Business news from Ukraine


British-based Ferrexpo plc in January-March 2019 invested UAH 1.3 billion (over $47.5 million) in the development of Poltava, Yeristovo and Belanovo mining and processing plants (GOK) it controls, which is 73.6% more than the investments for the same period in 2018 in the hryvnia (over UAH 748.9 million) and 71% in U.S. dollars (over $27.8 million).
According to the investment program approved by the board of directors, Ferrexpo Group for January-March 2019 invested more than UAH 855 million, or more than $31.4 million, in Poltava GOK (Ferrexpo Poltava Mining), over UAH 438.3 million, or more than $16.1 million in the development of Yeristovo and Belanovo GOKs (Ferrexpo Yeristovo Mining, Ferrexpo Belanovo Mining).
The main capital investments of PGOK were the costs of supporting existing production in the amount of over UAH 209 million, or more than $5 million and large strategic projects worth over UAH 272 million, or more than $16.3 million, components worth over UAH 373 million, or more than $10 million.
The funds of YeGOK and BGOK were invested in processing, the development of railway tracks and objects, in projects for capital construction of infrastructure, quarrying, geological and other work.



SP Investments LLC (the United States) on April 22 acquired 77 million shares, or 100% of the charter capital, of PrJSC Etalon Insurance Company (Kyiv), according to the insurer’s official information. Prior to the acquisition of shares, SP Investments LLC or its affiliates did not hold shares in Etalon. According to the report, the highest price of shares, which were purchased within 12 days, was UAH 0.205 per share.
Etalon insurance company was established in 1993. It has 24 licenses for nine compulsory and 15 voluntary types of insurance. The company offers more than 50 insurance products for individuals and legal entities. It has an extensive regional network of representative offices in Ukraine.

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Kyivstar, the leading Ukrainian mobile communications operator, plans to invest in the development of 4G (LTE) standard by 18-20% more in 2019 compared with 2018, Kyivstar President Alexander Komarov has said. In 2018, capital expenses of the company totaled UAH 3.1 billion. “In 2018, we increased investment in LTE by 18%. In 2019 and 2020, we are planning to maintain the same growth pace and even more – up to 20%,” he told reporters in Kyiv on Thursday.
Komarov said that Kyivstar, like other mobile operators that have purchased 3G and 4G licenses at tenders, are now in the middle of the investment cycle for implementing these communication standards.
“For a few more years, we will actively invest in comparative amounts in LTE, about UAH 3 billion a year,” the president of the largest operator said.
He said that at present, Kyivstar is focusing on the introduction of a more promising in terms of speed and data volume transmission 4G. The president of the company said that if the state is ready to provide the operator with frequencies in the range of 700-800 MHz and ensure the principle of technology neutrality for the market, the above investments can be increased to cover new village communication standards and reduce the “digital gap.”
Komarov also expressed the opinion that the possible implementation of the 5G communication standard in the Ukrainian market is still premature, since it is ahead of the market needs and the willingness of market players to invest.
At the same time, he said that Kyivstar intends to invest annually about UAH 100 million of its own funds in new promising business areas, among which he called FinTech, Internet of Things (IoT), cloud solutions and technologies, big data.
According to him, the goal is to bring the share of this new income of the total income of Kyivstar over three years to 10%. The president of the company said that the search for optimal forms of cooperation with possible partners in these areas is currently underway.

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The State Agency for Infrastructure Projects jointly with Infrastructure Ministry has presented a plan on reconstruction of municipal enterprise Vinnytsia International Airport for 2019-2020. Head of the State Agency for Infrastructure Projects Mykola Bozhko said at a press conference in Kyiv on Tuesday that it is planned to spend UAH 2.2 billion on the reconstruction project, including UAH 1.013 billion in 2019 for the first phase of the project.
According to him, the airport modernization project was developed as part of the program to modernize regional airports and the public expertise of the project is now being completed, and the reconstruction of the Vinnytsia International Airport will begin soon. “We plan to launch the first flight by the end of this year,” he said.
The first part of the reconstruction project includes: reconstruction of the runway, partial reconstruction of the apron, lighting, radio and meteorological equipment, cable networks and engineering networks of power supply and communications.
“This will allow us to get a modern, highly optimized international complex. The project is divided into two phases, which will allow, after putting into operation the first phase, to receive a fully operational aerodrome complex, which will be able to accept all types of aircraft of class B, C and, in some cases class D (767-200, 767-300),” Bozhko said.
According to him, this will increase the number of passengers served. He also noted the great potential of the Vinnytsia airport for freight shipments.
According to Bozhko, radio equipment and means of radio navigation will be supplied at the expense of Ukraine’s State Air Traffic Services Enterprise (UkSATSE).

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PJSC ArcelorMittal Kryvyi Rih (Dnipropetrovsk region) in 2018 increased its capital and operating expenses by 31.6% compared to 2017, to $443.4 million from $337 million.
According to a press release of the company, $348.8 million were capital investments, $94.6 million were operating costs.
In 2019, the company intends to invest more than $450 million.
At the same time, the press service clarifies that one of the key projects in 2018 is the construction of two new continuous casting machines worth about $144 million. Hot tests of one of the continuous casting machines will begin in February of this year. It is also planned to complete the reconstruction of small section mill No. 250-4 in spring, the volume of investments in it will be about $55 million.