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Business news from the Ukrainian League of Industrialists and Entrepreneurs

EBRD ALLOWS SHELL TO TAKE PART IN NAFTOGAZ TENDERS TO BUY GAS FOR BANK LOANS FUNDS

KYIV. Aug 9 (Interfax-Ukraine) – The European Bank for Reconstruction and Development (EBRD) has included Shell Energy Europe Ltd (Britain) in the list of companies that have passed preliminary qualification and have the right to participate in Naftogaz Ukrainy tenders for the purchase of gas for EBRD renewable loan funds in 2017-2018, the press service of Naftogaz has said.
“Shell has provisionally passed preliminary selection,” the report said.
As reported, the preliminary selection procedure will remain open for new participants during the term of the loan.
Earlier 13 companies passed preliminary selection for gas supplies for EBRD loan funds in 2017-2018.

UKRAINE, MALTA INTERESTED IN CREATION OF DISTRIBUTION CENTER FOR FOOD – MINISTRY

KYIV. Aug 9 (Interfax-Ukraine) – Ukraine and Malta are interested in implementation of joint projects in the agricultural sector, especially in logistics, Deputy Agricultural Policy and Food Minister Olha Trofimtseva has said.
“Despite the fact that bilateral trade in agriculture between our countries is small, we see a potential in cooperation in the investment area,” the press service of the ministry said, citing Trofimtseva.
She said that the creation of the distribution center could be interesting for some types of agricultural products and food, including processed products exported to African countries.
“It is important for us to approve the concrete business model for operation of this distribution center for Ukrainian food in Malta, taking into account all the economic factors,” she said.
The sides decided to form a technical group to draw up a business model concept for the distribution center, which will be presented in the near term.

AGRICULTURE MINISTRY SIGNS MEMO WITH TRADERS ON GRAIN EXPORTS IN 2017/18 AGRI-YEAR

KYIV. Aug 9 (Interfax-Ukraine) – Ukraine’s Agricultural Policy and Food Ministry has signed a memorandum of understanding with grain traders to stabilize the grain market and ensure for the predictable exports pace for 2017/18 agricultural year (July-June).
The ministry said on its website that the document contains tools for cooperation of grain market players, exchange of information and monitoring.
The sides decided to cooperate in approval of the balance sheet elements of the Ukrainian grain market, in particular, in calculation of the upper limits of grain exports, provision for food security and non-application of export restrictions.
As reported, the ministry predicts that grain harvest in 2017 will be 60.2-63 million tonnes.
Grain exports in 2016/17 agri-year tentatively totaled 44.441 million tonnes, and this is 4.954 million tonnes more than in the previous season.

PRODUCTION OF PASSENGER CARS IN UKRAINE 51% UP IN JULY 2017

KYIV. Aug 9 (Interfax-Ukraine) – Production of passenger cars in Ukraine in July 2017, according to preliminary data from the Ukrautoprom association, increased by 51% compared with the same month in 2016, to 405 units, however compared to June this year it decreased by 44%.
The increase in car production from July last year was due to the fact that 106 cars were produced by Zaporizhia car plant (ZAZ), while Eurocar increased the production of Skoda cars by 11.6%, to 299 units.
At the same time, compared to June 2017 these manufacturers reduced car output by 2.8 times and by 43.2% respectively.
According to the association, ZAZ in July, in addition to passenger cars, produced 48 commercial cars and two buses, and in general for the seven months 399 cars, 253 commercial vehicles and 14 buses.
Taking into account the June indicators, production of cars in Ukraine in January-July 2017 increased by 83% compared to the same period in 2016, to 3,483 units, in particular Eurocar raised production by 62%, to 3,084 vehicles.

ARCELORMITTAL KRYVYI RIH, KERNEL, AZOVSTAL ARE LARGEST VAT REFUND RECIPIENTS IN JULY

KYIV. Aug 9 (Interfax-Ukraine) – The largest recipient of VAT refund in July 2017 was ArcelorMittal Kryvyi Rih, which received UAH 1.074 billion, according to the unified state open data portal.
According to data posted on the portal, it is followed by Kernel-Trade exporter of oil and other agricultural products with UAH 730.292 million in VAT refunds.
The top five companies also include two metallurgical combines from Metinvest Group of Rinat Akhmetov: Azovstal with UAH 707.683 million, Mariupol-based Illich Steel Mill with UAH 493.636 million, as well as Suntrade agricultural exporter with UAH 546.141 million.
Then another company affiliated with Metinvest, Zaporizhstal, follows with UAH 392.266 million.
The second five companies include Myronivsky Hliboproduct with UAH 300 million, Nibulon with UAH 234.546 million, and JSC Cargill with UAH 218.043 million.
ADM Trading Ukraine with UAH 215.336 million closes the top ten largest recipients of VAT refunds in July.

SEA PORT AUTHORITY ANNOUNCES TENDER FOR DREDGING WORKS IN RENI PORT

KYIV. Aug 8 (Interfax-Ukraine) – The Ukrainian Sea Port Authority has announced a tender to carry out dredging works in Reni port with the expected cost of works of UAH 6.6 million and the approximate volume of works of 41,600 cubic meters.
“The dredging project we have launched at Reni port is intended to support its technical characteristics. This is the usual development plan that was not fulfilled in the previous years,” Authority Head Ravis Veckagans said.
He said that the Reni port is interesting for freight owners: in H1 2017, freight handling here grew by 21% year-over-year, to 424,180 tonnes.
The deadline for submission of bids is August 29, 2017. The dredging works are to be done in Q4 2017.
As reported, this year the authority carried out dredging works in Odesa, Chornomorsk, Olvia ports using own fleet. A contractor is involved in similar works at Mykolaiv port. In June, the authority signed a contract with Belgium’s DEME Group to remove ooze in Yuzhny port.