Ukraine open for business - Business news

Business news from the Ukrainian League of Industrialists and Entrepreneurs

UKRAINE TO OPEN 14 TRADE REPRESENTATIVE OFFICES ABROAD IN 2016 – TRADE MINISTER

KYIV. Aug 20 (Interfax-Ukraine) – Ukraine intends in 2016 to open 14 trade representative offices in a new format in other countries in addition to the six that will be opened this year, Minister of Economic Development and Trade Aivaras Abromavicius has said.

“We will set up six trade representative offices in a new format this year and from the new year they will begin to work. Next year we will open 14 more [missions], i.e. 20 trade missions abroad in a new format will work by the end of 2016,” the minister said at a Cabinet meeting on August 20.

UKRZALIZNYTSIA INCREASES GRAIN LOADING BY 27% SINCE EARLY 2015

KYIV. Aug 20 (Interfax-Ukraine) – Ukrainian railways in the period from January 1 to August 17, 2015 loaded grain to over 255,000 grain carriers and shipped around 17 million tonnes of grain cargo, the press service of the State Railway Administration of Ukraine (Ukrzaliznytsia) has reported.

Ukrzaliznytsia said that in August around 1,300 grain carriers was loaded every day.

Since early 2015, over 230,000 cars with grain (almost 15 million tonnes) were loaded, which is 27% up year-over-year, including 210,700 cars with grain for exports sent to ports (13.8 million tonnes, a rise of 32.6% year-over-year). Grain was almost loaded directly from cars to ships from 6,200 cars (410,900 tonnes, a rise of 52.6%).

Daily grain loading was 1,033 cars (25.2% up).

In 17 days of August railways accelerated grain car turnover by 0.12 days, to 9.72 days.

In August 2015, the grain carrier fleet totaled 13,228 cars, which is enough to ship 2-2.5 million tonnes of grain every month.

GOVT ORDERS ECONOMY MINISTRY TO DRAW UP BILLS ON PROTECTING INTELLECTUAL PROPERTY IN UKRAINE WITHIN ONE MONTH

KYIV. Aug 20 (Interfax-Ukraine) – The Cabinet of Ministers held a meeting on Tuesday on reforming the state system for protecting intellectual property rights and the Economic Development and Trade Ministry of Ukraine was instructed to draw up five key draft laws to reform the state intellectual property rights protection system, the ministry said on its website.

The main problems of the sector were outlined at the meeting: among the largest problems are the violation of intellectual property rights online, non-payment of royalties to state-owned media, and the absence of clear rules for organizing the collective management of copyright and related rights.

“After the meeting it was decided to order that the Economic Development and Trade Ministry is to present five key draft laws, which would be the basis for the reform of the state intellectual property rights protection system, for the cabinet’s discussion within one month,” the report said.

The core principles of the reforms are protection of intellectual property rights online, regulation of the royalty collection market, prevention of patent trolling, relaxation of the intellectual property rights protection procedure in IT, public access to licenses, and toughening of punishments for violations of intellectual property rights.

In addition, the ministry, jointly with the State Service for Intellectual Property, is to conduct a stocktaking of the use of PCs and software in power agencies and offer an action plan to legalize software in public institutions.

GRAIN HARVEST IN UKRAINE COULD TOTAL 59.1 MLN TONNES IN 2015 – MINISTRY

KYIV. Aug 19 (Interfax-Ukraine) – The Economic Development and Trade Ministry of Ukraine has forecast that the grain harvest in Ukraine in 2015 could total 59.1 million tonnes.

“It is projected that due to the reduction of fields with spring crops (as of June 1, 2015 the decline is 6.4%) with the small reduction of grain yield (a decline of 0.6% as of August 1, 2015) at the end of the year the pace of plant growing would slightly worsen (the grain harvest would be 59.1 million tonnes compared to 63.9 million tonnes in 2014),” the ministry said on its website.

The ministry said that cattle breeding is steadily declining due to companies in the Anti-Terrorist Operation (ATO) zone reaming inactive.

 

STARTING PRICE OF 94.5% IN ODESA PORT-SIDE PLANT WILL BE NO LESS THAN $500 MLN – SPF

KYIV. Aug 19 (Interfax-Ukraine) – The starting price of a 94.5% stake in Odesa port-side chemical plant will be no less than $500 million at auction, Head of the State Property Fund (SPF) Ihor Bilous said at a meeting of the plant supervisory council.

According to the press service of the Ministry of Economic Development and Trade, Bilous noted that at present ten potential investors are interested in the privatization of Odesa port-side plant.

Bilous also said it is planned to attract a large international investment bank as an advisor for privatization by the end of August, while a road show for investors will begin in September.

As reported, the State Property Fund of Ukraine intends to put 5% of PJSC Odesa port-side chemical plant up for sale through Perspectiva stock exchange on August 26.

The sale of a 94.5% stake in PJSC Odesa port-side plant is scheduled for November.

WORLD BANK COULD APPROVE ISSUE OF $500 MLN DPL-2 TO UKRAINE BY SEPT

KYIV. Aug 19 (Interfax-Ukraine) – The Board of Directors of the World Bank plans to consider at a meeting scheduled for August 25 the issue of the Second Development Policy Loan (DPL-2) in the amount of $500 million to Ukraine.

According to a report on the website of the World Bank, the issue will be the first one on the agenda of the Board of Directors after a two-week pause in its work.

Earlier, deputy head of the presidential administration of Ukraine Dmytro Shymkiv and government officials clarified that the World Bank’s issue of a $500 million DPL-2 will enable Ukraine to receive $300 million from the government of Japan under a bilateral intergovernmental agreement on the promotion and protection of investment (an investment agreement between Japan and Ukraine).

The Verkhovna Rada adopted the necessary laws for this new funding in the spring and summer of this year along with other laws that have allowed Kyiv to get a $1.7 billion second tranche from the International Monetary Fund within the EFF program in early August.