Your SlideShare is downloading. ×
Ukraine no 11_february_17_ 2011
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×

Saving this for later?

Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime - even offline.

Text the download link to your phone

Standard text messaging rates apply

Ukraine no 11_february_17_ 2011

3,242
views

Published on

Published in: Investor Relations

1 Comment
0 Likes
Statistics
Notes
  • Hello,
    If you are seeking to find houses for rent, houses for sale, flats for rent and anything else property related in the Spain area. YespanYa Property is your number one online website if you are searching for houses for sale, you can search by an array of dimensions including bedrooms and property type, you can also narrow your search down to price or amenities. On the other hand if you are looking to sell your house or flat in Spain, then there is no better place to list it then YespanYa Property, put your ad in front of millions of local and national buyers.

    Spanish houses for sale
    Villamartin property
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Be the first to like this

No Downloads
Views
Total Views
3,242
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
9
Comments
1
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. ”The bi-weekly business report by Bonnier UKRAINE We want to be right in time in Ukraine to occupy our niche. Finn-Flare CEO Ksenia Ryasova PAGE 11| No 11 | 17 February 2011 | Creating transparency in emerging markets since 1991 | www.news2biz.com |MANUFACTURING Cargill enters animalRussias PharmStandard acquires 55% in nutrition market in UkraineUkrainian Biolik PAGE 2 Cargill, an international food producerFINANCE and marketer, will build an animal feedKardan sells controlling stake in VAB mill in central Ukraine (KirovogradBank PAGE 4 region) in the course of the current year.FOOD & AGRICULTURE PAGE 7Swedish Alpcot Agro expects SEK 322mfor capital expansion PAGE 6 Leading Baltic real estatePROPERTY & CONSTRUCTIONSwissôtel Hotels & Resorts to operate developer enters Ukraine Pro Kapital Group, the leading realnew deluxe hotel in Odesa PAGE 8 Finn Flares strategy in Ukraine foresees opening a representative office to estate developer in the Baltic States,RETAIL & SERVICE be then followed by the launch of flagship store. Picture: Finn-Flare plans to construct Coliseum, a shoppingFinn-Flare and Melon Fashion to enter and entertainment mall in theUkrainian market this year PAGE 10IT & MEDIA Nordic retailers launch expansion on Ukrainian city of Kryvyi Rig, in H1 2013.Austrian Epic ready to acquire fixed-line Ukrainian market PAGE 10monopoly Ukrtelecom PAGE 12 Clothing retailers Finn-Flare and Melon Group share the same Most important updatedTRANSPORT & LOGISTICS key figures in this issue plan: to expand their network of stores in Ukraine to make theUkrainian cabinet to simplify customs best of the promising market. Both have already conquered the Producer price index PAGE 16terms for Viking contrailer train PAGE 14 Consumer price index PAGE 16ENERGY & ENVIRONMENT Russian market and believe that Ukraine is the next logical step to Stocks PAGE 17ABB wins USD20m order to update follow. PAGE 10-12 SEE ALL KEY FIGURES PAGES 16–18Ukraines power net PAGE 14ECONOMY & POLITICSJapanese bank to finance Ukraines Ukrainan agri firm included WSEs performance in 2011 ALSO IN THIS ISSUE: ▶ Agroliga is first Ukrainian com-machinery import PAGE 15 in WSE blue chip index WIG Total closing index in 2011 pany listed on NewConnect PAGE 3 Kernel Holding, one of the largest 49000 ▶ BDO and SBC join efforts to be- 48250 47500 come no1 in Ukraine PAGE 5Bonnier Group/Äripäev publishes similar business reports on Po- Ukrainian vegetable oil producers, will be 46750 ▶ AeroSvit chases off SAS from Co- 46000land, Latvia, Lithuania, Estonia and China. As a subscriber you the first Ukrainian and the second foreign penhagen-Kyiv PAGE 13 3.01.11 14.01.11 25.01.11 5.02.11 16.02.11have access to your country report ten years back through our on- company to be included in the WIG20 indexline archives at www.news2biz.com. Multiple user access available of Warsaw Stock Exchange, comprising the Source: Bloomberg- write contact@news2biz.com or phone +372 667 0251. largest and most traded companies. PAGE 2
  • 2. 2 | No 11 | 17 February 2011 | © Bonnier Group/Äripäev | UKRAINEMANUFACTURING "Bioliks products are successfully and 23% respectively of the 2010 Since 2007, it has also been lead- sold in Russia and we are planning volume. ing in the markets commercial seg- to expand the sales volumes in both Biolik has become the fourth ment, having expanded its shareDRUG PRODUCTION Russia and abroad," Ilya Krylov says. drug manufacturing factory under from 18.9% to 20%.250-km south drift: Russias Founded in 1898, Biolik is one of PharmStandards control.largest drug maker grabs up the oldest drug manufacturers on The other three enterprises are Drug trade in Ukraine: big importer the post-Soviet terrains. Since the geographically dispersed throughoutUkrainian facility the immense Russian territory from Import and export of pharmaceutical products in Ukraine Soviet times, it has been deliveringRussias largest drug producer Kursk in the European Russia (some its medicines to the Ukrainian, Rus- 250000 Export, thsd.USDPharmStandard has acquired a 55% 250 km to the north of Kharkiv) to sian and other post-Soviet markets. 200000 Import, 10 thsd.USDstake in Biolik, a top-20 Ukrainian Ufa in the Ural region to Tomsk in 150000pharmaceutical company based in The range of the products manu- factured by Biolik makes up about Siberia. Additionally, PharmStan- 100000the countrys second largest city of dard has a plant producing medical 50000Kharkiv in eastern Ukraine. 70 items (vaccines, serums, nutrient 0 mediums, diagnostics and blood equipment in the city of Tyumen in PharmStandard reveals that the western Siberia. products, immunobiological, hor- 10 07 05 04 Jan 09 03 06 08 20 20 20 20 ov 20 20 20acquisition has been financed from -N monal, antiviral, antibacterial andits own funds, but does not disclose enzymatic drugs). Fact 1.35bnthe transaction amount. Source: State Statistics As the company has been con- "This is the first production facil- stantly upgrading its production fa-ity acquired by our company in During its IPO in May 2007, cilities up to international standards,Ukraine, which is the second largest PharmStandard placed its shares on it is today the only Ukrainian pro- drug packages is PharmStandardssales market in the region after Rus- the Russian Trade System (RTS) and ducer of certain types of phar- present annual capacity.sia," says Ilya Krylov, PharmStan- GDRs on the London Stock Ex- ” macons.dard investor relations manager, to Having invested more than USD change (LSE).news2biz. 100m in the upgrading and devel- Currently, PharmStandard board opment of its capacities, Pharm- chairman Viktor Kharitonin controls Standard is now capable of manu- (via Augment Investments Limited) facturing 1.35bn drug packages a 54.3% in the company, with the re- Bioliks products are year. maining 45.7% free floated on the successfully sold in Its portfolio includes over 250 LSE (27.6%) and RTS (18.1%). products used in the treatment of We have talked to Russia and we are diabetes, growth hormone defi- Ilya Krylov ir@pharmstd.ru planning to expand the ciency, cardiovascular diseases, gas- Tel +7 495 970 0030 (switchboard)Biolik is the first drug manufac- sales volumes in both troenterological and neurologicalturer acquired by PharmStandard disorders, infectious diseases, can- STOCK MARKETin Ukraine. Photo: PharmStandard Russia and abroad. cer, etc. PharmStandard investor relations manager Ilya Krylov Following the results of the first Kernel joins WSE blue chips, According to him, Bioliks prod- nine months of 2010, PharmStan- Agroliga NewConnect listucts will diversify PharmStandards Bioliks sales reached about USD dard has become the retail sector The second week of February thisexisting portfolio with vaccines and 17.7m last year, up 23.3% on the leader of the Russian pharmaceutical year has seen already two Ukrainianserums, oncological and immunobi- 2009 level of USD 13.3m. Domestic market with a 5% share. agrarian companies highlighted atological drugs. sales and exports constituted 77% the Warsaw Stock Exchange (WSE).
