Business news from Ukraine


Ireland’s low-cost airline Ryanair plans to invest $1.5 billion in Ukraine in three or five years, expanding its fleet to 15 planes and passenger traffic to 5 million people, Ryanair Chief Commercial Officer David O’Brien said at a meeting with Ukrainian President Petro Poroshenko in Kyiv on Tuesday.
The airline has hopes that the planes will be placed on the territory of Ukraine and that it will fly from Ukraine as from own base of operations, he said.
O’Brien also said that now the main problem related to the increase in the number of flights of the airline to Ukraine is the protective policy of the European Union (EU) from Germany, France, Italy and Belgium. He said that as soon as this obstacle is overcome, the airline will increase the number of flights from/to Ukraine.
He also said that Ryanair plans to increase the number of flight from Kyiv and boost passenger flow by summer 2019.
As reported, referring to the Infrastructure Ministry of Ukraine, Ryanair is studying a possibility of creating a servicing center at the Boryspil airport (Kyiv).
Ryanair offers flights from Kyiv to six cities in Poland, one destination in Germany, Spain, Lithuania, Slovakia, the UK and Sweden, as well as two destinations from Lviv to Germany and Poland, one to the U.K.

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The project of modernization of the Kharkiv Tractor Plant, investment in which could be around $2-3 billion, foresees the creation of a multifunctional ecosystem for business on its basis, which will include a potent industrial park, a complex with research, technological and technical base for implementation of innovative projects (a technological park) and other facilities, including logistic, training and research centers, the plant has reported on its website. “We are currently planning a big project for the reconstruction of the Kharkiv Tractor Plant. I think this is an investment of about $2-3 billion. We started yesterday and we will continue several years. It will be very interesting from the point of view of professional use. I always like projects that keep me on my toes,” the owner of the DCH group, which includes the Kharkiv Tractor Plant, Oleksandr Yaroslavsky said.
The project will, in particular, attract students and scientists from Kharkiv. Yaroslavsky said that the medium-term program for the development of the enterprise currently being implemented provides for an investment of DCH in the amount of about UAH 230 million. “We have focused mainly on the modernization of tractors. Almost more than 200 innovations in the model were made. The model has changed in quality both externally and internally, therefore the tractor has become more competitive,” Yaroslavsky said.
He said that about 800 new tractors would be off the line this year, approximately the same volumes are planned for next year: the plant does not work “for storing in a warehouse,” but manufactures products in accordance with the order portfolio. “We end this year and make the same plans, at least. Every year, every time, they create difficulties and problems for me with the Kharkiv Tractor Plant. Previously, it was running hurdles, now swimming in a pool without water. Tit is the more interesting, the more fun. I am responsible for the team. The team should be with a salary, and I will find options for a solution,” the businessman said.
Yaroslavsky recalled that the main market for the plant is Ukraine, and foreign markets are important to a lesser extent. “Taking into account that the markets have been lost, we have to restore. However, this process will take a certain amount of time. We are used to work. The company is interesting, the Kharkiv Tractor Plant is the leader of Ukrainian engineering and will not be left without attention,” Yaroslavsky said.
According to the information on the company’s website, earlier, Kharkiv Tractor Plant Director Andriy Koval reported that this year the plant increased sales of products in Ukraine by 40%.

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The Kuwait Fund for Arab Economic Development is ready to provide Ukraine with a loan for investment projects in the field of cancer treatment, Ukraine’s Ministry of Health said on its official website. According to its data, the issues of cooperation were discussed at the fourth meeting of the Ukrainian-Kuwaiti intergovernmental commission on economic, technical and trade cooperation. “In particular, the parties discussed investment projects for cancer treatment and bone marrow transplantation. It’s not a secret to anyone that these issues are the most painful for our healthcare system. For example, this year about UAH 580 million has been spent on the Treatment Abroad program from the national budget. That is why we need investment projects that would develop transplantation in Ukraine,” Deputy Health Minister Pavlo Kovtoniuk said.
During the meeting, Health Minister of Kuwait Basel Hamoud Al-Sabah and Kovtoniuk discussed the progress of healthcare reforms in Ukraine.
“The Kuwaiti side is very interested in the changes we are introducing, because in the near future we plan to significantly reform the financing system of this industry. The Deputy Health Minister of Kuwait noted that the system should be as effective as possible regardless of how much money the country allocates for medicine. That is why he considers primary development to be the priority and is interested in our experience,” Kovtoniuk said.

