5 March 2018 The Business Week Week 8

GE Signs $1 billion locomotive deal with www.ukraineinvest.com -- In one of the biggest US infrastructure, thereby helping to move investments in Ukraine ever, GE cargo faster and more efficiently. It will Transportation signed a 15-year, $1 strengthen Ukraine’s position as a key billion diesel locomotive supply deal with Europeanrail hub and operator.” Ukrzaliznytsya on Friday. The deal was facilitated by a To start, GE is to supply 30 locomotives performance bond of over $100 million, The Business – worth about $140 million -- to extended by Citibank to Ukreximbank. It Week is written Ukraine’s state railways this year. During would cover losses if GE does not deliver and produced by James Brooke, the contract, GE is to produce up to 225 this year’s locomotives, said Steven Editor in Chief new diesel locomotives and upgrade 75 A. Fisher, Ukraine country officer for of the Ukraine Business Journal older models. The degree of localization Citigroup. for and on behalf in Ukraine is reach 40%. of UkraineInvest Marie Yovanovitch, US Ambassador “Our dynamic talks with GE lasted only to Ukraine, said: “By modernising its five months and led to the signing of railroad, this project will bring Ukrainian

Ukraine Business Journal this unprecedented agreement,” Prime more product to ports. Ukraine will Minister Volodymyr Groysman said of the benefit for decades to come. This deal. “My government is always ready agreement sends a very strong message to support innovative investments that to the world that Ukraine is changing result in high value-added products and the way it is doing business,” she said, create new jobs in Ukraine.” noting that the first group of locomotives will be manufactured in Texas and At the signing at Ukrzaliznytsya’s Pennsylvania. headquarters on Tverska street, Raphael Santana, President and CEO of GE UkraineInvest, the government’s Transportation, noted this is GE’s largest investment promotion agency, pushed deal in the company’s 80-year history of hard last fall to make the GE deal working in Ukraine. happen. President Poroshenko traced the start of the deal to last July when «Our cooperation can serve as a catalyst he visited Washington and met with for attracting international investment President Trump. “During my visit to and accelerating Ukraine’s economic America, we discussed with Trump growth,» Santana said, noting that that our countries’ relations should be the American company also has wind practical,” he said Friday at the railway and biogas projects in Ukraine today. headquarters. “The company was in need “We also are proud to take part in the of rolling stock, new locomotives. A $1 modernization of Ukraine’s railway billion contract was signed very quickly.” 8 / 2

In an interview before the signing, week a $100 million revolving credit line Yevhen Kravtsov, acting CEO of from a syndicate of European banks. Ukrzaliznytsya, said the average age of According to a company note on the the railroad’s 300 diesel locomotives is website of the Warsaw Stock Exchange, 30 to 40 years, at or over the end of their the 2.5-year line will be used to replenish expected working lives. Last August, working capital in Ukraine for Kernel’s at the start of the peak season for export business. Kernel exports to more moving grain harvests to the ports, the than 60 countries. railroad was short as many as 60 diesel locomotives to move freight, of 20%. An Sugar prices will be soft this year on a intensive repair effort helped railroad get worldwide oversupply of sugar of nine through the harvest season. million tons, Igor Buchatskiy, CEO of ED&F Man Ukraine, tells AgriLand news www.ukraineinvest.com Some of the new, US-made locomotives site. Low prices could push the EU to cut are to arrive here in time for this year’s sugar subsidies. ED&F modernized their harvest. In addition, Ukrzaliznytsya, may Zasylsky Sugar Factory with equipment lease locomotives from Baltic countries imported from three sugar mills closed in where locomotives are idle due to drops Ireland. Around the plant, near Mykolaiv, in trade with Russia. Due to the war, ED&F farms 14,000 hectares of sugar Ukrzaliznytsya lost access to Ukraine’s beets, with 9,000 under irrigation. only locomotive manufacturing plant, located in a rebel-controlled portion of OKKO-Agrotrade plans to triple pre- Luhansk. Unofficial reports say the plant crop financing to farmers to $110 is damaged beyond repair, with some million this year, the OKKO group holding factory equipment shipped to Russia. company reports. Founded in 2016, OKKO-Agrotrade provides farmers with Under the deal with GE, locomotive parts fuel, mineral