  • 3. 3 | No 11 | 17 February 2011 | © Bonnier Group/Äripäev | UKRAINE Thus, on 10 February 2011, the panys market value has grown more Warsaw Stock Exchange tonnes to 40,000 tonnes; to expandPolish stock exchange informed that than fourfold since that time, going and Ukrainian companies its milk production by a factor ofKernel Holding, one of the largest from PLN 1.5bn to 6.1bn. The Warsaw Stock Exchange is four to 4,500 tonnes and increase itsUkrainian producers and exporters "The inclusion of Kernel in the the largest stock market in the herd to 1500 milking cows by 2014.of vegetable oil and grain, would be WIG 20 index is a very important CEE region. To date, six Ukrainian By doing so, the company plansthe first WSE-listed Ukrainian com- step for our company. It is a tribute issuers have chosen WSE as a to increase its turnover to EUR 15mpany incorporated into the WIG20 to the vitality of our business and to platform for financing and secon- by 2014. Its turnover in 2009 wasindex comprising the largest and the significant growth we have dary trading – Agroliga Group, EUR 2.7m.most traded companies. achieved over the three years since Agroton, Astarta Holding, Kernel Besides, Agroliga is planning to Kernel will also be just the sec- we have been listed on the Warsaw Holding, Milkiland and Sadovaya enter the WSE Main List in someond foreign company included in the Stock Exchange," stated Andriy Ver- Group. two-three years.WIG20 index (the first being CEZ, evsky, Kernel Holdings board ▶ Sunflower oil producer andfrom the Czech Republic). The chairman, at the WSE. "Undoubt- "The very fact of the appearance grain trader Kernel (KER PW) willchange will be made at the annual edly, this event brings Kernel and of a small Kharkiv-based company be the first Ukrainian company torevision following the trading ses- Ukraine under the spotlight of the on the Warsaw Stock Exchange is join the WSEs benchmark WIG20sion on 18 March 2011. international investment commu- rather remarkable," says Oleksii Index with a 2.08% weighting. The dynamic expansion of Kernel nity: it will provide a further oppor- Kornilov, business development ex- ▶ Diversified agro holding AstartaHolding, and its promotion to the tunity to highlight the quality of our ecutive of Avantazh Capital, the (AST PW) will join the WIG40 withWSE blue chip index, is seen as an company and the investment oppor- Ukrainian investment group and a 1.65% weighting.example of the business success tunities in the agribusiness of Agroligas financial adviser, to ▶ Agroton (AGT PW) and dairywhich listing on the Warsaw ex- Ukraine." news2biz. "This is not a market gi- producer Milkiland (MLK PW) willchange can bring to Ukrainian issu- ant; this company has just a small Kernel Holdings success has as- join the WIG80 with respectiveers. sured the company a prominent po- vegetable oil refinery, a tiny milk weightings of 1.17% and 1.73%; sition not only on the WSE. In May farm and 5,000 ha of arable land." ▶ Newly listed coal producer Sa- 2010 it became one of the compa- dovaya Group (SGR PW) will be "But what Agroligas story has nies making up the MSCI Emerging added to a new index, the WIG shown is that the stock market is ca- Markets index, which is used by Basic Materials Index. pacious and flexible enough to pro- global investors to analyse the eco- ▶ Agroliga Group will be the first vide even a small business with nec- nomic situation in developing mar- Ukrainian and fourth foreign essary investment resources," he kets. company listed on the WSE alter- says. "On the other hand, Agroliga native stock market, NewCon- itself has made a precedent, which is nect. likely to be followed by other small,Agroliga became the first Ukrain- Agroliga in alternative league but ambitious and goal-seekingian company listed on the WSE al- Agroliga Group became the first Source: bgcapital.ge Ukrainian businesses."ternative market. Photo: Agroliga Ukrainian and fourth foreign com- pany listed on the WSE alternative Having completed the first Kernel debuted on the WSE on stock market, NewConnect, during Ukrainian small cap agricultural IPO Examples to be followed23 November 2007, raising more the very same February week. The on the NewConnect, the company To date, six Ukrainian issuers havethan PLN 400m from the sale of total number of companies listed on raised EUR 1m by floating 17% of its chosen the Warsaw exchange as anewly issued shares. Thanks to that both the WSE Main List and New- shares. Agroliga plans to use the platform for financing and secon-issue, a good development strategy Connect thus hit 600. proceeds to increase its sunflower oil dary trading: Agroliga Group,and effective management, the com- production by 100% from 20,000 Agroton, Astarta Holding, Kernel
  • 4. 4 | No 11 | 17 February 2011 | © Bonnier Group/Äripäev | UKRAINEHolding, Milkiland and Sadovaya WSE decided that the Eastern direc- WSE-operated public market and of Ukrainian VAB Bank to a group ofGroup. tion would be instrumental for the raising capital here. international investors represented The WSE expects to see more future of Polish capital market, is by Troika Dialog, a leading RussianIPOs from Ukrainian companies, now bringing fruits. Our commit- WSEs performance in 2011 investment bank.both on its regulated market and the ment to the Ukrainian market, sup- WIG Total closing index in 2011 In December 2010, the banksalternative trading floor. It also ported with activities of some bro- shareholders meeting approved itsplans to introduce an index of kerage houses, is generating results," 48500 capital increase of UAH 550m (ap-Ukrainian companies in the first half says Ludwik Sobolewski, the presi- 48000 proximately EUR 53m) to UAH”of 2011. dent of WSE management board in a 47500 1.249bn. press release. 47000 In January 2011, TBIF sold the The Warsaw Stock Exchange is 46500 controlling interest in VAB Bank to the largest stock market in the Cen- 46000 international investors for UAH 3.01.11 7.01.11 15.01.11 11.01.11 19.01.11 23.01.11 27.01.11 31.01.11 4.02.11 8.02.11 12.02.11 16.02.11 tral and Eastern Europe region, and 550m, the amount of the capital in-Agroliga has made a organizes trading on one of the most crease entirely injected by TBIF. rapidly developing capital markets Source: Bloomberg The new shareholders fully shareprecedent to be followed in Europe. VAB Banks development strategy,by other small, but Since 2006 the Warsaw exchange Since the day of its launch, put trust in its international top has been on the forefront of Euro- eleven companies originally listed on management team and are ready toambitious Ukrainian support and develop the bank in the pean markets as regards IPO activity NewConnect made a transition tobusinesses. (in 2010 it took the second place in the WSE Main List (regulated stock future, according to its press release.Avantazh Capital business development executive Oleksii Kornilov terms of both the number and value market). NewConnect is among the of offerings). most dynamically growing alterna- VAB Banks The relations between the War- tive trading platforms in Europe. In Petr Baron:saw bourse and the Ukrainian busi- 2010 a total of 68 companies held We go aheadness community are an important Eastern European giant their IPOs there, which was the larg- and the newpart of the WSEs strategy of growth The WSE hosts a regulated market est number among Europes alterna- shareholdersand reinforcement of its interna- for shares and derivatives, as well as tive markets. will supporttional profile as a leader in Central the NewConnect alternative equity We have talked to our furtherand Eastern Europe. For Ukrainian market for growth companies. The Oleksii Kornilov kaa@avantazh.ua advance andcompanies, which are leaders in WSE is also developing Catalyst – a Tel +380 57 700 44 14 development.their respective industries, presence market for issuers of corporate and Photo: VAB Bankon the WSE is an opportunity to municipal bonds.raise capital, grow and gain expo- Since 11 December 2010 the "We are grateful to Kardan that FINANCEsure on the international arena by Warsaw exchange has also hosted has been supporting the bank overpotential investors and business the WSE Energy Market, which en- the recent turbulent years for the ables spot trading in electrical en- OWNERSHIP CHANGEpartners. Ukrainian market," says VAB Bank Ukrainian issuers are, on their ergy as well as forward transactions. Kardan sells controlling CEO Petr Baron in a press release.part attracting a great deal of inter- NewConnect was launched on 30 stake in VAB bank "During this period, the bank man-est from investors on the WSE. August 2007. At present, a total of TBIF Financial Services B.V. (TBIF), aged to carry out its internal reor- "Ukrainian businessmen have 204 companies are listed there. an indirect subsidiary of the interna- ganisation, introduce best bankingchosen Warsaw. We are pleased that NewConnect gives smaller compa- tional investment company Kardan technologies and accumulate highour hard work since 2006 when the nies an opportunity of listing on this N.V., has sold a controlling stake in liquidity that allowed it to meet its
  • 5. 5 | No 11 | 17 February 2011 | © Bonnier Group/Äripäev | UKRAINEdebt repayment obligations and take vices and (water) infrastructure. the brand name for both the BDO comment on the deal and share hisan active position in lending." While holding controlling interests entire network and each of its mem- vision of the would-be synergy. "We go ahead and the new in its subdivisions, Kardan is capable ber firms.shareholders will support our further of working out and implementing According to BDO managing ▶ What are the terms of the merger,advance and development," he main- their strategies. partner Sergiy Balchenko, the wouldnt it be more appropriate totains. "Our position remains un- The company is listed on the merger shows his companys strong speak about a take-over rather thanchanged: as before, we remain inno- NYSE Euronext Amsterdam and the intent to extend its presence on the a merger?vators in the market. We will con- Tel-Aviv Stock Exchange. Ukrainian market, and the choice in What has happened is exactly thetinue to offer our customers and As of 30 September 2010, its to- favour of SBC looks pretty natural merger of the two businesses operat-partners flexible and advantageous tal assets amounted to EUR 5.9bn given that both firms render very ing in the field of management con-products. Having strong capitalisa- (compared with EUR 5.6bn as of 31 similar range of services, while SBCs sulting through combining their ex-tion and high liquidity, we will con- December 2009 and EUR 5.5bn as of client base (mainly Ukrainian com- perience, methodology and, what istinue to occupy leading positions in 30 September 2009). The companys panies) ideally replenishes that of most important, highly skilled and”many segments." revenues stood at EUR 489m on the BDO (servicing both domestic and experienced personnel. same date (against EUR 691m as of international clients). 31 December 2009 and EUR 518m ▶ What is the main reason of the as of 30 September 2009). merger? VAB Bank has been operating on What we were after is extending the Ukrainian financial market since the range of the rendered servicesHaving strong 1992. Its regional network comprises and strengthening the BDO Consult-capitalisation and high 150 branches throughout the coun- ings team of highly skilled special-liquidity, we will try. As of 1 July 2010, the banks ists. Now, we are aiming for the regulatory capital and net assets leading role on the Ukrainian marketcontinue to occupy stood at UAH 888.7m and UAH of management consulting.leading positions in 7.1bn, respectively. ▶ What are the near-term plans andmany segments. We have talked to Caroline Vogelzang Vogelzang@kardan.nl the overall development strategy ofVAB Bank CEO Petr Baron Tel +31 020 305 0010 Both companies are now operating the merged company? under the BDO Consulting brand. For the next few years we have "As a result of the transaction, planned to become the largest do- MERGER Photo: BDO Consulting in UkraineKardans current exposure to VAB mestic consulting company, whichBank will not be affected," says BDO Consulting, SBC join will also be capable of utilising theCaroline Vogelzang, Kardans inves- efforts, want to become no1 On the other hand, it is believed huge potential of the BDO interna-tor relations director, to news2biz. BDO LLC, the Ukrainian member of that having joined the BDO Consult- tional network. However, based upon the finan- the worlds fifth largest auditing and ing, SBC will be able to significantlycial statements as of 30 September consulting network BDO Consulting, expand its international client base, ▶ What is, in your opinion, the cur-2010, Kardan is expected to realise a has merged with System Business as well as benefit from the interna- rent state of the Ukrainian consult-loss of approximately EUR 30m. Consulting (SBC), a leading Ukrain- tional networks overall methodol- ing market and what are its future The company is active on emerg- ian consulting company. ogy, standards and instruments. prospects?ing markets, primarily in Central As a result of the merger, both news2biz has asked Nikolay The volume of the domestic con-and Eastern Europe and China, fo- companies are now operating under Lysenko, BDO Consulting partner, sulting market has substantiallycusing on real estate, financial ser- the BDO Consulting brand, which is who had formerly managed SBC, to shrunk during the global recession
