Business news from Ukraine

GOVERNMENT TO FORESEE UAH 1 BLN FOR COMPENSATION OF COST OF AGRICULTURAL MACHINERY IN 2018

KYIV. Feb 17 (Interfax-Ukraine) – Ukraine’s Cabinet of Ministers intends to foresee UAH 1 billion in 2018 for compensation of the cost of agricultural machinery made in Ukraine, Ukrainian Prime Minister Volodymyr Groysman has said.

“The program for this year is UAH 550 million. For the next year we have foreseen around UAH 1 billion,” the prime minister said during his visit to Agro Animal Show 2017 in Kyiv on Friday.

Groysman said that the parts of the machinery which cost could be partially compensated are to be made by at least 60% in Ukraine.

He said that in 2016 Ukrainian agricultural producers spent UAH 10 billion to buy agricultural machinery and only UAH 1.5 billion was sent to buy machinery made in Ukraine.

UKRAINIAN UAV ATTRACTS INTEREST AT INDIA EXHIBIT

KYIV. Feb 16 (Interfax-Ukraine) – The new Ukrainian tactical UAV (TBpAK) Sparrow-LE has drawn a lot of attention at the 11th International Aero India-2017 exhibition, the press service of Ukraine’s Ukroboronprom concern said on Wednesday.

The invention of Ukrainian arms experts was designed by Spetstekhnoeksport, part of Ukroboronprom, which said the device is being readied for use by the Ukrainian Armed Forces.

The UAV was presented at the exhibition with modifications.

“The UAV’s capabilities exceed demands of our Indian military partners,” Ukroboronprom’s press service said.

The Sparrow-LE is designed to conduct aerial surveillance and controlled via an encrypted data channel with a range of up to 25 kilometers. It can be airborne for up to 3.5 hours. The wingspan of the UAV exceeds 3 meters, enhancing its flight performance, compared to similar UAVs in the same class.

The UAV model was created by designers of Spytech, Ukroboronprom’s press service said.

Aero India-2017 takes place from February 14-19 Air Force Station, Yelahanka, Bengaluru.

India is among Ukraine’s prospective customers in military production cooperation. Ukraine and India signed intergovernmental agreements in military production cooperation in 2010. The countries have teamed up to modernize military transport planes and in military aviation, in addition to armored vehicles.

India earlier expressed interest in boosting military production cooperation with Ukraine in area of transfer technology, as well as the development in India of military equipment production in cooperation with Ukrainian enterprises. Joint development of military equipment has also been discussed.

ESTONIAN PROSPERUS CAPITAL BUYS MORE THAN 80% OF KYIVMISKBUD-2

KYIV. Feb 16 (Interfax-Ukraine) – Estonian AS Prosperus Capital (Tallinn) intends to acquire 178.864 million common registered shares of PJSC Kyivmiskbud-2 Trust (Kyiv), the company has reported in the press.

According to data from the information disclosure system of the National Commission on Securities and the Stock Market, as of the third quarter of 2016 a similar stake of 178.864 million shares, or 80.87% in PJSC Kyivmiskbud-2 Trust was held by a Cypriot company.

Previously Prosperus Capital did not own shares in the company.

According to Prosperus Capital’s website, the company is engaged in raising funds of EU residents, as well as investors from the countries of Eastern Europe. Funds are placed in securities and various financial instruments, as well as projects for the development and leasing of commercial and residential real estate in Estonia.

Kyivmiskbud-2 Trust was created in 1995. It is engaged in engineering, construction of buildings, leasing own and public real estate of production and technical and cultural destination.

 

UGA READY TO TRANSPORT AGRICULTURAL PRODUCTS USING OWN WAGONS IF UKRZALIZNYTSIA GIVES 30% DISCOUNT

KYIV. Feb 16 (Interfax-Ukraine) – President of the Ukrainian Grain Association (UGA) Volodymyr Klymenko has said that he want to build or buy freight wagons to transport agricultural products in the conditions of a lack of rolling stock if public joint-stock company Ukrzaliznytsia provides a 30% discount.

