Business news from Ukraine

WINDROSE AIRLINES TO LAUNCH FLIGHTS FROM KYIV TO ITALIAN CITIES

Windrose Airlines for the summer navigation of 2020 will launch flights from Kyiv to Brindisi, Lamezia Terme and Ancona (all based in Italy).
According to the company’s press service, in particular, flights to Brindisi will be operated from May 30 to October 3, 2020 on Saturdays, flights to Lamezia Terme from May 29 to October 3, 2020 on Tuesdays, Fridays and Saturdays, and flights to Ancona from June 6 to September 19, 2020 on Saturdays.
The cost of tickets is from UAH 2,800.
As reported, the commission of the State Aviation Service of Ukraine decided to revoke the right of Windrose to fly from Kyiv to Istanbul on a regular basis three times a week.
Earlier, the State Aviation Service approved the application of the airline for charter flights from Kyiv to Odesa, Lviv, Kherson, Kharkiv and the Dnipro three times a week. The rights are valid until March 28, 2020.

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GAZPROM, KYIV SIGN GAS TRANSIT DOCUMENTS

Gazprom, Naftogaz, Gas Transmission System Operator of Ukraine, and the Ukrainian Justice Ministry have signed a package of documents that allow to continue gas transit via Ukraine after December 31, 2019, consistent with the protocol of December 20, Gazprom said in a statement.
“Five days of continuous bilateral negotiations in Vienna have resulted in final decisions and final agreements. Also, the sides have signed a package of agreements and contracts as a big package deal, which restores balance of interests. The documents take effect today to ensure Russian gas transit via Ukraine after December 31, 2019,” Gazprom CEO Alexei Miller told the press.
“Gazprom has done its best and has yet again proven to be a responsible supplier and a reliable partner,” Miller said.
One of the documents signed by Gazprom and Naftogaz is an irrevocable settlement agreement, which stipulates withdrawal of every claim filed by the sides against one another in arbitration tribunals and criminal courts, on which no final judgment has been made as of yet, and prevents the sides from making claims in regard to gas supply and transit contracts of January 19, 2009, in the later period. Earlier, Gazprom paid $2.9 billion to Naftogaz awarded by the arbitration court in Stockholm within the period prescribed by the protocol.
Gazprom and the Ukrainian Justice Ministry concluded an irrevocable amicable agreement, which envisages termination of any current and possible future claims of Ukraine v. Gazprom based on the decision of the Ukrainian Anti-Monopoly Committee.
Gazprom and Naftogaz signed an agreement on organizing gas transit via Ukraine. “Naftogaz hereby undertakes to act as the transit organizer and assumes relevant risks,” Gazprom said.
Naftogaz and Gas Transmission System Operator of Ukraine concluded a transit agreement, while Gazprom and Gas Transmission System Operator of Ukraine signed an inter-operator agreement.
The transit organizer will provide transportation of 225 bcm of gas via the Ukrainian gas transmission system within a five-year period, including 65 bcm of gas in 2020 and annual 40 bcm of gas in 2021-2024.
Necessary compromise
The gas deal between Russia and Ukraine is a compromise which proves that Moscow and Kyiv are capable of reaching an agreement, Russian Prime Minister Dmitry Medvedev wrote on his page on the social network VKontakte.
“The gas contract concluded between Russia and Ukraine for the next five years is a compromise that had to be reached,” Medvedev said.
“The signing of these documents indicates that it is possible to discuss and reach an understanding even on the most difficult issues,” he said.
The Russian government and Gazprom had been working on settling the problem with Ukraine for quite some time, both in the bilateral format and in the trilateral format involving the European Commission, Medvedev said.
“All problems have been solved, and mutual claims have been dropped. Russian gas transit via Ukraine will continue on terms acceptable for all sides,” he said.
5-years signed, 10-year extension possible
A five-year contract for Russian gas transit to Europe via Ukraine has been signed, Ukrainian President Volodymyr Zelensky confirmed.
“This is the end of the year, and we have some achievements. Ukraine has signed a gas transit contract for five years, during which we will earn at least $7 billion. The sides may extend the contract for ten more years,” Zelensky said.
“The Ukrainian gas transmission system will be working, which means energy security and wellbeing of Ukrainians will be provided. At least 65 bcm of gas will be transited during the first year, in addition to 40 bcm of gas per annum within the four subsequent years. In fact, transit amounts can be larger. Europe knows that we will not let it down from the angle of energy security,” Zelensky said.
Ukraine is expecting the gas transit agreement to generate annual revenue of $2-3 billion for the next five years, Energy and Environmental Protection Minister Oleksiy Orzhel said.
The government website quoted Orzhel as saying following the Russian gas transit talks that “one of the conditions set by Ukraine at those negotiations was Gazprom’s payment of $2.9 billion awarded by the arbitration court in Stockholm. We have received these funds. Plus, considering full engagement of the Ukrainian gas transmission system and the fact that new gas delivery routes to Europe will not emerge for a long time, our transit earnings will amount to $2-3 billion annually for the next five years.”
Prime Minister Oleksiy Honcharuk, in turn, underlined the importance of the five-year contract on Russian gas transit to Europe via Ukraine.
