Business news from Ukraine

UKRAINIANS SELL $151 MLN MORE CURRENCY THAN BUY IN AUGUST

The volume of cash sales by the population in August 2020 exceeded the purchase volume by $151.2 million, according to the website of the National Bank of Ukraine (NBU).
According to the regulator, in August compared to July of this year, Ukrainians reduced the sale of foreign exchange by 6.2%, to $1.4 billion in equivalent, and also reduced the purchase by 1.8%, to $1.3 billion in equivalent.
In general, over the eight months of 2020, the volume of sales ($10.2 billion) of cash currency prevailed over the volume of purchases ($9 billion), the difference between which was $1.1 billion, according to the NBU data.

,

ERIDON WANTS TO BUY VAN HOOF UKRAINE SUPPLIER OF AGRICULTURAL EQUIPMENT

Eridon firm could acquire Van Hoof Ukraine Ltd (both from Kyiv region), which specializes in the supply of equipment for poultry and pig farming.
According to materials on the website of the Antimonopoly Committee of Ukraine (AMC), the agency could allow Eridon to buy a stake in Van Hoof Ukraine, which will provide the buyer with over 50% of the voting shares on the company’s board.
Eridon is owned by Serhiy Krolevets. It distributes seeds, fertilizers, plant protection agents and is part of the Eridon group of companies. The group unites five agro-industrial enterprises, a seed plant, and a dairy farm.
According to the state register of legal entities and individual entrepreneurs, the ultimate beneficiary of Van Hoof Ukraine LLC is Ronabelo Limited (Nicosia, Cyprus).
The company operates in various areas of the agricultural sector. It supplies a full range of equipment for poultry and pig farms. It is also engaged in the supply of other new and used equipment (for the production of animal feed, tractors).
Van Hoof Ukraine LLC in 2018 received UAH 27.8 million in net profit compared to UAH 6.4 million in net loss in 2017. The company’s revenue last year increased 40% compared with 2017, to UAH 114.3 million.

, , ,

FOREIGNERS NOT TO BE ABLE TO BUY FARMLAND IN UKRAINE UNTIL DECISION MADE AT NATIONAL REFERENDUM – OPINIO

The parliamentary committee for agricultural and land policy is finalizing the provisions that foreigners would not be able to buy land until the decision to allow this is made at a national referendum, Deputy Head of the Servant of the People parliamentary faction, MP Yevheniya Kravchuk has said.. “Today, the meeting of our faction was held with one issue on the agenda – the introduction of the land market. Discussions continue. But not about whether it is needed or not, but about the parameters of the functioning of the market. And that means that we have come very close to the optimal solution that will suit Ukraine most of all. Namely, the committee for agricultural and land policy is finalizing the provisions that foreigners will not be able to buy land until a decision on this is made at a national referendum,” Kravchuk wrote on her official page in the Facebook social network on Monday night.
The MP said that this is about the concentration of no more than 10,000-20,000 hectares of land in the hands of one operator.
“As for the concentration of land in the hands of one operator, the threshold will be significantly reduced. Discussion is about 10,000-20,000 hectares, which is 90% less than what was proposed for first reading,” Kravchuk said.
According to Kravchuk, it is necessary to legislatively limit the possibility of speculation with the resale of land.
“We talked about the need to remove speculation with the resale of land in the first years after the market opened. Special safeguards are introduced for this, because people should not earn from selling land, but from products grown on it,” the MP said.