  • 6. 6 | No 11 | 17 February 2011 | © Bonnier Group/Äripäev | UKRAINEand it is going to take it 1.5-2 years Last year, the aggregate total The point of the cash injection is some 900 hectares of winter rape.to recover. revenues of all the BDO firm- both to compensate for the Russian Altogether, including spring plant- Furthermore, the market is likely members stood at USD 5.284bn drought which affected the com- ing, we expect to plant 15,000 hec-to significantly change towards the (EUR 3.893bn), the number of part- panys 188,700 hectares in Russia tares this year," says Katre Saard,practical implementation of the ad- ners and employees reached 46,930 save for the Western Kursk region. head of Alpcot Agros activities invice given. This will result in the less and the number of offices stood at The company now says it plans to Ukraine, to news2biz. "We expect toskilled specialists being screened 1,082 in 119 countries. divest all the agricultural land it has increase our land holding to 20,000-out. BDO LLC has been operating in acquired outside four mega-cluster 30,000 hectares during 2011," she We would very much like to see Ukraine since October 2003. Initially areas where the company plans to adds.our potential clients adopting a established in Dnipropetrovsk, in accumulate 30,000 hectares of farm- "This is quite a large spread, I re-more pragmatic approach, when not 2006 the company opened its Kyiv land. alise, but we are talking to some ma-only choosing consultants, but also office. Currently, the company is In this connection, Alpcot Agro jor players right now in order to ex-utilising received advice. and ana- presented in Ukraine by four divi- has reconsidered its decision to di- pand our holdings, while at thelytical instruments in the course of sions: BDO, BDO Consulting, BDO vest the land in the Kursk and in- same time we are growing organi-”their activity. /---/ Legal and BDO Valuation. stead of selling it will develop it into cally, by speaking to private farmers There are 300 people working in a mega-cluster. The background is, in the areas were we have activities," ” the company, with other consultants as 2010 has shown, that the Kursk Ms Saard explains. attracted when necessary. region has a relatively smaller expo- SBC has also been active since sure to extreme weather conditions. 2003. Since then, the company has Low selling price of the land in theThe domestic consulting carried out more than 30 projects for Kursk region is the other main rea-market has substantially the Ukrainian, Russian and German son for the rights issue. In order to have companies. economy of scale, youshrunk during the Wee have talked torecession and it will take Nikolay Lysenko nlysenko@bdo.kiev.ua need to have a certainit 1.5-2 years to recover. Tel +38 050 335 98 26 (mobile) amount of agriculturalBDO LLC partner Nikolay Lysenko land within one area. Alpcot Agros head in Ukraine Katre Saard BDO Consulting international FOOD & AGRICULTUREnetwork was founded in 1963 by At the same time she underlinesmeans of combining efforts of audit- that Alpcot is not just buying all FARMINGing and consulting companies from available land in Ukraine but is fol-the UK, West Germany, the Nether- Alpcot needs more cash, Alpcot Agro intends to keep ex- lowing a strategy of three clusters, inlands, USA and Canada. Ukraine to grow in 2011 panding in Ukraine. Photo: Alpcot Agro Lviv and Ivano-Frankivsk in Western Since then, the global chain has The board of the Swedish based ag- Ukraine and Poltava in Centralbeen providing litigation, investiga- ricultural group Alpcot Agro is re- In Ukraine, the company intends Ukraine where purchases should betion, restructuring and risk advisory solved to ask its shareholder for an to keep expanding, also in light of concentrated.services to major corporations, law additional SEK 322m in capital from the fact that yields in Ukraine were "In order to have economy offirms, insurance companies, finan- a rights issue that will be decided at on par with expectation for 2010. scale, you need to have a certaincial services entities and government an extraordinary shareholders meet- "We have planted some 5,500 amount of agricultural land withinorganisations. ing on March 18. hectares with winter wheat and one area," she explains.
  • 7. 7 | No 11 | 17 February 2011 | © Bonnier Group/Äripäev | UKRAINE Also, Alpcot is expanding the NEW SEGMENT Established in Ukraine, in a press release. "We aregrain silo complex which it took over Cargill enters animal Ukraine in fortunate to have received stronghalf-finished from Polish Duda in 1991, Cargill ongoing support from both the agri-connection with buying their agri- nutrition market in Ukraine has so far been cultural community and govern-cultural assets in Western Ukraine in Cargill, an international producer active mainly ment. We believe we have a mean-July (see news2biz UKRAINE no 1, and marketer of food, agricultural, ingful role to play in this sector and, in grain andpage 4). The silo, which was financial and industrial products and in the process, help raise rural GDP oilseedsplanned by the Poles to store 50,000 services, is planning to build an and support local farmers incomes." segment.tons, has seen the completion of one animal feed mill in the village of Photo: Cargillphase and now has a capacity of Kutsivka in central Ukraine (Kiro- vograd region) in the course of the Agri output: Kirovohrad vs. Ukraine12,500 tons. current year. Y-o-y indices of agricultural production volume "We will expand the silo at the "In recent years, we have seen a The mill, estimated at USD 7m,pace that is required by the expan- significant increase in meat con- 60% Kirovohrad will have the capacity to produce,sion of our operation in Ukraine. sumption and meat production in 45% Ukraine mix and pellet approximately 50,000These things must go hand in hand," Eastern Europe. This investment will 30% metric tonnes of bagged and bulksays Ms Saard to nesw2biz. enable us to leverage our global ex- animal feeds per year. The new facil- 15% pertise, technology and knowledge ity is expected to employ up to 40 0% to support the growth of this re- full-time positions. -15%Fact newed livestock sector in Ukraine," Cargill has been active in Ukraine30,000 says Francis De Rosa, Cargills media -30% since 1991, is headquartered in Kyiv 2004 2007 2005 2003 2009 2006 2008 2010 2002 relations manager for Europe/Mid- and has now nearly 700 employees dle East/Africa, to news2biz. in the country. However, as the Source: State Statistics Committee in Ukraine Once operational, the mill will company has so far been activeha will be Alpcot Agros land bank distribute feed, under the Purina mainly in Ukraines grain and oil- Founded in 1865, Cargill todaycapacity by the end of this year brand, to local dairy, swine and seeds segment, the new project employs 131,000 people in 66 coun- poultry livestock farmers through a marks the companys entry into the tries. It has 75 businesses organised ” dealer network. Cargill expects this countrys animal nutrition market. around five major segments: Agri- Alpcot Agro has been listed on network to be made up of over 100First North in Stockholm since 2006. dealers in three years time. While culture Services, Food IngredientsThe business idea is to generate an the mill is being built, Cargill in- and Applications, Origination andattractive return by acquiring and tends to explore opportunities to Processing, Risk Management andfarming agricultural land in Russia help meet current local demand for Financial, and Industrial.and other CIS member states. Alpcot In recent years, we have animal feed. As a privately held company, itentered Russia in 2007 and Ukraine seen a significant "With significant operations on runs its fiscal year from June 1in 2008. the ground, we plan to draw on syn- through May 31. In fiscal year 2010, increase in meat ergies from our established grain the company reported net earningsWe have talked to consumption and meat and oilseed business and to leverage of USD 2.6bn on sales and otherKatre Saard katre.saard@alpcotagro.com valuable contacts and existing rela- revenues of USD 107.9bn. production in EasternTel +44 797 985 55557 (direct) tionships built up by our long-term We have talked to Europe. commitment to Ukraine," says Mal- Francis De Rosa francis_derosa@cargill.com Cargills media relations manager for EMEA Francis De Rosa colm Sayer, general manager of Car- Tel +44-1932-861174 gills animal nutrition business in
  • 8. 8 | No 11 | 17 February 2011 | © Bonnier Group/Äripäev | UKRAINEPROPERTY & Odesa, the hotels promotion materi- Odesa, amongst the top five larg- In June 2010, Swissôtel Hotels & als assert. est cities in Ukraine with more than Resorts signed a managementCONSTRUCTION one million inhabitants, is consid- agreement with another Ukrainian "There has never been a project of this kind in Odesa before," says ered to be one of the main destina- partner, KDD Group, one of theHOTEL MANAGEMENT Meinhard Huck, president of Swissô- tions for business, culture and tour- countrys leading property and in- tel Hotels & Resorts in a press re- ism in the country. vestment companies, for the opera-Swissôtels Ukrainian Due to the presence of a well- tion of a deluxe hotel in the Ukrain- lease.portfolio gets another hotel connected international airport, to- ian capital of Kyiv (see news2bizSwissôtel Hotels & Resorts has this gether with a well-developed rail UKRAINE no 1).month signed a management con- network, the largest sea port intract with the Ukrainian investor In- Ukraine and its outstanding geo- Kyiv deluxe projectterpoint Development for the opera- graphical location by the Black Sea The Swissôtel Kyiv is scheduled totion of Swissôtel Odesa, the new de- coast, Odesa is also a major trans- open in mid-2012 to welcome the ”luxe hotel expected to open in the port and commercial hub. guests of the UEFA Euro 2012 foot-Ukrainian Black Sea city in the ball tournament.spring 2013. The future Swissôtel Kyiv will According to the project devel- form part of the Sky Towers mixed-oper HI-Raise Constructions (a part use development complex to beof Interpoint Development), the 24- The new hotel will overlook the This unique comprised of the twin towers of 34storeyed Swissôtel Odesa will have Black Sea. Photo: Swissôtel Hotels & Resorts multinational and and 47 storeys. Sky Towers will bethe total area of 67,000 sq.m and in- positioned close to the Kyiv city cen-clude 333 modern and