Page 67 - UKRRptFeb19

“Ports operate in regular mode, export shipments take place according to the plan,” he said Tuesday. The two ports account for about 5% of Ukraine’s annual exports of 45mn. Given the shallow depths of the Azov and the low clearance of the new Kerch Strait bridge, the grain ships are largely in the 5-6,000-ton class. Most exports go short distances, to Turkey or Europe. This 5% can easily be redirected by truck or train to Black Sea ports, Nikolai Gorbachev, president of the Ukrainian Grain Association, said in a statement. Trains can replace ships to minimize the impact of a Russian blockade of the Kerch Strait, Dmitry Sologub, deputy head of the National Bank of Ukraine says. He said the monthly “influence” is “on the scale of tens of millions of dollars.” By some estimates, 20%% of Ukraine’s steel exports pass through the ports of Mariupol and Berdyansk.
Rada passage of a concessions bill would unlock almost $700mn in private investments for two Black Sea ports – Kherson and Olvia. Seven companies – foreign and national -- want to participate in tenders for public-private partnerships to develop the ports, says Stepan Kubiv, Minister of Economic Development and Trade. For Olvia, formerly Oktyabrsk, 30 km south of Mykolaiv city, a 35-year concession would involve $618mn in investment and $2.5bn in revenues to the budget, the ministry calculates. For Kherson, 75 km to the east, a 30-year concession envisages $50mn in investments and $580mn in government revenues.
9.1.4 Construction & Real estate sector news
Some commercial real estate – offices, warehouses and retail – could double in price in the next three years , Oleksandr Nosachenko, Managing Director of Colliers International in Ukraine, tells Interfax-Ukraine. “The current value of assets is very cheap,” he says. “If nothing dramatic happens to our country and economy, in particular, in three years, in some cases we can get the cost twice as high as the one paid by buyers.” He said international investors look for finished buildings, with below market values, with good locations, stable cash flows, and quality tenants with long-term contracts.
Two lots of real estate in Lviv’s historic centre sold for a record $16,500 a square meter, 60% higher than the earlier record of $10,300 in 2015. The City Council put up for auction on Monday a total of 73 square meters in two historic building on Rynok Square. With nine bidders in the auction, the final price was $1.2mn, almost triple the starting price. The winner, Zaxid.net reports, is Yuri Lomag, the business partner of Grigory Kozlovsky, who earlier this year bought two properties on the square for a total of $780,000.
9.1.6 Agriculture sector news
Ukraine's gross grain harvest stood at 70.1mn tonnes in 2018 vs. a 62mn harvest last year, according to the nation's Agricultural Policy and Food Ministry.
The country threshed 35.5mn tonnes of corn, 24.5mn tonnes of wheat, 7.3mn tonnes of barley, 0.41mn tonnes of rye and 0.13mn tonnes of buckwheat, the ministry said in a statement on December 19, Interfax news agency reported the same day.
67 UKRAINE Country Report February 2019 www.intellinews.com