fertilizers, plant protection will be made in Ukraine to GE world products, seeds and financing. Last year, standards. This way Ukraine will become OKKO exported 500,000 of farm products, part of GE’s world supply chain. Some about half of which were financed by parts are to be made at Kriukiv Railway OKKO. Car Building Plant in Kremenchuk. Ukraine’s crop production increased by Daniel Bilak, director of Ukraineinvest, 7.3% last year, and animal husbandry said that the arrival of GE Transportation - by 30.7%, the State Statistics Service boosts Ukraine’s reputation as a reports. During the year, the cost of crop desirable investment destination. production increased by 9.7%, and cost of “We continue to target global brands animal husbandry by 22%. for investment, in order to reach the Government’s goal of 5-7% economic Anti-corruption growth per year by 2020,” he said. John Sullivan, US Deputy Secretary Agriculture of State, said in Kyiv Wednesday that economic development depends on Ukrainian corn producers will have an reform. “Deeper reforms are needed to lift edge for March and April ship loadings the economy over the long-term,” he said due drought in Argentina which is in a speech at the Diplomatic Academy. damaging corn quality and delaying “And comprehensive judicial and law harvesting, Platts reports from London. enforcement reform, which Ukraine has embarked on is the key.” He cited the need Kernel, the world’s largest producer and for an independent Anti-Corruption Court, exporter of sunflower oil, attracted last 8 / 3 adding: “The Prime Minister just told me Airlines, tells reporters. By 2021, the about a package of over 30 new draft laws airline plans to have 74 aircraft flying that he expects will improve the business 13.3 million people a year. Bolstering its environment once implemented.” Boryspil hub, UIA plans to increase its share of transit passengers from 52% Automotive today, to 60% in 2021. UIA plans to restore scheduled service to three mothballed Ukraine could become a «European Ukrainian airports – Vinnytsia, Mykolaiv China» for producing electric cars and Uzhhorod. By 2022, Ukraine’s flag and batteries for the EU, Oleg Boyarin, carrier plans to start flights to three board chairman of Eurocar, tells Liga. Chinese cities - Guanzhou, Sanya and net. Boyarin, whose company makes Shanghai; to three North American Skoda cars in Uzhhorod, said he works cities – Toronto, Chicago and Miami; to with the Infrastructure Ministry to work three Central Asia capitals – Ashgabat, out an electric car strategy for Ukraine. Bishkek, and Turkmenistan; to two African With government support, Ukraine could cities – Cairo and Addis Ababa; and to 12 develop an export-oriented car industry European cities. in partnership with American, Chinese or With the upsurge in air travel from European brands. Ukraine, AirAdvisor has expanded from Poland to Ukraine, opening an Aviation office in Kyiv on Monday. This online service collects compensation from DART Ukrainian Airlines wants to emerge airlines in case of delay or cancellation from bankruptcy as Alanna LLC. On of a flight, denied boarding, or missing Tuesday, Alanna will ask the State Aviation a transfer. Average payment is EUR400. Service permission to resume DART’s AirAdvisor takes a 25% commission. routes to Albania, Georgia, Greece, Italy SerhiyAleksandrov, company head, said of and Montenegro. It will ask for authority his work in Ukraine: «AirAdvisor has been to open new routes to Helsinki, Stockholm operating in a test mode for more than and Erbil, Iraqi Kurdistan. With the same three months, during which we managed CEO as DART, VyacheslavLisichonok, to collect thousands of euros from airlines Alanna wants to fly from Kyiv, Kharkiv, Lviv around the world, including Lufthansa, and Odesa. Air France, LOT Polish Airlines, Ellinair, A Ryanair corporate jet was spotted Ryanair, Air India and Windrose.» Wednesday night at Boryspil, prompting Infrastructure Minister VolodymyrOmelyan Infrastructure Minister Volodymyr to announce Thursday that high level Omelyan wants to double traffic in and “successful” discussions had taken place out of Boryspil to 20 million passengers with executives of the Dublin-based by 2020. At the same time, he tells discount airline. With 421 Boeings serving reporters, he wants to promote Lviv, 205 cities, Ryanair is Europe’s largest Odesa and Kharkiv as regional air hubs. airline by scheduled passengers flown. Air Azur Ukraine launches March 25 In 2016, it carried more international a once a week flight from Kharkiv to passengers than any other airline in the Barcelona. The airline already flies from world. Kyiv Boryspil to Barcelona.