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China is planning investment projects for the creation of multimodal cargo terminals in the Ukrainian territory on the border with the EU as part of the development of transit with the European Union. Deputy Infrastructure Minister of Ukraine for European Integration Viktor Dovhan met with Chinese Vice Prime Minister Liu He, the leadership of the National Development and Reform Commission of China, and the Ministries of Transport and Commerce of China within the transport initiative “One Belt, One Road” in Beijing on November 8-9, 2018.
The parties noted the need to develop transit from China to the EU.
“The Chinese side noted that this year 6,500 containers have been transported to Austria, and cargo traffic along the Trans-Caspian international transport route is growing. Investment projects are planned for the creation of multimodal terminals on the border with the EU (Lviv, Kovel, and Uzhgorod),” the Ministry of Infrastructure said.
In addition, the ministry stated that agreements have been achieved on signing an agreement on road transport between Ukraine and China with Deputy Minister of Transport of the People’s Republic of China Liu Xiaoming until May 2019. This agreement will allow companies in both countries to transport goods in the territory of the other state regardless of the established routes, based on the needs of logistics and trade.

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Dragon Capital Investment Fund, together with its partners, has invested $400 million into Ukrainian real estate since 2016, the press service of Dragon Capital has reported.
“Since 2016, Dragon Capital, together with its European and American partners, has invested $400 million into Ukrainian real estate. Our future investment plans will significantly depend on the pace of reforms in Ukraine, above all in judiciary and law enforcement,” Dragon Capital CEO Tomas Fiala said.
The partners of the fund are Goldman Sachs, George Soros, and OPIC.
As reported, Dragon Capital Group jointly with co-investors since 2016 has been actively investing in purchase of commercial real estate, mainly in Kyiv city and region.
The portfolio of the investment fund, as of October 2018, includes several business centers – Kyiv’s Prime and Eurasia, business center located at 98, Velyka Vasylkivska Street, Horizon Park, Business Center Platinum, and Zaporizhia-based Eco Tower Business Center.
The portfolio of shopping centers includes the Victoria Gardens shopping center (Lviv), Sky Park shopping center (Vinnytsia), Pyramida shopping center (Kyiv), logistics centers near Kyiv — West and East Gate Logistic, Omega 1 and Omega 2; a logistic complex and industrial complexes in Brovary.
Dragon Capital Investments Limited is part of Dragon Capital group of companies, founded in 2000 and one of the largest in the Ukrainian investment market. It works in the field of direct investment and financial services, provides a full range of investment banking and brokerage services for corporate and private clients.

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Horizon Capital Group, which manages $800 million, plans to invest up to $200 million in Ukraine over the next three or five years, Denys Tafintsev, a senior partner and a member of the Horizon Capital investment committee, has said at the Kyiv International Economic Forum. “Ukraine has a relatively stable macroeconomic situation and poorly priced assets: six years ago they were three times more expensive,” he described the current situation. Tafintsev noted that large international investors are unlikely to come to Ukraine on the eve and during the presidential and parliamentary elections scheduled for 2019.
“This is a good opportunity for us as a domestic fund,” he said. According to him, among the company’s industry priorities are IT, processing, export sectors, and light industry.
Tafintsev noted that Horizon Capital invests in share capital, avoiding companies with large debts.
He told Interfax-Ukraine that the named volume of investments is planned not only at the expense of the new investment fund Horizon Capital is currently creating, but all the company’s investments.