITH GBP 40 MILLION IN FINANCIAL AID IN 2017-2018 – AMBASSADOR

KYIV. July 5 (Interfax-Ukraine) – The UK’s financial obligations as part of assistance to Ukraine in 2017-2018 are GBP 40 million, British Ambassador to Ukraine Judith Gough has said.
Speaking in an interview with Interfax-Ukraine, Gough said they work in annual financing cycles. Their financial obligations will total GBP 40 million by March, which marks the end of 2017-2018 fiscal year.
According to her, this amount includes technical assistance in the implementation of reforms, humanitarian assistance and military training, which is aimed at supporting the Armed Forces of Ukraine.