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Business news from the Ukrainian League of Industrialists and Entrepreneurs

YATSENIUK ANNOUNCES FIVE PRIORITY AREAS OF COOPERATION WITH GERMANY

KYIV. Oct 26 (Interfax-Ukraine) – Ukrainian Prime Minister Arseniy Yatseniuk has announced five areas of cooperation with Germany, summing up the Ukrainian-German Economic Forum held in Berlin.

In the TV program “Ten minutes with the prime minister” Yatseniuk said that the key fields of investment in Ukraine for German businesses are transport infrastructure, agriculture, energy, and energy efficiency.

He noted that together with German Chancellor Angela Merkel on October 23 he opened the first powerful conference in the history between Ukrainian and German businesses.

“The German business over the past year and a half has not left Ukraine but, on the contrary, is willing to continue investment in the Ukrainian economy,” Yatseniuk said.

According to him, German business representatives say that Ukraine “has done a lot but more should be done so that German investment come to Ukraine, create new enterprises, new jobs and bring new technologies here.”

The key field of German investment in the Ukrainian economy, according to the premier, is primarily transport infrastructure. He said the government has started negotiations with Germany’s Siemens to upgrade the rolling stock of Ukrainian railways and perform their modernization.

GOVERNMENT APPROVES BILL TO STRENGTHEN RESPONSIBILITY FOR COPYRIGHT INFRINGEMENT ON INTERNET

KYIV. Oct 23 (Interfax-Ukraine) – The Cabinet of Ministers has approved the draft law on amendments to some legislative acts concerning copyrightprotection and related rights on the Internet, the Ministry of Economic Development and Trade has announced.

According to the report, the bill will be submitted to the Verkhovna Rada as soon as possible.

The document was previously posted on the ministry’s website for public discussion.

The bill proposes the introduction of penalties in the amount of 500 to 1,000 non-taxable minimum incomes if a website owner’s fails to fulfill the requirements for the removal or prevention of access to information in violation of copyright on the Internet. The same penalty is expected for the failure of the website owner or the hosting provider to give information that identifies the user who posted illegal information. Actions taken under this article are to be punished by a fine of 1,000 to 2,000 untaxed minimum incomes.

At the same time, it is proposed to punish for untrue requirements for limiting access to resources. If the complaint contains false information onthe copyright of a person bringing the complaint, the fine will be 1,000 to 2,000 untaxed minimum incomes. The same penalty may be imposed onpersons for unfair requirements on the resumption of access to information violating copyright or related rights.

RENT RATES FOR WAREHOUSES IN KYIV REGION WOULD NOT CONSIDERABLY CHANGE BY LATE 2015, VACANCY COULD BE 10% – DTZ

KYIV. Oct 23 (Interfax-Ukraine) – Rent rates for high-quality warehouses and logistics premises in Kyiv and its suburbs would not considerablychange by the end of the year, while primary vacancy rate in the segment would remain around 10% due to low developers’ activity and small demand of leasers, according to the survey for Q3 2015 published by DTZ international consulting company in Ukraine.

DTZ said that as of late September 2015, the vacancy rate in the warehouse segment in Kyiv and its suburbs was 12%, which was 6 percentagepoints more year-over-year.

The company said that in January-September 2015, rent rates in the segment almost did not change, and were $3-5 per square meter a month forclass A premises and around $2-3 per square meter a month for class B premises. As of late 2014, the smallest rent rates were $7.5 per square meter a month.

In January-September 2015, around 124,000 square meters of warehouses and logistics premises were leased in Kyiv and its suburbs. This is around 80% of the figure as of late Q3 2014 and 64% down on Q3 2013,” reads the survey.

The company said that supply of modern warehouses in Kyiv and its suburbs totaled around 1.778 million square meters of gross lettable area (GLA) as of late September 2015, including 340,140 square meters of cold-storage warehouses, chemical and pharmaceutical warehouses.

DTZ said in Q4 2015, three warehouse complexes with a total GLA of 38,800 square meters would be commissioned in Kyiv‘s suburbs.

DTZ was founded by Chesshire Gibson, which began operations in Birmingham (Britain) in 1784.

FOREIGN STUDENTS INJECT AROUND $500 MLN A YEAR INTO UKRAINE’S ECONOMY

KYIV. Oct 23 (Interfax-Ukraine) – Foreign students inject $504 million a year into the Ukrainian economy, with each of the 63,000 foreign studentsin the country paying on average at least around $2,000 for education every year, Deputy Education and Science Minister of Ukraine Oleh Derevianko said at the 3rd Business and Universities national forum on Thursday.

“Under todays exchange rate, this is around UAH 11 billion, and this is almost the whole sum of the financing of public higher education in Ukraine,” he said.

The deputy minister said that in general, the state provides UAH 16 billion a year to finance higher education.

However, revenue from foreign students could be higher: according to the assessment of the Center for Corporate Social Responsibility (CSR) Development, the number of foreign students in Ukraine in 2013-2014 totaled almost 70,000 or 4.1% of the total number of students (1.724 million).