“Farmers have proposed to include the carrier to the supervisory board of representatives of key sectors to return trust to it. We are ready to build wagons themselves if a 30% discount to the tariff is given. In addition, Klymenko recalled the specifics of the sector operation and said that the increase of the tariffs before July 1 is unacceptable for the representatives of the sector,” The head of the Verkhovna Rada committee on industrial policy and entrepreneurship, Viktor Halasiuk, said in a press release after the round table held on Tuesday and devoted to the influence of the tariff policy on industry and economy.

According to the press release, President of Ukrmetallurgprom Association (Dnipro) Oleksandr Kalenkov said that due to unsatisfactory operation of Ukrzaliznytsia the mining and metal complex of Ukraine saw large losses in H2 2016. Some 3 million tonnes of steel was not made.

He said that the structure of the cash cost of the Ukrzaliznytsia’s tariff remains non-transparent.

“They say that the tariffs are low, while in presentations for European investors they say that return on cargo transportation is 35-50%. Thus using monopoly the railways subsidizes passenger transportation,” he said, adding that some tariffs exceed the tariffs in Russia.

“This year Ukrzaliznytsia seeks to invest UAH 27 billion. At present, before the increase of the railway tariffs, the company can use UAH 13 billion. Show your effectiveness and then we will give consent to the indexation [of the tariffs],” he said.

NOVA POSHTA NOT TO TRANSFORM OWN FINANCIAL COMPANY INTO BANK – CO-OWNER

KYIV. Feb 16 (Interfax-Ukraine) – The Nova Poshta Group does not plan to transform own financial company Post Finance (the Forpost payment system) into a bank, co-owner of the group Volodymyr Popereshniuk has said.

“Forpost will remain a transaction financial company. In 2016 over 30 million transactions were settled via the company. Initially this is logistics, but in the financial area. We do not plan to create a bank and expand. We will develop these services. Maybe we will invent some wallets, but we do not want to make it a full-featured bank,” he said in an interview with Interfax-Ukraine.

Popereshniuk said that the banking market is overregulated.

“The main reason is that it is hard to create a bank. The market is overregulated. The minor reason is that it is separate business. We do not want to divert our attention from logistics. If there were an opportunity of opening a bank without any problems we would have opened it, as we twice suffered from bank Finance and Credit and National Credit,” he said.

Earlier in April 2016 co-founder of the group Viacheslav Klymov said that Nova Poshta could create a bank on the basis of Post Finance in the future.

Nova Poshta was founded in 2001. The company is a leader on the express delivery market in Ukraine. Its network includes over 2,300 depots and 1,400 pick-up and drop-off points in over 1,000 cities and towns of Ukraine.

KOKHAVYNSKA PAPER FACTORY SEES 44% RISE IN PROFIT IN 2016

KYIV. Feb 16 (Interfax-Ukraine) – Pubic joint-stock company Kokhavynska paper factory (Lviv region), a hygienic paper goods producer, tentatively saw UAH 58.25 million of net profit in 2016. This was 44% more than in 2015.

The company said in a report on the agenda of the general meeting of the company’s shareholders scheduled for March 23, undistributed profit as of early 2017 was UAH 183 million compared to UAH 128.8 million a year ago.

Current liabilities almost doubled, to UAH 38 million and noncurrent – grew by 2.4 times, to UAH 199.6 million.

Assets totaled UAH 241.85 million as of January 1, 2017 (a rise of 54%). Total debt rose by 3.5%, to UAH 32.1 million.

Kokhavynska paper factory has been operating since 1939. The factory producers base paper for hygienic goods, toilet paper and paper towels.

Its charter capital is UAH 710,000. As of Q3, 2016, five resident individuals held over 10% each in the factory, including almost 12% belonged to the head of the supervisory board, Mykhailo Tytykalo.