Business news from Ukraine

PRICE OF GAS IMPORTED TO UKRAINE GROWS BY 20%

Natural gas to the territory of Ukraine in August 2021 was imported at an average price of $427.88 (UAH 11,457) per 1,000 cubic meters, the Ministry of Economy reported on Monday.
Thus, the price of gas imported in the past month was 19.7% higher than the price of July 2021 in U.S. dollars, when it stood at $357.32 (UAH 9,747) per 1,000 cubic meters.

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GAS PRICE IN EU TOPS $600/THOUSAND CUBIC M

The price of the nearest futures contract on the Dutch TTF spot index for ICE Futures, for October, continued to grow on Monday, assuming the value of 49.26 euros per kWh or $600 per thousand cubic meters, according to the exchange’s data.
Trading on Friday finished up at the value of $586 per thousand cubic meters.
The new gas year begins from October. Gazprom has a long-term reservation of transit capacities through the Yamal-Europe gas pipeline until the end of September. The Russian company did not book capacities of the pipeline at past annual and quarterly auctions.
The launch of the almost completed Nord Stream 2 gas pipeline is expected toward the end of this year. Issues concerning regulation of the pipeline’s operation are currently under consideration of the relevant controlling bodies.

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RENTAL PRICE OF HOUSING ON EVE OF ACADEMIC YEAR UP IN LARGEST CITIES

The rental price of apartments in Kyiv, Kharkiv and Dnipro in August 2021 increased by an average of 3% compared to spring, in Odesa – by 5%, and in Lviv – by 2%, according to the OLX Real Estate analytical service.
“If last year, after the first lockdown and until the fall, rental prices in Kyiv decreased by 6-9%, then in 2021 the situation is different: housing prices are growing. Compared to April, long-term rent in Kyiv has risen by 3%,” according to the OLX press release.
According to the service, the largest drop in rental prices for apartments was recorded in Kyiv. The average prices for one-room apartments in Kyiv vary on average from UAH 7,000 to UAH 16,000, for two-room apartments – UAH 8,000-UAH 30,000, and three-room apartments – UAH 11,000-UAH 55,700. The highest rates are kept by apartments in Pechersky district. At the same time, the lowest rental prices remain in Desniansky district: UAH 7,000 – for a one-room apartment, UAH 8,000 – for a two-room apartment, and UAH 11,000 – for a three-room apartment.
According to analytical data, in Kharkiv, the cheapest housing for rent is offered in Industrialny, Nemyshliansky, Novobavarsky and Moskovsky districts, where prices for one-room apartments are UAH 5,000-UAH 5,500, two-room apartments – UAH 6,000-UAH 7,000, and three-room apartments – UAH 7,000-UAH 9,000. At the same time, the highest prices remain in Shevchenkivsky district – on average 50% higher than in remote residential areas.
In Dnipro, the average rental price for a one-room apartment is UAH 5,000-UAH 8,000, for a two-room apartment – UAH 6,000-UAH 12,000, and for a three-room apartment – UAH 7,000-UAH 13,000. The lowest prices were recorded in Samarsky district: UAH 4,000, UAH 5,000 and UAH 8,000, respectively.
According to OLX, Lviv has the smallest difference in rental prices between apartments in central and remote areas. So, the rental prices for a one-room apartment vary within UAH 7,000- UAH 8,000, two-room apartments – UAH 8,000-UAH 10,000, and three-room apartments – UAH 8,500-UAH 12,500.
According to the company, Odesa has the lowest prices for long-term rent among cities with a population of over one million. This is due to the decline in the tourist season. Thus, the average rental prices for a one-room apartment are UAH 5,500-UAH 7,000, for a two-room apartment – UAH 6,000-UAH 8,500, and for a three-room apartment – UAH 7,000-UAH 9,500.
At the same time, as we get closer to the sea, prices in Odesa increase: one can rent a one-, two- and three-room apartment in Prymorsky district for UAH 8,500, UAH 12,000 and UAH 19,300, respectively.

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PRICE OF LAND IN KYIV UP IN H1

The price of land plots in Kyiv has risen by an average of 5-10% since the beginning of 2021, according to Park Lane real estate agency.
“Land reacts least of all to changes in external factors (economic, political) due to limited supply within Kyiv. Land prices are showing growth, especially with a good location. Liquid land plots can always be profitably and quickly sold,” director general of Park Lane Viktoria Barabash said.
According to the analysis of Park Lane, the most expensive offer is in Pechersky district of the capital – $ 60,000-100,000/100 sq m, in Holosiyevsky district – $ 25,000-50,000/100 sq m, in Solomiansky district – $ 20,000-40,000/100 sq m.
Barabash noted an active demand for the purchase of land within the capital, but the interest in such real estate is lower than in houses or apartments built in residential complexes.
Today there is a choice of land plots in different districts of Kyiv and with a different purpose, ranging from 600 to 92,000 sq m.
According to Park Lane, the most diverse selection of land plots is in Holosiyevsky district (Pyrohovsky Way, Chabanovska Street, Kazatska Street, etc.), Solomiansky (Sovky), in Pechersk (Zverynetska Street, Redutna Street, etc.). Also, buyers are always interested in the land in Osokorky, Rusanivski gardens, where there is access to the water.

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ACTUAL PRICE OF CRUDE OIL IN UKRAINE 5% UP IN MAY

The actual price of crude oil and condensate used in determining the payment for subsoil use in May 2021 amounted to UAH 13,257 per tonne, which is 5.2% more than in April 2021 (UAH 12,605 per tonne).
The relevant data was posted on the website of the Ministry for Development of Economy of Ukraine.
As reported, in January 2020, the actual selling price of oil and gas condensate amounted to UAH 11,114 per tonne, in February – UAH 9,648, in March – UAH 5,913, in April – UAH 3,960, in May – UAH 6,199, in June – UAH 8,115, in July – UAH 8,847, in August – UAH 8,887, in September – UAH 8,467, in October – UAH 8,447, in November – UAH 9,034, in December – UAH 10,127 per tonne.
In January 2021 the selling price was UAH 11,114 per tonne, in February 2021 it was 12,302 per tonne, in March it was UAH 12,832 per tonne, and in April it was UAH 12,605 per tonne.

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NAFTOGAZ WILL KEEP GAS PRICE FOR POPULATION

Gas supply company Naftogaz Ukrainy in April will keep the price of natural gas for household consumers (population) at the current level of UAH 6.86 per cubic meter, and the price of gas within the supplier of “last resort” for the next month will also remain at the March level of UAH 6.99 per cubic meter.
“We are going to offer our clients the same price in April as they had in March. And thus we end the heating season with a stable price,” he said on the air of Channel 5 on Wednesday evening.
At the same time, Kobolev did not say what fixed price the group is ready to offer under an annual contract, which will begin on May 1, 2021, to both the population and wholesale buyers.
“This price has not been determined yet. We have signed the first big contract [with Dmytro Firtash’s Ye Energiya LLC], which contains a pricing formula. The price will be known for sure on April 25 this year,” said the head of Naftogaz.
Kobolev also said that the group’s market share increased by 11 p.p. – up to 13% from August 2020 to the present day.

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