UIA plans to double passengers and double aircraft by 2021 and to add Banking & Finance 38 new cities by 2022, Aron Mayberg, board chairman of Ukraine International Ukrposhta is taking a big step toward becoming a postal bank by partnering 8 / 4

with First Ukrainian International Bank Blu hotel in Odesa, on the site of the to offer financial services at post offices. Seamen’s Palace on Primorskii Boulevard. Igor Smelyanski, acting CEO of the state Conversion of this early 19th century postal service, says he will concentrate on landmark building can now start as the villages without bank branches. He says project already received EUR40 million 80% of Ukrposhta’s 11,700 post offices from international funds, notably the Nordic Environment Finance Corporation, are in villages with less than 2,000 people. NEFCO, and Denmark’s Investment Fund To start, Ukrposhta will offer rural banking for Developing Countries, IFU. in Dnipropetrovsk, Kharkiv, Khmelnytskiy, Kirovohrad, Lviv, Sumy and Volyn and Ukraine proposes to create the post of Kirovohrad regions. The ultimate owner ‘Financial Ombudsman,’ an alternative of the bank, known as FUIB, is Rinat mechanism for out-of-court settlement Akhmetov. www.ukraineinvest.com of disputes between financial institutions and consumers, RuslanaDemchak, a Rada The number of money losing deputy who co-authored the measure. banks will fall below 10 this year, TetyanaBurak, a backer, writes: “The VitaliyVavryshchuk, a National Bank of Financial Ombudsman will be independent Ukraine official predicts to reporters. As in resolving disputes between the bank cleanup continues, the number consumers and financial institutions… has fallen regularly – from 33 in 2016 to He will work impartially, professionally 18 last year. and competently, as he works in most European countries.” Over the next five years, the Finance Ministry wants to cut the state share Venture capital investments in Ukraine of Ukraine’s banking sector from start-ups tripled last year to $300 55% today to 24%. “Ukrgasbank and million, Andrey Kolodyuk, board head of PrivatBank should be fully sold in 2020 the Ukraine Venture Capital Association, and 2022 respectively,» Finance Minister tells liga.net. This year will be even higher, OleksandrDanylyuk said at a government predicts Kolodyuk, managing partner of meeting Wednesday. To start, the AVentures Capital. On Monday, AVentures government plans to sell this summer announced that it is investing in 20% of its shares two state-owned CoreValue, a fast-growing IT-outsourcing banks - Oshchadbank and Ukreximbank. company. With 350 employees and Danylyuk added: “Before the end of 2019, R&D offices in seven regions, CoreValue we plan to create conditions for attracting specializes in pharmatech, fintech and minority shareholders - international healthcare. financial organizations like the International Finance Corporation (IFC) The average pension in Ukraine grew and the European Bank for Reconstruction 35.7% in 2017. The Pension Fund and Development (EBRD), respectively, in disbursed $10.6 billion in benefits to Oschadbank and Ukreximbank.» retirees in 2017.

