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Business news from the Ukrainian League of Industrialists and Entrepreneurs

WNISEF TO COMMITS $30 MLN TO EEGF III FOR INVESTING IN EXPORT-ORIENTED COMPANIES IN UKRAINE, MOLDOVA

KYIV. June 26 (Interfax-Ukraine) – Western NIS Enterprise Fund (WNISEF) has committed $30 million to Emerging Europe Growth Fund III, LP (EEGF III) to invest through EEGF III in fast-growing, export-oriented companies with roots in Ukraine and Moldova, WNISEF has said in a press release.
According to the report, EEGF III expects to invest, in sectors including information technology, light manufacturing and food and agriculture.
“Ukraine and Moldova have demonstrated impressive exports growth of 29% and 27%, respectively, in the first quarter of 2017, which is expected to provide attractive investment opportunities for this new fund,” WNISEF President and Chief Executive Officer Jaroslawa Z. Johnson said.
A target size of the new fund is $150 million. The fund will be investing alongside the European Bank for Reconstruction and Development (EBRD), International Finance Corporation (IFC), Dutch development bank FMO and German investment corporation DEG, a wholly-owned subsidiary of KfW and other international institutions.
Western NIS Enterprise Fund (WNISEF) is a $150 million regional fund, a pioneer in Ukraine and Moldova with more than two decades of successful experience in investing in small and medium-sized companies. WNISEF was funded by the U.S. government via the U.S. Agency for International Development (USAID). In 2006, Horizon Capital was spun out from WNISEF, following the path forged by other Enterprise Funds, raising three funds with over $700 million under management. In 2015, WNISEF launched a $35 million legacy program focused on export promotion, local economic development, impact investing and economic leadership.

ENTSO-E FINALIZES AGREEMENT ON UKRAINE’S JOINING EUROPEAN CONTINENTAL NETWORK

KYIV. June 2 (Interfax-Ukraine) – ENTSO-E (the European Network of Transmission System Operators for Electricity) has agreed the final version of the agreement on the joining of Ukrainian and Moldovan energy systems to the continental network of Europe.
According to the press service of Ukrenergo, the decision was made in Lisbon (Portugal) on May 23. The agreement is to be signed in June 2017.
“The signing of the agreement in June 2017 should be the starting point for the beginning of integration of the united energy system of Ukraine to the European Union,” the report reads.
The press service said synchronization with ENTSO-E will enhance the reliability of the united energy system of Ukraine and, in particular, reduce the dependence on stability of coal supplies to power stations. Ukraine will also be able to receive technological assistance from the neighboring energy systems.
Simultaneous work with ENTSO-E will allow increasing exports of electricity to Europe, which will automatically improve the investment attractiveness of the country’s energy sector. In particular, exports could increase from the current 5 billion kWh to 18-20 billion kWh with additional revenues of up to $1.5 billion. At the same time, Ukrainian hydropower plants will be able to take part in balancing peak loads of adjacent power systems of European countries.

PIVDENNA AGRARIAN-EXPORT COMPANY JV LAUNCHES HANDLING TERMINAL IN MYKOLAIV REGION

KYIV. June 23 (Interfax-Ukraine) – A group of companies Pivdenna Agrarian-Export Company JV LLC (Mykolaiv) has launched a grain and oilseeds handling terminal with an annual capacity of 400,000 tonnes in Mykolaiv region.
According to a posting on the website of Ukraine’s Agricultural Policy and Food Ministry, the Balovnianska production base handling terminal has a grain and oilseeds storage capacity of 100,000 tonnes. It took over one year to build the terminal.
“Construction and the launch of the elevator positively influenced the situation with employment. A total of 120 new jobs have been created and the logistics and purchase department with up to 100 employees have been created,” the ministry said.
Pivdenna Agrarian-Export Company plants crops, breeds cattle, produces pellets, involved in fish farming and wholesale trade, leases property and agricultural machinery.

