Business news from Ukraine

OCEAN SHIPYARD FROM UKRAINE SIGNS MEMO WITH STATE DEFENSE CONCERN OF TURKEY TO BUILD CORVETTES

Ocean Shipyard (Mykolaiv) has signed a memorandum with the state defense concern of Turkey on joint activities to implement a project to build a series of corvette class ships for the Ukrainian Navy in pursuance of a framework military agreement signed in October this year during a meeting of the two presidents in Ankara, as well as a contract for building corvettes signed by the parties in Kyiv on December 14.
According to the company’s press release, in order to localize the corvette program, the state defense concern of Turkey conducted an audit of the technical capabilities of Ukrainian shipbuilding enterprises. Ocean shipyard was selected and included in the corvette program, taking into account the unique technical capabilities of the enterprise, the availability of professional personnel and the current program of modernization of production assets.
The memorandum provides for the conclusion of separate contracts between the parties within clearly agreed terms and specific steps of cooperation within the framework of the corvette program.
PJSC Mykolaiv Shipyard Ocean specialized in the building and repair of container ships, tankers, tugs, barges with a deadweight of up to 350,000 tonnes.

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UKRAINIAN RDS GROUP TO BUILD ROADS IN KHERSON REGION – OWNER

The RDS Group of road construction companies will repair a section of M-14 road in Kherson region, which will be the ninth region of Ukraine in which the company carries out works, the co-founder of RDS, Yevhen Konovalov, told Interfax-Ukraine.
“Our production will be based in Nova Kakhovka. The south, Kherson region are strategically important for the development of both passenger flow and trade infrastructure of our country,” he said.
According to Konovalov, the group plans to join projects in other regions of the country within the president’s Big Construction program by the end of this year.

According to the ProZorro system, Rostdorstroy LLC, which is a part of the RDS Group, won two lots in the tender for medium repairs of M-14 Odesa-Melitopol-Novoazovsk road in Kherson region worth UAH 22.998 million and UAH 46.98 million (PJSC Khmelnytsky Road Construction Department No. 56 won two other lots).
In addition, Rostdorstroy has passed prequalification along with Khmelnytsky Road Construction Department No. 56 and Avtomagistral-Pivden LLC in several more tenders for medium repairs of this road in Kherson region.
In 2020, the State Agency of Automobile Roads of Ukraine (Ukravtodor) plans to repair 177.5 kilometers of national roads in Kherson region for UAH 2.1 billion, including 36.1 kilometers of M-14 Odesa-Melitopol-Novoazovsk road.

RDS Group is included in the top three road construction companies of Ukraine. It includes Kyivshliakhbud and Rostdorstroy. The core business is construction, reconstruction and maintenance of roads and bridges, construction of airfield complexes.
The ultimate beneficial owners of RDS Group are Ukrainian citizens Yuriy Shumakher and Yevhen Konovalov.

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UKRAINIAN OVOSTAR PLANS TO BUILD EUR 100 MLN EGG PRODUCTION COMPLEX IN LATVIA

Gallusman, one of Ovostar Union companies, plans to begin the construction of an egg production complex in Latvia in partnership with the energy company ADVEN in 2021, the project is currently at the stage of assessing potential environmental impacts. According to Ovostar, it is expected that the new production complex will export up to 90% of its products. Another Latvian subsidiary of Ovostar, Ovostar Europe, which since 2015 has been cooperating with the group’s trading partners in the EU countries, will be engaged in export sales. The goal of Ovostar is to enter new markets in Europe and the Middle East.
“Today, the project is at the stage of assessing the potential impact of the new production on the environment. The examination should be completed before the end of this year, and the start of construction work is scheduled for 2021,” the company noted.
It is projected to bring about EUR 100 million investment and 200 new jobs to the Latvian economy.
Ovostar reported that Gallusman and ADVEN had already signed a letter of intent. The partnership of the companies is aimed at finding the best energy and infrastructure solutions for the egg production complex to achieve non-waste production.
“Upon completion of the project, Gallusman will become a leader in the poultry industry and animal feed trade in Latvia, as well as the largest producer of eggs and egg products in Northern Europe,” Ovostar said.
Gallusman is part of the Ovostar Union group. Ovostar Union, one of the leading Ukrainian agricultural holdings, is one of the largest egg producers in Europe. The business model of the company is built on the principle of a full production cycle.

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STATE-RUN UKRAVTODOR TO BUILD AND RECONSTRUCT NINE ORBITAL ROADS

The State Automobile Roads Agency of Ukraine, also known as Ukravtodor, plans to build and reconstruct nine orbital roads of 101.5 km long in 2020, the press service of the agency said on Thursday. “Ukrainian cities should be freed from transit traffic, because it reduces the number of jams and improves the transit potential of the road network. In addition, it will positively influence traffic safety, air quality, the life of the road surface and reduce the number of accidents,” Head of Ukravtodor Oleksandr Kubrakov said.
In particular, in 2020, it is planned to continue the construction of the Northern orbital road of Zhytomyr, the Northern orbital road of Rivne, the South-Western orbital road of Poltava, the Southern orbital road of Dnipro, the orbital road of Dunaevtsy (on the section between Chernivtsi and Khmelnytsky). Also, work will begin on the construction of the Northern orbital road of Lviv and the Northern orbital road of Ternopil.
In addition, the company plans to build an orbital road in Kobeliaky, Poltava region during the construction of one of the priority facilities in 2020 (highway N-31 Dnipro–Reshetylivka).
The construction of an orbital road in Berehove is planned, which, according to Ukravtodor, will significantly increase the attractiveness of Ukraine in the international road transport market.
In addition, this year Ukravtodor plans to prepare a feasibility study and design documentation for additional orbital roads: the South-East road bypassing Dubno, the North-Western road bypassing Khmelnytsky, the Northern road bypassing Bila Tserkov, the road bypassing Stryi and the Kremenchuk orbital road with a bridge across the Dnieper River.

