The Business Week for the week of February 17-23, 2020

The Business Week for the week of February 17-23, 2020


Lviv’s airport increases passenger-handling capacity by 50% . Ukraine’s Lviv Danylo Halytskyi International Airport is continuing to bolster its capacity and attractiveness to foreigners as it increased its passenger handling capacity by 50% to 3,000 passengers an hour, according to its Facebook page. The baggage carousel capacity at the airport was also increased. In January alone, the airport’s passenger flow totaled 163,400 people, or 28.6% more than during the same month last year. Lviv’s airport is growing in its importance considering its close proximity to the EU and the growing economic activity within the region.

Pivdennyi seaport increases freight transshipment by 28% in January. Ukraine’s largest seaport Pivdenny handled 4.6 million tons of cargo in January, a 28.5% increase compared to the same period of last year, according to the Ukrainian Sea Ports Authority. During this month, the port’s transshipment of exported cargo went up to 3.1 million tons, a 9.4.% increase, whereas imported cargo went up to 0.88 million tons, which is 2.5 times more compared to last year. Altogether, the port handled 53.9 million tons of cargo in 2019, a 26.1% increase compared to the previous year. Ukraine’s ports are confidently increasing their cargo handling capacities as well as modernizing their operations. For example, on February 13, DP World, one of the leading global port operators, acquired a 51% majority stake in TIS Container Terminal Ukraine.

Ukravtodor inks Memorandum of Cooperation with Cengiz holding. Ukravtodor has signed a memorandum of cooperation with the Turkish construction company Cengiz that stipulates a large-scale repair works of the route Nova Kakhovka – Mariupol. Currently, the estimated cost of the project is UAH 9.1 billion. The framework of cooperation envisages carrying out large-scale repair works in three regions: Kherson, Zaporizhya and Donetsk. This initiative is a part of governmental efforts aimed at enhancing major infrastructure upgrades in Ukraine. “From March 1, we are launching the Great Construction initiative across the country. The Government’s priority is to cover Ukraine with high-quality roads. That is why we will always support constructive initiatives, including the Memorandum of Cooperation, signed today, ” said Prime Minister of Ukraine Oleksiy Honcharuk.


US-Ukrainian Antares rocket launched into space from Virginia. Antares, a U.S.-Ukrainian two-stage rocket, was launched into space from a NASA facility in Virginia on February 15. The rocket carried into orbit Northrop Grumman robotic resupply spacecraft Cygnus cargo spacecraft which arrived at the International Space Station on February 18. The rocket is partly designed by the Pivdennyi Design Office and made by Pivdenmash, both of which are based in Ukraine’s city of Dnipro. Ukraine’s aerospace industry is looking for new ways to modernize the sector within the country through international partnerships and new investors. Ukraine is home to some of the leading scientists and engineers within the field that have created cutting-edge civil, military and cargo aircraft as well as space technology. 


Ukraine increases agricultural exports by 14% in January. Ukraine’s agri-business keeps on expanding as agricultural exports were up by 14% in January year-over-year, according to the Ministry for Development of Economy, Trade and Agriculture in Ukraine. Altogether, Ukraine exported $2 billion in agricultural goods with the top destinations being China (10.2%), Egypt (10.1%), Spain (8%), the Netherlands (8%), and Turkey (6%). The ministry said that Ukraine is increasing its volumes of finished, niche and organic products. Altogether, agricultural goods make up about half of all of Ukrainian exports.

Ukraine’s T.B. Fruit responsible for 10% of global juice market
Ukraine’s largest fruit and berry processor, T.B. Fruit, was responsible for about 10% of the global juice market in 2019, according to Interfax news, citing the company’s founder Taras Barschovsky. Every tenth cup of juice in the world and every fourth cup of apple juice in the U.S. is made out of fruit and berries processed by T.B. Fruit, according to the company’s press release. T.B. Fruit is the third largest producer of concentrated juice in Europe, as the company consists of 7 processing plants, 4 of which are located in Ukraine. It is currently building its eighth plant in Poland. The company’s overall processing capacity is 1 million tons of fruit.

Ukraine’s meat and egg production up in January 
Ukraine’s production of meat went up by 4.5% in January year-over-year, reaching 322,700 tons of meat, according to the State Statistics Service. The country also increased its egg production to 1.2 billion eggs, a 7.4% increase during the same period. Ukraine’s farmers continue to bolster their production capacities in various spheres of production, including wheat, sunflower, barley and berries. As there is plenty of room for the country’s agri-business to expand, farmers are looking for various niche markets that they can win over in order to export their products around the globe.


Credit Agricole’s net profit increases by 18% in Ukraine in 2019. French bank Credit Agricole had a successful year in 2019 as its net profit reached Hr 1.73 billion (about $70 million), or 18% more than in 2018, according to the bank’s press release. Additionally, the French bank witnessed even faster growth for the fourth quarter of 2019 as it made Hr 398 million, or 43% more than during the same period of last year. 2019 was a successful year for many other banks in Ukraine, as altogether its banks recorded $2.5 billion in profit, according to the National Bank of Ukraine. According to Kateryna Rozhkova, first deputy governor of the National Bank of Ukraine, the country’s return on equity ratio of 34.2% was the best among the country’s neighbors.