Page 68 - UKRRptMay19

investing $10mn in Ajax Systems, a Kyiv-based producer of wireless security systems. A competitor to Amazon’s Ring, another Kyiv-based security system designer, Ajax makes sensors that detect intruders, fire, and flooding and remote controls for household appliances, locks, and lighting. Founded in 2011, Ajax employs 500 people in Ukraine and largely sells to the European Union.
With Kyiv restaurants unable to keep up with food orders, Glovo plans to open a ‘remote kitchen’ in August. Four ‘non-competing’ restaurant would cook under one roof at a central Kyiv location. “Already, restaurants in the centre of Kiev are not coping with orders....they do not have the capacity to provide such a flow,” Rasnovsky said of surging online demand. He also is considering opening a ‘remote kitchen’ in Troieschchyna, a Left Bank district, where costs are low and restaurant offerings are poor.
In a reversal, Ukraine’s mobile phone operators now earn more money from Internet than from voice. Last year, the nation’s cell phone companies earned 46% of their revenue from Internet --$600mn. Voice accounted for 42% or $550mn. By contrast, in 2016, operators earned three times as much from voice as from Internet, according to the National Commission for the State Regulation of Communications and Informatisation.
Kyivstar, the largest mobile communications operator in Ukraine, in a year after receiving the 4G license has built LTE network covering 4,587 localities where 58% of the Ukrainian population, the company reported on Wednesday. "Now Kyivstar has more than 24,700 towers. They provide 3G connection for 81% of the population and 4G connection for 58%," the company said in a press release. According to Kyivstar, the development of 3G and 4G communications in Ukraine cost Kyivstar UAH22.5bn in 2015-2018, of, which UAH7bn was paid for licenses for new communication technologies, UAH3.5bn for using frequencies, and UAH12bn was invested in the construction of communication networks.
9.2.9 Utilities corporate news
DTEK faces new risks related to coal supply limits from Russia DTEK Energy (DTEKUA), Ukraine's largest coal and electricity producer, is among the key companies to be most affected by the April 18 decision by the Russian government to restrict steam coal exports to Ukraine as of June 1. In particular, its two power plants had a planned shipment of 2.26mmt coal from Russia this year, covering 100% of their needs. Another power company to be affected is Donbasenergo (DOEN UK), whose single power plant had an expected shipment of 0.62mmt in 2019 (38% of its needs). Ukraine planned to import a total of 3.8mmt of anthracite (steam) coal from Russia this year, according to the forecasted power balance of Ukraine for 2019, published in October 2018. Recall, DTEK holding operates an anthracite mine in the Rostov region of Russia, which is a core supplier of anthracite for DTEK Energy’s Ukrainian power plants. Currently, two out of DTEK’s eight operational thermal power plants consume almost exclusively anthracite coal, which is not produced in Ukraine any more. The latest Russian restrictions will hurt DTEK holding’s coal and power business. At minimum, DTEK’s Russian mine will have to apply for a special permit to supply its coal to Ukraine (which will increase its costs). In the worst case, DTEK Energy’s power plants won’t be able to receive anthracite coal from its related Russian mine. While such a scenario does not look dangerous for the holding’s Kryvorizka Power Plant – as it can substitute
68 UKRAINE Country Report May 2019 www.intellinews.com