contempo- distinctive city is famous tre and the main railway station andrary rooms, varying from the classic "The location of the hotel on the will include hotel facilities, serviced French Boulevard is really superb. for its own traditions,category Swiss Advantage to Presi- residences and class A offices.dential Suites. The hotel is situated close to a park cuisine and humour, Swissôtel Hotels & Resorts is area, right on the coast of the Black leading the trend of The hotel will provide a lobby owned by Fairmont Raffles Hotels Sea, and only 4 km from the citylounge-bar with a library, two res- fashionable resort International, a leading global hotel centre. Interestingly enough, at thetaurants and a brasserie with an ex- company with 91 hotels and resorts end of the 19th century, a summer destination. worldwide under the Raffles, Fair-tensive terrace overlooking the Black cottage situated nearby that used to Swissôtel Hotels president Meinhard HuckSea, separate private dining rooms mont and Swissôtel brands. The belong to a mayor of Odesa, whichfor events and a lounge Skybar on company also owns Fairmont and was named Switzerland," he said. Founded in 2006, Interpoint De-the top floor. Raffles branded Residences, Estates "We are looking forward to a velopment is a part of Ener- and luxury private residence club fruitful partnership with Interpoint goTransInvest Holding, a Ukrainian properties.Exclusive facilities Development and HI-Raise Construc- consortium with large assets in theThe hotel facilities also include spa- tions, as well as the opening of a chemical industry, construction and ONWARD!cious conference and banquet new Swissôtel in Eastern Europe. real estate and agrarian sector.rooms. The Pürovel Spa & Sport This unique multinational and dis- HI-Raise Constructions is Inter- Interview with Swissôtel:complex with fitness facilities, tinctive city is famous for its own point Developments building arm. continued CEE expansiontreatment rooms and indoor and traditions, cuisine and humour, lead- Its revenues shrank by 21.2% to As Swissôtel Hotels & Resorts hasoutdoor pools with direct access to ing the trend of fashionable resort UAH 171.1m in 2009, while the net been proactively cultivating thethe beach will be unrivalled in destination." profit stood at UAH 17.2m. Ukrainian and other Central and
  • 9. 9 | No 11 | 17 February 2011 | © Bonnier Group/Äripäev | UKRAINEEastern European markets (see the Most architects are engaged by environment has a character unique to the mechanical engineering, air-story above), news2biz has asked the owning companies, but we work to its geographical location and as craft industries, light and agricul-Eva-Maria Panzer, the companys closely with hotel owners to realise we work in each destination with tural industries, as well as the statecommunication director, to tell their vision for the future, the out- different architects and interior de- chemical industry.about the global hotel chains pre- come of which is a unique property signers all our hotels look different. The Ukrainian metropolis is alsosent stance and its plans for the fu- featuring energy-efficient solutions But what unites them are solid, one of the most important transportture. throughout. authentic materials synergizing with nodal points in Eastern Europe – an functional, well-designed and smart environment in which superior qual-▶ For how long has Swissôtel Hotels details. Swissôtel Kyiv and Swissôtel ity international hotel chains are still& Resorts been interested in the Odesa are both going to be state-of- in short supply.Ukrainian market? the-art properties in every respect. And Odesa has the huge port and Our development department is an important trade knot. In addi-looks into a wide range of markets, ▶ Which Ukrainian cities, besides tion, it is interesting for travellersbut expanding in any country in Kyiv and Odesa, are you interested seeking relaxation in summer nearEastern Europe has been for a long in? the Black Sea.time one of our focuses – Ukraine There are no plans for furtherhas always been on the list. hotel projects in Ukraine right now, ▶ What is the main difference be- As we have been operating quite so we completely concentrate on the tween Swissôtel hotels and othersuccessfully the Swissôtel Krasnye Kyiv and Odesa projects, which are luxury hotel networks? What are theHolmy in Moscow and the Swissôtel under construction and are sched- main specialities of your hotels inTallinn in Estonia, we wanted to add uled to open in mid-2012 (Kyiv) and Eastern Europe?more properties to our portfolio in in 2013 (Odesa). Swissôtel Hotels & Resorts is athe East as we are convinced that We are looking forward to bring- distinctive group of deluxe hotelsthere is a high potential of customer ing our brand to Ukraine and we which combines contemporary de- ”demand for deluxe hotel properties. want to be open right in time with sign with local character. the Swissôtel Kyiv for the UEFA Euro▶ Which developer companies have Swissôtel Kyiv is scheduled to open 2012, which would be a suitableyou been working with until now, in mid-2012 to welcome guests of event to open our hotel and haverealising new hotel projects? the UEFA Euro 2012. Photo: Swissôtel Hotels guests experiencing our Swiss hospi- For the Swissôtel Kyiv we work tality in the Ukrainian capital.with the KDD Group and for Swissô- Superior quality Our hotel in Tallinn/Estonia fortel Odesa we work with Interpoint example was realised by Meelis ▶ What kind of guests do you international hotelDevelopment/Hi-Raise Constructi- Press from M Pressi Arhitek- mostly expect to receive in your chains are still in shortons. Both companies are well known tuuribüroo in Estonia and our hotel Ukrainian hotels? Business clients?and follow values of reliability, ef- in Moscow by Russian architects of By now we manage nearly 30 ho- supply in the Ukrainianfectiveness and high quality as we TTA, with the participation of the in- tels in 17 countries and in most of capital.do as a company with Swiss roots. ternational architect firm Woods our deluxe hotels around 70% of the Swissôtel Hotels communication director Eva-Maria PanzerBoth companies work on the projects Bagot. clients are business travellers andat a high speed and do it 24/7. Generally it is a combination of around 30% of the hotel guests are Our Swissôtel Krasnye Holmy in modern design with some Swiss individual tourists. Moscow for example is known for its▶ Do you engage new architects in touches. Following a simple philoso- Kyiv is home to governmental modern design combined with char-every new project? phy of unity, not uniformity, each ministries and authorities, but also acteristically Swiss touches, which is
  • 10. 10 | No 11 | 17 February 2011 | © Bonnier Group/Äripäev | UKRAINErecognized as modern, clean, reli- Over the last 15 years, Pro Kapi- Greece, Germany, Russia, Poland,able and practical. The hotels are lo- tal has, according to her, developed Slovenia, Hungary, Tunisia andcated in major destinations and me- an extensive project portfolio: from Egypt.tropolises all over the world, and shopping malls to office facilities tomost are situated in the city centre, hotels and residential buildings in Fact 320,000only a stones throw from the shop- the prime locations in Riga, Tallinn ”ping and business districts and the and Vilnius.local attractions. This is exactly what we are bring- sq.m of space has been built by Proing as a renowned Swiss brand to Ukrainian Coliseum will host office Kapital Group in the Baltic countriesthe future Swissôtel Kyiv and Swis- spaces, a food hypermarket, vari-sôtel Odesa. ety stores, cafes and restaurants, Pro Kapital considers the Its subsidiary Domina VacanzeWe have talked to beauty shops and spa salons, asEva-Maria Panzer evamaria.panzer@swissotel.com Ukrainian real estate has been the leading timeshare holi- well as an entertainment zone. day service provider in Italy forTel +41 44 317 62 28 Photo: Kryvyi Rig city administration market as an interesting more than a decade and is always onNEW MARKET EXPLORATION and challenging invest- the lookout for new hotels and spas. On the other hand, constructionLeading Baltic real estate of the shopping mall in such a large ment environment with In 2009, the revenues of Pro a large growth potential Kapital Group stood at EUR 85mdeveloper enters Ukraine industrial centre as Kryvyi Rig may, in opinion of Pro Kapitals board and the holding firm produced op-Pro Kapital Group, the leading real in the next years. erational loss of EUR 21m.estate developer in the Baltic States chairman Paolo Vittorio Michelozzi, Pro Kapitals spokesperson Iveta Vanagaregistered in Estonia, has announced become a sort of the entrance ticket We have talked toplans to construct Coliseum, a shop- to the Ukrainian market for his com- Iveta Vanaga iveta@a-sono.lv pany. The company has developed pro- Tel +371 29239064ping and entertainment mall in the jects in prestigious locations on theUkrainian city of Kryvyi Rig, in H1 "Developing a land plot in Kryvyi Rig as a real estate project is the first seashore in Tallinn, in the quiet Art2013. Nouveau districts and on the banks With its total area of 143,000 step that might be followed by other projects in other Ukrainian regions," of the Daugava River in Riga, and in RETAIL & SERVICESsq.m, the Ukrainian Coliseum will the old town of Vilnius. All in all Prohost office spaces of 10,000 sq.m, a says Iveta Vanaga, Pro Kapitals spokesperson, to news2biz. Kapital Group has built more than MARKET INTRUSIONfood hypermarket, variety stores, ca- 320,000 sq.m of space, with total in-fes and restaurants, beauty shops "Pro Kapital Group considers the Finnish Finn-Flare: Russia Ukrainian real estate market as an vestments of EUR 250m.and spa salons, as well as an enter- conquered, off to Ukraine interesting and challenging invest- Having started with the construc-tainment zone. Finn-Flare, the Finnish garments and ment environment with a large tion and reconstruction of individual In January this year, Pro Kapitals footwear retail network with an ex- growth potential in the next years. buildings, Pro Kapital has graduallytop management visited Kryvyi Rig tensive presence in Russia, is set to Entering this market is a logical moved into the development of terri-and was given the green light for the enter the Ukrainian market this year. movement for Pro Kapital Group tories that are as much as severalproject implementation. Once that has an extensive development hectares in size in the prime loca- The company is, according to itslaunched, the new mall will, accord- experience in the Baltic countries tions of the three Baltic capital cities. CEO Ksenia Ryasova (symptomati-ing to the city mayor Yuriy Vilkul, and Russia since 1997," she empha- The company has developed cally, before 2006 she headed Finn-create some 1,200 jobs for the local sises. business facilities and state-of-the- Flares representative office in Mos-people. art hotels in the Baltic States, Italy, cow) planning to start with the