“Our team has protected the national interests of Ukraine and has ensured acceptable terms for the gas contract. In signing this document, we were guided by the priorities of Ukraine’s energy security and the wellbeing of our citizens. Thanks to this contract, Ukraine will maintain stability on the domestic and European gas markets. That will have a positive effect on energy markets and serve as a significant factor in reducing gas market prices,” the website quoted Honcharuk as saying.
The Ukrainian gas transmission system will transport 65 bcm of Russian national gas in 2020 and 40 bcm of gas per year for the next four years. The actual amounts may be larger.
Gas transit via Ukraine could come to 75 billion cubic meters in 2020, Andriy Kobolev, the head of Ukraine’s Naftogaz, told a press conference in Kyiv.
He said the forecast was based on 90 bcm transit in 2019 less 15 bcm due to the commissioning of the TurkStream pipeline.
Naftogaz and Gazprom have signed a settlement agreement which stipulates mutual withdrawal of lawsuits, Naftogaz Executive Officer Yuriy Vitrenko said.
“When I was signing the settlement agreement, which stipulates mutual withdrawal of all lawsuits, I felt sorry for the work and knowledge invested by my team in their preparation. […] Still, I realize that our responsibility to the Ukrainians requires that we make decisions to the benefit of the national company instead of our own benefit,” Vitrenko wrote on Facebook.
Continuation of gas transit via Ukraine means thousands of jobs and lower gas fees for Ukrainian households, while the $12.2-billion claim filed with the arbitral tribunal has helped extend the transit contract, he said.
“In other words, we could have won the $12.2-billion claim in the arbitral tribunal only if Gazprom had refused to continue transit. But it did not,” Vitrenko said.
The gas transit deal made between Naftogaz and Gazprom for 2020-2024 is based on the “take or pay” principle, Vitrenko said.
“The fact that we have signed the transit contract based on the ‘pump or pay’ principle is an extraordinary event in this context. I should say this is the first time in the history of Ukraine that Gazprom has concluded a transit contract on the basis of the European ‘pump or pay’ principle. Earlier, Gazprom relied on the ‘take or pay’ principle, which was similar but disadvantageous for Ukraine and lucrative for Russia, only in the area of gas supply,” Vitrenko wrote on Facebook.
Nord Stream sanctions
Naftogaz twice thanked the United States for putting pressure on Moscow and Europe in a press release regarding the conclusion of a package deal with Gazprom.
Gazprom, Naftogaz, and Gas Transmission System Operator of Ukraine signed a package of agreements in Vienna on December 30 to ensure further transit of Russian gas to Europe via Ukraine through 2024.
“This result was backed by a systemic effort of Naftogaz team in preparation of Ukraine to the negotiations as well as the imposition of the U.S. sanctions related to Nord Stream 2 project,” Naftogaz said.
“The package includes the following documents:
1) interconnection agreement between GTSOU and Gazprom establishing technical procedures and rules for cooperation between the operators of the adjacent networks;
2) agreement on organization of transit between Naftogaz and Gazprom setting conditions and transit volumes for the next five years; and
3) settlement agreement between Naftogaz and Gazprom according to which both parties abandon mutual claims under the 2009 contracts,” Naftogaz said.
The three agreements have been signed to fulfill the protocol of the 19-20 December meetings in Berlin and in Minsk, which involved representatives of the EU, Ukraine, Russia, Naftogaz, Gas Transmission System Operator of Ukraine, and Gazprom.
“The protocol included the following provisions:
– USD 2.918 billion compensation paid by Gazprom under the Stockholm Arbitration Awards of December 2017 and February 2018 and received by Naftogaz on 27 December 2019;
– withdrawal from all arbitration proceedings where final decisions have not been rendered yet;
– lifting attachment from Gazprom’s property, assets and monetary funds and refusing from any future claims and proceedings under the contracts signed in January 2009; and
– minimal transit volumes: 65 bcm/year for 2020 and 40 bcm/year for 2021-2024,” Naftogaz said.
“The issue of gas supply was not subject to the package agreements. Naftogaz noted Gazprom’s interest in resuming gas supply to Ukraine in future with the pricing based on the NCG price,” it said.
“The package deal also does not affect Naftogaz Group’s claims against the Russian Federation regarding the assets seized in Crimea,” Naftogaz said.
“The concluded agreements will provide Ukraine with guaranteed revenues from gas transit over the next five years. The certainty of future gas transit creates a necessary environment for continuation of the domestic gas market and broader energy reforms, secures gas transmission jobs and future contracts with Ukrainian industrial producers related to the maintenance of the Ukrainian gas transmission system,” Naftogaz said.
“The agreements that have been signed today are a result of an acceptable compromise. The major outcome of the negotiations is that we have received almost USD 3 billion from Gazprom, and ensured that the Ukrainian system will be able to operate without a loss over the next five years. The transit won’t be interrupted, and will be performed by the independent certified operator. We have demonstrated Ukraine’s reliablility as a transit partner for the EU. Our team is grateful to the European Commission for its consistent position and certifying that the Ukrainian GTS is reliable and efficiently managed. We are also grateful to the U.S. for their firm support of energy security in Europe,” Naftogaz CEO Andriy Kobolyev said.

