Page 57 - UKRRptSept18

plant in Lutsk and a car factory in Cherkasy).
9.2.3 Transport corporate news
Ebitda of Ukraine’s state-owned railway monopoly Ukrzaliznytsia declined by 11% year-on-year to UAH9.35bn in January-June, according to the company's consolidated unaudited report filing. The company’s Ebitda margin fell to 23% from 30% a year before. The monopoly's net revenue increased 13% y/y to UAH39.9bn in the first half of the year. Its workforce and social expenses surged 42% y/y to UAH19.99bn, accounting for 50% of revenue (up from 40% a year before). At the same time, declining non-operating and financial costs enabled the company to boost its net profit 3.8x y/y to UAH0.47bn in January-June.
Lviv International Danylo Halytsky Airport in January-July of this year increased passenger traffic by 49.7%, to 844,500 people, according to the airport's official Facebook page. In July 2018 the airport transported 193,100 passengers, which is 45,4% more than in Jul -2017. The number of flights made in July reached 1,600, which is 26% more than in July last year. At the same time, the number of flights in January-July increased by 30.5%, to 8,479 from 6,495. As reported, passenger traffic at Lviv airport in the first half of 2018 amounted to 651,500 people, which is 50.9% more than in the first half of 2017.
9.2.4 Construction & Real estate corporate news
One of the largest owners of office spaces in Moscow О1 Properties of O1 Group of Russian billionaire Boris Mints changed shareholders. Cyprus-based Riverstretch Trading & Investments (RT&I) acquired 70% of its Class A and 58.4% of its Class B share in the company, according to Bloomberg and Vedomosti daily. This development is in line with previous reports claiming that O1 Group consolidated its stake from minorities and that O1 Properties informed the holders of its $350mn Eurobonds that it will change ownership . Since spring O1 Group defaulted on three out of five bond issues worth a total of RUB87bn ($1.37bn). One of them was the $350mn Eurobonds maturing in 2021 issued by O1 Properties. This issue carried a change-of-control clause, as well as in most of the company's secured loan covenants, Standard & Poor's warned on June 13 . Thus a change of ownership might lead its creditors to call for immediate repayment of most of company's debt, the agency reminded, noting that this lead to keeping the ratings on CreditWatch negative. At the same time O1 Properties asks the bondholders to waive the right for immediate repayment, as currently it has no funds to withstand such demand. The beneficiaries of RT&I are not disclosed, but previously unnamed sources told Vedomosti daily that the company acts in the interests of Rosneft oil major and investment group Region. RT&I was hired to restructure bad debts of Rossium consortium of Roman Avdeev, whose Credit Bank of Moscow took over RUB25bn debt of O1 Group, which was collateralised with a controlling 62.5% stake in O1 Properties. Boris Mints, who reportedly moved to London with his family , has his businesses suffering from banking assets contagion, and he risks losing over RUB20bn in assets after the Central Bank of Russia took control of banks in which he is a shareholder, Promsvyazbank (PSB) and Financial Corporation Otkritie last autumn.
57 UKRAINE Country Report September 2018 www.intellinews.com