Business news from Ukraine

UKRAINE INTERNATIONAL AIRLINES COULD INCREASE FREQUENCY OF FLIGHTS TO TBILISI

Ukraine International Airlines (UIA, Kyiv) could increase frequency of flights to Tbilisi and the company is not planning flights to Batumi, UIA Communications Director Yevhenia Satska has said.
“We conduct two daily flights to Tbilisi and are considering possibility of increasing their frequency. We are not planning flights to Batumi,” she said on June 26.
Satska noted that Tbilisi is important to UIA as it has a transit network effect.
“For passengers from Europe and Baltic countries a trip to Tbilisi through Kyiv is a very good model,” she said.
At the same time, Satska mentioned high airports fees in some Georgian airports that were transferred to concession.
“There is a problem which does not leave us [UIA] a chance to develop in Georgia: airport fees are rather high in Tbilisi and Batumi as long as these airports are in concession of foreign companies. These fees are much higher than in many European cities. Their reduction could automatically let us cut the cost of flight by the same amount,” she said.

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PRESIDENT OF UKRAINE SENDS BILL ON CUTTING ELECTRICITY TARIFFS TO PARLIAMENT

President of Ukraine Volodymyr Zelensky has sent to the Verkhovna Rada of Ukraine a bill amending some laws of Ukraine on cutting electricity tariffs.
The document was registered in the parliament on June 26. The text of the bill has not been made public.
As reported, representative of the head of state in the Ukrainian government Andriy Gerus said that Ukrainian President Volodymyr Zelensky initiated the legislative change of the Rotterdam+ formula by the Rotterdam- formula in order to reduce electricity tariffs. He said that according to the document, the cost of shipping coal from Rotterdam to Ukraine should be removed from the formula. In addition, it is proposed that discounts be introduced if the quality of coal is worse. The bill also provides for a delay in the introduction of the electricity market for one year.

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UKRAINE CUTS FERROALLOY OUTPUT BY 3.2%

Ukraine’s largest ferroalloy smelters Nikopol and Zaporizhia ferroalloy works reduced ferroalloy output by 3.2% in January-May 2019 to 433,170 tonnes as compared with the same period in 2018, the Ukrainian Ferroalloy Producers’ Association told Interfax-Ukraine.
During the review period, overall silicon manganese production dropped by 7% to 350,010 tonnes and ferromanganese output was 15% up to 35,280 tonnes. Output of 45%-ferrosilicon grew by 6.1% to 35,680 tonnes and manganese metal production fell by 4% to 3,160 tonnes.
Nikopol Ferroalloy Works raised production of other ferroalloys by 2.4 times to 9,040 tonnes.
The country’s two manganese concentrate producers, the Pokrovsky (formerly Ordzhonikidze) and Marhanets mining and beneficiation plants, produced 555,580 tonnes of manganese concentrate in January-May 2019, which is 4.4% less than in January-May 2018.
Marhanets mining and beneficiation plant produced 205,430 tonnes of concentrate (a fall of 6.2%) and Pokrovsky mining and beneficiation plant made 350,150 tonnes (a decline of 3.4%) in January-May 2019 as compared with the same period last year. In addition, the latter produced 63,740 tonnes of manganese sinter, which is 20.7% less than in January-May 2018.

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UKRAINIAN GOVT APPROVES EUR 149 MLN LOAN FROM EBRD TO MODERNIZE POWER LINES

The Cabinet of Ministers of Ukraine has decided to approve the attraction of a loan in the amount of EUR 149 million by national energy company Ukrenergo for the project to modernize power lines from the European Bank for Reconstruction and Development (EBRD), the Finance Ministry of Ukraine reported on Thursday. According to the report of the ministry, the project foresees the replacement of transformer equipment and reconstruction of 12 substations with the installation of automated process management systems.
The project would allow the company to increase effectiveness and reliability of electricity transmission in western, northern, southern and central regions of Ukraine, modernize the key power transmission facilities, which is the condition for harmonization of the Ukrainian power grid with the European Network of Transmission System Operators for Electricity (ENTSO-E), the ministry said.

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FIVE PARTIES CAN ENTER UKRAINIAN PARLIAMENT

Five parties can enter the parliament, and more than half of Ukrainians intend to vote in early elections. Those are the results of a survey conducted by Ukraina TV channel Sehodnia (Today) ezine with the Edison Research. The field research of the survey was conducted by the Kyiv International Institute of Sociology.
Survey results, which were published by on Sehodnia’s website, show five parties can enter parliament: Servant of the People, Opposition Platform – For Life, European Solidarity, Holos and Batkivschyna.
Four more parties which have a chance of surpassing the five percent barrier are Strength and Honor, Opposition Bloc – Peace and Development Party, Oleh Liashko’s Radical Party and Civil Position.
The survey was conducted by Edison Research by telephone and personal interview in all regions of Ukraine, except for Russia-occupied Crimea and Russia-occupied parts of Donbas.

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DEVELOPER OF TICKET SALES SERVICE UNIT ACCUSES GROUP OF UKRZALIZNYTSIA’S OFFICIALS OF PRESSING ON COMPANY

The company that developed the electronic ticket sale system of Ukrzaliznytsia – Unit LLC – has accused a group of officials of Ukrzaliznytsia of pressing on it an asked the company’s head to attract profile specialists and law enforcement agencies to settle the issue. The corresponding open letter to the head of Ukrzaliznytsia Yevhen Kravtsov regarding the situation around the Electronic Ticket system has been published on the website of Unit. “To date, a group of officials of Ukrzaliznytsia in collusion with a private company, is taking measures to remove the system from Ukrzaliznytsia’s control and then transfer it to the management of a private company. For achieving the goal the officials of the Main Computer Center of Ukrzaliznytsia artificially create interruptions in the work of the system, and in the future the system can be forcibly stopped by these persons in order to accuse the system developer, Unit LLC, thereby justifying itself,” the company said in the letter.
According to the company, such destructive actions of the officials, which can lead to a complete stop of the system, undermine the work of Ukrzaliznytsia.
The system developer calls on Kravtsov to intervene in the situation in order to prevent possible interruptions and shutdown of the system, which will lead to a collapse in ticket sales. Unit demands to organize a joint meeting with the involvement of relevant specialists and relevant law enforcement agencies.

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