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GRANDIOSE NEW YEAR AND CHRISTMAS HOLIDAYS NEAR KYIV

The grandiose «Winter Fairy Tale» show-program, dedicated to the New Year and Christmas holidays is taking place in the «Kyivan Rus Park». Till January, 19 bright shows with special effects and horse-trick performances, ancient Slavic Winter amusements, tasty dishes prepared on fire, horse riding, master-classes, round dances, games and prize draws will be waiting for the guests.
On December, 28 and 29 the festive New Year performance with the demonstration of the «Kogel mogel» interactive musical performance, horse-trick performances, horse riding, master-classes, round dances, games and prize draws will take place in the Principality.
On December, 30 the guests will get a chance to visit the Principality, enjoy its architecture, make bright photos in the medieval city.
If you want to celebrate New Year 2020 in a princely, bright, original way and remember this holiday forever, then go to Ancient Kyiv. Here you can gather a big company or make new friends and have a lot of fun.
On the night from December, 31 2019 from 20:00 to January, 1 2020 a grandiose New Year’s performance with a masquerade, a twin show, horse-trick performances, live vocals, an interactive musical with fire special effects will take place in the Principality. Ancient Kyiv will be shine with bright lights and garlands, bonfires and torches. Tasty dishes prepared on fire, hot drinks and medieval tinctures, free horse riding (from 19:00 till 21:00), gifts and treats for everyone will be waiting for the guests, and at the end – fireworks.
The beginning of the program on December, 31 at 20:00. The end around 3:00.
It will be possible to warm up in the Main New Year`s Residence, near the bonfires, with hot dishes prepared on fire and mulled wine, fiery dances, in the warm Princely tavern by previous booking.
On January, 1 Ancient Kyiv invites to start the New Year in a nice and bright way, and spend an unforgettable day on fresh frosty air, surrounded by the masterpieces of wooden architecture of Kyivan Rus.
On January, 2 – 5 Princess Winter calls the guests once again to the « Winter fairy tale » show-program with horse-trick shows and the musical performance in which both adults and children will get a chance to participate. And also: winter amusements, horse riding, master-classes, games, competitions and round dances.
On January, 6 and 7 the inhabitants of Ancient Kyiv invite everybody to the Christmas celebration according to ancient Slavic traditions, with ancient rites and winter amusements, horse-trick performances, costumed characters, the interactive musical performance presentation. The real Christmas nativity scene will come to life in front of the viewers. The action will pass in ancient Slavic. After this the guests will be invited to a master-class on Christmas carols learning and singing.
Details: https://parkkyivrus.com
The Interfax subscribers can save money with the “openbusiness-20” promo code for a 20%-discount for the adult ticket (at full price) to the Principality of Kyivan Rus:
– by previous order by tel.: +38 044 461-99-37, +38 050 385-20-35
– or at the cash desk at the entrance to the «Kyivan Rus Park».

