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which is owed to financial institutions including the EBRD, Oschadbank, Ukrgasbank, Sberbank and Alfa-Bank. At a government forum on June 15, Zelenskiy said of UZ: “They are completely bankrupt.” The President said he is tasking Oleksiy Kubrakov, the new Infrastructure Minister, to bring the railroad out of bankruptcy.
Ukrainian Railways (Ukrzaliznytsia) generated UAH18,012mn ($644mn) of net revenue in 1Q21, or 10% less y/y, according to its unaudited financial report distributed by marlin.org.ua news site.
Its operating loss decreased 87% y/y to UAH821mn ($29mn) and net loss decreased 76% y/y to UAH1,675mn ($60mn). Ukrainian Railways was able to decrease salary and social expenses by 10% y/y to UAH10,103mn in 1Q21, keeping them at 56% of net revenue. The results imply the company’s EBITDA was about UAH2,230mn ($80mn) in the quarter.
The company’s acting CEO reported that Ukrainian Railways’ bottom line turned to positive numbers starting in 2Q, with net income reaching UAH35mn in April and UAH39mn in May.
According to its financial plan for 2021, the company is going to reach UAH3,641bn of net profit this year, with most of the contributions to the profit to be made in the fourth quarter.
Boryspil airport recorded a monthly profit of $1.5mn in May, its first profit
since the coronavirus pandemic hit European air travel in March of last year, Zhmak, the airport director, said. Despite the travel crisis, Boryspil recently started to receive regular flights from two new carriers – Cyprus Airways in May, and Flynas, a Saudi discount airline, in June. For the second half of this year, Zhmak predicted: “We expect Eurowings, Wizzair Abu Dhabi and several other new carriers.”
Ukrzaliznytsia is selling two bears to a Dutch zoo as part of a program started last month to sell ‘non-core’ assets. The bears were housed at the Zaporizhia Children's Railway. They are being transferred to the Ouwehands zoo in Rhenen, Utrecht. The zoo recently reopened its renovated ‘Bear Forest’. “I knew for sure that in the process of selling non-core assets there would be...but I definitely did not expect bears,” Ivan Yuryk, Acting CEO of the state railroad, writes on Facebook. Beyond bears, UZ has identified 182 non-core assets for sale through ProZorro.Sale.
Ukrzaliznytsia plans to let go 30% of management staff in Kyiv, about 800 positions, by the end of this year, announced Acting CEO Ivan Yuryk Implementing a long-planned managerial restructuring he said yesterday the goal is “to eliminate duplication of positions and clearly distribute the functionality between departments.” Ukraine’s largest employer, with 250,000 workers, the state railroad moves 82% of the nation’s freight and about half of passengers. For freight tonnage, UZ ranks fourth in Eurasia, after the railways of China, Russia and India.
9.2.5 Retail corporate news
ATB, the supermarket chain, generated the most revenue of all
66 UKRAINE Country Report July 2021 www.intellinews.com