Ukrainian low-cost airline SkyUp suspends charter flights to China due to deadly coronavirus outbreak. Starting on Feb. 3, SkyUp Airlines, which organizes charter flights for tour operator JoinUp!, will suspend its flights to China for the period from Feb. 3 to March 28 due to the outbreak of a new coronavirus in China, Interfax-Ukraine reports. This virus has already killed 80 people, leading China to lock down the city of Wuhan, where it originated, and place travel restrictions on much of the surrounding province. The airline will bring all its clients back from China’s Hainan island to Ukraine on Jan. 29 and on Feb. 1. The company will also reimburse the cost of the tickets. The World Health Organization does not currently regard the coronavirus outbreak as a global emergency, while both Ukraine’s Health Ministry and the State Aviation Administration do not recommend stopping flights between Ukraine and China. Nevertheless, on Jan. 26, the Health Ministry started screening all the passengers arriving on direct flights from China.
SkyUp has become one of the top 15 fastest growing airlines in Europe. According to the Anker Report, SkyUp is the seventh fastest growing airline in Europe in terms of network growth. In 2018-2019, SkyUp added 93 new routes to its schedule. Irish low-coster RyanAir took first place in the ranking: it added 417 new destinations to its schedule in 2018–2019, including 40 from Ukraine. AirFrance was runner-up with 192 new destinations. WizzAir, an Eastern European low-cost carrier popular with Ukrainians, took the third place in the ranking, launching 121 new flights.
Ukraine’s Finance Ministry to issue domestic bonds worth $164 million. The bonds came out on Jan. 28. The seven-year securities will mature in May 2027, whereas coupons on them will be paid twice a year, Interfax-Ukraine reports. The ministry will also be offering bonds with shorter maturities: two-year bonds worth Hr 1.5 billion, 14-months bonds worth Hr 1 billion, and 70-day bonds worth Hr 500 million.
Protesters block the headquarters of PrivatBank. The protesters “illegally and flagrantly” blocked access to the head office of Ukraine’s largest bank in Dnipro, Ukrinform and Financial Club reported on Jan. 27, citing a press release by PrivatBank. According to the bank, such protests put its employees under constant pressure. Oligarch Ihor Kolomoisky – who co-owned the bank until it was nationalized in 2016 due to alleged mismanagement, fraud and insolvency – is responsible, the bank said. Most of the protesters are employees of the Nikopol Ferroalloys Plant, owned by Kolomoisky. Protesters, however, deny the connection. They claim that state-owned PrivatBank has to repay a $900,000 debt that it owes the plant. As of today, the protests have been taking place for four months, but this is the first time when they prevented the bank’s daily operations.
Ukraine’s National Bank reports its collateral property was damaged. Ukraine’s central bank has asked the police to investigate damage to a sugar plant it recieved as collatoral in return for an Hr 2 billion loan to a firm close to Financial Initiative Bank. The money was intended to recapitalize the bank back in 2014. The 23,000-square-meter sugar plant is located in Vinnytsia Oblast, and, according to the NBU, its value has decreased due to mismanagement. The central bank claims some of the equipment was cut out of the plant, while some of its premises were simply ruined. Financial Initiative Bank is insolvent as of today, and the central bank has seized its property to repay its debts to Ukrainian taxpayers. The sugar plant is one of these assets.
Ukravtodor may issue eurobonds in 2020. The eurobonds will give the national road operating company money to repair 1,000 more kilometers of roads than budgeted by the government for the next year, Ukravtodor CEO Oleksandr Kubrakov told the Center of Transport Strategies consultancy. Altogether, the company plans to repair 5,000 kilometers of Ukraine’s roads.
Mobile operator Vodafone Ukraine starts to road show its eurobonds. The road show will take place in London, New York and Boston, and will be completed by Jan. 31. By issuing five-year U.S. dollar-pegged eurobonds, the company intends to attract up to $500 million, Interfax-Ukraine reports. The telecom has chosen J.P. Morgan, Raiffeisen Bank International, Dragon Capital and ICBC Standard Bank to organize the issue of the bonds.
Ukrainian banks predict growth of loans and deposits in 2020. According to a survey conducted by the NBU, clients of Ukrainian banks will ensure a steady inflow of deposits during the first quarter of 2020. The survey also indicates that Ukrainians will take more loans and mortgages. The positive dynamics in the banking sector are the result of appreciation by the Ukrainian national currency, the hryvnia: $1 is currently worth Hr 24.5, while, a year ago, it was Hr 27 for $1. As a result, both corporate and private clients of Ukrainian banks have positive economic expectations.
Ukrainian startup Mriyar attracts $300,000 from angel investors. The startup will use the money to develop its platform for trading parts for cars, online tech journal AIN.ua reports. Founded in October 2018, the startup plans to provide both business-to-business and business-to-consumer services. The angel investors have acquired a minority share, while the startup will roll out its platform gradually in 2020. The service intends to operate in Ukraine and across post-Soviet countries.