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11TH INTERNATIONAL UKRAINIAN ENERGY FORUM TO TAKE PLACE AT INTERCONTINENTAL HOTEL IN KYIV ON FEBRUARY 25-27, 2020

Adam Smith Conferences is proud to announce the 11th international Ukrainian Energy Forum, which will take place at the InterContinental Hotel, in Kiev on 25-27 February 2020.
For the 11th year, Adam Smith Conferences is bringing together the key decision-makers in the Ukrainian energy market at the flagship Ukrainian Energy Forum. This time we will welcome 450+ delegates in Kyiv, Ukraine on 25-27 February 2020 for the three days of intensive expert exchanges, evaluating business opportunities for 2020 onwards and targeted networking with international and Ukrainian top-level business executives.
With this invitation via Interfax Ukraine you are entitled to a 15% discount.
Simply quote your VIP code: EUC015mINT. REGISTRATION ONLINE.
See the conference agenda here
WHAT’S NEW IN 2020?
Hot topics:
– Reviewing the new government energy strategy for 2030
– Updates on transit contract negotiations and analysis of changes in supply patterns
– The potential for LNG as a viable option for resource diversification
– Presenting new internationally supported projects aimed at energy independence
– Getting to know the new independent GSTO
– Summing up the first year of online licensing rounds for E&P
– Overview of the first 6 months for the liberal power market
– Green tariffs and renewable energy auctions updates
New features:
– Women in energy networking lunch
– Interactive live polling: drawing conclusions on 2019
– Exclusive masterclass on transformational leadership in the energy sector
– Business opportunity roundtables with E&P and energy generating companies
– Innovation hub on technologies for the energy sector
– …and more to come!
We are pleased to announce some early speaker confirmations for 2020:
– Andriy Kobolev, CEO, Naftogaz Group
– Andriy Gerus, Head of Committee on Energy, Housing and Utilities Services, Verkhovna Rada of Ukraine
– Roman Opimakh, Chairman, State Service of Geology and Mineral Resources of Ukraine
– Janez Kopac, Director, The Energy Community
– Andriy Zhupanyn, Head of Gas Market, Transit and Supply Subcommittee, Committee on Energy,
Housing and Utilities Services, Verkhovna Rada of Ukraine
– Volodymyr Evdokimov, Managing Director, Market Operator
– Igor Schurov, General Director, DTEK Naftogaz
– Georgiy Rudko, Chairman, State Commission for Mineral Resources of Ukraine
– Oleg Nikonorov, Managing Director, Regional Gas Company
– Yaroslav Mydriy, Managing Partner, ERU Trading
– Orkhan Vahabov, Deputy CEO for Business and Strategy, SOCAR
– Matthew Monteverde, VP, Commodity Markets, Argus
– Dmytro Fedoruk, Partner, Redcliffe Partners

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NEW YEAR`S SHOWS ARE TAKING PLACE NEAR KYIV

