Business news from Ukraine

DRAGON CAPITAL SELLS OMEGA-2 LOGISTICS COMPLEX IN BROVARY

Dragon Capital has completed the sale of the Omega-2 class A logistics complex with an area of ​​32,700 square meters in Brovary (Kyiv region), according to its press service on Monday.
“This is our first closing of a commercial real estate sale deal after we made a bet on this segment in 2016, and it demonstrates that there are opportunities in this market not only for profitable investments, but also for exits,” Dragon Capital Managing Director Volodymyr Tymochko said.
According to him, the company also continues to consider the possibility of spot acquisitions in the warehouse real estate sector. In addition, the plans also include the development of the company’s industrial parks in Kyiv (E40 Industrial Park) and Lviv (Ryasne-2).
Dragon Capital is one of the largest groups of companies in Ukraine, which works in the field of investment and financial services and provides a full range of investment banking, brokerage, and asset management services to institutional, corporate and private clients.

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UKRAINE CUTS ELECTRICITY CONSUMPTION IN 2020

Electricity consumption in Ukraine, taking into account in-process losses in power grids, decreased 2.6% in 2020 compared to 2019, to 146.394 billion kWh, the Ministry of Energy has told Interfax-Ukraine.
Excluding in-process losses electricity consumption in 2020 fell by 2.1%, to 117.656 billion kWh.
The country’s industry, excluding in-process losses, reduced electricity consumption by 3.8%, to 49.196 billion kWh. In particular, metallurgical industry consumed 27.105 billion kWh (5.5% less compared to 2019), fuel industry some 3.225 billion kWh (5% less), machine building industry some 3.126 billion kWh (14.7% less), chemical and petrochemical some 4.144 billion (10.6% more), food and processing some 4.34 billion kWh (3.3% less), construction some 2.332 billion kWh (3% more), others some 4.924 billion kWh (0.5% more).
In addition, agricultural enterprises consumed 3.814 billion kWh (2.8% more), transport some 5.719 billion kWh (13.4% less), developers some 949.8 million kWh (1.8% less).
In 2020 the country’s population consumed 36.436 billion kWh (3.4% more), households some 14.179 billion kWh (5.9% less) and other non-industrial consumers some 7.363 billion kWh (1.6% less).
The share of industry in total electricity consumption in 2020 fell from 42.6% to 41.8%, while the share of the population grew to 31% from 29.3%.
In December 2020, electricity consumption, taking into account in-process losses, decreased 7.3% compared to 2019, to 15.043 billion kWh, and excluding in-process losses it fell by 4.9%, to 11.435 billion kWh.

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UKRAINE TO FINANCE CONSTRUCTION OF BRIDGE TO MOLDOVA

Ukraine will finance the construction of a bridge across the Dniester River, which will become part of a new highway connecting Kyiv and Chisinau, said Ihor Zhovkva, Deputy Head of the Office of the President of Ukraine.
“One of the projects that we will start immediately will be the construction of a bridge across the Dniester River in the Yampil-Kosuets region, and a corresponding highway that will connect Kyiv and Chisinau. And not just connect, but will allow almost to get by car from Kyiv to Chisinau across the new bridge in five hours. Funding for the construction of this bridge will be carried out at the expense of the state budget of Ukraine. I note that the construction of the entire bridge is carried out at the expense of Ukraine,” said Zhovkva in an interview with TSN, published on Monday.
According to him, Ukravtodor is already working on the appropriate regulatory framework for this funding.
“Also, Ukraine will complete a part of the highway from Kyiv directly to the bridge. Most of it has already been built, restored or reconstructed … Moldova, for its part, will complete its own part of this highway. And, again, they have already built a part of this road. Therefore, this is an absolutely realistic project with realistic financing. The only thing left to do is to complete it. The Ukrainian and Moldovan sides have received the corresponding instructions from the two presidents,” Zhovkva said.

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NIKA-TERA PORT CUTS CARGO HANDLING BY 14%

Nika-Tera Sea Terminal (Sea Specialized Port Nika-Tera, Mykolaiv), part of Dmytro Firtash’ Group DF, handled 409 vessels and 7.38 million tonnes of cargo in 2020, which is 15% lower than in 2019.

According to the company’s website, the main types of cargo handled in the port are grain, legumes and oilseeds, as well as their processed products.
In 2020, the port started handling oil products and resumed handling fertilizers.
“The coronavirus [COVID-19] pandemic and the drop in crop yields are the main reasons for the 14% decrease in cargo handling. In 2020, grain was the main type of cargo handled in the port. At the same time, the crisis helped us open a new ‘window of opportunity’: we are talking about the restoration of volumes of mineral cargo and bitumen handlings,” CEO of Nika-Tera Alim Agakishiev commented on the results of the past year.
The structure of the company’s cargo turnover in 2020 looked as follows: grain, legumes and oilseeds, as well as their processed products accounted for 75% (some 5.55 million tonnes) of handling; open storage bulk cargo for 18% (some 1.3 million tonnes); liquid cargo for 4% (some 323,000 tonnes) and mineral fertilizers for 3% (some 194,000 tonnes).
In 2020, the port handled 409 vessels (versus 410 in 2019), while increasing the number of processed bulk carriers of the Panamax type (with a tonnage of about 65,000 tonnes) by 44% from 16 to 23 units.
In total, 63,114 rail cars and 65,910 vehicles were handled in the port.
Despite the COVID-19 pandemic, the port was able to ensure 100% retention of the company’s personnel and large-scale assistance to the city’s healthcare sector in the fight against COVID-19.
“We believe in a gradual recovery of the market, economy and, accordingly, the volume of cargo turnover in 2021. However, much will depend on weather conditions and the yield of key crops in this marketing year,” Agakishiev said.

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VOLUME OF CONSTRUCTION PRODUCTS PRODUCED BY TYPE IN JAN-NOV OF 2020 (MLN UAH)

Volume of construction products produced by type in Jan-Nov of 2020 (mln UAH).

SSC of Ukraine

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UKRAINE INTERNATIONAL AIRLINES PREPARES AIRCRAFT TO TRANSPORT VACCINES

Ukraine International Airlines (UIA, Kyiv) is ready to transport vaccines.
“Since the beginning of 2021, the active stage of vaccination has begun all over the world, which will tend to increase throughout the current year. In order to ensure safe delivery of vaccines, UIA has prepared Boeing 737 and Boeing 767 aircraft to transport the vaccines as cargo,” the press service of UIA said on Monday.
The airline also expressed its readiness to transport the vaccine not only to Ukraine, but all over the world. At the same time, it is noted that given the peculiarities of compliance with the required temperature regimes, transportation of the vaccine by air is the fastest and most reliable method of delivery.
According to the company, since the implementation of quarantine measures, UIA has transported 870 tonnes of medical cargo.

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