  • 11. 11 | No 11 | 17 February 2011 | © Bonnier Group/Äripäev | UKRAINEopening of an own office, show- "We are also planning to develop and it is a truly promising and at- Leninkitukku clothing factory.room and a retail store in Kyiv. a franchising chain in the country," tractive market." Shortly after its opening, the com- "First, we will open our represen- she reveals. "This is the most inter- Having virtually exhausted the pany claimed the leadership amongtative office in Ukraine, which is esting variant for us, as Ukrainian existing potential of the Russian the domestic clothing manufactur-crucial for providing our regional entrepreneurs have a full picture of capital and looking for new markets, ers.partners with full-value services. the local market, buying behaviour Finn-Flare first launched its chain in Since 1965, the company hasConcurrently, we are going to open and other specifics." Russias regions and then proceeded been producing its clothing undera large "flagship" store, which will "We put high hopes on the to expand abroad. the Finn-Flare trade mark.not only sell our goods, but also, and Ukrainian market, which is ex- Thus, the companys entire net-mainly, demonstrate how a Finn- tremely interesting for us at the work (under the Finn-Flare and Ap- Fact 140-145Flare company store looks like," she moment. When planning our arrival pleMoon brands) currently com-says to news2biz. in Ukraine, we conducted a series of prises more than 350 outlets, includ- in-depth researches of the local con- ing some 250 franchise stores in sumer market and found out that Russia and a dozen ones in Kazakh- USD million shall reach Finn-Flares the franchising and brand retail stan. revenues this year. trade have been rapidly developing in the country," Ksenia Ryasova goes In 2000, Finn-Flare completely 45% revenue hike expected on. "So far, the competition on the changed its marketing strategy to Ukrainian market is not yet compa- This year, as Finn-Flare is planning give the key priority to the develop- rable with that in Russia, but it will to open 58 new stores (both own ment and manufacturing of casual certainly intensify. That is why we and franchising) in order to increase style clothes. At the same time, the believe that now is the best time to its revenues by 45% to USD 140- company started production of enter the Ukrainian market, the sec- 145m, it sees Ukraine as the most footwear and accessories.Finn-Flare has virtually exhausted ond most attractive one after that of promising market, which is likely to In 2003, the company opened itsthe existing potential of the Rus- ” Russia." be one day followed by Belarus. first store and design office in Mos-sian capital. Photo: Finn-Flare In 2010, Finn-Flare expanded its cow and has since then been devel- revenues volume by 20% to USD oping its franchising projects in Rus- "Since our company is not yetknown on the Ukrainian market, we 97m, having opened 73 new outlets, sia. Today, is a leading player in the including 33 own ones. "average plus" price segment of thehave concluded a partnershipagreement with a large local multi- Finn-Flares franchising pro- Russian clothing market. We want to be right in gramme appears to be rather attrac- Finn-Flare stores are presented inbrand retailer of casual and activewear. As a result, Finn-Flare 30 time on the Ukrainian tive to the company partners, as it the European and Asian capital andclothes will be sold in 30 of the market to occupy our does not require royalty and lump- prominent cities, such as Helsinki,chains 66 stores dispersed through- sum payments, but focuses instead Moscow, Saint Petersburg and As- niche. on the long-term development tana.out Ukraine," Ksenia Ryasova adds."This will definitely contribute to the Finn-Flare CEO Ksenia Ryasova meant to increase the existing turn- The Finnish company Ruveta OYbetter awareness of our brand." over and enhance the brand aware- holds the rights to the Finn-Flare The garments will be delivered to "So we want to be there right in ness with the help of Finn-Flares trade mark.Ukraine straight from China, Viet- time to occupy our niche," she sum- partners. We have talked tonam and Russia, where Finn-Flare marises. "But what is most impor- Finn-Flare was founded in 1960 Ksenia Ryasova office@finn-flare.ruclothes are actually manufactured. tant, is that the social and political in the small Finnish town of Salo Tel 8 906 038 01 55 (switchboard) situation in Ukraine has stabilised and was originally known as Salon
  • 12. 12 | No 11 | 17 February 2011 | © Bonnier Group/Äripäev | UKRAINEPLANNED EXPANSION 50m, according to Melon Fashion di- According to him, Melon Fashion the company started its pro-activeScandinavian-owned Melon rector general Mikhail Urzhumtsev. arrived on the Ukrainian market in expansion into the Russian regions. "We are currently negotiating June 2010 and has since then mar- With its Russian chain presentlyFashion Group to open 154 the opening of our outlets in the al- keted locally five out of its six reaching 454 stores (355 own andstores in Ukraine by 2014 ready operating and yet abuilding brands: befree (teenage apparel), 99 franchise ones), the company isMelon Fashion Group, the Saint Pe- shopping malls," he says to LOVE REPUBLIC (stylish girl gar- about to open some 80-100 moretersburg based womenswear manu- news2biz. "We are ready to open ment), WomenSecret (lingerie), outlets in the country this year.facturer and retailer principally stores everywhere we think it would CO&Beauty (accessories) andowned by Scandinavian investors be appropriate for us." SPRINGFIELD (mens and ladies Melon Fashion: Nordic owners(see the share capital structure be- clothes). The latter three are the "The Ukrainian market is strate- Melon Fashions share capital structure as of 08.02.2009low), is about to launch a large-scale Spanish brands run by the company gically important for us and we canexpansion campaign in Ukraine. under a franchising agreement since Scandinavian Manufactrust ApS see a big potential for the develop- So far, the company runs a net- May 2010. (SMAPS) 32.0% ment of retail trade in that countrywork of 500 stores in both Russia in general and our business in par- This year, the Saint Petersburg East Capital Group 28.3%and Ukraine. With its Ukrainian ticular," Mikhail Urzhumtsev says. based retailer is going to market its Individuals 20.6%chain numbering "just" 46 outlets "That is why we are prepared to sixth brand in Ukraine. Widely Swedfund International AB 14.8%(40 own and six franchising) as of 1 both develop our own chain and known as ZARINA (stylish women- Inkeda ApS 3.4% swear) in Russia, it will be promoted ”February 2011, Melon Fashion is set open franchise stores in Ukraine." Source: Melon Fashion Groupto invest around USD 15m of own as Ci Mi in Ukraine so as to avoid as-funds to expand it to 200 shops by sociations with the locally operating In 2010, Melon Fashion Groups2014. Zarina jewelry network. turnover totalled around USD 160m The first Ci Mi store is scheduled (both in Russia and Ukraine), up to open already in Q1 2011 in Kyiv. 55% on 2009. The Ukrainian market is On the whole, Melon Fashion plans We have talked to to develop its Ukrainian network Mikhail Urzhumtsev office@melonfashion.ru strategically important throughout the countrys entire terri- Tel +7 (812 326-63-616 (switchboard) for us and we can see a tory with a special emphasis on its big potential for the more urbanised eastern and south- development of retail ern regions, which offer high-quality IT & MEDIA trade floors in higher numbers. trade in that country. ACQUISITION OF DECADE Fact Epic story of Ukrtelecom: 50 Melon Fashion director general Mikhail Urzhumtsev Austrians prepared to buyMikhail Urzhumtsev: We are ready "There are certainly some diffi- A decade-long epic depicting nu-to open stores everywhere where culties in the local regulatory frame- merous attempts of numerousit is appropriate. Photo: Melon Fashion Group work and the general economic USD million will be Melon Fashions Ukrainian cabinets to sell the state- situation in the country, but still we turnover in Ukraine this year. run telecom monopoly is just a foot- In 2011 alone, the company are seeing the ongoing positive step away from its logical end.plans to open around 40 own and 10 trends, which will favour the effec- Operating as a womenswear fac- Epic (what a symbolic name!),franchise stores in Ukraine to reach tive development of our business in tory since 1926, Melon Fashion the Vienna-based investment house,the annual turnover of about USD Ukraine," he believes. Group was set up in 2005. In 2008, which is the parent company of the
  • 13. 13 | No 11 | 17 February 2011 | © Bonnier Group/Äripäev | UKRAINEUkrainian registered ESU, the only sation tender last December and though that Epic can use its vast Ukrtelecom earned just USD 6mbidder for the long-suffering Uk- domestic investment banks argue telecoms advising experience to re- in the first half of last year. Corpo-rtelecom, has reportedly accepted the government could have gener- structure Ukrtelecom and then list or rate and private clients have increas-the offer of the Ukrainian State ated up to USD 1.8bn for the coun- sell shares in the Ukrainian network ingly turned to better quality ser-Property Fund and is prepared to trys budget through a competitive operator with 82,000 employees to vices provided by privately owned ”pay USD 1.3bn (EUR 960m) for a sale. The government initially another investor. mobile and fixed-line operators.93% stake in the state-owned tele- planned to sell the phone company The sale of Ukrtelecom will becom group. in a 28 December 2010 auction (see the largest state asset deal since According to Peter Goldscheider, news2biz UKRAINE no. 3, page 11), 2005, when the biggest UkrainianEpics managing partner, the Austri- but since ESU/Epic was the only steel mill was sold to ArcelorMittalans hope to close the acquisition of bidder, Ukraine hired an independ- for USD 4.8bn.Ukrtelecom in March this year after ent company to value Ukrtelecom. Ukrtelekom has been repeatedly This is by far the largesttalks with banks to finance the pur- slated for privatisation throughout challenge we’ve everchase. Controversial deal the past decade, but every time the had. sale was delayed due to political The deal has been widely seen as wrangling and infighting. EPIC Managing partner Peter Goldscheider controversial after many top Euro- pean telecom groups that had ex- Nevertheless, the company still Not the first try pressed interest in Ukrtelecom – in- controls about 80% of the fixed-line Early last year, the Ukrainian cabi- cluding Deutsche Telekom and Nor- market in Ukraine, and the acquisi- net, which urgently needed money ways Telenor – were excluded from tion of this monster will allow the to cut the budget deficit and pay off the privatisation tender because they buyer to form Ukraines largest sub- loans, finally announced its readi- are more than 25% government- scriber base. ness to take out the long-shelved owned. Furthermore, Ukrtelecom holds privatisation plan, but the formal A second tender condition pre- selloff decision was taken only on 28 the countrys sole 3G licence and is vented bidding by telecom groups September 2010. expanding into Ukraines fast- that had more than a 25% share on "To make Ukrtelecom competi- growing mobile business. the Ukrainian market. At the same tive on the market, it is necessary to time, Epic is reported to be close to attract private capital," said the thenUkrtelecom still controls about Ukraines top political officials and transport and communication minis-80% of the Ukrainian fixed-line businessmen, a notion decisively de- TRANSPORT & LOGISTICS ter Kostiantyn Yefymenko. "The pri-market. Photo: Ukrtelecom nied by the company itself. vatisation of the enterprise is the Thus Peter Goldscheider denies only possible way of doing it and I AVIATION "It’s a full price and the banks are "market suspicions" that his com- can see no alternative."giving it a very hard look," Peter pany has been acting as a front for A highly bureaucratic and mis- AeroSvit chases off SASGoldscheider is quoted as saying by domestic oligarchs and insists that managed corporate dinosaur, Uk- from Copenhagen-KyivBloomberg. "This is by far the largest the tender is fair. rtelecom has indeed lost much of its Last fall, the Ukrainian airlinerchallenge we’ve ever had." According to him, the Ukrtele- value in the past decade, falling AeroSvit started flying on the Co- In the meantime, the government com takeover would amount to "a years behind European peers in penhagen-Kyiv route and already asoffer values Ukrtelecom at just USD landmark deal" for the group, which terms of introducing new telecom of March 25, SAS will stop its flights10m more than the USD 1.3bn start- currently employs around 3,000 technologies. on the route where SAS has so faring price that was set in the privati- people in Eastern Europe. He admits operated an MD80.
