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Business news from Ukraine

UKRAINE INTERESTED IN CREATING OPEN ENERGY MARKET – GROYSMAN

KYIV. Dec 11 (Interfax-Ukraine) – Prime Minister of Ukraine Volodymyr Groysman has stated Ukraine is interested in creating an open energy market based on legislation corresponding to the norms of the European Union.
“Ukraine is interested in creating an open energy market that would be regulated by the better legislation that would fully comply with the legislation of the European Union,” Groysman said during a joint press conference with EU High Representative for Foreign Affairs and Security Policy Federica Mogherini in Brussels.
Groysman noted the free trade area between Ukraine and the EU proves its effectiveness, and the growth of trade turnover between the countries amounted to 29%.

UKRAINE’S SPF APPROVES LIST OF COMPANIES FOR PRIVATIZATION IN 2018

KYIV. Dec 11 (Interfax-Ukraine) – Ukraine’s State Property Fund (SPF) has approved a list of almost 100 enterprises of groups B, G and E eligible for privatization in 2018, the press service of the fund has reported, referring to SPF Head Vitaliy Trubarov.
The list includes over 99% of Mykolaiv, Dniprovska and Kherson combined heat and power plants (all private joint-stock companies) and public joint-stock company Kryvy Rih combined heat and power plant, 70% in PJSC Khmelnytskoblenergo and Mykolaivoblenergo, 65% in Kharkivoblenergo, 60% in PJSC Zaporizhoblenergo, 50% in OJSC ternopiloblenergo, 78% in PJSC Centrenergo and 75% in PJSC Turboatom (Kharkiv).
In addition, the fund approved the privatization of enterprises in the chemical sector – PJSC Odesa Port-Side Plant (99.5%), Sumykhimprom (99.9%), Zaporizhia Titanium and Magnesium Combine (51%) and Zaporizhia Aluminum Combine (ZAlK).
The fund will repeat the offer to privatize 40% of Svit Lasoschiv LLC (Cherkasy).
Trubarov said that the SPF has started preparing for the privatization of Odesa Port-Side Plant and energy companies. Their privatization is scheduled for spring 2018.
He said that the fund expects to implement the budget privatization plan in 2018 by UAH 22.5 billion.

INNOVATION SUPPORT FUND TO GET UAH 50 MLN IN 2018 – PM GROYSMAN

KYIV. Dec 11 (Interfax-Ukraine) – Ukrainian Prime Minister Volodymyr Groysman has said that UAH 50 million will be allocated in 2018 to finance the Innovation Support Fund and added that the financial management system in science is not perfect.
“We are creating the Innovation Support Fund in the budget, which will now amount to UAH 50 million, because we want to support all innovative solutions that Ukrainians currently produce,” he said at the National Reform Press Club “Decentralization: Results and Achievements for 2017, Tasks for the Next Year” in Kyiv on Monday.
At the same time, Groysman noted that only UAH 8.2 billion is to be spent on science, but the financial management system in science remains imperfect and needs to be improved, and the government plans to work on this in 2018.

YUZHNY PORT INCREASES CARGO HANDLING BY 7% IN JAN-NOV

KYIV. Dec 8 (Interfax-Ukraine) – Yuzhny seaport (Odesa region), the largest seaport of Ukraine in terms of transshipment, increased cargo handling by 6.8% in January-November 2017 compared to January-November 2016, to 38.713 million tonnes.
According to live data from the Ukrainian Sea Ports Authority, for the 11 months the port increased transshipment of exported cargo by 4.6%, to 28.37 million tonnes, imported freight by 32.4%, to 5.8 million tonnes, transit goods by 30%, to 4.48 million tonnes, while transshipment of cabotage freight was significantly reduced from 1.2 million tonnes to 37,400 tonnes.
According to the type of cargo, the port for the mentioned period reduced the handling of liquid cargo by 6.7%, to 3.33 million tonnes, but increased dry bulk cargo handling by 6.2%, to 33.6 million tonnes, and goods in containers by 76.6%, to 1.73 million tonnes.
As reported, the port in January-October 2017 increased the handling of cargo by 5.9% compared to January-October 2016, to 34.944 million tonnes. For the ten months, the port increased the transshipment of exported cargo by 5%, to 25.85 million tonnes, imported cargo by 31%, to 5.03 million tonnes, transit goods by 19.2%, to 4.02 million tonnes, and transshipment of cabotage freight significantly reduced.

UKRPOSHTA INTERESTED IN STRATEGIC PARTNERSHIP WITH BANK WITHOUT PROBLEM LOAN PORTFOLIO

KYIV. Dec 8 (Interfax-Ukraine) – PJSC Ukrposhta (Kyiv) is interested in strategic partnership with a small bank without a problem loan portfolio, acting director general of Ukrposhta Ihor Smiliansky has said.
“According to our criteria, this should be a small bank, without a problematic loan portfolio. We are not interested in a large network of branches – we already have it,” he told journalists during a meeting in Kyiv, adding that negotiations with the banks are already underway.
According to Smiliansky, Ukrposhta is interested in the launch of providing banking services, while considering options for obtaining the necessary license, as well as buying an existing bank or signing a strategic partnership agreement with such a bank.
According to him, five or seven banks correspond to the Ukrposhta criteria in the Ukrainian market.
As reported, the NBU opposes the provision by Ukrposhta of banking services without an appropriate license.

AGCO SEEKS TO START VALTRA TRACTOR SALES IN UKRAINE IN 2018

KYIV. Dec 8 (Interfax-Ukraine) – AGCO, a global leader in production and supply of agricultural machinery and equipment, will start selling tractors on the Ukrainian market in 2018 under the Valtra trademark.
“We have plans to launch one of the main brands of Valtra Corporation in Ukraine in 2018. The Valtra plant in Finland already produces tractors for European countries, including for Belarus, Kazakhstan and Georgia,” Marketing Director of AGCO Eastern Europe Anton Kostyrko said at the Agrarian Olympus Congress in Kyiv.
After the introduction of the new trademark to the Ukrainian market, AGCO plans to optimize and balance its distribution system.
“Distributors who sell Fendt equipment will also sell Valtra. We will comply with the European distribution system, because when focusing on a particular brand, it focuses on the supply of spare parts, the appropriate service tools and the correct distribution of human resources for servicing,” Kostyrko said.
According to him, in 2017 the market of imported tractors in Ukraine grew by 17% compared to 2016.
“In 2018, amid a decline in the yield of sunflower and corn in some regions of Ukraine we do not predict a large increase in sales of agricultural machinery,” the representative of AGCO said.
He said that now AGCO does not consider the possibility of localizing production of machinery in Ukraine, despite the program of 20% state compensation for purchased Ukrainian agricultural machinery.
AGCO sells a wide range of tractors, combines, feed processing equipment, self-propelled sprayers and tillage machines, attachments and original spare parts.
The AGCO machinery is sold under the Challenger, Fendt, Massey Ferguson and Valtra trademarks.
AGCO is headquartered in Duluth (the United States).