Ukraine open for business - Business news

Business news from the Ukrainian League of Industrialists and Entrepreneurs

INDAR SEES NET PROFIT RISE BY 3.5 TIMES IN 2016

KYIV. April 25 (Interfax-Ukraine) – PJSC Indar insulin producer (Kyiv) saw its net profit rise by 3.5 times in 2016 compared to 2015, to UAH 29.968 million.
According to a company report in the information disclosure system of the National Commission on Securities and the Stock Market, its gross profit for the year increased by 46.35%, to UAH 169.586 million, net income by 37.55%, to UAH 347.852 million.
As reported, in 2015 the manufacturer saw net profit fall by 8.8 times compared to 2014, to UAH 8.471 million.
Indar was created under a resolution of the Cabinet of Ministers in 1997 under the aegis of Kyiv meat processing plant. In 2012, the state fully reinstated its control over the enterprise which it lost in 2008 when the state stake of 70.7% belonging to Ukrmedprom was sold to Storke Holdings Limited (Belize).

INVESTMENTS WITHIN FINSTREAM FINANCING PROJECT WILL AMOUNT TO UAH 50 MLN IN 2017

KYIV. April 25 (Interfax-Ukraine) – Investments within the FinStream project of financing small and medium-sized businesses in Ukraine in 2017 will amount to UAH 50 million, the project co-owner, owner of FGK Serhiy Pozniak has said.
“We plan to place UAH 50 million by the end of 2017,” he said at a press conference at Interfax-Ukraine in Kyiv.
As for the sectoral portfolio of the project, according to its head Serhiy Sapatov, there will be no hard segmentation: it is planned to work with business assets, which have something to show, in particular, in agriculture, trade, and services.
Sapatov said to apply for participation in the project applicants must register on its website and go through five levels of evaluation, afterwards they will be given a certain rating. The level of the interest rate of financing will depend on it.
“The higher the level of risk is or the lower the rating is, the higher the level of interest rates is,” the project manager noted.
The FinStream project appeared on the basis of work with private investments for nearly 20 years. It is intended to provide financing for small and medium-sized businesses.

UKRAINE SEEKS TO RAISE $200 MLN OF LOANS MORE TO INVEST IN INFRASTRUCTURE IN MEDIUM TERM OUTLOOK

KYIV. April 25 (Interfax-Ukraine) – Ukraine seeks in the medium term outlook by 2020 to attract an additional $200 million of loans on the international market and investment from private companies to invest in transport infrastructure, rolling stock and increase the quality of services.
This is presented in the medium term priority action plan of the government outlined in government resolution No. 275-r dated April 3, 2017.
According to the document, in 2016, budget spending on the transport sector totaled UAH 29.2 billion or 3.32% of all expenditure of the consolidated budget of Ukraine. Some 52% was financed using the national budget funds and UAH 13.9 billion was provided by local budgets.
“The need in financing of only repair of roads is UAH 39 billion a year. By 2021, public joint-stock company Ukrzaliznytsia seeks to spend UAH 108 billion to repair and buy rolling stock,” reads the document.
Capital investment in the transport sector in 2016 amounted to UAH 24.616 billion, including UAH 8.728 billion in the warehouse services and auxiliary services, and UAH 14.957 billion in overland transport and pipelines.

CONSTRUCTION WORK IN UKRAINE 11.5% UP IN MARCH – STATISTICS

KYIV. April 25 (Interfax-Ukraine) – The volume of construction works in Ukraine in March 2017 increased by 11.5% compared to March 2016, while the increase in February 2017 from February 2016 was 4.8%.
The State Statistics Service said the data are given without taking into account the temporarily occupied territory of Crimea and Sevastopol and part of the anti-terrorist operation zone in the east of Ukraine. Data on Donetsk and Luhansk regions could be adjusted.
According to the service, the volume of construction works carried out in March 2017 from February 2017 increased by 20%, whereas in February 2017 from January 2017 it grew by 2.3%.
According to the report, in March 2017 from March 2016 the growth in the volume of construction work was observed in all the areas of construction. The largest increase in the figure was recorded in construction of non-residential buildings by 19%.
In March 2017 from February 2017 the volume of construction work in construction of residential buildings increased by 36.2%, in construction of non-residential buildings by 20.3%, and in construction of engineering facilities by 8.5%.
In January-March 2017 from January-March 2016 the volume of construction work reduced in nine regions of Ukraine. The largest decrease in the figure for the three months of this year was observed in Mykolaiv (by 41.8%, to UAH 253.6 million) and Vinnytsia regions (24.1%, to UAH 240.8 million).

CHINESE INVESTORS WILL COME TO UKRAINE AFTER INVESTMENT SECURITY ENSURED – AMBASSADOR

KYIV. April 24 (Interfax-Ukraine) – Chinese investors are interested in the Ukrainian market, but to get Chinese investment Ukraine must, first of all, ensure the security of such investments, Ambassador of China to Ukraine Du Wei has stated.
“Investors are interested [in the market]… However, this remains only an intention… To implement these investments, it is still necessary to solve a number of issues and to do a lot of work. The most important thing is to ensure the security of investments,” he said at a press conference dedicated to the 25th anniversary of establishing diplomatic relations between Ukraine and China in Kyiv.
The official said the most attractive sectors for Chinese investors are agriculture, transport, logistics and energy.
“In recent years enterprises and businessmen have invested over $7 billion in Ukraine,” the ambassador said.
“The free trade area is an important measure in the policy of developing relations with other countries… Our experts are studying, analyzing and assessing this cooperation [with Ukraine],” the Chinese ambassador said.

CHINA READY TO INTRODUCE VISA-FREE REGIME FOR UKRAINIANS – AMBASSADOR

KYIV. April 24 (Interfax-Ukraine) – The Chinese government expresses its readiness to introduce a visa-free regime with Ukraine on the basis of the will of the two countries, Chinese Ambassador to Ukraine Du Wei has said.
“The Chinese side is ready at any time, in accordance with the readiness of the two sides, on the principle of equality and mutual benefit, to take new measures for the exchange of people between our countries, including a visa-free regime,” he said at a press conference on the occasion of the 25th anniversary of the establishment of diplomatic relations between Ukraine and China in Kyiv on Friday.
The diplomat also said that the Chinese side welcomes the decision of the European Union to liberalize the visa regime with Ukraine.