  • 14. 14 | No 11 | 17 February 2011 | © Bonnier Group/Äripäev | UKRAINE AreoSvit, which today has five LAND BRIDGE PROJECTS gions. In 2009, the European Com- Hultberg, to news2biz. "The Sovietweekly return flights on Copenha- Ukrainian government to mission named the Viking concept equipment, which is still used ingen-Kyiv, will from the end of March the best cargo transportation project Ukraine, has had great problems inin-crease its flight schedule to one promote Viking project of the past decade. living up to its own life-time expec-daily flight. The Ukrainian cabinet is going to Turkey, Lebanon and Syria have tancy and it has, so to say, been noticeably simplify customs proce- shown their interest in the project. maintaining itself to death," says Mr dures for the international contrailer Hultberg. train Viking in order to enhance utilisation of the service covering the 1733 km distance between the ENERGY & Ukrainian Black Sea port of Odesa ENVIRONMENT and the Lithuanian Klaipeda. According to the Ukrainian prime POWER PRODUCTS minister Mykola Azarov, the gov- ernment is interested in the full- ABB wins USD20m order to capacity operation of the Viking update Ukraines power net route and is prepared to introduce ABB, a Swiss-based company withAreoSvit has five weekly return joint Ukrainian-Lithuanian customs Swedish roots, the worlds leadingflights on Copenhagen-Kyiv and stations. power and automation technology Ukraine is one of a few countries inupgrades its schedule to one daily Last year, Viking transported group, has won an order worth USD the world with a 750kV network.flight. Photo: AeroSvit 41,804 TEU, up 10% on 2009, in- 20m from NPC Ukrenergo, Ukraines Photo: ABB cluding 21,846 TEU towards Odesa national power grid operator, to The Danish travel industry news and 19,958 TEU towards Klaipeda. supply 44 sets of SF6 (sulphur- ABBs state-of-the-art ultra-highbulletin Check-in.dk writes that the Still the trains potential is by far hexafluoride gas) circuit breakers voltage 800kV SF6 circuit breakeroccupancy rates on the flight have higher. rated at 800kV (kilovolts) to be in- has innovative features that includebeen too low. Thus the three Ukrainian har- stalled in five 750kV transmission a single operating mechanism per Spokesperson Pernille Christel bours, Odesa, Illichivsk and Mariu- substations around the country. pole, replacing the two found inAndersen from SAS Danmark says to pol handled a total of 659,600 TEU The breakers will be made at conventional 800kV breakers. Thisnews2biz that the company never in 2010, up 27.6% on 2009. ABBs plant in Ludvika in Sweden. provides greater reliability, reducedcomments occupancy rates on par- Klaipeda handled 294,000 TEU dur- These modern circuit breakers initial costs and considerable reduc-ticular routes, but adds: "It is always ing the same year. will replace outdated air blast-type tions in maintenance costs. The shiftour objective to increase our capac- The Viking service was conceived circuit breakers that have been in from air blast technology also elimi-ity and be present on the markets by the Lithuanian, Belarusian and operation for nearly four decades. nates the need for air compressionwhere SAS has the best opportunity Ukrainian railway operators, as well ABB will supply the equipment and facilities.to make money. We always try to as the Klaipeda and Odesa harbours, provide technical training. The cir- ABB will also supply controlimprove our traffic program and ad- and launched in 2003. cuit breakers will be replaced in four cabinets with bay control devices forjust capacity so that it matches sup- The Viking train runs through phases, starting in 2011 and ending the circuit breakers, along with anply and demand." Lithuania, Belarus and Ukraine and in 2014. on-line condition monitoring systemWe have talked to links a network of the Baltic regions "Our equipment also has a pro- built on ABBs substation automationPernille Christel Andersen pernille.andersen@sas.dk sea container and overland con- jected life time of 40-50 years," ex- technology.Tel +45 32 32 52 54 (direct) trailer lines with those of the Black plains ABBs Senior Vice President "This means that they can ob- Sea, Mediterranean and Caspian re- High Voltage Breakers, Anders P. serve directly where the fault is and
  • 15. 15 | No 11 | 17 February 2011 | © Bonnier Group/Äripäev | UKRAINEdirect the maintenance to this over 31.8bn USD in 2009, down ond half of 2008. However, since In collaboration with Ukrexim-point," explains Mr Hultberg. from USD 38.3bn in 2008, but the 2010, its economy has been back on bank, a government financial institu- Ukraine is one of a few countries EBIT margin stayed at app 13% for the recovery path, driven largely by tion that is supporting business ac-in the world with a 750kV network. both years, which meant a net profit steel exports, with an upturn in ex- tivities associated with the tradeThis project is part of the countrys of USD 4.1bn in 2009. ternal demand. transactions of Ukrainian firms, JBICefforts to modernize and upgrade its We have talked to Under these circumstances, this intends to support greater businesspower transmission network, which anders.p.hultberg@se.abb.com credit line will support the countrys opportunities for Japanese firms inincludes the refurbishment of Tel +46 21 32 5000 (switchboard) sustainable growth by developing in- the country.220kV, 330kV and 750kV substa- frastructure, improving the envi- In particular, by supporting ex-tions. ronment and creating business op- ports related to renewable energy "You only see 800kV nets in nice ECONOMY & POLITICS portunities contributing to the pro- and the natural resource sector, JBICcountries in the world, usually motion of industrial development. is pursuing the expansion of over-where there is huge physical dis- seas markets in the infrastructuretance from generation to consump- Japans JBIC to finance sector and strengthening the inter-tion of power. The operating voltage Ukraines machinery import national competitiveness of Japaneseis 750kV but the net has a max ca- The Japan Bank for International firms.pacity of 800kV. In Sweden for ex- Cooperation (JBIC) has opened the JBIC was established on 1 Octo-ample, we have a 400kV net, so the second credit line in the amount of ber 1999 through the reorganisationdimensions are really big," says Mr JPY 8bn. (around USD 96.6m) for of the Export-Import Bank of Japan.”Hultberg. the State Export-Import Bank of On 1 October 2008, JBIC became Ukraine (Ukreximbank). the international arm of Japan Fi- According to the loan agreement nancial Corporation (JFC), which signed by the parties, the credit line was officially set up on the same was co-financed with the Bank of The loan agreement was signed day. The banks mission is to pro-The Soviet equipment, Tokyo-Mitsubishi UFJ, Ltd. and Su- during the Ukrainian presidents mote sustainable and balanced de- mitomo Mitsui Banking Corporation visit to Japan. Photo: Ukrainian presidents official velopment of the Japanese andwhich is still used in (SMBC). website global economy through interna-Ukraine, has been The signing ceremony took place tional financial transactions. in Tokyo in January this year in the Ukreximbank was set up on 3maintaining itself to course of the state visit of the Since 1997, JBIC has collabo- January 1992 at the dawn ofdeath. Ukrainian president Viktor Yanuko- rated with the World Bank and pro- Ukraines independence. Today it isAnders P. Hultberg, vych to Japan. vided knowledge assistance to an open corporation, whose 100%ABBs Senior Vice President High Voltage Breakers The credit line offered to Ukreximbank on overall banking op- stake is owned by the state. The Ukreximbank will provide medium- erations, including appraisal capac- lender has the countrys largest net- In 2008, the country received a and long-term funds in yen or US ity building and improvement in the work of correspondent banks (moreUSD 200m loan from the Interna- dollars to finance the import of ma- efficiency of its business process. than 800 financial institutionstional Bank for Reconstruction and chinery, equipment and services by JBIC extended its first export throughout the world).Development under the World Bank, Ukrainian firms from Japanese ex- credit line to Ukreximbank in 2005. In Ukraine, Ukreximbank has thewhich will help fund this project. porters. The funds were successfully utilised Kyiv-based headquarters and 29 re- The ABB Group operates in Ukraine suffered a significant de- specifically for the development of gional branches and 93 offices (as ofaround 100 countries and employs cline in GDP in 2009, impacted by the Kyiv International Airport, the 01.01.2010) covering virtually allabout 124,000 people. ABB turned the global financial crisis in the sec- countrys key air gateway. the countrys territory.
