Page 55 - UKRRptOct18

VIK of Poroshenko's close associate Ihor Kononenko controlled another 11.5% stake, according to 2016 data of the Stock Market Infrastructure Development Agency.
France’s Alstom and China’s CRRC have signed memoranda of cooperation with Ukrzaliznytsya for the production in Ukraine of electric locomotives. Earlier this year, Ukraine’s state railways signed a 15-year production and supply deal with GE Transportation for diesel locomotives. This week, Evhen Kravtsov, the railroad CEO signed the agreements in Berlin. He says that the railroad needs up to 500 new electric locomotives by 2029. The average age of the railroad’s 800 electric locomotives is 39 years.
Ukrainian Railway CFO Andriy Ryazantsev says the company is considering a 12% across the board tariff increase to catch up with inflation. He also says capital spending will be one third less than the ambitious $1bn goal set in January. Dragon Capital writes: “Considering the approaching election season, we think securing approval for a tariff hike will be challenging, especially a double-digit one.”
Ukraine’s state-owned railway monopoly Ukrzaliznytsia signed a memoranda for cooperation with French Alstom and Chinese CRRC aimed at supplying Ukraine with electric locomotives, the company reported on September 19. The company's acting CEO Yevhen Kravtsov said in a statement that the monopoly is going to select a strategic partner for electric locomotive supplies by the end of 2018, indicating that the company’s total need for new electric locomotives is 500 units by 2029. In February, Ukrzaliznytsia inked 15-year framework agreement worth about $1bn for the renewal and modernisation of its traction rolling stock with US firm GE Transportation. The agreement's first stage envisages the delivery in late 2018 and the first quarter of 2019 of 30 GE TE33A cargo diesel locomotives with a localisation level of 10% at the end of the warranty period (three years) and 7% at the time of accepting. GE also signed a $140mn purchase and sale agreement with and Ukraine's state-owned Ukreximbank for the delivery of the first 30 diesel locomotives to the rail monopoly. The lender will then transfer the locomotives to Ukrzaliznytsia under the terms of financial leasing for seven years. The contract was signed under the guarantees of Citigroup. Among the key criteria for selecting a partner is a high share of Ukraine-based added value in producing a locomotive, the company stated. It currently has a fleet of 800 electric locomotives whose average age is 39 years.
Boryspil Airport is looking for an investor – foreign or national – to build a new air cargo terminal next year , ideally using public private partnership legislation that the Rada is to pass this fall. Daily air cargo loads are hitting 120 tons a day, triple the design capacity of the existing cargo terminal, Pavlo Ryabikin, the airport director, tells the EBA’s Global Outlook conference.
9.2.5 Retail corporate news
France’s Decathlon, the world’s largest sporting goods retailer, plans to open its first store in Ukraine in the first quarter of next year, UNIAN reports. With 1,414 stores in 45 countries, Decathlon has chosen a site near Pochaina metro station, near Obolon, on the Blue Line. Decathlon follows other major global retailers into Ukraine. Last month, H&M opened its first Ukraine store, in Lavinia Mall.
55 UKRAINE Country Report October 2018 www.intellinews.com