Business news from Ukraine

DEPUTY PRIME MINISTER IN FAVOR OF OPENING OFFICES OF GOOGLE, YOUTUBE IN UKRAINE

Deputy Prime Minister, Minister of Digital Transformation of Ukraine Mykhailo Fedorov calls for the opening of separate representative offices of Google and YouTube in the country.
“The team of the Ministry of Digital Transformation is to meet with the Google team. We will talk about the company’s development plans in Ukraine. We really want to see separate representative offices of Google, YouTube in Ukraine,” Fedorov said on the air of the Ukraine 24 TV channel during his working visit to Washington (the United States).
According to him, during military aggression, it is necessary that the content is moderated in Ukraine, and not in Russian offices.

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27% OF UKRAINIAN HOTELS SURVEYED ROOMS AS OFFICES DURING QUARANTINE

Two thirds of hotels have reduced their expenses by headcount optimization, 27% of respondents have implemented alternative services and rented rooms as offices, according to the study entitled “Ukraine Hotel Market & COVID-19 Impact” conducted by the Ukrainian Hotel & Resort Association (UHRA) together with international tourism experts from Horwath HTL.
“Two-thirds of hotels have decided to reduce prices – an instinctive (yet not necessarily efficient) step to boost occupancy. One third of respondents introduced digital & marketing tools. Apparently, before the pandemic was not considered critical. Some 27% of respondents have introduced alternative services, i.e., co-working, renting rooms as offices, etc,” UHRA International Relations Director Ivan Lun told Interfax-Ukraine.
He added that some respondents (7%) decided to change the function of some areas, i.e. for a gambling facility.
Lun said that vast majority of respondents (93%) confirmed an overall drop in their revenues, and more than 60% of hotels had revenues shrink by more than 40%.
“Only 4% of hotels showed an increase in revenues, and 3% reported that it remained at the level of 2019. Hoteliers who reported growing revenues were all located in the countryside,” the expert said.
Despite a difficult year for the industry, only 2% reported that they are actively seeking exit by selling their hotels and over 90% responded that they will keep operating even with certain limitations.
According to Lun, almost a quarter of hoteliers (23%) expect their performance to return to 2019 levels in 2021; 57% – in 2022 and only slightly less than 20% – in 2023 or later.
Some 122 respondents have participated in the survey, with an average size of 72 rooms per property. Two thirds of the responses came from urban, while 34% from rural locations.

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UKRAINIAN GOVERNMENT PLANS TO SET UP EUROPEAN INTEGRATION OFFICES IN ALL REGIONS

The Ukrainian government is planning to open European integration offices in all regions, as is evident from the government action program, whose text is published on the Verkhovna Rada website.
“The government will ensure the establishment of European integration offices in all regions of Ukraine, with the primary focus on the southern and eastern regions, to make European integration advantages closer to the people and businesses at the local level,” the document said.
It intends to attain this primarily through fostering cultural and educational projects, contacts, and also economy and infrastructure involving the EU’s investments and financial assistance, it said.
The government is confident that an emphasis on “regionalization of Euro-integration” would help direct extra resources to provinces so that their residents could feel immediate advantages from Ukraine’s course toward integration with the EU, the document said.
The Ukrainian legislation should adopt at least 80% of the EU acts envisioned by the Association Agreement.
“Among the results of these measures would be consistent growth in support from Ukrainian citizens of our country’s integration with Europe,” it said.
The government said it is determined to make dialogue with the EU instrumental in fostering “growth of direct investment in Ukraine from companies from the European Union and an increase in the EU’s financial assistance for Ukraine.”

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SWITZERLAND’S SYNGENTA ACQUIRES CROPIO GROUP WITH ONE OF FOUR OFFICES LOCATED IN UKRAINE

Switzerland’s Syngenta, a large seed and crop protection agent producer in the world, has completed the acquisition of all relevant assets of The Cropio Group, an Ag Tech company with one of the four offices located in Kyiv. The Cropio platform is an equipment-integrated, end-to-end software solution that provides imaging, recordkeeping, and equipment tracking. Approximately 10 million hectares of crops are currently managed using Cropio.
“Cropio is a leading player in the Eastern European digital agriculture market, and Syngenta is gaining a hub for Ag Tech innovation in Europe that will help increase farmer sustainability, productivity, efficiency and profitability,” Chief Information and Digital Officer at Syngenta Greg Meyers said.
With this acquisition, Syngenta will be the only agricultural company to have access to leading management platforms in the top four agriculture markets: in the United States with Land.db, Brazil with Strider, China with the Modern Agricultural Platform and now Eastern Europe with Cropio. Combined, more than 40 million hectares globally will be managed using a Syngenta digital tool, with a plan to double by the end of 2020.
The financial conditions of the deal are not disclosed.

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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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IN TIME DELIVERY SERVICE SEEKS TO BOOST NUMBER OF OFFICES BY 87 IN 2018

The In Time national delivery service plans by the end of 2018 to increase the number of offices by 13.7%, to 720 and install 100 own pick-up and drop-off points in Kyiv.
“This year we plan to increase the number of In Time offices to 720. We are also working on the format of offices, we are looking for the right forms, the right places, the right set of services in them,” the founder of In Time Serhiy Hrachev said at a press conference on the occasion of the company’s 16th anniversary on Thursday.
According to him, for 16 years of work in the market the company has reached the parameters for the delivery of parcels from the first time in 92.6% of cases, completely eliminating the facts of their non-delivery. At the same time, the delivery time to the regional centers was reduced to 24 hours, to remote regions – up to three days, and the service of targeted delivery to the most distant settlements – up to seven days.
Currently, In Time works in 439 settlements, serves 648 offices, 2,000 delivery points, 1,445 pick-up and drop-off points in partnership with PrivatBank (Kyiv).
Hrachev pointed out the active development of Zruchna service – targeted delivery for online stores in two-hour intervals convenient for the client, believing that in the coming years, e-commerce will be the key driver of the logistics market. According to him, about 200 online shops have already been connected to the service, and contracts with several large marketplaces are in the process of signing.
He said that In Time plans to develop own pick-up and drop-off points chain.
“We have developed our own pick-up and drop-off point management system. We have our own points. We will install and test them with one of our partners. We want to install 100 points in Kyiv for tests,” Hrachev said, adding that they are to be installed this year, in the most visited places, but not outdoor, in buildings.
In general, Hrachev said, In Time in 2018 will continue to implement the plan for the restructuring and modernization of IT infrastructure and offices in accordance with rebranding plans.
The In Time national delivery service was established in May 2002 with a central office in Kyiv.

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