Concorde Capital’s Alexander Paraschiy Ukraine may qualify for another loan writes: “The key issue for state banks at tranche of macro-financial assistance the moment is non-performing loans, and from the EU by this summer, Deputy a lot has yet to be done to enable them to Prime Minister Ivanna Klympush- resolve this issue.” Tsyntsadze tells Ukrinform meeting on Monday in Brussels with Valdis The Black Sea Trade and Development Dombrovskis, a European Commission Bank is loaning EUR 15.4 million for construction of a four-star Radisson vice president. The last EU program ended last month after Ukraine received EUR 8 / 5

1.2 billion of an agreed EUR 1.8 billion. based airlines with flights to Albania and Klympush-Tsyntsadze said Ukraine Ukraine. «has reached significant progress” in reviving the program. Concorde Capital’s Ukraine has met its European integration Alexander Paraschiy writes: “Certainly commitments by 41%, Ivanna Klympush- no new MFA program is possible in case Tsintsadze, Deputy Prime Minister for Ukraine won’t agree with the IMF on the European and Euro-Atlantic Integration next review of its Extended Funds Facility says. After the free trade agreement with program. Namely, Ukraine’s parliament the EU went into effect six months ago, has yet to approve a law on the High Ukraine set the goal of fully harmonizing Anti-Corruption Court in line with Council its laws and regulations with those of the of Europe recommendations, as the EU. «The Verkhovna Rada Ukraine met its government has yet to agree on a natural integration obligations by 30%, the Cabinet gas pricing policy for households.” of Ministers - by 42%, other executive authorities - by 50%,” she said at an Finance Minister OleksandrDanyluk EU-Ukraine ‘Future Plans’ conference says the European Commission has Friday. At the meeting, EU Ambassador to approved a new Macro-Financial Ukraine Hugues Mingarelli said that this Assistance program for Ukraine. He year Kyiv should prioritize: tax, customs, wrote Wednesday on Facebook: «I transport and intellectual property. welcome the decision to approve a new financial assistance program for Ukraine.” In Zhytomyr, the region immediately Over the last four years, the European west of Kyiv, three foreign-funded Commission has mobilized EUR 3.4 billion enterprises with a total of $90 million in macro-financial assistance through started operation last year. According to three programs of low-interest loans. the Regional Administration, they were: Of this, EUR 2.8 billion were disbursed. a Danish-funded pig farm, a Cyprus- Last December, the Commission balked funded sawmill and the reconstruction at disbursing the final EUR 600 million, of small hydro plant on the Sluch River. citing slow progress on IMF-mandated This year, two solar plants are being built reforms. Carnegie Europe’s Gwendolyn in Zhytomyr, one with Belgian money, the Sasse wrote Monday: “EU macro-financial other with French. assistance is meant to be aligned with the IMF, but the EU has repeatedly New York City-based Interactive taken a more flexible approach to its aid Advertising Bureau, or IAB, is forming disbursement.” IAB Ukraine. “Ukraine has witnessed unprecedented growth in its digital advertising marketplace in recent Business years,” said Dave Grimaldi, Executive Vice President, Public Policy, IAB. “With First drafts of a free trade agreement the formation of IAB Ukraine, this between Albania and Ukraine were industry now has a central convening exchanged Thursday in Kyiv by point to enhance collaboration across DitmirBushati, Albania’s Foreign Minister, the industry.” Yaroslava Antipina, most and PavloKlimkin, Ukraine’s Foreign recently head of Digital Projects at Media Minister. As Ukraine expands trade away Group Ukraine, is the new CEO. Founding from Russia, free trade agreements are members include: Google Ukraine, to be signed this year with Israel and, Admixer, Kantar TNS, GroupM, Publicis possibly, with Turkey. Although bilateral One, OLX Group, Media Group Ukraine, trade is minimal, a -Kyiv flight is and obozrevatel.com being studied by Ernest Airlines, a Milan- 8 / 6

