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15:24 PM Thursday, September 21, 2017
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UBJ AM Sept. 14, 2017
James Brooke
Kolomoisky properties impounded; Ukraine Rail wants to issue Eurobonds; Salaries up 21%, job vacancies up 24%;IMF here next week, Swiss group invests in Lviv bank
image/svg+xml Kyiv Lutsk Rivne Zhytomyr Lviv Ternopil Khmelnytskyi Uzhgorod Chernivtsi Vinnytsia Chernigiv Sumy Kharkiv Poltava Cherkasy Kirovohrad Lugansk Dnipropetrovsk Donetsk Zaporizhzhia Mykolaiv Odesa Kherson Simferopol Sevastopol Ivano- Frankivsk

• A Kyiv court has impounded several properties of Igor Kolomoisky: the headquarters of 1+1 Media in Podil, a Boeing jet, and the Biola building in Dnipro, his native city. Ukraine’s government argues that the Kolomoisky is responsible for the debts of PrivatBank, which was nationalized last December. Kolomoisky, usually rated as the second or third richest man in Ukraine, says he is not liable for the bank debts.

• By 2019, Ukrainian Railways plans to issue new Eurobonds for $1-1.5 billion, Yevhen Kravtsov, acting head of Ukrzaliznytsia told Interfax. Such an issue will enable the company to refinance some of the company's expensive loans, he said. Alexander Paraschiy of Concorde Capital writes: “We see it possible for the company to tap the Eurobond market to lower its average cost of debt, especially if Ukraine’s sovereign Eurobond will be successfully placed this month.”

• Ukrainian Railways could lose about UAH 11 billion in its passenger service this year – about $1 per passenger ticket. To help balance the state rail monopoly’s books, the Cabinet of Ministers has approved raising freight tariffs by 22.5 percent, effective Oct. 1.

• David Lipton, First Deputy Managing Director of the International Monetary Fund leaves Kyiv today after a 3-day visit. Next week, on Sept. 19, an IMF mission arrives here to review Ukraine’s progress – or lack of progress – under the Extended Fund Facility. If the reviewers reach a favorable conclusion, Ukraine would receive a new tranche of $1.9 billion.

• The average salary in Ukraine is up 21% over 2016, according data analyzed by Work.ua, Ukraine’s largest job search website. Residents of Kyiv and Kyiv region earn the nation’s highest monthly salaries, about UAH 7,870, or about $300. During the first nine months of this year, the number of job vacancies are up 24 %, compared to the same period in 2016, Serhiy Marchenko, director of development at Work.ua, told Ukrinform.

• Next year, the construction cost of one square meter of apartments in Ukraine will grow by 27% compared to 2017, to UAH 12,200, predicts the Ministry of Regional Development, Construction, Housing and Utilities. In Kyiv, the most expensive market, per meter construction cost will hit UAH 14,300, currently $550.

• A Swiss asset management company, responsAbility Participations AG, intends to acquire 40% stake in Lviv Bank, according to the bank’s press service. The bank is currently controlled by Icelandic chess master Margeir Petursson. The bank said: “Mr. Petursson and responsAbility share the desire to become the leading supplier of reliable and customer-oriented financial services for small and medium-sized businesses in Western Ukraine.”

• Singapore's Olam International Ltd. plans to build a grain terminal in one of Ukraine's ports, Stepan Kubiv, Economic Development and Trade Minister wrote on his Facebook page.In Ukraine for a decade, Olam recently purchased Bila Tserkva Elevator in the Kyiv Region. The Mitsubishi Corporation is a major investor in Olam.

• Through the weekend, stevedores will unload the first shipment of American anthracite, or steam, coal from the vessel Ocean Ambitious. Loaded with 62,000 tons of coal, the ship docked Wednesday afternoon at Yuzhny port, in Odesa region. “As agreed with President Trump, the first American coal has reached Ukraine,” President Poroshenko wrote on Facebook on Wednesday. “While Russia continues to steal Ukrainian coal from Ukrainian Donbas, it has lost yet another tool for its energy blackmailing."

• With millions tons of American coal expected to arrive in the next year, Yuzhny port is looking for foreign investors to build a new terminal for the import and export of bulk cargo. Vitaly Zhukovsky, director of Yuzhny, said the state company is open to a public private partnership.

• Energoatom, operator of all four nuclear power plants in Ukraine, produced 13.4% more electricity from January to August of this year, compared to the same period last year. Increasingly, Ukraine exports electricity to its western European neighbors.

• India discussed shipbuilding partnerships with a Ukrainian delegation led by Nataliya Mykolska, Deputy Minister of Economic Development and Trade. Indian Shipping Secretary Ravi Kant invited Ukrainians to visit Cochin Shipyard Ltd, a major civilian shipyard. He suggested that vendors from Ukraine take part in procurement tenders.

• Direct flights between Kyiv and Delhi will start next May 1, Ukraine International Airlines says. By June, there will be four flights a week. UIA will use Boeing 767-300 jets for the seven hour flights from Kiev Boryspil to Indira Ghandi International Airport.


For comments and story ideas, please email UBJ Editor in Chief James Brooke at: james.brooke@theubj.com

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