President of Ukraine Volodymyr Zelensky called on leading managers of international companies to create jobs in Ukraine.
“I would very much like, as the President of Ukraine, that your companies consider the possibility of entering and finding their place in the Ukrainian economy. For us, these are, first of all, jobs. You understand that these are big challenges for 12 million people who have lost because of this bloody war of their homes, they left them, lost their jobs, their children lost schools, and Ukraine lost subjects that create a state, who are real citizens, pay taxes, etc.,” Zelensky said, speaking to attendees at the Yale SEO Summit on Wednesday.
“Jobs are very important. The jobs that companies like yours can offer by investing in our economy. This is an important step,” he added.
According to the head of state, it is also important that international companies invest in opening their offices in Ukraine.
“So that you find for yourself those layers of business that you are ready to find: from digitalization to energy. We are ready to talk about everything. But we are not ready to create a minimum tax system. You must understand us: we are talking about the restoration of Ukraine, which means that we should do it on finances. Comfortable conditions – yes, transparent conditions – yes, quick management regarding the start of your business in Ukraine – yes. This is support when all this is beneficial for both you and us,” the president said.
Another 580 foreign companies remain to work in the Russian market and do business there “as usual”, while they left Russia or stopped operations there 1,439 thousand. international companies from 70 countries and 55 different industries, said Minister of Foreign Affairs of Ukraine Dmitry Kuleba.
“Currently, there are 580 more companies on the Foreign Ministry’s radar, which continue the so-called business as usual from Russia, that is, they pretend that nothing has happened,” he said on Instagram on Monday.
The Minister added that the Ministry of Foreign Affairs has sent to eight of the largest international corporations to stop working in Russia, these are system players in the Russian market. Without receiving a reaction, the ministry intends to continue working with them in another plane.
“We can’t order them to leave. But we need to work from different sides,” Kuleba said.
Representative offices of international companies in Ukraine are gradually returning employees to their offices in accordance with the global policy of parent companies, Managing Director of Colliers International (Ukraine) Oleksandr Nosachenko told Interfax-Ukraine.
“Despite COVID-19, companies are not going to give up office work. In more mature markets, companies are gradually returning employees to rented premises, given the pace of vaccination,” Nosachenko said.
According to him, such international companies as Google, Apple, Amazon and Facebook are examples, which note the need for a physical presence in offices for effective teamwork, especially in the development of new projects. Ukrainian representative offices of international companies are also gradually returning employees to their offices.
In general, the office real estate market in Kyiv has become more active. According to Colliers International (Ukraine), the gross take-up of office space in the first half of 2021 amounted to about 60,000 square meters, which is 66% higher than in the first half of 2020 (some 40,000 square meters).
According to Nosachenko, the most active in terms of renting office space were companies from the IT sector, which share in the demand structure is 64% (about 40,000 square meters). FMCG (Fast Moving Consumer Goods) companies occupied about 10% (about 5,000 square meters) in the total demand structure.
During the first half of 2021, five business centers with a total area of more than 71,000 square meters were put into operation. The long-term construction at the metro station Lukianivska –LUWR business center (gross leasable area of 27,000 square meters), a business center at the metro station Taras Shevchenko (gross leasable area of 21,200 square meters), two business centers on Zoolohichna Street (gross leasable areas of 11,820 square meters; 6,000 square meters) and a business center as part of the River Mall – River Mall business center (gross leasable area of 5,000 square meters).
Thus, at the end of the first half of 2021, the cumulative supply of professional office space in Kyiv reached more than 2.218 million square meters.
“The total area of commissioned facilities is about 34.8% of the total volume of premises announced by developers for 2021,” Nosachenko said.
At the same time, during the first half of 2021, due to increased demand, there is a decrease in the average vacancy rate in business centers of A and B classes to 11.1% (at the end of 2020 it was 11.5%).
The vacancy rate in A class business centers decreased from 10.8% at the beginning of the year to 10.6%. The vacancy rate in B class buildings decreased from 11.6% to 11.3%, respectively.
Analysts from Colliers International (Ukraine) note a moderate increase in rental rates for office premises following the first half of 2021.
The prime headline rent remains at $26 per a square meter per month, as in 2020. In the first half of 2021, in the A class buildings, there was an increase in the lower limit indicator: from $18 per a square meter per month to $19 per a square meter per month. The range of rental rates in the B class buildings has changed from $11-19 per a square meter per month in 2020 to $12-20 per a square meter per month in the first half of 2021.
According to developers, in the second half of 2021, eight business centers are planned for commissioning, with a total area of about 130,000 square meters. Among them, the only one is class A – Magnett business center (the first stage of gross leasable area is 44,000 square meters).
Colliers International is a leading diversified professional services provider in commercial real estate. The company’s offices are represented in 67 countries of the world.
International companies are interested in concession of Olvia stevedoring company and Kherson maritime merchandise port, and four or five applications have arrived, Ukrainian Infrastructure Minister Vladyslav Krykliy said on the sidelines of the RE:think Invest in Ukraine forum opened in Mariupol on Tuesday.
“[Investors] are already applying for concession of the Olvia stevedore, Kherson port, although there is time until the end of December. There are already four or five applications [for both stevedore and port], and when we held the conference, we had about 30 participants, and two thirds of them are international companies not from the local market. So, the talks that our [Ukrainian] companies will come and take them into concession have not come true,” he said.
According to Krykliy, some of the companies interested in the concession have already invested in Ukraine and are ready to continue their work in the country.
“Among the companies that have already submitted applications, there are both foreign and Ukrainian investors… There are applications from China, Qatar, Singapore and several more,” the minister said.
As reported, the government announced the start of competitions for pilot concession projects in the port industry on September 12, 2019.
Some 20 large international companies are interested in the concession of Kherson Maritime Merchant Port and Olvia Stevedoring Company, Minister of Infrastructure Volodymyr Omelyan has said. “We expect that the tender on Kherson and Olvia seaports will start this year. We have more than 20 applications from powerful companies,” the minister said at a press conference in Kyiv. According to him, large international companies expressed their interest.
As reported, with reference to the Infrastructure Ministry, previously Qatar expressed interest in the concession of Olvia and Kherson seaports.