GE plans to expand into healthcare in dollar consumer market, where Ukraine Ukraine, building on its investments can supply many products, ranging from in locomotive construction and wind food to industrial goods, clothing, various turbines, YuliaKovaliv, head of the Office equipment and services.» Although China of the National Investment Council, tells has a large trade surplus with Ukraine, Ukrinform. She says the Boston-based Ukraine exports to China, largely food, company wants to supply diagnostic increased by 11.3% last year. equipment for telemedicine in rural areas. President Poroshenko is preparing to Ukraine’s industrial output surged sign a bill regulating limited liability 3.6% yoy in January, the State Statistics companies, the most common form Service reports. Manufacturing of business in Ukraine. Rada Chairman accelerated by 9.7%. The manufacturing Andriy Parubiy tweeted after submitting www.ukraineinvest.com jump was due to machinery – up 22.1%; the bill to the President: “I am convinced metallurgy – up 8% ; chemicals – up that this law will improve the business 6%; and food – up 3%. Growth was the climate and attract foreign investment in strongest in Lviv – up 18%; Mykolayiv – the Ukrainian economy.” up 16.5%; and Chernivtsi – up 16%. Germany-Ukraine trade increased by Betting on a driving upswing, Poland’s 22.4% last year, with Ukraine’s exports UNIMOT S.A. plans to open 100 gas growing slightly faster than imports, stations across Ukraine under the reports the German-Ukrainian Industrial Switzerland’s Avia brand. By 2020, Chamber of Commerce, or AHK. The UNIMOT intends to open the Ukraine strongest driver for Ukrainian exports network and an equal number of Avia were: food – up 69%, followed by steel stations in Poland. – up 57%, and chemical products -- up 39%. On the import side from Germany, German furniture company Polipol the biggest growth was seen in cars – plans to build an upholstered furniture up 38.5% and mechanical engineering factory in Lviv region, according to Oleg – up 30%. Andreas Lier, president of the Synyutko, head of regional administration. Chamber, said: «The Ukrainian economy Herbert Vitver, a Polipol representative, continues to diversify. It is a good thing tells Ukrinform that by 2021, the company that metallurgy in Ukraine is getting back will employ 1,000 people with an average on its feet.” salary of 500 to 600 euros. Prime Minister Groysman is to lead a Ukraine exported 357 new goods to new commission to protect businesses the EU last year, and the number of from unlawful inspections and pressure exporting companies grew 5%, to 14,136, from security forces. Approved by the Natalia Mikolskaya, Ukraine’s chief Cabinet of Ministers on Wednesday, the trade representative reports. The fastest commission will include ministers, the growing items were: artificial fabrics, Ombudsman and leaders of the European apricots, cherries, milk, condensed cream, Business Association and the American fructose, projectors and electric kettles. Chamber of Commerce of Ukraine, Interfax reports. Ukraine will mount a large exhibition stand at the first China International Yaroslav, a Kyiv-based producer of Import Expo, Nov. 5-10 in Shanghai, textiles and bed sheets, plans to continue StepanKubiv, Minister of Economic investing $1 million a year to modernize Development and Trade, tells Ukrinform. textile mills in Ukraine, Alexander Barsuk, Kubiv says: «China is a multi-billion- director of the company tells Business 8 / 7 news site. Making sheets, blankets, the 2014 annexation. Represented by blankets, mattresses, children goods, Covington & Burling law firm of New York, kitchen towels, the company has factories Naftogaz expects a decision this year in seven cities in Ukraine. Barsuk said: in its suit against Russia in Permanent “For example, in Sumy region, we bought a Court of Arbitration Court, at The Hague, weaving factory in Krolevets, a depressed Netherlands. region. Seventy people work in the factory, but by next