17:28 PM Wednesday, October 17, 2018 Monday, May 7
Polish shoe franchise to expand in Ukraine; PrivatBank triples profits; Gazprom reducing gas transit through Ukraine; Corruption in land sector being addressed; Mukachevo-Budapest rail link planned.
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Poland’s Adler Company wants to expand in Ukraine. Adler International plans to develop the CCC shoe franchise store chain in Ukraine. According to a posting on the website of CCC, reported by Interfax-Ukraine, Adler International sold 41 CCC stores in Poland from which the investment will be financed. “Under the agreement, the seller [Adler International] intends to use part of the funds received from the sale of the retail chain to accelerate the expansion of CCC franchise stores in Ukraine and to open 50 new CCC stores by 2021,” the company said. As reported, CCC Ukraine LLC (Lviv), developing the shoe store chain of the Polish CCC brand, seeks to open up to 15 new stores in the country in 2018.

Largest bank registers tripling of profit in Q1 2018.Ukraine’s largest state-owned bank, PrivatBank, achieved UAH 3.7 billion of net profit in Q1 2018, which is a 3.3-fold rise year-over-year (UAH 1.108 billion), the bank reports. “In the first three months net commission income totaled UAH 3.4 billion… Net interest income came to UAH 3.3 billion. In Q1 2018, the bank earned UAH 6.7 billion of interest income thanks to the expansion of the loan portfolio of individuals by 6% (UAH 2.5 billion) and growth of the portfolio of corporate clients by 18% (UAH 1.1 billion),” the bank said. Nationalized in late 2016, PrivatBank in 2017 reduced its consolidated loss to UAH 23.99 billion from UAH 176.64 billion a year earlier.

Rolled steel production increases slightly, while steel output decreases correspondingly. In January-April 2018 rolled steel output increased by 1% year-over-year, to 6.072 million tonnes, but steel smelting fell by 1.4%, to 6.913 million tonnes. Cast iron output grew by 8.9%, to 6.885 million tonnes. In April 2018, Ukrainian metal companies produced 1.639 million tonnes of cast iron (98% of the previous month), 1.687 million tonnes of steel (99%) and 1.479 million tonnes of rolled steel (98%).“A slight reduction in production of the key types of products in April compared with the previous month is linked to repair works at some facilities,” the Ukrmetalurgprom association said, as reported by Interfax-Ukraine

Addressing corruption in the land sector. Ukraine’s National Anti-Corruption Bureau (NABU) has drawn attention to the scale of corruption still continuing in the land sector.It is currently investigating 25 criminal cases concerning land plots, about a third of which have been forwarded to courts, the NABU says on its website. The scale of the alleged crime in these cases involving bribes to local officials in exchange for land exceeds UAH 450 million.

How corruption in land sector is carried out. According to the NABU, as reported by Ukrinform, the most common corruption scheme is for the local authorities to approve the allocation of land plots, which are then transferred to private developers in exchange for a commitment to allocate a certain number of apartments to employees of a respective state body. Often, the aggregate value of such apartments is significantly lower than the market value of the land.

Ukraine transfers a further $368 million to IMF to repay its main debt, the press service of the National Bank of Ukraine (NBU) reports. It was paid within a week of an earlier repayment of $80.7 million. The NBU expects to receive around $2 billion from the IMF in the beginning of the third quarter of 2018.

Gazprom cuts gas transit through Ukraine by 9.2% in Q1. Between January and April, “The volume of gas transportation from the Russian Federation to European countries and Moldova through Ukraine amounted to 27.7 billion cubic metres. Since the beginning of the year the transit volumes decreased by 2.8 billion cubic metres, or 9.2%, compared to the same period in 2017," Ukrtransgaz reports. The volume increased slightly in April, growing 0.3 billion cubic metres, or 3.7%, and amounted to 7.6 billion cubic metres.

Germany's technical assistance to Ukraine for last 20 years exceeded 500 million euros. The Ministry of Economic Development and Trade has reported that the largest amount of assistance was directed to the restoration of the Donbas, support for internally displaced persons, regional development, decentralization, and good governance." As of today, 27 projects with a funding volume of 250 million euros are in active phase, and they are executed by the German Society for International Cooperation (GIZ) and the Reconstruction Credit Institute (KfW)," the Ministry elaborated. New projects are also being prepared, in particular, on development of social infrastructure and housing support programs for internally displaced persons, development of municipal infrastructure in eastern Ukraine, with an approximate value of €49 million.

Energomashspetsstal to equip Turkish Nuclear Power plant. Public joint-stock company Energomashspetsstal (EMSS, Kramatorsk, Donetsk region), the owner of which is Russia’s Atomenergomash of Rosatom Corporation, plans to supply the last semi-finished products under a project on production of semi-finished products for equipment of reactor one of Turkey’s Akkuyu nuclear power plant, Interfax-Ukraine reports.

Passenger traffic at Chernivtsi airport soars by almost 70%. The passenger traffic at the Chernivtsi airport grew by almost 70% in April 2018 compared to April 2017, the city council reports. In April, 5,593 people used its services as compared with 3,306 people a year ago.The increase has been noticeable as regards international flights (137 passengers in April 2017 against 1,519 passengers in April 2018).

Rail link between Mukachevo and Budapest planned. Ukrzaliznytsya and the Hungarian railway company MÁV-START nemzetközi utazások have concluded negotiations about launching a Mukachevo-Budapest train. According to the acting head of Ukrzaliznytsya Yevhen Kravtsov, the Hungarian side “are ready to provide rolling stock that will run along the European railway lines that link the two cities." Mukachevo railway station will be reconstructed in order to serve as a hub for travels to the EU countries.
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