Business news from Ukraine

Volume of new housing construction in Ukraine fell by 37% – State Statistics Service

The total area of residential buildings for which construction permits were issued (new construction) decreased by 37% in 2023 compared to 2022, to 4.2 million square meters, the State Statistics Service (Ukrstat) reported.

According to the statistics agency, in January-December 2023, the total area of new construction of apartment buildings decreased by 38.2% year-on-year to 4 million 33.6 thousand square meters, while the area of single-family houses increased by 26.5% to 164.5 thousand square meters. The number of apartments in apartment buildings declared for construction decreased by 1.8 times and amounted to 46.2 thousand square meters.

In Kyiv in 2023, the total area of new housing construction decreased by 66% compared to 2022, to 299.4 thousand square meters, and in Kyiv region – by 67%, to 616.1 thousand square meters.

According to the State Statistics Service, new construction in Lviv region decreased by 14% year-on-year to 870.3 thousand square meters, and in Khmelnytsky region by 5.3% to 313.1 thousand square meters.

At the same time, in Ivano-Frankivsk region, the volume of new construction in 2023 amounted to 469 thousand square meters, which is 2.3 times higher than the previous year. The increase in volumes was also recorded in Chernivtsi region – “plus” 275.4%, up to 225.4 thousand square meters, Zakarpattia region – “plus” 79.3%, up to 256 thousand square meters, Vinnytsia region – “plus” 77.4%, up to 230.6 thousand square meters.

In other regions of Ukraine, the volume of new construction last year showed a drop compared to the previous year and amounted to less than 200 thousand square meters.

The State Statistics Service reminds that the figures are given without taking into account the territories temporarily occupied by the Russian Federation and part of the territories where hostilities are ongoing (or have been ongoing).

As reported, the total area of new housing construction in 2022 amounted to 6.67 million square meters, in 2021 – 12.7 million square meters.

“ArcelorMittal Kryvyi Rih” receives approval for construction of tailings dump

ArcelorMittal Kryvyi Rih’s Kryvyi Rih Mining and Metallurgical Plant (AMKR, Dnipro region) has received a conclusion from the Ministry of Environmental Protection and Natural Resources of Ukraine on the environmental impact assessment of the construction of a tailings dump – Map III – a special hydraulic structure used to dispose of enrichment waste.

“PJSC ArcelorMittal Kryvyi Rih informs that the Ministry of Environmental Protection and Natural Resources of Ukraine has issued a conclusion on the environmental impact assessment of the planned activity “Construction of the tailings dump “III map” sludge management of the ore processing plant in the Dnipropetrovs’k region of AMKR No. 21/01-202361210773/1 dated February 27, 2024 and the Report on public discussion No. 21/01-202361210773/2 dated February 27, 2024″, – according to the company’s information published by the Department of Ecology on the website of the Kryvyi Rih City Executive Committee on Thursday.

It is specified that the information on the company’s receipt of the environmental impact assessment conclusion is published in the Unified Register of Environmental Impact Assessment.

As reported, ArcelorMittal Kryvyi Rih has several times sent documents to the Ministry of Environment to approve the construction of a tailing dump for waste “III map”. In mid-2023, AMKR again sent documents to the Ministry of Environmental Protection and Natural Resources of Ukraine to approve the construction of the tailing dump.

According to the documentation available to Interfax-Ukraine, the planned activity is the new construction of the Karta III tailings dump in the sludge management facility of the ore processing plant on the territory of the Grechanopodivska and Novolativska village councils in the Shyrokivskyi district of Dnipropetrovska oblast.

Earlier it was explained that the procedure for assessing the planned activity is carried out within the framework of expansion and changes, including revision or updating of the conditions for carrying out the planned activity established by the decision to carry out the planned activity or extend the terms of its implementation (…).

Information on the intention of the AMCS to obtain an environmental impact assessment (EIA) was published by the Ministry of Ecology and Natural Resources on June 15, 2023.

Earlier it was reported that PJSC ArcelorMittal Kryvyi Rih intends to build the Map III tailing dump. The construction of the tailings storage facility is necessary “due to the fact that the existing tailings storage facilities have reached the limits of economic feasibility of their expansion”.