summer we plan to increase The Ecology and Natural Resources the number of employees to 300.» Ministry has refused to extend 64 oil and gas drilling permits for lack KTD Group plans to start producing environmental impact statements. energy-saving refrigerators in May in Interfax reports that Ukrnafta lost 27 Cherkasy, the Dnipro River city 200 km permits and Ukrgazvydobuvannya lost 37. south of Kyiv. The new factory is to have the capacity to make 300,000 units a year, Switzerland-based Axpo Holding is Alexander Gromyko, president of KTD opening a gas trading office in Kyiv, Group, tells Interfax. For exports to Europe, Axpo Ukraine, according to Ukr.Media. Gromyko said, “Ukrainian producers HlibTimofiyuk is the director. Since 2014, can replace Chinese companies” due to Axpo has become a major gas supplier to location, zero tariff market access and Ukraine. wage rates one third those of China. NAFTA, Slovakia’s leading oil and gas Danish engineering company BIIR was company, plans to invest up to $200 awarded building ownership by the Odesa million to drill at least 15 wells in the Appellate Economic Court on Tuesday. Yuzovsky formation in Kharkiv-Donetsk. In The dispute that won wide media 2015, Shell abandoned this eastern zone, attention --https://theubj.com/news/ fearing that separatist violence would view/below-odesas-tourism-promenade- reach the area. Three years later, Josef corporate-raiders-mug-danish-company Levoča, NAFTA’s head of exploration A former owner of the building learned and production, tells the Association of that a shopping center was to be built Ukrainian Gas Producers: «Your country next door and then tried to use local police has a great resource potential for the and courts to wrest control away from the implementation of oil and gas projects, foreign investor. BIIR Chairman Thomas and we are confident that Ukraine may Sillesen has said the building, overlooking soon become an energy self-sufficient Odesa port, is key to his plans to expand state.” Separately, in the west, NAFTA his Odesa staff to 500. is partnering with Houston-based Cub Energy to drill their first well together this Energy year, near Uzhhorod.

A Stockholm arbitration court has Since annexation, Russia has illegally ruled that Russia’s Gazprom must pay extracted 7.2 billion cubic meters of Ukraine’s Naftogaz $2.6 billion in debt, natural gas from Crimea and surrounding ending a four-year legal battle. “This is waters, Svetlana Neshnova, board chair a real victory,” President Poroshenko of Chornomornaftogaz, a subsidiary said on learning the decision Wednesday Naftogaz, tells Hromadske TV. About evening. «This is a historic decision to half -- 3.5 billion cubic meters – was protect the national and financial interests from the Odesa gas field. Naftogaz of Ukraine.» He said the money “will be calculates its six subsidiaries lost $5 credited immediately” to Naftogaz. Andriy billion in equipment and resources in Kobolyev, Naftogaz board chairman, tweeted: «We are pleased to have won 8 / 8

arbitration on key issues. This is an Real Estate important day for the Ukrainian people and the future of the European gas American investor John Crocket markets.” Gazprom did not comment. announces that he will shortly open Kiev Real Estate Recovery Fund II with President Poroshenko supports a a $10 million funding target. KRER proposal in the Rada to open an energy Fund 1 owns 11 apartments in historic exchange creating market prices for gas. buildings in central Kyiv. With the Speaking to reporters on Wednesday, renovated apartments largely rented to he said: “An energy exchange must be foreign diplomats and expat executives, created in Ukraine. We must choose either Crockett reports: “KRER 1 is now closed we have communism/socialism and to new investors, almost fully invested, prices will be set … by officials or they will

www.ukraineinvest.com dividend paying and, with total gross rents be determined by the market - demand of 13.4%, has successfully exceeded its and supply, taking into account imports.” investment goals.”

