Business news from Ukraine

KYIV’S DARYNOK MARKET INVESTS OVER UAH 30 MLN IN RENOVATION

Kyiv-based market-mall Darynok will invest over UAH 30 million in renovation in 2022, the company’s press service reported.
In 2022, Darynok marks the 20th anniversary. Today it is one of the leading retail properties with 17,000 jobs and more than 50,000 daily visitors. According to the press service, in 2021, the Darynok market-mall was visited by 11.6 million people, which is 12% more than a year earlier. Due to the existing concept of retailtainment and renovation, it plans to mark traffic growth of 10% per year and 30% over the next five years.
Among the strategic directions of business development, the team singles out expanding the target audience (focusing on the business segment with workshops and master classes, events for students, job fairs, etc.), increasing coverage in digital platforms, introducing innovative IT technologies for retail, further development of corporate and social responsibility.
Darynok’s plans for 2022 are to open a food court on a street with a total area of 2,905 square meters. According to market research data, about 34% of the audience regularly eats at the food court, and 68% – periodically. The open food court in street-food style will feature up to ten different kitchens, bars, a two-story boarding area, and a separate event area.
According to the press service, for the New Year holidays Darynok together with the art-plant Platforma opened a skating rink with a total area of 1,200 square meters: visitors will be delighted with ice shows and DJ sets.
Among the achievements of 2021, the Darynok team noted the signing of an agreement with 25 new operators and the opening of a children’s entertainment center Fly Park, with a total area of 2,200 square meters. Among the tenants who strengthened tenant-mix in 2021 are the brands Arber, Klaros, Fromus, Trend, Farmacia, Billerbek, Blest Kids, Snite, Table and Chair, Med Lab, and Fly Park. Thanks to the signing of new lease agreements, Darynok managed to reduce the vacancy rate: in 2022, the market mall enters with a figure of 2% compared to 5% a year earlier.
The Darynok market-mall is a symbiosis of a shopping center and a traditional market. On a total area of 68,000 square meters, there are over 3,000 retail outlets, including a wedding gallery, a floor of children’s stores, two floors of furniture, a leather and fur outerwear department, and the Platforma Office Club coworking space from Coworking Platforma. There is also a parking for 1,600 cars.

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ECONOMY, INFRASTRUCTURE MINISTRIES DEVELOPING PROGRAM FOR RENOVATION OF RAILWAY INDUSTRY OF UKRAINE

The Ministry of Economic Development, Trade and Agriculture and the Ministry of Infrastructure of Ukraine are developing a program for a radical renovation of the country’s railway industry.
At present, working groups have been created in the ministries, and regular meetings are held for relevant discussions, the press service of the Ministry of Economy said on Thursday.
“The tasks of developing the railway industry are to increase the economic efficiency and safety of transportation, as well as to protect national interests. The result should be the preservation of jobs, the revival of the car-building industry and the support of the added value of related sectors of the economy,” the press service quoted head of the department Ihor Petrashko as saying.
According to him, the specified program concerns the renovation of the park of passenger and freight cars, the purchase of new diesel trains.
Thus, the initiative to solve the problems of the freight car market is based on the introduction of restrictions on the operating age for the main groups of freight cars; encouraging demand for new railcars from Ukrainian manufacturers due to government compensation for the interest rate on loans for the purchase of railcars; restricting the import and operation of old wagons from neighboring states to Ukraine; the use of a technical tool for additional repairs and inspections of old cars, which will become more expensive in service.
“The result of the initiative should be a radical renewal of freight cars in the next 10 years and an additional GDP growth of 2.7% per year,” the minister said.
According to him, to solve problems in the passenger carriages market, one of the options may be to renew the rolling stock through partial government funding under government guarantees.
“Previously, such a program for the renewal of passenger rolling stock requires the commissioning of at least 100 new passenger cars per year … It is only possible to make our railway industry safer, more efficient and technologically advanced by concentrating the integrated efforts of all market participants. Renewal of this area is not an easy task, but especially relevant in the period of economic recovery,” the minister said.

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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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