Business news from Ukraine


The Danylo Halytsky Lviv international airport from June 24, 2019 transferred the servicing of Kyiv (Zhuliany)-Lviv flights Nos. MSI263/MSI265 of Motor Sich airline to the old terminal, the airport has reported on its website. The entrance from the apron will be made through the doors adjacent to the VIP room in the left wing of the building. “We had long planned to use it [the old terminal] for its intended purpose. And now it is very useful for us to facilitate the work during peak periods, maintenance of charter (we will begin in two or three weeks) and special flights operated by small business aircraft,” Director General of the airport Tetiana Romanovska, who is quoted in the report, said.
She thanked the Motor Sich airline, which was the first to agree to service flights on arrival at the premises of the old terminal, which was empty for a long time.
Now the old airport terminal is used for special and VIP flights. At the same time, it will be re-equipped for work with domestic transportation. It will also be attracted to work with charter flights. It will begin in two or three weeks.
The decision to use the premises of the old terminal was made due to the overload of the arrival zone of the new terminal during the peak passenger traffic, which lasts almost every day from 11 am to 5 pm during the summer season.
“At the moment, new Terminal A has only two tapes for baggage claim: one for international and one for domestic flights. Thus, by moving part of the passenger traffic to the old terminal, both of them will be able to be used for servicing the international flights,” the airport said.
In addition, the Lviv airport began work on the launch of another baggage tape and an increase in the length of the two existing ones in the new terminal. Developments are at the design stage and the creation of technical tasks.

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POSCO DAEWOO Corporation (South Korea) has announced that it signed an agreement with the Orexim Group from Ukraine on the acquisition of 75% of shares in the grain export terminal being built at the Mykolaiv maritime merchandise port, the company has reported on its website. The financial terms of the deal were not disclosed.
It is expected that after the completion of construction in July 2019 the annual grain loading of the terminal will be 2.5 million tonnes, handling mostly corn, wheat and soybeans.
After acquiring the terminal, POSCO DAEWOO announced that it would be able to oversee the entire supply chain of grain produced in Ukraine and manage a more efficient inventory.
“With the latest deal, POSCO DAEWOO said it would be able to gradually oversee logistics through the purchase, inspection, storage and shipment of Ukrainian grain production, as well as reduce risk and ensure effective inventory management in accordance with individual demand,” the Korean company said.
The company plans to cover the infrastructure for the processing of agricultural products and logistics, in order to become the largest food resource production company in South Korea.
POSCO DAEWOO also said that the deal said the deal would also help contribute to Korea’s food security, since grain supplies to the country largely depend on exports, because the country’s self-sufficiency in corn and wheat is only 1%.
In March 2018, the Orexim Group launched the sixth stage of the Every terminal at Mykolaiv power, boosting the total loading to 1.6 million tonnes. Its core business is exports of agricultural products, port and logistic services.