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TOP MANAGERS OF KYIVMETROBUD READY TO COOPERATE WITH LAW ENFORCERS TO BUILD SUBWAY LINE TO VYNOHRADAR

Top managers of PJSC Kyivmetrobud, acting as a contractor general in the project to extend the Syretsko-Pecherska subway line in Kyiv’s subway, is ready to cooperate with law enforcement authorities in order to continue construction works, Director General of PJSC Kyivmetrobud Kostiantyn Saliy said at a press conference at Interfax-Ukraine on Wednesday.
“The owners of Kyivmetrobud unanimously appointed me as director general, so that the previous director, Mr. Metelytsia, could deal with what he is directly doing – the construction of the subway. Political, media and team reorganization issues will be led by the director general,” Saliy said.
According to him, the enterprise will conduct an inventory of material and technical assets, as well as turn to law enforcement authorities regarding the likely embezzlement of funds.
“At the moment, the Prosecutor General’s Office has decided to seize accounts. They are also developing a “recipe” on how to control the distribution of these funds transparently. We believe that it’s good that the Prosecutor General’s Office will be present and observe how the work is being done. The Prosecutor General’s Office will also have access to documents, [will see] where the funds went, what work was done, who signed papers with margins, and will identify the whole range of interested parties,” Saliy added, noting that resolving the situation around the enterprise depends on law enforcement authorities.
As reported with reference to the press service of the Prosecutor General’s Office, the investigating judge of Kyiv’s Pechersky district court seized money in the bank accounts of PJSC Kyivmetrobud and its branches.
“In the future, the Prosecutor General’s Office will appeal to court with a motion to transfer these funds to the ARMA [Asset Recovery and Management Agency] with the possibility of making payments to build the subway under control of the state,” the press service said.
Oleh Tokarev, the head of the Kyivmetrobud’s supervisory board, said at the press conference at Interfax-Ukraine that the reason for the change in the company’s management is the unsatisfactory pace of subway construction towards the Vynohradar area, due to which the launch of the subway line is postponed for a year.
“The amount of the tender is UAH 6 billion. At the end of the year, an advance payment of UAH 2.6 billion was received. During the year that we lived with Director General Vasyl Kobil, UAH 1 billion was spent and work for UAH 150 million was completed but not signed by the customer. “This is only 2.5% of the contract amount. Therefore, on December 17, the supervisory board decided to dismiss Kobil and appoint Oleksandr Metelytsia to the post of director general,” he said.
In turn, Managing Partner of the Ilyashev & Partners law firm Mykhailo Ilyashev said that a “series of myths” about the seizure of the enterprise are being spread and suggested that “the problem was inspired by the former head.”
He also commented on the statement of the Justice Ministry on the reinstatement of the director of PJSC Kyivmetrobud and making appropriate changes to the public register.
“The minister did not annul anything. He did not cancel any decisions of the supervisory board and could not cancel, because this is outside the competence of the Justice Ministry. Most likely, this was about the conclusions made by the commission under the Justice Ministry that the notary who made changes to the register made a technical error. Today, these documents will be submitted to the notary so that the relevant changes are introduced again,” Ilyashev said, emphasizing that the statement of the ministry does not cast doubt on the lawfulness of the decisions of the supervisory board.
As reported, in 2018, Kyiv Metropoliten entered into an agreement on construction work to extend the Syretsko-Pecherska subway line with Kyivmetrobud, which won the tender held on the ProZorro platform.
As part of the first phase of work, it is planned to build two stations, Mostytska and Prospekt Pravdy, at a section of almost 4 km, and branches to the Vynohradar station to extend the line.
It was planned that the work will last until 2021, and its cost will be UAH 5.993 billion.

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SAGA DEVELOPMENT TO BUILD CLASS COMPLEX IN KIEV

Saga Development will build the Franklin Concept House premium class complex with commercial and office space located at 69, Honchara Street in Shevchenkivsky district of Kyiv. “This is the first residential complex in Kyiv with a five-star level of service. The building will feature exquisite architecture, innovative concierge service, developed internal infrastructure and a location in the city center,” the Saga Development press service said in a statement.
According to him, the apartments will be accompanied by round-the-clock service, including concierge services and a porter. In addition, the complex provides round-the-clock security and a video surveillance system with access to cameras from a mobile application.
The building will have from seven to 19 floors. The residential complex has 141 apartments, some of which include terraces. On the lower floors there will be commercial premises and offices. Infrastructure also provides parking for 37 cars.
According to LUN.ua website, the estimated commissioning dates are the fourth quarter of 2022.
The developers of the project are Saga Development in partnership with Perfect Group and Kyivproekt Development. The customer of the project is Concept-Plaza LLC, and the general contractor is Nika Ltd.
The Saga Development project portfolio includes 17 residential complexes at different stages of implementation: Rybalsky, Chicago Central House, San Francisco Creative House, New York Concept House, Bristol Comfort House, Einstain Concept House, Resident Concept House, Philadelphia Concept House, Happy House, (all based in Kyiv), Kandinsky Odessa Residence and Art Kvartal City Space (both are located in Odesa) and others.

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