  • 16. 16 | No 11 | 17 February 2011 | © Bonnier Group/Äripäev | UKRAINEKEY FIGURESINFLATION GROSS WAGES CONSTRUCTION PRICE INDEX 25% column A: average monthly wages in UAH; column B: indexed average wages, 100=2005 On monthly basis Jun 10 Jul 10 Aug 10 Sep 10 Oct 10 Nov 10 Dec 10 Year-on-year Month-on-month 20% Q2 2010 Q3 2010 Q4 2010 100 = previous month 101.3 101.8 100.7 100.9 103.2 101.1 101.3 15% Sector A B A B A B 100 = same month prev year 117.0 118.7 118.4 117.6 118.6 118.3 118.9 10% Industrial production 2,519 313 2,682 333 2,823 350 Year 2004 2005 2006 2007 2008 2009 2010 5% Finance 4,545 564 4,727 586 5,006 621 100 = previous year 120.2 125.6 123.5 123.1 135.3 111.3 115.8 0% Construction 1,689 210 1,915 238 ,2061 256 -5% Public administration 2,707 336 2,975 369 3,016 374 Market volume in current prices, UAH m New residential buildings in 1,000 m2 Feb 10 Apr 10 Jun 10 Aug 10 Oct 10 Dec 10 Apr 09 Jun 09 Aug 09 Oct 09 Dec 09 Feb 09 Dec 08 Real estate activities 2,367 294 2,525 313 2,740 340 7000 4200 Hotels and restaurants 1,460 181 1,518 188 1,546 192 3800 6000Source: National Bank of Ukraine Transport, communications 2,661 330 2,889 358 2,855 354 3400 5000 3000 National average 2,227 276 2,332 289 2,435 302 2600 Note: Wage accruals per pay-roll; Source: State Statistics Committee of Ukraine 4000PRODUCER PRICE INDEX 2200 3000 1800On monthly basis Jul 10 Aug 10 Sep 10 Oct 10 Nov 10 Dec 10 Jan 11 CONSUMER PRICE INDEX 2000 1400100 = previous month 99.8 100.9 100.1 102.4 99.7 100.9 101.3 column A: 100 = current 12 months; column B: 100 = previous month 1000100 = same month prev year 124.4 123.3 119.2 119.8 118.9 118.7 101.3 1000 600 Oct 10 Nov 10 Dec 10 Jan 11 Apr 10 Jun 10 Aug 10 Oct 10 Dec 10 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10Year 2004 2005 2006 2007 2008 2009 2010 Sector A B A B A B A B100 = previous year 120.5 116.7 109.6 119.5 135.5 106.5 120.9 Food, non-alcohol 113.0 100.5 111.4 100.1 110.6 101.0 108.6 101.3Note: Producer prices are prices of industrial goods excluding VAT and other taxes. Source: State Statistics Committee of Ukraine Alcohol, tobacco 122.1 101.6 122.1 101.1 122.1 100.8 121.9 100.5Source: State Statistics Committee of Ukraine Clothing, footwear 102.6 100.7 102.3 100.4 102.2 100.2 102.0 99.9 Housing, water, fuels 114.1 100.4 113.7 100.5 113.7 100.3 115.0 101.4 REAL ESTATE PRICESINDUSTRIAL OUTPUT INDEX Transport 103.4 100.0 103.3 100.7 106.6 101.6 107.3 102.4 New flats, average price in Kyiv, UAH/m2 Commercial, average rent price in Kyiv,On monthly basis Jun 10 Jul 10 Aug 10 Sep 10 Oct 10 Nov 10 Dec 10 Communications 91.1 99.6 91.1 99.9 91.1 99.9 91.2 100.0 USD/m2; period 7 - 14 Feb 2011 15000100 = previous month 99.5 102.9 101.5 102.9 104.8 97.8 104.7 Centre Gross CPI 110.1 100.5 109.2 100.3 109.1 100.8 108.2 101.0100 = same month prev year 108.9 106.4 109.2 110.2 110.2 109.9 112.5 14500 Source: State Statistics Committee of Ukraine - office 22.45Year 2004 2005 2006 2007 2008 2009 2010 14000 - retail space 38.09100 = previous year 112.5 103.1 106.2 107.6 94.8 78.1 111.2 SENTIMENT INDICATORS 13500 Right coast (without centre)Source: State Statistics Committee of Ukraine Consumer confidence index Business outlook index 13000 - office 15.21 Q4 2010 120.0 120 100 Q3 2010 115.4 12500 - retail space 24.56RETAIL TRADE 80 Q2 2010 121.8 12000 Left coastat current prices Oct 2010 Nov 2010 Dec 2010 Jan 2011 60 May 09 Sep 09 Jan 10 Jan 11 May 10 Sep 10 Q1 2010 115.6 - office 13.33Turnover in UAH m 51,682 47,744 53,603 41,117 40 20 Q4 2009 104.4Index 100 = previous month 102.2 97.5 111.6 75.5 - retail space 22.33 0 Note: National Bank of Ukraine has con-Index 100 = same month prev year 110.7 117.8 114.7 111.1 Jan 10 Mar 10 May 10 Jul 10 Sep 10 Nov 10 May 09 Jul 09 Sep 09 Nov 09 ducted a business outlook survey for a Number of transactions on secondary marketYear 2007 2008 2009 2010 longer period of time, but publishes the Mar 10 Apr 10 May 10 Jun 10 Jul 10 Aug 10 Sep 10 Oct 10Turnover in UAH m 318,725 449,308 442,793 529,883 Note: threshold of optimism = 100. Source: GfK index only since the end of 2009. Kyiv 345 350 378 321 376 390 407 389Index 100 = previous year - 141.0 98.6 119.7 Ukraine, International Centre for Policy Studies. Source: National Bank of Ukraine Source: realt.ua, Blagovest Real Estate AgencySource: State Statistics Committee of Ukraine
  • 17. 17 | No 11 | 17 February 2011 | © Bonnier Group/Äripäev | UKRAINECURRENCY INTEREST RATES STOCK EXCHANGENational Bank average rates 100 USD/EUR against UAH Average weighted annual interest rates on credits PFTS Ukraine Stock Exchange PFTS index 1132.46as of 17 February 2011, change 03 Feb 1300,00 900 Recipient, currency Jul 10 Aug 10 Sep 10 Oct 10 Nov 10 Dec 10 main list Price Change Change EUR (left)100 USD 794,1700 ↓ Companies, UAH 13.90% 12.95% 13.62% 13.84% 13.20% 15.02% in alphabetic order 17 Feb 02 Feb end of 09 USD (right)100 EUR 1072,9237 ↓ 1200,00 850 Companies, USD 10.43% 9.71% 10.33% 9.58% 10.11% 10.84% ↓ Alchevskiy Metalurg. Kom 0,24 - 4% + 71% Change 02 Feb + 4% ↑100 GBP 1274,4075 ↓ Households, UAH 24.61% 28.10% 27.48% 26.63% 25.93% 26.24% ↓ Azovstal 3,04 - 5% + 13% Change end of 09 + 98% ↑100 DKK 143,8949 ↓ 1100,00 800 Households, USD 11.39% 13.77% 10.69% 9.90% 11.17% 13.65% → Avdievsky Koksochim Zav 16,63 0% + 39%100 SEK 122,8656 ↓ ↑ Centrenergo 18,55 + 2% + 96% PFTS closing index100 NOK 137,0711 ↓ 1000,00 750 Kyiv Inter Bank Offered Rate (KYIVPrime) as of 16 February 2011 Dniproenergo - - - the last three months1,000 JPY 94,8483 ↓ Overnight 1 week 1 month 3 months Donbasenergo - - -100 LVL 1521,2302 ↓ 1.29% 2.24% 3.92% 5.29% 1150 900,00 700 ↓ Enakiyvckiy Metalyrginiy Zav 176,28 - 7% + 5% 1100100 LTL 310,7402 ↓ 25 Mar Source: National Bank of Ukraine, Bloomberg 25 Nov 13 May 04 Feb 17 Feb 19 Aug 01 Jul 07 Oct ↓ Interpipe Nizhnodniprovsky 8,22 - 2% -11% 105010 RUB 2,7129 ↑ 1000 ↑ JSCB Ukrsotsbank 0,67 + 6% + 91% Source: National Bank of Ukraine 950 MONEY SUPPLY → Krukivsky Carriage Works 38,87 0% - 900 in UAH m Aug 10 Sep 10 Oct 10 Nov 10 Dec 10 ↑ Mariupol Heavy Machineb. 