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partnership plan to rebuild the 85-year-old terminal, built when the region was part of Romania.
9.1.4 Construction & Real estate sector news
Ukraine’s largest unfinished building, the Respublika shopping centre in southern Kyiv, is to be auctioned Dec. 13 by the Deposit Guarantee Fund , Focus magazine reports. The massive shopping centre near Teremky Metro station, on Kyiv’s Ring Road, was collateral for loans of Dmitry Firtash’s now insolvent Nadra Bank. The National Bank of Ukraine stopped earlier sales, objecting to what the central bank called low sales prices. Noting that other major shopping centres subsequently opened on the Ring Road, Focus says delay leads to depreciation. It warns that the once grandiose project may have a future as ‘a large warehouse.’
9.1.6 Agriculture sector news
Ukraine crop harvest increases 15% y/y in 2018 . Ukrainian farmers have harvested 66.4mmt in crops (14.9% more y/y) from 14.3mn ha (96% of total land sowed) in 2018, while average yield increased 11.2% y/y to 4.65 t/ha as of November 19, the Agrarian Ministry reported the same day. The key driver of harvest results was corn, which was harvested from 4.1mn ha (or 90% of sowed land). Its yield surged 45.1% y/y to 7.5 t/ha in 2018. Oilseeds also demonstrated strong harvest results. In particular, the sunflower yield rose 13.4% y/y to 2.3 t/ha, while the total harvest increased 16.9% y/y to 13.8mmt. The soybean yield rose 33.9% y/y to 2.6 t/ha, while total harvest improved 19.4% y/y to 4.3mmt. The spring crop harvest improved y/y due to favourable weather conditions. The strong harvest will have a positive effect on economic growth and trade balance in the fourth quarter of 2018. Also, the strong oilseed harvest is potentially positive for vegetable oil producers like Kernel (KER PW) and Astarta (AST PW).
As of November 29, Ukraine’s farmers harvested a record 68.5mn tons of grain from 14.5mn hectares, 98% of the forecast area, reports the State Statistics Service. The previous record was in 2016 when 66mn tons of grain were harvested. Last year, the harvest fell to 61.3mn tons.
Ukrainian sugar production companies reported output at 1.44mn tonnes of sugar in the current making season , which has been started on August 31, according to the Ukrtsukor national association of sugar producers. Sugar refineries have processed 10.mn tonnes of sugar beets. In 2018, the area under sugar beets was 280,000 hectares, which is 13% less year-on-year, Interfax news agency reported on November 28. Earlier, Ukrtsukor forecasted a 11.2% y/y decrease in production of sugar in Ukraine in the 2018-2019 marketing year (September-August), to 1.9mn tonnes. The association also forecasted Ukraine's exports at the level of the previous year - at 500,000-600,000 tonnes. In the 2017-2018 marketing year, sugar production increased by 6.5% y/y to 2.14mn tonnes. Some 46 sugar refineries were in operation during that season. In September, Ukraine's parliament, the Verkhovna Rada, greenlighted in the second reading a bill aimed at deregulating the lucrative sugar industry. The document abolishes the regulations on the control of production and sale of sugar, which resulted in restrictions in the supply of sugar to the domestic market (quota A) and set a minimum price for sugar and sugar beets, according to Interfax news agency.
62 UKRAINE Country Report December 2018 www.intellinews.com