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Business news from the Ukrainian League of Industrialists and Entrepreneurs

‘WARM LOANS’ PROGRAM IN JULY 2017 ATTRACTS 4-TIMES MORE CUSTOMERS YEAR-ON-YEAR – PM

KYIV. Aug 14 (Interfax-Ukraine) – Some 86 multi-apartment building co-owners associations and cooperative housing societies have benefited from the public program to partially compensate the cost of loans for modernization of heating efficiency and increase of energy efficiency in the Ukrainian housing sector (the ‘warm loans’ program) to the tune on UAH 29.1 million in July 2017, which is four times more than over a similar period of 2016, Prime Minister of Ukraine Volodymyr Groysman said.
“The ‘warm loans’ government program allows Ukrainians to save money and the state to become more energy efficient and independent, so more and more Ukrainians decide to use ‘warm loans’. In July, 86 multi-apartment building co-owners associations and cooperative housing societies raised ‘warm loans’ to the tune of UAH 29.1 million. This is four times higher than over the same period in 2016,” Groysman wrote on his Facebook page.
He recalled that the Ukrainian government had recently allocated additional UAH 300 million to finance this program in 2017.

ANTONOV STATE ENTERPRISE SEEKS TO PASS FAA CERTIFICATION BY LATE 2020, SWITCH TO NATO STANDARDS

KYIV. Aug 14 (Interfax-Ukraine) – Antonov State Enterprise (Kyiv) has set a goal of passing the certification at the Federal Aviation Administration of the United States (FAA) by late 2020 and ensuring the switch of production facilities to NATO standards, the press service of the enterprise reported last week.
According to the report, the goals are outlined in the production development plans for 2018-2020 drawn up by Antonov managers.
Antonov said that in 2016, the enterprise was reorganized and design structure was brought in line with the requirements of the aviation rules of Ukraine (Part 21, Chapter J). The rules were drawn up to implement the rules of the European Union by Ukraine.
“Compliance with the Part 21 requirements allowed Antonov to cooperate with leading foreign suppliers of equipment, acting as an integrator. Cooperation with famous leaders of aviation industry, such as Honeywell (the United States) and Pratt & Whitney (Canada), has been established. The companies qualified their products for installing them at Antonov aircraft in line with U.S. FAA rules,” the enterprise said.
Flight Test Center has been created at Antonov. This gives hope to receive the certificate from the European Aviation Safety Agency (EASA), the press service said.
“Certification of the enterprise and An aircraft at FAA would allow considerably expanding the markets for sale of the planes,” Antonov said.
The press service said that the enterprise intends to develop a comprehensive system for supporting operators of An aircraft and open regional servicing centers in India, South Africa, Columbia, Sudan, Bulgaria and Malta by late 2020.
Antonov also plans to re-equip the enterprise in cooperation with western Brotje and MTorres, improve organization structure, develop IT solutions via the introduction of the IT Enterprise software in 2018-2020.

GERMANY INVESTING $10 MLN IN DEVELOPMENT OF SMALL AND MEDIUM ENTERPRISES IN UKRAINE – EMBASSY

KYIV. Aug 14 (Interfax-Ukraine) – The German Society for Investment and Development (Deutsche Investitions- und Entwicklungsgesellschaft, DEG) will contribute $10 million to the investment fund for small and medium-sized enterprises in Ukraine, the German Embassy in Ukraine reported.
The Emerging Europe Growth Fund III (EEGF III) will facilitate the access of small and medium-sized businesses in Ukraine to long-term financing, the press service of the German embassy reported.
“Through this participation Germany will strengthen its position as one of the most important countries investing in the Ukrainian economy. Germany’s participation is a signal for other private and institutional investors,” the embassy said.
The diplomatic mission told that the fund invests in export-oriented industries, in particular, in IT, light industry, food industry, as well as enterprises of electronic commerce and health.
The German embassy said that the financed fund primarily focuses on small and medium-sized enterprises that need capital for their own growth and, as experience shows, create a lot of new jobs.
German diplomats added that there are intentions to raise the capital of the Emerging Europe Growth Fund III (EEGF III) to $150 million.

WASTE RECYCLING PLANT TO BE BUILT IN KHARKIV REGION – GOVT RESOLUTION

KYIV. Aug 11 (Interfax-Ukraine) – The Ukrainian government has approved a project on construction of a modern solid household waste recycling plant in Derhachi (Kharkiv region) presented by Kharkiv Regional Administration.
The government resolution was published on Wednesday.
According to the resolution, the project to build a waste plant with the waste collection system, utilization of landfill gas and generation of electricity was approved.
The total area of a land parcel is 39.6 ha. Construction of the plant is to be finished in 2019.
“This would allow considerably improving the health and disease situation in Kharkiv, Derhachi, Kharkiv and Zolochiv districts of Kharkiv regions, and the ecological state of the territory adjacent to the existing waste disposal zone,” the document says.
Waste sorting lines with an annual capacity of 40,000 and 80,000 tonnes will be also built.

WORLD BANK READY TO USE PROZORRO TO PROCURE GOODS, SERVICES IN UKRAINE

KYIV. Aug 11 (Interfax-Ukraine) – The World Bank has confirmed its readiness to use the ProZorro public procurement system to procure goods, labor and services in Ukraine, according to a posting on the website of the Economic Development and Trade Ministry of Ukraine.
“The World Bank has finished the appraisal of the ProZorro public procurement system: the bank confirmed its readiness to use the system for its procurement in Ukraine for two procedures,” First Deputy Economic Development and Trade Minister Maksym Nefyodov wrote on his Facebook page on Thursday.
The ministry said that the World Bank assessed the system to see that the ProZorro meets the requirements of the Multilateral Development Bank (MDB).
Nefyodov said that the World Bank also approved a list of changes required for other types of procurement.
“First of all, this is a possibility of holding multicurrency auctions,” he said.

GOVT APPROVES RULES FOR IMPORTING PRODUCTS FOR AVIATION INDUSTRY ENJOINING TAX ADVANTAGES UNTIL 2025

KYIV. Aug 11 (Interfax-Ukraine) – Ukraine’s Cabinet of Ministers has approved the rules and volumes of imported spare parts enjoining tax advantages until 2025 by aircraft building enterprises of Ukraine.
The draft government resolution was approved at a Wednesday meeting.
First Deputy Prime Minister of Ukraine, Minister of Economic Development and Trade Stepan Kubiv said that the introduction of tax advantages for aviation industry by the government must help to replenish working capital of the sector companies, attract investment for upgrade and modernization of their fixed assets and increase their profits.
As reported, the Verkhovna Rada in December 2016 amended the Tax Code of Ukraine aiming to support aircraft building industry.
For the period from January 1, 2017 until January 1, 2025 aircraft builders are exempted from paying VAT for imports of goods (apart from excisable goods) used for the needs of aircraft building and transactions to supply the results of research and design works to the customs territory of Ukraine.
The aircraft builders are also exempted from paying profit tax. The saved funds will be considered the targeted financing for research and designs works, re-equipment of the technical base, increase of production and introduction of new technologies. The aircraft building companies are also exempted from paying land tax on parcels where industrial facilities are located.