Business news from Ukraine

KYIV CITY AND KYIV REGION LEADERS IN HOUSING COMMISSIONING IN UKRAINE

Housing commissioning in Ukraine in January-March 2019 increased 32.3% compared with the same period in 2018, to 2.453 million square meters. According to the report, 1.394 million square meters of housing were commissioned in cities in the first quarter (56.8% of the total volume), while 1.06 million square meters in rural areas. At the same time, 61.7% of the total housing was commissioned in single-family houses, 38.3% in houses with two or more apartments.
In general, during the reporting period some 26,098 apartments were commissioned, including 16,900 apartments in cities and 9,200 apartments in villages.
The average area of apartments was 94 square meters, while the average area of apartments in single-family houses was 154.1 square meters, in houses with several apartments – some 57.8 square meters.
Some 51.7% of the total volume of housing was commissioned in Kyiv city and region, as well as in Lviv, Ivano-Frankivsk and Chernivtsi regions, in particular, 174,300 square meters (7.1%) in Kyiv.

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KYIV CITY TO SEND UAH 100 MLN FOR RENOVATION OF FUNICULAR

The Kyiv City Administration in 2019 plans to send over UAH 100 million of budget funds to renovation of Kyiv funicular with its adaptation to modern conditions of operation, the press service of the administration has reported.
“Kyiv City Administration resolution No. 464 approved the respective work project,” the press service of the administration said, citing Deputy Chairman Dmytro Davtyan.
The project will be financed in accordance with the indicators of the Program of Economic and Social Development of Kyiv for 2018-2020 at the expense of budget funds. According to the explanatory note to the document, the total cost of the project is UAH 363.229 million.
The funicular is planned to be restored without changing its historical and legal status.
According to the press service, the ProExpo experts’ reports were taken into account when developing the renovation project.
In addition, as reported, in the near future an international tender for the purchase of new funicular cabins and equipment for them using the loan from the European Investment Bank (EIB) will be announced.
Earlier it was reported that it is planned to spend EUR 6.5 million on two cabins of the funicular and the equipment.

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KYIV CITY TO RECEIVE $100 MLN FROM INTL DONORS FOR MODERNIZATION OF HEAT AND ENERGY COMPLEX

Kyiv Mayor Vitali Klitschko, municipal enterprise Kyivteploenergo and international partners – the U.S. Agency for International Development (USAID), the European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC) – have signed a memorandum on the development of the heat and energy complex, under which Kyiv city will receive $100 million.
The press service of the Kyiv City Administration reported on Thursday that the document envisages international cooperation in modernization and development of the Kyiv’s heat and energy complex.
According to the report, under the memorandum, it is planned to build up an interim financial package of $100 million, which will finance the priority work on modernization.
“Kyiv lays the foundation for international cooperation in the modernization and development of the heat and power complex of the city. We are designing a plan to turn Kyivteploenergo into a European-level company that will provide high-quality services,” Klitschko said.
Klitschko said that the city is ready to overcome possible risks and barriers, given the imperfection of the current legislation and the difficult situation in the sphere of the country’s power system.
Foreign Service Officer at the USAID Farhad Ghaussy said that the United States actively supports the creation of an adequate level of Kyiv’s energy security.
He said that the USAID is actively cooperating with Kyiv city. It will be very difficult for the city to carry out modernization of the heat and power complex, but thanks to the assembled team it would be possible to transform it, he added.