11,18 + 9% - 850 800CREDIT Monetary base 220,384 216,727 221,581 215,713 225,692 ↑ Motor Sich Jsc 3689 + 11% + 124% 750The banks net lending in UAH bn, loan stock by the end of period M1 271,303 275,424 277,682 276,374 289,894 → Poltava Gok 46,59 0 + 69% 17 Nov 15 Feb 17 Dec 16 JanType of loan Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Currency outside banks 175,103 174,814 175,226 173,332 182,990 ↑ Raiffeisen Bank Aval 0,45 + 5% + 80%- to private companies 462.21 453.58 463.28 488.24 500.96 M2 555,327 567,747 574,946 572,660 596,841 Stirol Concern - - -- to households 241.31 229.34 221.32 218.76 209.61 - Time deposits 284,025 292,323 297,264 296,286 306,947 Sumske Nvo Im. Frunze - - -- to others 15.25 14.76 13.48 14.65 14.82 M3 556,176 568,810 576,046 574,070 597,872 Zakhidenergo - - -Total 718.77 697.68 698.08 721.65 725.39 - Net foreign assets EUR bn 90,010 114,789 107,673 105,972 115,732 ↑ Ukrnafta 775,41 + 15% + 360%Source: National Bank of Ukraine Monetary base: Ukrainian currency emitted by the central bank and money on accounts held ↓ Ukrtelecom 0,56 - 3% + 22% with it. M1= currency outside banks + demand deposits M2= M1+ time deposits (lnc in foreign cur- ↓ Yasynivskiy Koksohimichniy Z 5,1 - 1% + 52% rencies) Source: National Bank of Ukraine Note: PFTS index 100= 1 October 1997 Source: PFTSTRADEUkrainian exports and imports according to commodity groups Ukraines eight largest markets for trade of goods, ranked according to Jan-Aug 2010 in USD bn EXPORTS in USD bn IMPORTS in USD bn EXPORT IMPORT Jan-Nov 2010 Share Jan-Nov 2009 Share 2009 Share Jan-Nov 2010 Share Jan-Nov 2009 Share 2009 Share Jan-Nov Jan-Nov No Country Share 2009 Share No Country Share 2009 ShareNon-precious metals, metal products 15,776 34,2 11,678 32,8 12.824 32.3% 3,678 6,8 2,425 6,0 2.681 5.9% 2010 2010Mineral products 6,135 13,3 3,382 9,5 3.891 9.8% 18,877 34,9 13,904 34,4 15.675 34.5% 1 Russia 12,132 26,3 8.495 21.4% 1 Russia 19,742 36,5 13.236 29.1%Machinery 5,074 11,0 4,450 12,5 5.003 12.6% 7,248 13,4 5,537 13,7 6.270 13.8% 2 Turkey 2,629 5,7 2.127 5.4% 2 China 4,165 7,7 2.734 6.0%Agricultural food products 8,626 18,7 8,509 23,9 9.529 24.0% 5,030 9,3 4,365 10,8 4.952 10.9% 3 Italy 2,168 4,7 1.228 3.1% 3 Germany 4,111 7,6 3.852 8.5%Chemical products 3,091 6,7 2,279 6,4 2.501 6.3% 5,679 10,5 4,729 11,7 5.316 11.7% 4 Belarus 1,661 3,6 1.259 3.2% 4 Poland 2,542 4,7 2.170 4.8%Light industry products 0,923 2,0 0,961 2,7 1.032 2.6% 2,380 4,4 1,698 4,2 1.817 4% 5 Poland 1,615 3,5 1.213 3.1% 5 Belarus 2,272 4,2 1.693 3.7%Wood, wood products 1,615 3,5 1,353 3,8 1.469 3.7% 1,839 3,4 1,455 3,6 1.636 3.6% 6 Germany 1,384 3,0 1.248 3.1% 6 USA 1,569 2,9 1.286 2.8%Other goods 4,890 10,6 2,991 8,4 3.454 8.7% 9,357 17,3 6,305 15,6 7.088 15.6% 7 India 1,199 2,6 1.152 2.9% 7 Italy 1,244 2,3 1.140 2.5%TOTAL 46.1 100% 35.6 100% 39.7 100% 54.1 100% 40.4 100% 45.4 100% 8 China 1,199 2,6 1.434 3.6% 8 Hungary 1,136 2,1 0.678 1.5%Source: State Statistics Committee of Ukraine
  • 18. 18 | No 11 | 17 February 2011 | © Bonnier Group/Äripäev | UKRAINEGDPat current prices UNEMPLOYMENT GENERAL INFORMATION Reports for professionalsPeriod Real growth GDP in UAH m GDP per capita Current account Registered unemployed (ILO), in ‘000 and % of population in working age Population: 45,700,395 doing business year on year current prices in UAH in % of GDP Currency: Hryvnia (UAH) in Eastern Europe & China 2500 number (left) % (right) 15Q3 2010 3.4% 303,705 - - 2200 12 In power: President Viktor Yanukovych. MostQ2 2010 5.9% 262,365 - 1.3% 1900 9 seats in parliament Party of Regions (34%, PM news2bizQ1 2010 4.9% 218,125 - - 0.7% 1600 6 Mykola Azarov), Block of Y. Tymoshenko (31%). AS Äripäev, Pärnu mnt 105 1300 3 Elections: 2012 parliamentary, 2015 presidentialQ4 2009 - 6.8% 261,730 - - EE-19094, Tallinn, Estonia 1000 0 Most important tax rates phone: +372 667 0251 fax: +372 667 0265 e-mail:Q3 2009 - 16.0% 251,263 - - Income tax: individual 15%, corporate 25% Q1 10 Q2 10 Q3 10 Q1 09 Q2 09 Q3 09 Q4 09 Q1 08 Q2 08 Q3 08 Q4 082009 - 15.1% 914,720 19,862 - 1.5% contact@news2biz.com VAT: 20%2008 2.3% 948,056 20,495 - 7.0% web: www.news2biz.com Source: State Statistics Committee of Ukraine Social tax: up to 35%Source: State Statistics Committee of Ukraine, National Bank of Ukraine news2biz POLAND news2biz UKRAINECURRENT ACCOUNT REGIONAL DATA news2biz LITHUANIAin USD m 2008 2009 2010 Nov 2010 Dec 2010 Output Monthly wages (UAH) Unemployment New dwellings news2biz LATVIATrade balance - 16,091 - 4,655 - 8,397 - 1,003 - 1,205 Ukraines regions Jan-Dec 2010 */ Jan 2011 Jan-Dec 2010** Jan-Sep 2010*** 2009 news2biz ESTONIAServices, net 1,741 2,633 4,709 324 345 Industry Agriculture Amount Index* in 000 % ‘000 m2 % to ‘08 news2biz CHINADirect investments, net 9,903 4,654 5,684 726 905 Autonomous Republic of Crimea 110.5 98.5 1991 116.6 59.1 6.7 387.3 93.2 Investments, companies, market trends,Current account balance - 12,763 1,801 - 2,558 - 559 - 815 Cherkasy 117.1 105.0 1835 119.8 62.9 11.0 144.8 88.7 key figures.Source: National Bank of Ukraine Chernigiv 99.8 86.9 1711 116.8 54.5 12.0 104.8 51.5 Published on-line every 2 weeks. Chernivtsi 111.8 103.4 1772 116.3 35.2 9.9 164.8 45.2 Independent news research since 1991.FOREIGN DIRECT INVESTMENT Dnipropetrovsk 116.1 101.0 2369 120.7 116.6 7.5 170.4 38.9 On-site journalists in Poland, Ukraine, Lithuania,in USD m Donetsk 114.8 101.6 2549 120.5 188.5 9.3 173.0 39.6 Latvia, Estonia, Sweden and China.On quaterly basis Q2 09 Q3 09 Q4 10 Q1 10 Q2 10 Q3 10 Ivano-Frankivsk 100.2 100.4 1927 118.4 47.4 8.7 380.6 73.7in Ukraine 1,439.1 625.9 1,435.2 - 19.4 394.7 2,109.8 Kharkiv 105.8 87.1 2060 114.2 96.4 7.6 427.5 192.0 Publisher Bonnier Group/AS ÄripäevUkrainian DI abroad 1.8 - 35.6 32.1 569.9 - 29.0 87.1 Kherson 100.5 102.9 1726 116.5 47.5 9.6 75.2 32.7Year 2004 2005 2006 2007 2008 2009 Khmelnytsky 104.9 100.1 1786 117.4 54.1 9.4 266.1 86.3in Ukraine 2,252.6 7,843.0 4,717.3 7,935.4 6,073.7 4,410.4 Kirovograd 112.8 102.0 1815 118.1 43.5 10.0 66.5 51.8Ukrainian DI abroad 32.6 20.9 23.8 5,953.3 6.5 20.2 Kyiv (Kiev) 107.9 100.1 2295 115.5 59.2 7.9 680.1 58.4Source: State Statistics Committee of Ukraine Lugansk 107.1 91.8 2271 121.2 78.0 7.7 35.1 14.1 Lviv 100.9 96.9 1942 116.5 92.2 8.3 391.6 50.2 Editor-in-Chief Kertu Ruus kertu@news2biz.comKEY ECONOMIC DATA FORECAST Mykolayiv 110.3 101.0 2122 117.5 48.4 9.0 86.2 53.6 Senior Editor Peter Kyhn peter@news2biz.com 2010 2011 2012 Odesa 102.8 108.7 2046 114.5 65.0 6.3 537.2 63.4Indicator Newsdesk Ukraine Oleksandr Gavrylyuk IMF Swedbank IMF Swedbank Swedbank Poltava 112.6 91.8 2102 121.3 68.6 10.0 155.5 59.5 oleksandr@news2biz.comGDP change 3.7% 4.0% 4.5% 4.3% 4.8% Rivne 129.6 102.0 1960 121.4 60.5 12.0 98.3 56.9 Customer Service Toomas HõbemägiConsumer prices (inflation) 9.8% 11.7% 10.8% 10.0% 8.5% Sumy 93.5 91.7 1866 117.1 58.2 12.0 138.6 69.7 toomas@news2biz.comCA balance, % of GDP - 0.4% - 1.0% - 1.3% - 2.0% - 3.0% Ternopil 102.5 94.8 1659 117.5 50.8 11.0 146.2 48.0Sources: IMF, Swedbank Vinnytsia 106.5 102.8 1782 117.9 76.4 11.0 171.5 47.4 Subscription prices e-access Volyn 126.7 101.5 1692 118.6 40.1 9.1 138.7 71.1 3 months (5 issues) EUR 260COUNTRY RATING Zakarpattia 142.6 96.2 1846 118.2 52.5 9.5 169.2 43.0 6 months (10 issues) EUR 460Agency rating outlook Zaporizhzhia 107.8 101.9 2187 118.7 64.7 7.9 101.2 46.6 12 months (20 issues) EUR 790Fitch Ratings B stable Zhytomyr 108.2 100.2 1785 119.6 60.8 11.0 88.8 35.9Standard & Poors B+ stable National average 111.0 99.0 2239 117.5 1,772.3 8.7 6,399.6 61.0 This edition completed 17 February 2011Moodys Investor Service B1 stable * Index 100 = same period of the previous year. ** Data refer to enterprises with 10 and more employees; preliminary data. Next issue on-line 3 March 2011Source: Investment agencies *** ILO, working age