Business news from Ukraine

UKRAINE LAUNCHES VIRTUAL GAS REVERSE FROM POLAND

Ukraine through the gas measuring station Drozdovychi has begun virtual reverse of natural gas from Poland, expects its launch from Slovakia and Hungary, Head of Gas Transmission System Operator of Ukraine LLC (GTSOU) Serhiy Makogon has reported. “Gas supplies from Poland have already begun by substitution (virtual reverse) through the Drozdovychi station,” he said on Facebook.
To date, the volume of virtual imports from Poland is 5.5 million cubic meters. Since now transit to this country is 9.1 million cubic meters, 3.6 million cubic meters will be physically delivered to Poland, the head of the GTSOU said.
Makogon recalled that earlier, according to the previous transit contract with the Russian Federation, virtual reverse operations were not available to Ukraine: all volumes of gas had to be physically exported to Poland through Drozdovychi, and the volume necessary for Ukraine, in turn, was returned back through Hermanowice. Currently, there are no such restrictions; the country can import the entire amount of gas that physically goes there from Poland through virtual reverse supplies.
“Import from Poland also includes import of gas from the Polish LNG terminal. That is, right now, Ukraine can commercially import up to 9 million cubic meters per day or 3.3 billion cubic meters of gas from the Polish terminal via virtual reverse. I repeat: physically, the Ukrainian gas transmission system is ready to accept up to 6.6 billion cubic meters per year from Poland, but so far Poland, until the completion of a number of works in its gas transmission system, can only physically supply about 2 billion cubic meters,” the head of the gas transmission operator said.
“We expect that in the near future virtual reverse supplies will be launched in Slovakia and Hungary. The operators of these countries are working on this task. For our par, we are ready,” Makogon said.
Virtual reverses supplies involve the exchange of natural gas between gas transmission system operators when the gas does not physically move across the border and the parties offset.

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MAJOR BUYERS OF UKRAINIAN ELECTRICITY ARE HUNGARY, POLAND. SLOVAKIA, ROMANIA, MOLDOVA

Ukraine boosted its electricity exports by 4.9% in 2019, to 6.469 billion kWh, the Ministry of Energy and Environment Protection has told. Electricity supplies from the Burshtyn TPP energy island to Hungary, Slovakia, and Romania rose by 17.1%, to 4.448 billion kWh.
Exports to Poland fell 2.4%, to 1.377 billion kWh.
Exports to Moldova fell 32.6%, to 644 million kWh.
In July, Ukraine resumed commercial imports of electricity. The year’s total was 2.699 billion kWh, including 909.8 million kWh from Slovakia, 851.3 million kWh from Belarus, 630.1 million kWh from Hungary, 286.3 million kWh from Russia, and 21.1 million kWh from Romania.
Due to crossflows related to the parallel work of the united energy system in Ukraine and systems in bordering countries (accounted for under contracts signed by Energomarket), Ukraine imported 41.6 million kWh of energy from Russia and 1 million kWh from Belarus in 2019.

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ODESA-BASED COMPANY PLANS TO OPEN HOTEL IN POLAND

Ribas Hotels Group LLC (Odesa), the managing company of the national network of three- and four-star tourist hotel and restaurant complexes, has signed an agreement to manage the Bautzen hotel in Jelenia Gora (Poland). “The management company of Ribas Hotels Group has developed a concept and corporate style for the hospitality facility in the Polish city of Jelenia Gora and signed a management agreement. The opening is scheduled for spring 2021,” the company told Interfax-Ukraine.
According to Ribas Hotels Group, after the launch, the three-star hotel will include 23 rooms. The object will be the first one in the operator’s portfolio outside Ukraine.
The company noted that in order to increase the profitability of the facility, it was decided to reduce staff costs by creating a contactless reception desk, introducing the position of a curator of the facility, which helps conduct check-in if necessary.
“Most guests check in on their own, through the terminal, a lock system that will be installed on the doors. A specialist from the hotel will be 24/7 online chatting and communicating with guests, as well as advising guests who did not use to this service format,” the company said.
In addition, Ribas Hotels Group decided to abandon the traditional list of additional services that are not in demand. In particular, in Bautzen there will be no minibars, they will be replaced by vending machines with snacks and various prepared meals in the common areas of the hotel.
According to estimates by Ribas Hotels Group, the planned estimated return on investment in the opening of Bautzen is 5-7% per annum.