, , ,

ANTIMONOPOLY COMMITTEE OF UKRAINE PERMITS AZERBAIJAN’S BAKCELL OPERATOR TO BUY VODAFONE UKRAINE

The Antimonopoly Committee of Ukraine has permitted Azerbaijan’s Bakcell telecom operator to acquire shares in Preludium B.V. (the Netherlands) through which MTS Group owns the second largest mobile communications operator in Ukraine – PrJSC VF Ukraine (Vodafone Ukraine).
“Today, the Antimonopoly Committee of Ukraine granted permission to Bakcell LLC for the indirect purchase of shares of Preludium B.V., which grants over 50% of the votes in the management body of the company. This will allow the company from Azerbaijan to get indirect control over the Ukrainian mobile communications operator, known under the Vodafone brand,” the committee said in the Facebook social network.
Bakcell, founded in 1994, is the mobile communications operator and a leading provider of mobile Internet in Azerbaijan. It operates in GSM, UMTS and LTE standards.
Bakcell network consists of more than 7,500 towers, covers 93% of the territory (excluding occupied territories) and 99% of the population of Azerbaijan. The company has more than 3 million subscribers.
According to the results of 2018, Vodafone Ukraine reduced its net profit by 18.1% compared to 2017, to UAH 1.8 billion. The company explained this figure as an increase in costs due to the active deployment of 4G and 3G networks.
Vodafone Ukraine is fully owned by Preludium B.V. It is part of the international MTS Group, which shares are listed on the New York Stock Exchange.

, ,

UKRAINE INTERNATIONAL AIRLINES READY TO BUY UKRAINIAN MASS-PRODUCED AIRCRAF

Ukraine International Airlines (UIA) is ready to purchase medium-haul aircraft of Ukrainian production, provided they are launched into mass production, chairman of the supervisory board and co-owner of UIA Aron Mayberg has said in an interview with Mind.ua.
“UIA is the only airline in Ukraine that is actively and consistently developing domestic flights. It’s another matter that with the abolition of VAT, the company will be able to more actively increase the fleet for domestic flights. The preliminary plans for next year include replenishment of the fleet with at least two Embraer 195s, and if all will turn out favorably this figure may increase to four,” he said.
According to Mayberg, UIA is interested in buying medium-haul aircraft, the cost of transportation in which in terms of one seat will be $30-40. This will make it possible to sell tickets from $20-22 to $70-80 on a flight.
At the same time, he emphasized that mass production is a prerequisite for the purchase of Ukrainian aircraft by airlines.
“It’s not only a matter of cost. Aircraft need to be mass-produced, and not be made in three individual planes, for which it is not clear where to get pilots, spare parts and how to service them. Serial production is not developed in one day. This is a long and complex process. We really need a medium-haul aircraft with a capacity of 70-100 seats. If Ukraine makes such a successful aircraft, we would buy it,” Mayberg said.

, ,

FOREIGN COMPANIES OPERATING IN UKRAINE FOR OVER THREE YEARS TO BE ABLE TO BUY FARMLAND – EXPERT

Agricultural companies operating on the Ukrainian market for over three years would be able to buy farmland which they lease as of the date of the opening of the market, October 1, 2029, Head of the Verkhovna Rada committee for agricultural policy and land relations Mykola Solsky (the Servant of the People parliamentary faction) has said.
“There are more than 1,300 enterprises that have been operating in Ukraine for years, investing in Ukrainian land, infrastructure, creating jobs, and belong, including to foreigners. For this category of legal entities, only those that have been engaged in agricultural business for at least three years in Ukraine, and only for the amount of land that they cultivate at the time the law comes into force, which they have in the contracts,” he said at a briefing in the Verkhovna Rada on Friday.
In the near future, the land committee intends to consider 11 land bills that are registered in the Rada, Solsky said.
According to him, the Ministry of Economic Development, Trade and Agriculture is currently considering the introduction of a limit on government support in the framework of budget support for 2020, estimated at UAH 4.4 billion, at the level of UAH 5 million per person or a group of affiliated persons.
Deputy Minister of Economy, Trade and Agriculture Taras Vysotsky, in turn, noted the need to include all the information about state-owned land in the register of the State Service for Geodesy, Cartography and Cadastre by August 1, 2020.
“By the end of the year, we will enter information on 1 million hectares of state-owned land, and before August we will have to add another 0.5 million hectares. We are in line with the schedule,” Vysotsky said.
He said that it is planned to hold 18 regional forums devoted to the land market.

, ,