Ukraine’s State Geology Service will Kyiv’s housing boomed last year, with auction permits for four oil and gas delivery of commissioned houses and fields in April, Oleg Kirilyuk, head of the apartments increasing by 30% over service, Gosgeonriedr, said Wednesday 2016, the State Statistics Service reports. at the Ukrainian Energy Forum-2018 in Across the nation, housing construction Kyiv. Kirilyuk complained that one out of was up 9%. Construction in Kyiv city and four permits are not used and fees are not region accounted for 35% of the total, or paid. 3.6 million square meters. Among the big The EU will sign an agreement with growth regions were: Poltava -- up 72%; Ukraine in March to fund the new Energy Ivano-Frankivsk – up 30%; Zakarpattia – Efficiency Fund with EUR 50 million up 25%; Odesa – up 25%; Ternopil – up according to Katarina Mathernova, 25%; Dnipropetrovsk -- up 24.4%; Rivne a Slovak lawyer who is European region – up 21.5%; and Lviv up 11.6%. Commission Deputy Director General for Neighborhood Policy and Enlargement. Turkish fashion retailer Koton enters Ukraine’s market. A 1,557-square meter Privatization store opens in April on the first floor of Kyiv’s Lavina Mall, occupying a space that previously housed five stores. The State Property Fund will auction 25% of PJSC Sumyoblenergo shares on ProZorro.Sale, Ukraine’s electronic the PFTS stock exchange on March 30, auction platform for selling state according to Vedomosti. The initial value properties, won an international of the block of shares is $4 million. competition of anti-corruption projects, «Shield in the Cloud,» the Economic Auctions of the Port Plant and of Development and Trade Ministry reports. ZaporizhiaAluminum Smelter are now to Launched in 2016, ProZorro.Sale has be in May. Two other privatizations have helped the government to sell about $222 been delayed. Sale of the Kherson CHP million of toxic bank assets through online will be this month and Rigging will be in auctions. October. The government has hoped to radically expand privatization earnings Science this year, from $7 million last year to $788 million this year. Kyiv to Odesa in 30 minutes? Taking a tip from Elon Musk’s project to link New 8 / 9

York and Washington by vacuum ’s “4G lag” will be eliminated by the train, Infrastructure Minister Omelyan end of this year. An earlier 4G auction was announced Thursday that construction held Jan. 31. may start next year on a Hyperloop testing ground in Dnipro, Ukraine’s “rocket city.” Travel This year, a feasibility study is to be done by the National Academy of Sciences of Prime Minister Groysman proposes Ukraine. The Academy, Ukroboronprom, creating a state agency to promote and Kherson’s Kakhovka Plant of Electric inbound tourism, UNIAN reports. Welding Equipment are advising the Speaking to representatives of creative Minister on the project company, Center industries, he said: «It is necessary to for Transport Innovations Hype.ua. create a small -- literally 20 people -- agency for tourism development, and Social recruit people from outside the civil service.» Ukrainians obtained 4 million biometric passports last year, almost triple the Transportation 1.5 million in 2016, the State Migration Service reports. Today, about 6.7 million of Ukrainians, about 20% of the adult With road and railroads between Poland population, have biometric passports. and Ukraine seeing unprecedented Starting last June, Ukrainian holders of traffic,Poland’s Infrastructure Ministry these passports, which contain embedded plans to spend $12 million to rebuild 12km electronic microprocessor chips, are of track south from Przemysl, to restore a allowed to visit the EU visa free for 90 crossing between Malchovice, Poland and days. Nizhankovichi, Ukraine.