At the forum organized by the Center for CSR Development the role of partnerships between businesses and universities in developing innovations was discussed at a panel.

Derevianko said that education could be considered as an economic category and a sector that has an export potential. The attraction of a large number of foreign students could bring more funds to the countrys economy directly, not only via the training or development of human capital.

Deputy Finance Minister of Ukraine Oksana Markarova said that the Finance Ministry is ready to promote the development of education. The ministry has started decentralization reform in the sector: the Education and Science Ministry and universities could be more autonomous and responsible for their funds. She said that this would separate good universities from bad ones and would provide financial aid to the former.

Derevianko said that the rapid development of universities would start with the change of their status from budget-funded institutions to profit-making organizations, which would introduce new principles of financing.

He said that the number of universities in the country should be cut to no more than 60-70 educational institutions (today 317) which would focus on research. In addition, the creation of a three-level 12-year high school and the increase of prestige of high occupational education are among the top-priorities. Some UAH 100 million has been allocated to the development of schools.

According to the Center for CSR Development, Ukraine is 74th in terms of cooperation between universities and businesses on research, 29th in the number of scientists and engineers, and 50th in the number of applications under the Patent Cooperation Treaty (PCT) procedure (3.6 applications per million of population). Ukraine is 33rd in the 2015 Bloomberg innovative countries ranking.

Ukraine is 79th in the competitiveness index in 2015-2016 (out of 140 countries), and 64th in the Global Innovation Index (out of 141 countries) in 2015.

Expenses on education in Ukraine totaled 6.7% of the countrys GDP, and expenses on research work – 0.8% of GDP.

KYIV, BERLIN AGREE TO ESTABLISH UKRAINIAN-GERMAN CHAMBER OF COMMERCE

KYIV. Oct 23 (Interfax-Ukraine) – Ukraine and Germany have signed an agreement on the establishment of the Ukrainian-German Chamber of Commerce, President of the Berlin Chamber of Commerce Eric Schweitzer said at the opening of the Ukrainian-German business forum in Berlin on Friday. “Today, we celebrate the establishment of the Ukrainian-German Chamber of Commerce,” he said. According to Schweitzer, this move will strengthen cooperation between Ukrainian and German businesses. The Ukrainian-German Forum in Berlin is being held on Friday and Saturday. The Ukrainian delegation is led by Ukrainian Prime Minister Arseniy Yatseniuk. It also includes Deputy Prime Minister Hennadiy Zubko, Deputy Head of Presidential Administration Dmitry Shymkiv, Board Chairman of Naftogaz Ukrainy Andriy Kobolev and Head of State Fiscal Service Roman Nasirov, as well as four other ministers The forum’s program includes several panels: on the ongoing situation in Ukraine, the reforms in the country, industry and energy, transport and logistics, the agrarian sector and processing, and the hi-tech and IT-sector.

EU HANDS OVER EUR 14 MLN IN STATE-OF-THE-ART EQUIPMENT TO FUTURE NATIONAL TRAINING CENTRE AT ZAPORIZHIA NPP

KYIV. Oct 22 (Interfax-Ukraine) – On Tuesday, October 20, at the Zaporizhia Nuclear Power Plant NPP) EU Ambassador to Ukraine Jan Tombinski officially handed over worth EUR 14 million in state-of-the-art equipment purchased by the EU to the National Training Centre to be commissioned in 2016 at the Zaporizhia NPP, the press service of the Delegation of the EU to Ukraine has reported.

“Co-financed between the European Union and the Ukrainian Government, this National Training Centre is a state-of-the-art nuclear power unit maintenance training facility. It is equipped with a full-scale simulator of a VVER nuclear unit,” reads the report.

When opened for full operation in 2016, it will deliver maintenance trainings based on best international practice to maintenance personnel from the National Nuclear Generating Company Energoatom’s fleet of VVER nuclear power units, which are located at four nuclear power plants across Ukraine.

The training centre’s first of a kind simulator of a nuclear power unit will facilitate training and qualification of maintenance staff utilizing a variety of full scope equipment models, in simulated environmental conditions. This will ensure maintenance actions to be carried out on installed operational equipment, and being implemented to the highest standards of safety for both the maintenance personnel and equipment to be maintained.

In addition to maintenance training, the project has established a management training system within Energoatom. The management training, which is also based on international best practice, emulates management principles and practices employed by international nuclear operators that are considered to be the best in class.

According to the report, the combined results of these two key elements will provide Ukraine’s nuclear operator Energoatom with the means to support the safe implementation of the country’s energy strategy regarding electricity generation from nuclear power.

“The European Union and Ukraine see this unique Training Centre as a very important corner stone in our long-lasting cooperation on nuclear safety. With this Centre, the EU and Ukraine demonstrate their joint commitment to a stronger nuclear safety culture worldwide,” Tombinski said.

The event was as well attended by Oleksandr Svetelyk, Deputy Minister of Energy and Coal Industry of Ukraine and Yuriy Nedashkovsky, President Energoatom.