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Business news from the Ukrainian League of Industrialists and Entrepreneurs

ELECTRIC CARS MARKET IN UKRAINE EXPANDS BY 2.8 TIMES IN FIVE MONTHS

KYIV. June 21 (Interfax-Ukraine) – Instances of the primary registration of electric vehicles (new and used ones) in Ukraine in January-May 2017 increased by 2.8 times year-over-year, to 958 cars, which corresponds to a 2% share in the primary market of passenger cars, the Ukrautoprom Association has said.
The structure of the market in terms of the age of cars has significantly changed: if a year ago the share of new electric cars in primary registration was almost 45%, nowadays it is only 18%.
According to the report, the Nissan Leaf model with 816 cars registered in Ukraine, including 124 new ones, is an absolute leader in the Ukrainian market of electric cars.
The second most popular model was the Ford Focus Electric: 37 cars (three new and 34 used cars) were registered in Ukraine over the period under review. The Tesla Model S and the BMW i3 (24 units each) ranked third. However, the BMW i3 is in the lead among new registered cars: 16 against 7 new Tesla cars.

CUB ENERGY INC. TO INVEST SOME $1.6 MLN TO RE-COMMENCE PRODUCTION AT RUSKO-KOMARIVSKE FIELD

KYIV. June 21 (Interfax-Ukraine) – Cub Energy Inc. (the United States) with assets in Ukraine has contracted to purchase a new nitrogen rejection unit for near $1.6 million to re-commence production on its wholly-owned Rusko-Komarivske (RK) field in western Ukraine.
The new unit is manufactured in the United States by Sep-Pro Systems Inc.
“The hiring of our new COO, Kerry Kendrick, resulted in a re-evaluation of the western Ukraine operations and we collectively believe the new NRU is the best option for Cub and its shareholders to resume production and cashflow at our wholly-owned RK field,” Cub Energy Chairman and CEO Mikhail Afendikov said.
Cub Energy said that the new unit is expected to be operational in Ukraine by year-end. The unit comes with manufacturer warranties on operational capabilities. Also, the unit will be skid mounted so it can be utilized on any of the company’s gas fields in the future.
The RK field production was suspended on April 1, 2016, upon the expiration of the company’s gas blending agreement. The natural gas from the existing RK wells contains nitrogen content that exceeds the allowable limit per the Ukraine Code of Gas Pipeline System.
The new unit is expected to cost approximately $1.6 million with half this amount due in the first 30 days. To fund the purchase, the company will utilize cash on hand and will borrow $1 million from an officer of the company. The loan will bear interest at a rate of 6% per annum and payable monthly. The company will also issue 2.2 million common shares to the lender as a loan bonus.

ECONOMY MINISTRY REGISTERS NOVOROZDILSKY INDUSTRIAL PARK IN LVIV REGION

KYIV. June 21 (Interfax-Ukraine) – Ukraine’s Economic Development and Trade Ministry has placed the Novorozdilsky industrial park (Novy Rozdil, Lviv region) to the register of industrial parks. The park is the 23rd park in the register.
The press service of the ministry reported that the park was placed on the register on June 15.
The industrial park will produce containers for consumer chemicals, energy effective and other materials, natural extracts and introduce environment friendly technologies.
A land parcel of the park of 46.4 ha is located 2.8 km far from downtown.
The park is created for the period of 50 years.
According to a posting on the ministry’s website, Kyivschyna industrial and technological park (Novi Petrivtsi, Kyiv region) is pending approval to be placed in the register under an initiative of the eponymous private joint-stock company. Its area is 150 ha. The park will process agricultural products, be involved in light industry, production of machinery and equipment. It will have logistics and servicing facilities.

TRUMP: “VERY, VERY GOOD DISCUSSIONS” WITH PRESIDENT POROSHENKO

WASHINGTON. June 21 (Interfax-Ukraine) – U.S. President Donald Trump has announced the results of talks with his Ukrainian counterpart Petro Poroshenko.
“We’ve had some very, very good discussions. It’s going to continue throughout the day. A lot of progress has been made, and it’s a great honor to have you, Mr. President,” Trump told Poroshenko before the press after a bilateral meeting in Washington, D.C., on Tuesday.
The White House, in turn, issued a statement on the results of the event, saying that the meeting covered the support of the peaceful settlement of the conflict in the east of Ukraine, as well as the agenda of President Poroshenko and his efforts to fight against corruption.

ATB FINISHES ACQUISITION OF KOPYLIV LOGISTICS PARK

KYIV. June 20 (Interfax-Ukraine) – ATB Group (Dnipro), developing the eponymous retail chain in Ukraine, has finalized a deal to buy the Kopyliv logistics park of A category located in Kopyliv, Kyiv region.
“The deal to buy the Kopyliv logistics park by ATB took place,” a source on the market told Interfax-Ukraine.
The source said that the park was sold to ATB Group by Belgium’s Ghelamco Group and will be used in logistics purposes of the ATB chain.
ATB has not yet provided comments to Interfax-Ukraine.
As reported, earlier Antimonopoly Committee of Ukraine permitted ATB-torhbud (Dnipro) to buy assets of Success Invest (Kyiv) in the form of a property complex.
The committee said that the facility is located in Kopyliv, Kyiv region.

OVER 100 PHARMACEUTICAL PRODUCTION SITES FROM INDIA CONFIRM COMPLIANCE WITH GMP IN UKRAINE

KYIV. June 20 (Interfax-Ukraine) – As of early June a total of 104 pharmaceutical industrial sites from India confirmed their compliance with Good Manufacturing Practice (GMP).
The Indian Pharmaceutical Manufacturers’ Association in Ukraine (IPMA) told Interfax-Ukraine, referring to the State Service for Medicines and Drugs Control, at present there are 72 conclusions effective in Ukraine and issued by the authority for applicants from India on the basis of certificates issued by the Pharmaceutical Inspection Convention and Pharmaceutical Inspection Co-operation Scheme (PIC/S).
In addition, some 32 certificates were issued by the State Service for Medicines and Drugs Control to the applicants from India after inspections at the production sites in India.
The authority’s experts are handling 18 more applications to receive the certificates. Work on nine applications to confirm compliance with GMP from Indian productions sites in in progress.
“The importance of Indian pharmaceutical production is admitted by the World Health Organization (WHO), as Indian generics allow considerably cut the cost of treatment,” WHO representative in India Henk Bekedam said.
The IPMA (the Indian Pharmaceutical Manufacturers’ Association) brings together Indian pharmaceutical manufacturing companies that meet high international standards, including US FDA (the United States), UK MHRA (Britain), MCC (South Africa), TGA (Australia), WHO GMP (WHO), GMP (Ukraine), which have representative offices in Ukraine.
The Pharmaceutical Inspection Convention and Pharmaceutical Inspection Co-operation Scheme has 44 members, including over 30 regulatory agencies of various countries.