Business news from Ukraine


The introduction of 4G communication in subway is the issue of the national scale, it is possible to implement the project in due time, according to participants in a meeting devoted to the launch of 4G communication in Kyiv’s subway held by the Kyiv City Council with representatives of the Kyiv City Administration, the Ministry of Digital Transformation, the Verkhovna Rada, municipal enterprises, mobile communications operators and Internet associations.
“The introduction of 4G communication in subway is a national issue. The law must be implemented. There are legal processes that must be followed. If we combine the efforts of all participants in this process, the project will be implemented within the announced time frame,” advisor to the Mayor of Kyiv Maksym Bakhmatov said.
According to him, now all important technical aspects have been agreed with the subway, and the operators have provided the required technical documentation.
“Operators have already imported the first consignments of special equipment for building a network into the country and are waiting for legal grounds to begin installation work in the subway. The full-fledged implementation of the investment project depends on making a decision by the Kyiv City Council on the fee for telecom access to municipal property,” Corporate & Regulatory Affairs Director at Kyivstar Oleksandr Kogut.
According to the plan, the launch of 4G communications at the first subway stations, namely Akademmistechko, Zhytomyrska, Sviatoshyn, Syrets, Dorohozhychi, Heroiv Dnipra, Minska and Obolon, is expected in March 2020. Until the beginning of 2021, high-speed mobile communications should work at all stations and tunnels of the Kyiv subway.

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Top managers of PJSC Kyivmetrobud, acting as a contractor general in the project to extend the Syretsko-Pecherska subway line in Kyiv’s subway, is ready to cooperate with law enforcement authorities in order to continue construction works, Director General of PJSC Kyivmetrobud Kostiantyn Saliy said at a press conference at Interfax-Ukraine on Wednesday.
“The owners of Kyivmetrobud unanimously appointed me as director general, so that the previous director, Mr. Metelytsia, could deal with what he is directly doing – the construction of the subway. Political, media and team reorganization issues will be led by the director general,” Saliy said.
According to him, the enterprise will conduct an inventory of material and technical assets, as well as turn to law enforcement authorities regarding the likely embezzlement of funds.
“At the moment, the Prosecutor General’s Office has decided to seize accounts. They are also developing a “recipe” on how to control the distribution of these funds transparently. We believe that it’s good that the Prosecutor General’s Office will be present and observe how the work is being done. The Prosecutor General’s Office will also have access to documents, [will see] where the funds went, what work was done, who signed papers with margins, and will identify the whole range of interested parties,” Saliy added, noting that resolving the situation around the enterprise depends on law enforcement authorities.
As reported with reference to the press service of the Prosecutor General’s Office, the investigating judge of Kyiv’s Pechersky district court seized money in the bank accounts of PJSC Kyivmetrobud and its branches.
“In the future, the Prosecutor General’s Office will appeal to court with a motion to transfer these funds to the ARMA [Asset Recovery and Management Agency] with the possibility of making payments to build the subway under control of the state,” the press service said.
Oleh Tokarev, the head of the Kyivmetrobud’s supervisory board, said at the press conference at Interfax-Ukraine that the reason for the change in the company’s management is the unsatisfactory pace of subway construction towards the Vynohradar area, due to which the launch of the subway line is postponed for a year.
“The amount of the tender is UAH 6 billion. At the end of the year, an advance payment of UAH 2.6 billion was received. During the year that we lived with Director General Vasyl Kobil, UAH 1 billion was spent and work for UAH 150 million was completed but not signed by the customer. “This is only 2.5% of the contract amount. Therefore, on December 17, the supervisory board decided to dismiss Kobil and appoint Oleksandr Metelytsia to the post of director general,” he said.
In turn, Managing Partner of the Ilyashev & Partners law firm Mykhailo Ilyashev said that a “series of myths” about the seizure of the enterprise are being spread and suggested that “the problem was inspired by the former head.”
He also commented on the statement of the Justice Ministry on the reinstatement of the director of PJSC Kyivmetrobud and making appropriate changes to the public register.
“The minister did not annul anything. He did not cancel any decisions of the supervisory board and could not cancel, because this is outside the competence of the Justice Ministry. Most likely, this was about the conclusions made by the commission under the Justice Ministry that the notary who made changes to the register made a technical error. Today, these documents will be submitted to the notary so that the relevant changes are introduced again,” Ilyashev said, emphasizing that the statement of the ministry does not cast doubt on the lawfulness of the decisions of the supervisory board.
As reported, in 2018, Kyiv Metropoliten entered into an agreement on construction work to extend the Syretsko-Pecherska subway line with Kyivmetrobud, which won the tender held on the ProZorro platform.
As part of the first phase of work, it is planned to build two stations, Mostytska and Prospekt Pravdy, at a section of almost 4 km, and branches to the Vynohradar station to extend the line.
It was planned that the work will last until 2021, and its cost will be UAH 5.993 billion.