The real New Year`s extravaganza reigns in Ancient Kyiv in the Principality of Kyivan Rus («Kyivan Rus Park»). Beginning from December, 14 in the largest historical-entertaining complex near Kyiv the festive «Winter fairy tale» show-programs cycle for children and adults, including the New Year`s night on December, 31 is taking place.
Already from December, 14 the Main New Year`s Residence is open in the Principality, where the good wizard meets children and adults and every guest can put his letter in the magic wish box.
The real fairy tale in the Kyivan Rus style with horse-trick performances, theatrical stagings with costumed historical characters, traditional Slavic amusements, live vocals and fiery round dances will be waiting for the guests.
Also the visitors are awaited by walks on a horseback, rides in sledges or carriages, hot drinks and tasty dishes prepared on fire, medieval tinctures, zip line «Politaylo» and the speed slide «Firedrake», festive photo location, master-classes, the location of the fortune-teller, flash mobs, games, competitions and the gifts lottery.
The inhabitants of the Principality will light hot fires on the territory and will invite all the guests to take part in winter amusements and merry round dances.
The cooks of Ancient Kyiv will please everyone in the warm Princely tavern and in the medieval kitchens with hot drinks and tasty dishes prepared on fire.
The thrilling musical performance «Gogol-mogol» with special effects and lights will be the highlight of the fairytale program. The horses of rare ancient breeds will participate in the performance together with people, the actors-stuntmen. The musical performance is filled with sparkling humor and will be interesting for both children and adults. All the guests can become the participants of the action.
(The performance takes place on December, 14-15, December, 19, December, 21-22, December, 25, December, 28-29, on January, 2 till 7 and on January, 11-12.)
On December, 25 the “Christmas in Ancient Kyiv” festive performance based on Slavic mythology, with horse-trick performances, costumed characters and the interactive musical performance show will be taking place. Also the Christmas nativity scene in the ancient Slavic language will come to life in front of the guests of Ancient Kyiv. After this the master-class on learning and singing Christmas carols will be waiting for the viewers.
On the New Year night on December, 31 2019 from 20:00 to January, 1 2020 a grandiose show with the New Year`s masquerade, the twin show, horse performances, love vocals, interactive musical performance with fire special effects will be taking place in the Principality. Ancient Kyiv will shine with multicolored lights and garlands, bonfires and torches. Also the guests will be awaited by tasty dishes prepared on fire, hot drinks and medieval tinctures, free horse riding (from 19:00 till 21:00), gifts and treats for everyone and finally – fireworks. The end of the program around 3:00.
The main events of the program:
December, 20 2019 – New Year program “Magic Town”
December, 21-22 2019 – New Year performance “Winter Fairy Tale”
December, 23-24 2019 – New Year program “Magic Town”
December, 25 2019 – New Year performance “Christmas in Ancient Kyiv”
December, 26-27 2019 – New Year program “Magic Town”
December, 28-29 2019 – New Year performance “Winter Fairy Tale”
December, 30 2019 – New Year program “Magic Town”
On the night on December, 31 2019 from 20:00 to January, 1 2020 – the New Year`s night in Ancient Kyiv.
January, 1 2020 – New Year program “Magic Town”
January, 2-5 2020 – New Year performance “Winter Fairy Tale”
January, 6-7 2020 – New Year performance “Christmas in Ancient Kyiv”
January, 11-12 2020 – New Year program. Old New Year
January, 18-19 2020 – the Epiphany holiday in Ancient Kyiv
Ancient Kyiv opens at 10:00. The program starts at 13:00.
The ticket price for «Winter Fairy Tale»:
Full adult ticket:
December, 14-24, December, 26-30, January, 2-5, January, 11-12, January, 18-19 – 190 Uah.,
December, 25, January, 6-7 adult ticket – 200 Uah.
for pensioners and students – 150 Uah.,
for schoolchildren – 80 Uah.,
for preschool children – for free.
The ticket price for the New Year`s night: full adult ticket – 395 Uah., for pensioners and students – 250 Uah., for schoolchildren – 150 Uah., for preschool children – for free.
Ancient Kyiv in the «Kyivan Rus Park» is located in the vill. Kopachiv, Obukhiv district, Kyiv region.
Route taxis leave from Kyiv from the «Vydubychi» metro station, see the schedule on the website.
Details on the website parkkyivrus.com
The Interfax subscribers can save money with the “openbusiness-20” promo code for a 20%-discount for the adult ticket (at full price) to the Principality of Kyivan Rus:
– by previous order by tel.: +38 044 461-99-37, +38 050 385-20-35
– or at the cash desk at the entrance to the «Kyivan Rus Park».

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SECONDARY INVESTMENTS IN COMMERCIAL REAL ESTATE IN KYIV AND SUBURBS IN JAN-JUNE AMOUNTES $131 MLN

Secondary investments in commercial real estate in Kyiv and the suburbs in January-June 2019 amounted to $131 million, while at the end of 2018 this figure was $328 million, according to a study by Cushman & Wakefield consulting company. According to the company, the main areas of investment in the first half of the year were office and retail real estate.
For the nine months of 2019, secondary investments in office real estate in Kyiv and the suburbs increased by 6% compared to the same period in 2018, to $89 million. At the same time, investments in logistics real estate decreased by 58%, to $10 million.
According to the analysis, profitability rates of high-quality facilities in January-September slightly decreased (by 0.5 percentage points), but generally remained at the level of indicators for 2018. Thus, by the end of the third quarter, the indicator for offices was 11.5%, for warehouse facilities some 12.25%.
Cushman & Wakefield (formerly DTZ) was founded in New York in 1917. The company is a consultant in the field of commercial real estate with an annual income of $6 billion. Cushman & Wakefield operates in more than 70 countries, the number of employees is 45,000 people.
Prior to the global merger of Cushman & Wakefield and DTZ consulting companies in 2015, the Ukrainian office worked under the DTZ brand.

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