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KYIV CITY APPROVES LEASING OF 22.2 HA FOR OFFICES AND RESIDENTIAL BUILDINGS IN UNIT.CITY

The Kyiv City Council at a session on Thursday, September 20, made a decision to lease two land parcels with a total area of 22.2 ha located at 8, Simyi Khokhlovykh to companies UNIT Zhytloinvest and UNIT Holdings to build a residential and office complex. A total of 71 lawmakers backed the lease of 8.2 ha land parcel to UNIT Zhytloinvest and 83 lawmakers supported the lease of 14 ha to UNIT Holdings. As reported, KAN Development and UDP in 2019 will start building a residential complex of 170,000 square meters in Kyiv-based UNIT.City innovative park. The share of housing will be around 30% of the park.
The project provides a mix of housing of business and comfort classes. The construction is scheduled to begin in 2019, and the first stage, which will account for 15% of the total area (about 25,000 square meters), will be commissioned in 12-14 months.
KAN Development is also engaged in joint development for the construction of a six-story business center on UNIT.City’s area. Its commissioning is planned before the end of 2018. Its total area is about 13,000 square meters. At the same time, preliminary lease agreements have already been signed for 90% of the area. Under this project, UDP and KAN Development act as co-investors.
Apart from housing, UNIT.City will also have a university, a school, a kindergarten in the future.
As reported with reference to founder of the UFuture investment group and K.Fund Vasyl Khmelnytsky, it is planned that the area of the UNIT.City innovation park in Kyiv will be expanded to 26 hectares from 19 hectares (as of May 2018).
The UNIT.City innovation park officially opened in April 2017 on the territory of the former Kyiv Motorcycle Plant. Its territory comprises the Chasopys-UNIT co-working facility, IT school UNIT Factory, three laboratories, a business campus, a fund and five accelerators.
According to UNIT.City’s website, four new business campuses, three accelerators, four funds will be created in the park before 2019. The number of resident companies will be increased to 100. By 2025, the park should include 25 hectares of space for work and leisure, as well as more than 300 companies and R&D laboratories.

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KYIV CITY INTENDS TO EXPAND PARTNERSHIP WITH SHANGHAI

Deputy Chairman of Kyiv City State Administration (KCSA) Dmytro Davtian on June 18 discussed the possibility of mutual partnership with a delegation from Shanghai led by Vice Mayor Xu Kunlin, the administration’s press service has reported.
The parties agreed to expand and deepen mutual cooperation not only in the infrastructure and transport spheres, but also in tourism and IT industry.
“I consider China as a whole and Shanghai in particular as extremely important strategic partners for Kyiv. I am convinced that we should develop not only infrastructure and road areas that we have already outlined as promising. I’ve been in China twice in the past few months and I understand that the country is worthy of contacts as a technological leader and as a tourist destination. There are many areas. Shanghai’s development figures are impressive, and we would like to not just learn from experience – we prefer to be full partners with interesting investment projects,” Davtian said.
According to him, Kyiv has serious prospects for development, especially, “if we choose for orientation the cities that are developing in a reasonable and planned manner.”
“Shanghai is not only ready to sign official documents with Kyiv. Guests from China want a really warm partnership, and we support it, we are determined to be mutually beneficial,” Davtian said.
KCSA is planning a working visit of Ukrainian officials to Shanghai, as well as Ukraine’s participation in the first China International Import Expo, which is to be held in Shanghai in November.
Some 128 countries have already confirmed their participation in the exhibition, the guests said.

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KYIV CITY EXPECTS INCREASE IN FOREIGNERS FLOW – KYIV CITY ADMINISTRATION

Holding the final of the UEFA Champions League in Kyiv, which took place on May 26, will lead to an increase in the flow of foreign tourists to the Ukrainian capital, the Kyiv City State Administration has said. “To date, we expect an increase in the tourist flow due to this sporting holiday. In 2016 Kyiv hosted 1.3 million foreigners, in 2017 – 1.6 million. We also associate this with the Eurovision song contest. Therefore, such an event as the Champions League final will definitely bring an additional effect,” Deputy Head of the Kyiv City State Administration Oleksiy Reznikov said at a press conference in Kyiv.
He noted that 180 hotels for 20,000 people had been completely redeemed for the Champions League final six months before the match. In addition, according to him, on the initiative of Kyiv citizens, foreign fans lived free of charge in about 2,000 households. “We have already paid UAH 14 million of hotel fees for five months of this year. So, we expect about UAH 30 million only for hotel fees,” Reznikov said.

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