Ukraine

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22:46 PM Friday, September 21, 2018
UBJ.am
UBJ.am Tuesday, June 26
Exports to EU soar; Shadow economy shrinking; Industrial production down slightly; SigmaBleyzer to invest in fossil fuel; National transport strategy launched; Wizz Air flourishing.
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

Ukraine’s exports to EU up 26.6%.“The European Union is Ukraine’s main trading partner in the export of goods… Compared to the same period in 2017, we managed to make a qualitative leap in the trade with the EU," the Economic Development and Trade Ministry said. Ukraine’s exports to the EU soared to USD 6.6 billion In January-May 2018, the share of Ukraine’s exports that went to the European Union constituted 42.9% of total exports, Ukrinform reports.

Shadow economy shrinks 4% in 2017, to 31% of GDP. The de-shadowing has become possible due to maintained macroeconomic stability and business activity, expansion of domestic demand, the diversification of sales markets and a reduction in investment risks, the Ukrainian Economic Development and Trade Ministry’s press service reports.

Industrial production at 2.5% in May. Industrial production in Ukraine in May 2018 increased by 2.5% y-o-y, 0.5% down on April at 3% while the figures were 1% in March 1%, 1.9% in February, and 3.6% in January 2018, the State Statistics Service announced. In January-May 2018, industrial production growth was 2.6% y-o-y; in the supply of electricity, gas and steam it grew from 3.6% to 4.2%; in the processing industry it decreased from 3.1% to 2.4%; and the mining industry decreased from 2.2% to 2%. The processing industry in May 2018 increased production y-o-y, Interfax-Ukraine reports.

U.S. SigmaBleyzer to invest in fossil fuel. SigmaBleyzer is studying the possibility of creating an investment fund in Ukraine focused on the energy sector, and in particular, on gas production. The investment company is ready to invest $100 million in production of fossil fuel in Ukraine under a product sharing agreements (PSA). "We have been studying the potential of Ukrainian minerals for a long time, especially in the sphere of oil and gas fields... We are interested in areas over 500 square kilometers on PSA conditions. We are ready to invest $100 million at the first stage," its press service announced. The government intends to announce a tender to sign the PSA, Interfax Ukraine reports.

EU to help close dangerous coal mines. The EU is ready to cooperate with Ukraine to reduce the risks in the energy sector, in particular, to assist in closing the exhausted and dangerous coal mines, the Vice President of the European Commission for the Energy Union Maros Sefcovic said at the international high-level conference on development of the Ukrainian electric power sector in Brussels, Ukrinform reports. "I congratulate Ukraine on including the tasks of decarbonization of its economy in the strategy until 2035. This means a cautious approach to solving the challenging issues in the coal industry, including the closure of inefficient and dangerous coal mines. It is another area, where the EU can help," he said.

National transport strategy launched. The Ministry of Infrastructure, in partnership with the EU project Support to the Implementation of the Association Agreement and of the National Strategy of the Transport Sector in Ukraine (AASISTS) have officially launched the country's national transport strategy "Drive Ukraine," with support from a team of European experts and the Reforms Delivery Office, the EU Neighbours portal reported. The elements for the next 12 years include: constructing 10 highways and functional roads around Kyiv and other major cities; modernizing railway lines; building new river transport infrastructure; building new deep-sea ports infrastructure; increasing the number of operating airports from 19 to 50 and launching flights to new destinations; renewing and modernizing transport means, prioritizing passenger transport; expanding the use of innovative solutions in transport.

Pipe production continues to increase. Pipe production by Ukrainian enterprises has continued to grow and increased by 10% in January-May y-o-y by 10% to 448,000 tonnes, including with 91,000 tonnes being manufactured in May. In 2017 pipe production from ferrous metals grew by 23.5% from 2016, to 1,047,800 tonnes, Interfax-Ukraine reports.

Value of pharmacy sales growing. Pharmacy sales in Ukraine in January-May 2018 in money terms grew by 38% y-o-y to UAH 36.607 billion. Sales in physical terms increased by 6% in January-May 2018, to 654.188 million packs, the Business Credit company told Interfax-Ukraine. Retail sales of medicines in money terms increased by 41%, UAH 30.3563 billion, sales in packages grew by 18%, to 454.508 million packs. In May 2018, pharmacy sales amounted to UAH 6.579 billion, which is 26% more than a year earlier; medicines sales increased by 28%, to UAH 5.441 billion, Inter-fax-Ukraine reports.

Odesa (and Kyiv) to be linked with Gdansk by motorway. Infrastructure Minister Volodymyr Omelyan has announced that Ukraine will build a section of the motorway linking Gdansk and Odesa, with a branch connecting to Kyiv. His Polish counterpart, Minister Andrzej Adamczyk, has confirmed this. "Minister Omelyan told me…that the Ukrainian side…would soon start to implement a large-scale road project to connect Lviv and Odesa with a branch to Kyiv. It will be a motorway. We hope that the project will provide an opportunity for linking Odesa with the ports of Trojmiasto [Gdansk, Gdynia and Sopot]," Adamczyk said, Interfax-Ukraine reports.

Wizz Air doubles passenger flow and opens new routes. Hungarian low cost airline Wizz Air carried 425,000 passengers from/to Ukraine in January-May 2018, "We offer 1.3 million passenger seats from Kyiv this year, a rise of 79%,” and from Ukraine generally 1.67 million passenger seats this year," In 2018, the airline plans to launch 11 new routes from Ukraine, Interfax-Ukraine reports. Wizz Air has inaugurated flights from Kyiv Sikorsky to Lisbon and Tallinn, and from Kharkiv to fly twice a week to Katowice, Poland.On July 1, it begins flights from Kyiv to Frankfurt and to Berlin Schönefeld.

Turkey remains most popular charter flight destination. So far in 2018 Turkey’s resorts remain the most popular for Ukrainian tourists using charter flights, analysts from TripSee online service have told Interfax-Ukraine. There are around 80 charter flights to Turkey from Ukraine each week, constituting 72-75% of all charter programs of Ukrainian tour operators. About 15-20% of the remaining charter flights are to Egypt, then Greece, Bulgaria and Tunisia. In 2018, new charter destinations have been launched from Ukraine: to Italian resorts in Calabria and Ancona, as well as to the Peloponnese Peninsula in Greece. Commenting on prices of package tours in the summer season of 2018, TripSee said tours to Turkey start from UAH 7,000 all inclusive, Greece – from UAH 10,000 per person with breakfast, and to Spain – from UAH 12,000 thousand with breakfast and dinner.
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