Business news from Ukraine

UKRAINIAN RDS GROUP TO BUILD ROADS IN KHERSON REGION – OWNER

The RDS Group of road construction companies will repair a section of M-14 road in Kherson region, which will be the ninth region of Ukraine in which the company carries out works, the co-founder of RDS, Yevhen Konovalov, told Interfax-Ukraine.
“Our production will be based in Nova Kakhovka. The south, Kherson region are strategically important for the development of both passenger flow and trade infrastructure of our country,” he said.
According to Konovalov, the group plans to join projects in other regions of the country within the president’s Big Construction program by the end of this year.

According to the ProZorro system, Rostdorstroy LLC, which is a part of the RDS Group, won two lots in the tender for medium repairs of M-14 Odesa-Melitopol-Novoazovsk road in Kherson region worth UAH 22.998 million and UAH 46.98 million (PJSC Khmelnytsky Road Construction Department No. 56 won two other lots).
In addition, Rostdorstroy has passed prequalification along with Khmelnytsky Road Construction Department No. 56 and Avtomagistral-Pivden LLC in several more tenders for medium repairs of this road in Kherson region.
In 2020, the State Agency of Automobile Roads of Ukraine (Ukravtodor) plans to repair 177.5 kilometers of national roads in Kherson region for UAH 2.1 billion, including 36.1 kilometers of M-14 Odesa-Melitopol-Novoazovsk road.

RDS Group is included in the top three road construction companies of Ukraine. It includes Kyivshliakhbud and Rostdorstroy. The core business is construction, reconstruction and maintenance of roads and bridges, construction of airfield complexes.
The ultimate beneficial owners of RDS Group are Ukrainian citizens Yuriy Shumakher and Yevhen Konovalov.

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UKRAINIAN PRESIDENT INSPECTS RECONSTRUCTION OF KHERSON AIRPORT

Ukrainian President Volodymyr Zelensky during a working trip to Kherson region has inspected the reconstruction progress at the Kherson International Airport.
“The head of state was informed that an investment project had begun in 2019 to ensure aircraft landing in the evening and at night, as well as in difficult weather conditions. The project has received over UAH 46 million from the State Regional Development Fund and more than UAH 5 million of regional development funding. The project’s implementation has already been funded by more than UAH 11 million. The opening of the airport’s updated lighting system is scheduled for September this year,” the presidential press service said on Friday.
In addition, the regional airport development program for 2018-2020 is currently being implemented. Routine runway repairs have been carried out, workers have been trained to launch the Kherson-Krakow flight, and additional equipment has been acquired to improve the quality of passenger service. The Ukrainian State Air Traffic Services Enterprise also decided to update landing systems at the airport in 2020.
“All this will allow the airport to get the first category of aircraft landing according to International Civil Aviation Organization (ICAO) standards,” the report says.
Head of Kherson Regional State Administration Yuriy Husiev stressed that the airport is strategic.
“In the south, this is one of the very important hubs, and I would like it to become a hub for flights from Mykolaiv, Kherson regions. Even from Zaporizhia they come to us because Ryanair launched very popular flights,” he said.
At the same time, the question remains of reconstructing the runway, updating the fleet of aircraft.
Infrastructure Minister Vladyslav Krykliy said the total cost of the full restoration of the runway is UAH 1.2-1.5 billion, and UAH 910 has been spent on it this year. He added with the president’s support the amount of funding may be increased this year.

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PRESIDENT OF UKRAINE TO CHECK IMPLEMENTATION OF BIG CONSTRUCTION PROGRAM IN KHERSON REGION

President of Ukraine Volodymyr Zelensky will make a visit to Kherson region on Friday, June 26, in order to check the implementation of the Big Construction program there, Deputy Head of the President’s Office Kyrylo Tymoshenko has said.
“The president will make a trip to Kherson region on Friday in order to check the implementation of the Big Construction project on the roads and other facilities in the region,” he told a press briefing in Kyiv region on Wednesday.

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UKRAINE INTERNATIONAL AIRLINES RESTART FLIGHTS FROM KYIV TO KHERSON

Ukraine International Airlines (UIA) will resume flights from Kyiv to Kherson International Airport, the head of Kherson Regional State Administration has said.
“I would like to inform that Ukraine International Airlines will resume flights from Kyiv to Kherson on June 19,” he wrote on his Facebook page.
“Today negotiations with airlines to establish flights between Lviv and Kherson were held. We hope that soon residents of western Ukraine will be able to easily reach our region and enjoy summer in the south,” he said.

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FOUR COMPANIES PLAN TO TAKE PART IN CONCESSION COMPETITION FOR UKRAINIAN KHERSON SEAPORT

According to the results of the 60-day deadline for accepting applications for the tender for the transfer of property of state enterprise Kherson Maritime Merchant Port to concession, four companies will take part in it, two of which are international, Minister of Infrastructure Vladyslav Krykliy has said at a briefing in Kyiv. Among the companies that applied for participation in the tender are Busserk Liman Isletme Loj (Turkey), Special Company Kherson Sea Port LLC (Asket Shipping and Global Grain Consortium, Ukraine), Risoil-Kherson LLC (Petro Oil and Chemicals and AT RISOIL consortium, Georgia and Switzerland), as well as Ukrmorport LLC (Ukraine).
As reported, the government announced the start of tenders for pilot concession projects in the port industry on September 12, 2019. An agreement will be concluded with the winner of each tender, the parties to which will be the Ministry of Infrastructure, the Ukrainian Sea Ports Authority, the winner of the tender, as well as the company (SPV, the so called special purpose vehicle), which will be created and registered as the winner of the tender in Ukraine for the implementation of the project.
Feasibility studies for pilot projects were developed by a consortium of international consultants, formed by the EBRD and the IFC. In preparing the feasibility study, a systematic analysis of the market was carried out, and financial, technical, environmental and legal examinations were conducted. In addition, meetings were held with potential domestic and foreign private partners in order to take into account their proposals for the implementation of projects.

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IRISH LOW COST AIRLINE RYANAIR TO LAUNCH FLIGHTS FROM KHERSON TO KATOWICE

The Irish low cost airline Ryanair (Dublin) will launch direct flights from Kherson to Katowice (Poland) from January 15, 2020.
According to the airline’s reservation system, flights will be operated twice a week on Wednesdays and Sundays. The flight duration is two hours.
The cost of one ticket without baggage is from EUR19.27.
The actual operator will be the Polish low cost airline Buzz (formerly Ryanair Sun), which is part of Ryanair Group.
As reported, earlier Ryanair announced the start of flights from Kherson to Poland’s Krakow and Vienna (Austria).
Kherson became the fifth city in Ukraine, from which the Irish low cost air carrier operates.
In 2020, Ryanair intends to increase passenger traffic on Ukrainian flights by 33%, to more than 2.1 million people.
Ryanair entered the Ukrainian market in 2018. For the first months, the low cost carrier performed flights from Boryspil Airport and Lviv. In June 2019, the airline began operating flights from Kharkiv and Odesa, then announced flights from Kherson.

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