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The cost of the launch of 4G mobile communication in Kyiv’s subway by three leading mobile communication operators Kyivstar, Vodafone Ukraine and lifecell is estimated at $20 million, Kyivstar President Alexander Komarov has said. “In the first quarter of 2020, we will launch the first stations if everything moves as it is now,” he told reporters at a briefing in Kyiv.
Kyivstar Chief Marketing Officer Pavel Daniman said that the project is equally funded by all three operators.
Komarov has connected great progress in the implementation of this project recently with the appointment of Maksym Bakhmatov as adviser to Kyiv Mayor Vitali Klitschko.
According to the president of Kyivstar, access to the municipal infrastructure remains a ‘narrow neck:’ for the project to start on schedule, the Kyiv Council still needs to approve telecom access tariffs.
Daniman said that the implementation of 2G and 4G communications will be carried out from the outer stations, as this is due to technology, and covering all stations will require some time due to the ability to work only a few hours at night.



Mobile communications operators Kyivstar, Vodafone Ukraine, lifecell and municipal enterprise Kyiv Metropoliten are negotiating technical documents and the working project to launch 4G Internet in Kyiv’s subway, Director for Corporate & Regulatory Affairs at Kyivstar Oleksandr Kogut has said.
“Since September [2019], intensive and productive cooperation with the subway regarding the implementation of the planned steps continues. In particular, the legal mechanism for providing access for work in the subway has been approved. All the required agreements on technical supervision of the existing telecom network in the subway have been signed. Now technical documentation and a working project are being coordinated, the signing of an access agreement is being prepared,” he wrote on his Facebook page.
At the same time, Kogut said that operators and the subway will be able to sign the agreement on telecom access to the municipal property of the city only after approval by the Kyiv Council of the decision to establish access fees.
“The adoption of the long-awaited decision by the Kyiv City Council will open up the possibility for operators to install their 4G equipment in the subway legally. We will be ready to start installation work right after that,” the Kyivstar director said.
He recalled that according to the plan, the launch of 4G communications at the first stations and in adjacent tunnels should take place at the end of the first quarter of 2020 with the subsequent distribution the network to all stations and tunnels by the end of 2020.



The start of the 4G network in Kyiv subway is scheduled for the first quarter of 2020, advisor to Kyiv Mayor Maksym Bakhmatov said. According to him, in particular, it is planned to first connect the following subway stations in the 4G network: Akademmistechko, Zhytomyrska, Sviatoshyn, Nyvky, Heroiv Dnipra, Minska, Obolon, Syrets, and Dorohozhychi and Lukianivska, and at the end of 2020 or the beginning of 2021 to connect all stations and tunnels.
According to Bakhmatov, to date, negotiations have already been held and a common implementation scheme has been approved with the key mobile operators Vodafone Ukraine, Kyivstar and lifecell.
At the same time, he said that for the implementation of the project it is still necessary that the municipal enterprise Kyiv Metropoliten signs technical conditions, and the Kyiv City Council approves tariffs for telecom access to municipal transport facilities of the city. In addition, Huawei Ukraine needs to review the subway sites, develop and coordinate a working project for 4G implementation, conduct expert reviews by the relevant government services, and Kyiv Metropoliten and operators to prepare, coordinate and sign an access agreement, then sign a common document with Huawei Ukraine about the start of work.

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The Kyivstar mobile communications operator has started providing 4G services in Kharkiv subway, the operator has reported. One can use high-speed mobile Internet both at the stations and while moving between them.
“The speed of the mobile Internet will be comfortable enough for both Internet surfing and fast data transfer,” the company said.
The operator reported that in its network over 40% of all mobile Internet traffic is used in the 4G network.
“In Kharkiv in May 2018, subscribers used only 95 terabytes of mobile traffic in the 4G network, and in May of 2019 – 10 times more, about 1,000 terabytes,” the company said.
Kyivstar is the largest Ukrainian mobile operator. It provides communication and data services based on a wide range of mobile and fixed technologies, including 4G. As of the end of 2018, 26.4 million mobile subscribers and about 0.9 million fixed Internet clients used its services.

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