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COMPANIES FROM POLAND AND ROMANIA WIN LVIV LANDFILL RECLAMATION TENDER

A consortium of Vekto Sp. z o.o. (Poland) and Iridex Group Plastic s.r.l. (Romania) has been recognized the winner of an international tender to implement a project funded by the European Bank for Reconstruction and Development (EBRD) and the government of Sweden for integrated reclamation of a landfill site in the village of Velyki Hrybovychi outside Lviv, Director of Lviv municipal enterprise Zelene Misto (“Green City”) Vadym Nozdrya said in Kyiv. Speaking at a presentation of a campaign to support the project, he specified that this decision had already been agreed with international lenders and the contract with the winner is expected to be signed by the end of this year, which will allow the contractor to begin work as early as at the beginning of 2020.
Lviv Mayor Andriy Sadovy emphasized that the city is extremely interested in the speedy implementation of the project, as today it is forced to spend UAH 300 million annually on garbage collection over the closure of the Hrybovychi landfill.
According to Nozdrya, work on technical rehabilitation in Hrybovychi has been ongoing since July 2019 and should be completed in 2021. During this time, the contractor must perform work on leveling and terracing the entire surface of the landfill, cover it with a technological protective screen and carry out the construction of utility systems.
Active preparations at the landfill are under way: the removal of contaminated soil from the landslide that occurred in 2016, along with the removal of lakes with filtrate water, he said. Hrybovychi landfill rehabilitation costs are estimated at EUR11.8 million, plus EUR1.8 million for work with filtrates. Zelene Misto is the commissioner of the work.

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STATE-RUN UKRPOSHTA LAUNCHES DELIVERY FROM POLAND TO UKRAINE

JSC Ukrposhta launches the delivery of parcels within three to six days from the date of shipment from a warehouse in Poland to Ukraine, the press service of the company has said.
According to a press release, Ukrposhta together with the private postal operator SMART Forwarding (with the head office in Greece) and the Polish company InPost have already begun test deliveries of international mail from Poland.
“We and our partners provide perhaps the only economical official channel for delivering goods or things. It’s convenient, reliable, simple. For example, sending a package with sneakers, clothes and food in factory packaging weighing 10 kg and with the size of up to 19x38x64 cm through an InPost post terminal will cost about PLN 37, or about UAH 230 in equivalent,” the press service of Ukrposhta said, citing first deputy director general of the company Oleksandr Pertsovsky.
According to him, if the value of a parcel per recipient does not exceed the customs limit of EUR100, customs clearance will be carried out according to a simplified mechanism.
“Now we are working in a test mode, doing weekly deliveries, arranging all processes. We plan to increase the frequency of departures from Poland to two or three per week,” the expert said.
The departure route from Poland to Ukraine can be tracked by the track number on the Ukrposhta website.
According to the company, the new delivery channel is safer and about 20-25% more profitable than alternative options.
In the near future, Ukrposhta plans to launch similar channels for the international delivery of parcels to Ukraine from Italy, Britain, and Germany.

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POLAND, HUNGARY, SLOVAKIA, ROMANIA ARE MAJOR BUYERS OF UKRAINIAN ELECTRICITY

Ukraine in January-October 2019 increased electricity exports by 1.5% (by 77.1 million kWh) compared to the same period in 2018, to 5.127 billion kWh, the Ministry of Energy and Environment Protection has told the agency. Electricity supplies from the “energy island of Burshtyn TPP” to Hungary, Slovakia and Romania increased by 10.9% (by 339.2 million kWh), to 3.442 billion kWh.
Electricity supplies to Poland decreased by 2.5% (by 29.3 million kWh), to 1.132 billion kWh.
Electricity supplies to Moldova amounted to 552.7 million kWh, which is 29.6% less (232.8 million kWh) than in January-October 2018.
Ukrainian electricity was not exported to Belarus and Russia for January-October 2018 and 2019.
At the same time, Ukraine in July 2019 resumed commercial import of electricity, the total volume of which since the beginning of this year amounted to 1.538 million kWh. In particular, 573.9 million kWh were supplied from Slovakia, 644.9 million kWh from Belarus, and 191.5 million kWh from Hungary.
In addition, within technologically exchanged energy flows linked to synchronous operation of Ukrainian power grid with the power systems of neighbor countries 29.8 million kWh of electricity was imported from Russia and 0.8 million from Belarus.

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