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9.2.2 Automotive corporate news
9.2.3 Transport corporate news
The government predicts that in 2024, UZ will endure more than ₴12B in losses. This is stated in the Ukrainian Railways (UZ) financial plan for next year, which has been approved by the Cabinet of Ministers. As well it is forecast that net income will reach ₴98.6B and total income will be ₴103.2B. After approval of the financial plan that predicts a loss, UZ will submit proposals for breaking even, including an increase in cargo transportation tariffs. The state railway company’s expenses will increase in 2024 due to higher electricity, diesel fuel, and natural gas prices combined with planned salary increases. In addition, the company's expenses will be affected by the exchange rate difference. At the same time, in September, the chairman of the UZ board, Yevhen Lyashchenko, stated that the company will end 2023 without a loss and even with a small profit. This has occurred despite, at the beginning of the year, UZ submitting a financial plan, which, due to the enormous social burden and restrictions on freight transportation, predicted a loss of ₴20.2B.
A 20% increase in railway freight rates threatens to reduce acreage in 2024. The Ukrainian Grain Association expressed concern about the upcoming 20% increase in tariffs for freight rail transportation and the use of freight cars in 2024 and called on the government and Ukrainian Railways (UZ) to find mutually acceptable solutions with the agricultural sector. It is noted that while the export of grain and oilseeds is significantly limited due to the war and expensive logistics (high tariffs for ship freight and insurance due to the risks of war), farmers are operating at a loss this year. The association notes that the increase in railway tariffs for freight transportation and the increase in the cost of using wagons will cause even greater losses to farmers, eventually reducing cultivated areas. The export of grain and oilseeds is one of the main sources of foreign exchange earnings for Ukraine, a reduction in the area sown under these crops automatically corresponds with a drop in exports and foreign exchange earnings. A decrease in production, and therefore in the export of grain and oilseeds, will lead to a drop in UZ's freight transportation and revenues.
Kyiv’s Boryspil International Airport signed a memorandum with American infrastructure consulting company AECOM, which provides cooperation, information exchange, and advisory support from AECOM experts in the reconstruction and modernization of airport infrastructure and Ukraine’s aviation sector.
9.2.4 Construction & Real estate corporate news
Concorde Capital invests about UAH 200mn in project of residential community in Irpin. The investment company Concorde Capital has invested about UAH 200mn in the O.Krasa residential community project in Irpin and allows further investment, Head of Concorde Capital Ihor Mazepa said in an interview with Forbes Ukraine.
109 UKRAINE Country Report December 2023 www.intellinews.com