Work on rebuilding Odesa airport’s 2.8 Telecommunications km runway will be completed next year, Infrastructure Minister VolodymyrOmelyan Mobile operator Kyivstar intends to promises. The government has allocated launch this year its first 4G networksin: $18 to rebuilding the airport and “the Kyiv, Kharkiv, Dnipro, Odesa, Uzhgorod, construction of a cement plant is already Vinnytsia, Khmelnitsky, Ivano-Frankivsk, being completed,” he tells reporters. Work Ternopil and Lviv. There also will be 4G on the airport started in 2012, but was connections near border crossings in delayed due to a dispute over ownership Volyn and Lviv regions and in resort towns between the City Council and a private in Odesa and Zaporizhia. 4G tariffs will group. Air traffic growth has been slow, be unrolled in late summer and will be 18% to 1.2 million passengers last year. “10, 15, 20 UAH more expensive than This year, Lviv will probably displace existing ones,» Peter Chernyshov, Kyivstar Odesa as Ukraine’s third busiest airport, president, tells reporters. According to after Boryspil and Zhuliany. the company, Kyivstar’s 3G network now reaches 9,800 settlements, or 80% of the Renovating its rolling stock, Ukraine population. Railways added 907 ‘open top’ wagons in the first two months of this year. These Kyivstar, Vodafone Ukraine and lifecell cars are used for transporting bulk goods are authorized to bid in the March 6 such as coal, scrap, steel, wood and other auction of six lots of 4G communications cargo that can be tipped, dumped or licenses, the National Commission for shoveled. State Regulation of Communications and Informatization reports. ZN.ua reports that www.ukraineinvest.com Ukraine BusinessJournal The Radaisrevising a2017billthat thisinevery possibleway.”support passengers across theDnieper, Iwill for increasing themovement ofgoods, regional journalists: «Iamabsolutely the Dnipro aworkingriver againtelling Prime MinisterGroysman wantstomake they drive onatollroad, orfree ofcharge.” users have therighttochoose:whether existing one,canbeconcessional,sothat a newroad, whichrunsparalleltoan are nottransferred toconcessions.Only emphasize onceagain:existinghighways highways inUkrainewillbeareality! I on Facebook: “New, concession-based VolodymyrOmelyan, abacker, wrote travel times.Infrastructure Minister to routes thatbypass townsandshorten to bemadefornewroads, withpreference build tollhighways. legal frameworkforprivate companies to The Radahasapproved abillsettingthe decentralized system. year by localauthoritiesunderthenewly $370 millioninroad work tobedonethis government will monitortheestimated reports. Hesaidthenational UNIAN «dishonest» money onpaving contracts, that «localclans»are toearn trying road constructionthisyear, warning media tohelpthegovernment monitor Prime MinisterGroysman asksregional of engineeringandroad construction.” great potentialforouractivitiesinthefield on hiscompany’s website:“We seehere a majority shareholder JerzyMirgos says inKyiv.subsidiary MirbudPresident and S.A. constructioncompanytoopena boom hasprompted Poland’s Mirbud Ukraine’s highway construction © Whites Communication Limited, London, December 2017. All rights reserved. © WhitesCommunication Limited,London,December2017.Allrights reserved. Registered East Sussex TN325ER Office:14Hackwood,Robertsbridge, Designed andproduced by WhitesCommunicationLimited any responsibility for viewsexpressedspecifically stated.Thepublisherdoes not carry inthepublication. which are nottheviewsofUkraineInvest northe Ukraine BusinessJournal,itssubsidiariesorassociatesunless should beregarded asanyformofrecommendation toinvest ordivest. Thispublicationmay containpersonalviews, ofnewspublishedintheUkraineBusinessJournal dailyedition.Nothing containedwithinthispublication summary The BusinessWeek ispublishedincooperation betweentheUkraineBusinessJournalandUkraineInvest, andisa Concessionsare only $20 million. project, whichisexpectedtocostabout announced inAprilfortheAzov dredging Ukraine’s Thewinneristobe busiestport. last monthcompleteddredging Yuzhny, Harbor EngineeringcompanyLtd.,which Authority. TheChinesebidderwasChina Berdyansk, according totheSeaPorts Mariupoland two SeaofAzov ports, are vyingforatendertodredge Ukraine’s Chinese, DutchandCypruscompanies construction. year ofaconcessioncontractallowing Nowak said.Heaimsforasigningthis ties betweenUkraineandEUcountries,» contribute totheexpansionofeconomic highway, thiseast-westtollroad “will congested, 70kmstretch oftheM10 road bill.Runningparalleltoaheavily said aftertheRadaapproved atoll Ukraine’s road managementagency, Slawomir Nowak,CEOofUkravtodor, connect Lviv withthePolish border, Ukraine’s firsttollhighway would simplify control. waterways toforeign flagships,and would create ariver usetax,openinland 8 /10