At the same time, it was specified that the company’s crude ore output for 2021-2025 is 24.4269 million tons per year, with an annual tailings output of 14.964 million cubic meters per year. The design elevation of the enclosure dam is 100 meters. The total capacity of the tailing dump is 34.8 million cubic meters, with a usable capacity of 29.4 million cubic meters. The area of the tailing pit is 382.95 hectares. The total length of the containment dams is 5,950 meters and their maximum height is 12 meters. The area of the construction site is 521.1245 hectares.

Thus, in line with the requirements of the Ministry of Ecology, AMKR has to enter the environmental impact assessment procedure for the fourth time.

“ArcelorMittal Kryvyi Rih currently operates three tailing dumps, two of which – Myroliubivka and United. The company planned to invest about $50 million in 2020-2024. The company has already invested more than $15 million in the third tailing dump, Central, having completed construction in 2017 to the level of +90 meters (now +95 meters). AMKR will spend the same amount to expand it to +115 meters (these works are planned for the next seven years).

“ArcelorMittal Kryvyi Rih is the largest rolled steel producer in Ukraine. It specializes in long products, including rebar and wire rod.

ArcelorMittal owns the largest mining and metallurgical plant in Ukraine, ArcelorMittal Kryvyi Rih, and a number of small companies, including ArcelorMittal Berislav.

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“Avtomagistral-Pivden” wins tender for construction of transport interchange for UAH 1.936 bln

Avtomagistral-Pivden LLC has won a tender for the construction of a transport interchange in Mykolaiv region with a bid of UAH 1.936 billion.

According to the announcement on Prozorro, the customer was the Service for Infrastructure Restoration and Development in Mykolaiv region. The expected cost of the works was UAH 2.28 billion.

The Eurotransmost consortium also participated in the tender with a final offer of UAH 1.937 billion.

The works under the tender include the construction of an interchange at different levels across the Southern Bug in Mykolaiv to the public road of national importance M-14 (Odesa-Melitopol-Novoazovsk). The length of the road surface is 8.3 km. The expected completion date is April 30, 2025.

According to Prozorro, the tender was held on February 8, and on March 6, Avtomagistral-Pivden published a notice of intent to conclude a contract based on the results of the tender.

Avtomagistral-Pivden LLC has been on the market since 2004. It designs and builds highways, bridges, interchanges, airfield complexes, and hydraulic structures. The company’s owner is listed in Opendatabot as Oleksandr Boyko. According to the financial results for 2022, the company’s net profit amounted to UAH 241.9 million, and net income was UAH 7.5 billion.

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Univest has invested UAH 300 mln in construction of new workshop in Kyiv region

Univest, a manufacturer of paper and cardboard packaging for the food industry, has invested about UAH 300 million in the construction of a new eco-packaging workshop in the Fastindustri industrial park (Fastiv, Kyiv region), said Dmytro Kysylevskyi, deputy chairman of the parliamentary committee on economic development.

According to his post on Facebook, the equipment that has already been installed is planned to be put into operation in a few months.

Kysylevsky said that the equipment for industrial production in the industrial park was first imported to Ukraine with the use of import duty and VAT incentives.

“Ukrainian entrepreneur Volodymyr Kudryashov, owner and CEO of Univest, pioneered the use of government incentives. He had to work with customs to figure out how to do everything, because it was the first time both the company and the state did it,” he wrote.

As reported, the law provides for exemption from VAT and customs duties on imports of new equipment, as well as from income tax for 10 years if the company operates within the framework of the IP; preferential rates of real estate tax and land fees from local authorities.

Univest Holding, according to its website, is one of the leaders in publishing and printing in Ukraine. Its key business areas include a large offset printing house, Univest Print, a cardboard, plastic and blister packaging manufacturer, Univest Packaging, a cardboard eco-tableware manufacturer for fast food chains, Food-in-Box, and a publishing house (producing agricultural magazines and books), Univest Media.

The holding also includes a warehouse complex with an area of 20 thousand square meters, a creative and advertising agency.

According to the Clarity system, packaging manufacturer Univest Marketing LLC increased its net profit by 5.3 times in January-September 2023 compared to the same period in 2022, to UAH 77 million, with net income growing by 58% to UAH 548.9 million.

The company’s product range includes paper cups, lids, burger boxes, soup bowls, salad bowls, trays, French fries packaging, and ice cream and popcorn buckets.

According to YouControl, the company is owned by Cyprus-registered U.C.H. Univest Ciprus Holding, and the ultimate beneficiaries are Volodymyr Kudryashov (51%) and German citizens Hans and Louis Riffart (12.74% each).

