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that will also increase the demand for high quality warehousing as well as expanding domestic chains.
In anticipation of the rising demand Ukraine’s leading investment bank Dragon increased its Kyiv warehouse holdings by 50% in mid-May by buying a 100,208 square meter office and logistics complex in Bilogorogoda, six kilometres from the Kyiv ring road, between the Odesa and Zhytomyr highways.
With the purchase of Amtel Logistics Complex, Dragon’s portfolio of 11 warehouses totals 294,000 square meters on the right bank of Kyiv and 391,000 square meters across Ukraine, the company reports.
Dragon also is building the first stages of two industrial parks – 25,500 square meters on the E40 in Kyiv; 14,500 square meters on the M10 in Lviv. Dragon already owns six shopping centres, 10 warehouse complexes and 13 office buildings.
In April the European Bank for Reconstruction and Development (EBRD) lent Dragon Capital $12.5mn for construction of the Grand Business centre and two warehouses, one in Brovary and one in Kharkiv.
Last July, Grand Business centre – a 15-story Class A office centre, with 9,000 square meters of leasable space – became Kyiv’s first office building to receive a sustainability certificate under the Building Research Establishment Environmental Assessment Method, or BREEAM, an internationally recognized environmental rating system.
In February Dragon exited its first real estate investment, the Omega-2 warehouse, a 32,731 square meter logistics complex in Brovary’s industrial zone, facing the city’s bypass road.
“This is our first closing of a commercial real estate sale deal after we made a bet on this segment in 2016, and it demonstrates that there are opportunities in this market not only for profitable investments, but also for exits,” said Volodymyr Tymochko, Dragon’s managing director for Private Equity said as cited by UBN.
2.6 Ukraine’s energy security hit by Belarusian sanctions
Ukraine’s energy security is in the firing line as the international community hit Belarus after Belarus' president Alexander Lukashenko forced the commercial Ryanair flight to land in Minsk and arrested top opposition journalist Roman Protasevich on May 23.
Ukraine remains heavily reliant on Belarus for its refined petroleum products that are piped over the boarder. It has already been suffering from shortages of diesel fuel, but as US sanctions are due to go into effect in June supplies of all petroleum products could plunge even further.
Belarus is cutting its shipments of premium unleaded gasoline to Ukraine by 80% for June, Serhii Kuyun, director of the A-95 consulting group, writes on Facebook as cited by UBN. Ukraine will get 10,000 tons, instead of the normal 50,000.
16 UKRAINE Country Report XXXX 2018 www.intellinews.com