MONSANTO SEEKS TO LAUNCH SEED PLANT IN ZHYTOMYR REGION IN 2018

KYIV. June 23 (Interfax-Ukraine) – The corn seed processing plant of Monsanto, a large global seed producer, could be launched in August 2018, according to a posting on the website of Zhytomyr Regional Administration.
“A new seed plant which will produce high-quality corn seeds will be opened in Zhytomyr region in 2018. The plant will be better than the similar plant in the United States – the sorting line will dividing corn into five types,” the administration said.
The seed plant will be located in Pochuiky, Popilnia district. Its construction was started in 2014.
The plant is being built observing all environment protection requirements on the basis of the existing seed plant.
A total of 200-300 jobs will be created.
As reported, in January 2017, Monsanto Seeds LLC was permitted to acquire assets of Ukraine private agricultural enterprise (Pochuiky, Zhytomyr region), part of Eridon company – a land parcel and facilities for corn seed processing.

UKRAINE USES 100% OF QUOTAS TO SUPPLY AGRICULTURAL PRODUCTS TO EU FOR SEVEN ITEMS

KYIV. June 23 (Interfax-Ukraine) – Ukraine as of June 9, 2017 used 100% tariff quotas on supply of honey, corn, sugar, barley cereal, wheat, preserved tomatoes, grape and apple juices to the European Union (EU).
According to a posting on the website of the Economic Development and Trade Ministry, 97.69% of quotas on supply of malt to the European Union, 91.5% of barley quota, 50% of butter quota, 50% of poultry quota, 28.44% of oats quota, 28.02% of other sugar-contained products quota and 23.18% of starch quota were used.
In addition, 18.42% of additional poultry quota, 13.64% of milk powder quota, 7.25% of egg quota, 1.18% of ethanol quota and 0.27% of milk, cream and condensed milk quota were used.
As reported, the European Parliament has supported the proposal of the European Commission to increase tariff quotas for honey, corn, barley, oats, cereals and processed grain, grape juice from Ukraine. At the same time, the European Commission’s proposal to raise quotas for Ukrainian wheat, tomatoes and urea was not supported by the deputies.
In September 2016, the European Commission proposed to increase the annual tariff rate quotas for some goods from Ukraine: maize by 650,000 tonnes, wheat by 100,000 tonnes, barley by 350,000 tonnes, cereal and processed grain by 7,800 tonnes, oats by 4,000 tonnes, honey by 3,000 tonnes, grape juice by 500 tonnes and preserved tomatoes by 5,000 tonnes.
According to the Ukraine-EU Association Agreement, Ukraine can supply 36 goods to the EU without tariffs within the limits of the approved volumes of tariff quotas. In particular, the quotas for beef supplies amount to 12,000 tonnes, pork – 40,000 tonnes, milk, yoghurts, fermented milk products – 8,000 tonnes, milk powder – 1,500 tonnes, butter – 1,500 tonnes, egg products – 1,500 tonnes, eggs – 3,000 tonnes. For wheat, quotas were determined at a rate of 950,000 tonnes, barley – 250,000 tonnes, maize – 400,000 tonnes, sugar – 20,000 tonnes, honey – 5,000 tonnes, processed tomatoes – 10,000 tonnes, grape and apple juice – 10,000 tonnes, oats – 4,000 tonnes, garlic – 500 tonnes.

POLISH SEJM RELAXES SEASONAL EMPLOYMENT RULES FOR UKRAINIANS

KYIV. June 23 (Interfax-Ukraine) – The Sejm of Poland on Thursday passed a new bill related to popularization of employment and labor market institutions, amending the law on temporary employment of foreigners, the Polish Radio has reported.
According to the publication, the legislative amendments introduce the fee (PLN 30) for the registration of applications of employers who want to hire foreigners.
The bill concerns foreigners who are carrying out long-term works in Poland. These are citizens of Armenia, Belarus, Georgia, Moldova, Ukraine and Russia who will be able to use the relaxed labor market access rules.
According to the amendments to the law, along with job permits issued by governors of regions for the period of up to three years, the permits for seasonal work will be issued by district heads (for the period of up to eight months during a calendar year).
The register of hired foreigners will be created.