The 15-hectare Fastindustri was included in the Register of Industrial Parks in January 2017. According to Kysylevsky, Univest is the main investor in the IP.

The park is planned to accommodate several more enterprises based on the circular economy principle, and the investment plans for the IP are calculated until 2027.

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President of Kyivmiskbud announced new schedules for completion of objects

Detailed schedules of construction of objects of PJSC “HC “Kyivmiskbud” will be ready in 1.5-2 months, the search for sources of financing is the priority of the company, said the newly appointed Chairman of the Board – President of HC “Kyivmiskbud” Vasyl Oleinik.

“We do everything to work closely with the city, process together the directions we generate with the team, and support is promised to us. The main thing we are working on is attracting financial resources,” the press service quotes Oleinik’s words after the meeting with investors.

According to him, the company is also negotiating with banks on crediting, as well as dialoguing with institutions established to provide citizens with housing.

As reported, the mayor of the capital Vitali Klitschko at the end of December 2023 instructed to form a new composition of the nabsovet and board of PJSC Kyivmiskbud in a short time. Earlier, the head of the company Igor Kushnir announced his resignation from the post of chairman of the board – president of the company after 12 years of work.

According to the results of the audit of Kyivmiskbud conducted by Baker Tilly Ukraine Consulting, NHD-AUDIT Audit Firm LLC and Ernst & Young LLC, it was found that there were no signs of actions to bring the company to bankruptcy, concealment of financial insolvency or mass transactions by related parties. At the same time, the auditors found that the activities of Kyivmiskbud were disrupted due to external factors: COVID-19, a full-scale war, the factor of Ukrbud.

On November 17, 2023, the commission approved an interim report with recommendations and proposals for further work of the developer, among which – the implementation of the purchase of apartments in the objects of “Kyivmiskbud”, consideration of the possibility of a financial loan or additional capitalization of the company. The TCC also recommended the Kyiv City Council to apply to the Cabinet of Ministers to compensate Kyivmiskbud for the total planned damage associated with the completion of projects of the construction corporation Ukrbud in the amount of UAH 2.28 billion.

On January 29, 2024, Vladyslav Andronov, Deputy Head of Kyiv City State Administration, was appointed Head of the Supervisory Board of Kyivmiskbud instead of Mykola Povoroznik. In February 2024 the newly formed supervisory board appointed its vice-president Vasyl Oleynik as the chairman of the board – president of the company.

HC “Kyivmiskbud” was established on the basis of the property of the state municipal construction corporation “Kyivmiskbud” in 1994 by combining in its authorized capital controlling stakes in 28 enterprises and other assets. The HC includes 40 JSCs, in which the company holds shares, six subsidiaries and 51 enterprises on the rights of associate member.

The main shareholder of PJSC HC Kyivmiskbud, according to the National Commission on Securities and Stock Market (NCSSM), is the Kyiv City Council (80%).

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Baykar starts construction of plant in Ukraine

Turkish defense company Baykar has begun construction of a plant near Kyiv that will employ about 500 people and produce TB2 or TB3 drone models, the company’s CEO told Reuters on Tuesday.

The Turkish-made Bayraktar drones gained widespread popularity worldwide after the Ukrainian military began using them to counter Russian forces, destroying armored vehicles and artillery systems.

Baykar said it has signed export agreements for its TB2 drone with 30 countries. Among them are Ukraine, Ethiopia, Libya and Azerbaijan since 2018, according to the SIPRI think tank.

“Our plant is under construction… we need about 12 months to finish the construction, and then we will move on to the internal machinery, equipment and organizational structure,” Baykar CEO Haluk Bayraktar said on the sidelines of the Riyadh World Defense Exhibition.

“The plant in Ukraine is large, we plan to employ about 500 people,” he said. Bayraktar noted that the production capacity will be about 120 units per year, but said it is not yet clear whether production at the Ukrainian plant will focus on the TB2 or TB3 drone model.

Asked if security issues related to the ongoing conflict would be a concern for the plant, he said that plans are “fully progressing” and “nothing” can stop them.

As reported earlier, Ukraine’s Defense Ministry and Turkish company Baykar Makina signed an agreement to build a service center for the repair and maintenance of unmanned aerial vehicles in Ukraine.

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