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Businessman Vasyl Khmelnytsky’s UFuture Group plans to complete the renovation and expansion of Terminal A, which is the main terminal of Kyiv Sikorsky International Airport (Zhuliany), from 14,000 to 23,500 square meters by May 2019, the project is estimated at UAH 630 million.
“We are building a new [terminal] not to increase the number of passengers, but to create comfort for those who fly,” the businessman said at a press conference on Thursday, explaining that often one time slot at the airport can be shared by seven low-cost airlines.
He says the airport’s throughput capacity, which is about 700 people per hour, can double.
Construction works at the airport began two months ago, Chairman of the airport’s Board of Directors Denys Kostrzhevsky said. The runway will not be closed for the period of the works at the terminal.
“The existing runway is good enough, its warranty is valid. We are not going to overhaul it, sometimes we fix something, improving some processes,” Khmelnytsky said.
Both own reinvested funds of the managing company and loans are the source of financing of the works, Kostrzhevsky said.
Khmelnytsky says that the payback period of investment in the expansion of Terminal A is expected to be from eight to nine years. UFuture invested more than UAH 2.5 billion in the airport’s complex in seven years.
He also said that he was considering the possibility of building a low-priced hotel and hangars next to Terminal A, but it might happen no earlier than the end of its reconstruction.
“Our resources are not unlimited. First, we will build the terminal. I hope we will launch it. It will give us a little more income, and we will make estimates proceeding from this,” Khmelnytsky said.
UFuture Investment Group, headquartered in Brussels, was established in autumn 2017 and united the business projects of Vasyl Khmelnytsky. The group includes the Ukrainian development company UDP, whose specialization is the implementation of large infrastructure projects. In addition, the conglomerate united businesses in such areas as UDP Renewables, the Bila Tserkva industrial park, the innovation parks UNIT.City, and LvivTech.City.
Kyiv Sikorsky International Airport is located in the business center of the capital, seven km from the city center. It is the second largest airport in Ukraine in terms of the number of flights and passenger traffic. The airport has three terminals with a total area being 21,000 square meters. The airport’s runway is able to handle B-737 and A-320 aircraft.
In the nine months of 2018, the airport serviced 2.165 million passengers, which was 57.3% up on January-September 2017. In September 2018 alone, passenger traffic grew by 30.6%, to 307,500 people.
Master-Avia LLC began managing the airport after winning a tender in 2010 and leasing airport property for 49 years.
Khmelnytsky and Kostrzhevsky are the beneficiaries of Master-Avia LLC, according to the state register of legal entities of entrepreneurs, are businessmen. Master-Avia indicates it owns terminals and the apron, while the airfield and the runway are on the balance sheet of municipally owned Kyiv International Airport (Zhuliany).

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Kyiv Sikorsky International Airport (Zhuliany) is planning to reconstruct the main Terminal A with an area of 14,000 square meters and expand it by 9,500 square meters, estimating investment in this project at UAH 630 million.”The expansion of the terminal area by 9,500 square meters will help double its capacity,” the airport’s press service reported on Tuesday.
The airport’s press service told Interfax-Ukraine that the current airport capacity is about 700 people per hour.
Kyiv International Airport (Zhuliany) is located in the business center of the capital, seven kilometers from the city center. It is the second largest airport in Ukraine in terms of the number of flights and passenger traffic. The airport has three terminals with a total area is 21,000 square meters. Terminal B is separate facility for business-class service, it is part of the Fixed Base Operator (FBO) system. The airport’s runway is able to handle B-737 and A-320 aircraft. In the first nine months of 2018, the airport serviced 2.165 million passengers, which is 57.3% more than in January-September 2017.

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State-owned enterprise Boryspil International Airport (Kyiv) is ready to allow Ireland’s low cost airline Ryanair to use currently mothballed Terminal F as soon as the airline starts servicing 15 flights a day from the airport. An Interfax-Ukraine correspondent has reported that Boryspil airport Pavlo Riabikin gave this information at a press conference in the airport last week devoted to the arrival of Ryanair to Ukraine.
“As soon as the frequency of their flights reaches 15 a day, we will open this terminal,” he said. He said that now it is planned to service Ryanair’s flights in Terminal D. A year ago Riabikin said that the Boryspil airport could de-mothball of Terminal F if there were enough flights of low cost airlines in the country.
“One of the KPI [key performance indicators] in my contract is the resumption of activities of Terminals F and B. We have already prepared a plan for the resumption of activities of Terminal F for servicing low-cost carriers. As soon as we understand there are 15 low-cost carriers, we will open Terminal F for them, otherwise it will be a loss-making terminal. The terminal is likely to open for the summer navigation of 2018, but flights must be provided for this,” he then said.
Earlier, former head of the airport Yevhen Dykhne noted Terminal F is the demonstration of state mismanagement: when it was being built, it did not fit into the airport development strategy at that time. According to the Ministry of Infrastructure, $40 million was invested in Terminal F in 2009-2014. It had been the base for Ukraine International Airlines since 2010 to 2013. The airport mothballed Terminal F in 2013.

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