Ukraine open for business - Business news

Business news from the Ukrainian League of Industrialists and Entrepreneurs

UKRAINE EXPORTS 27.7 MLN TONNES OF GRAIN SINCE EARLY 2014/15 AGRI-YEAR

KYIV. April 21 (Interfax-Ukraine) – Ukrainian grain exports since the start of the current agricultural year (July-June) as of April 20, 2015 totaled almost 27.7 million tonnes, including 9.83 million tonnes of wheat, according to an Agricultural Policy and Food Ministry of Ukraine press release.

The ministry said that 12.42 million tonnes of corn and 4.26 million tonnes of barley were supplied to foreign markets. Other grain exports totaled 204,000 tonnes.

As reported, with reference to the State Statistics Service, Ukraine in 2014 harvested a record high of 63.8 million tonnes of grain and leguminous crops (excluding Crimea), which is 2.4% more than in 2013.

In late January, the ministry and grain market players signed a memorandum of understanding on grain exports in the 2014/2015 MY. In addition to the memorandum, the volume of wheat exports was defined – 12.8 million tonnes, including 7.1 million tonnes of food wheat, corn – 20.2 million tonnes, barley – 4.2 million tonnes.

UKRAINE IMPORTS GAS FROM EUROPE AT $277.4 IN FEB

KYIV. April 21 (Interfax) – Ukraine imported natural gas from Europe at an average price of $277.4 per thousand cubic meters in February 2015, down 14% from $322.5 in January.

The State Statistics Service said that Europe supplied 1.197 billion cubic meters of natural gas worth $332.063 million in February.

Ukraine received 450.584 million cubic meters (mcm) of gas worth $125.3119 million from Germany (average $278.1), 416.986 mcm for $117.666 million from Hungary ($282.2), 214.552 mcm for $56.565 million from Norway ($263.6), 94.426 mcm for $26.325 million from Britain ($278.8), 10.73 mcm from Switzerland for $3.125 million ($291.2) and 9.993 mcm for $3.072 million from Luxembourg ($307.4).

Ukraine imported 2.266 bcm of gas from Europe for $676.564 million in January-February 2015.

The State Statistics Service did not say how much gas Ukraine imported from Russia in February, but pipeline operator Ukrtransgaz said 924 mcm were imported from Russia in February, as much as in January 2015.

UKRAINE TO JOIN EU, YET NATO MEMBERSHIP IS IN QUESTION – MINISTER

KYIV. April 21 (Interfax) – Ukraine will definitely join the European Union but its membership in NATO remains in question in the case of the alliance’s ineffective response to contemporary challenges, Ukrainian Foreign Minister Pavlo Klimkin said.

“I think that throughout the long period of its existence NATO has been focused on Article 5, i.e. mutual defense commitments, hard security. And we are saying that we are fighting a hybrid war. I am not 100% sure that NATO is fully prepared to fight similar or future hybrid wars and that NATO currently has a structure optimal for dealing with such [challenges] […] No doubt, NATO has been adapting. So, I am always frank about our critical need for participation in structures and guarantees. Yet we will have to seek other options if the alliance fails to provide guarantees for Ukraine,” he said in an interview with the online publication Evropeiska Pravda published on Friday.

He gave an affirmative answer to the question whether Ukraine would become an EU member.

Speaking of alternative ways to provide Ukraine’s security, Klimkin said, “These ways of the provision of security can create much bigger challenges to our partners than those they are currently anticipating from Ukraine’s possible NATO membership.”

Klimkin dwelled on problems existing within the North Atlantic alliance and said that the alliance was lacking consensus on many aspects of its development. “NATO is an organization with a rather complicated structure, incorporating, for instance, Canada and Turkey. So, a lot will depend on the development of NATO in the near future,” he said.

CROPS HANDLING CAPACITY OF UKRAINE’S PORTS TO GROW BY 10 MLN TONNES/YEAR IN 2-3 YEARS – UGA

KYIV. April 20 (Interfax-Ukraine) – The grain handling capacity of Ukrainian ports will increase by 10 million tonnes per year by 2018, President of the Ukrainian Grain Association (UGA) Volodymyr Klymenko has said.

“At present the handling capacity is about 45 million tonnes. In the next two or three years another 10 million tonnes will be added,” he told reporters during the First National Forum of Export Support in Kyiv.

Klymenko said that a number of companies are currently expanding or building new port terminals. In particular, Noble trading company plans to launch a terminal in Mykolaiv port in November. Also, Cargill is carrying out construction work at Illichivsk port.

In addition, according to Klymenko, a very important item for the development of grain logistics is the Infrastructure Ministry’s decision to perform dredging work in the Dnipro River. The work is expected to begin in mid-July. This will be preceded by a tender for its execution and the formalizing of permits.

“If we start doing this work, we have prepared the second projects on the Pivdenny Buh River. And then the desire to clean the Desna River will appear,” Klymenko added.

 

NOVA POSHTA TO EXPAND IN INTERNATIONAL MARKETS

KYIV. April 20 (Interfax-Ukraine) – Nova Poshta (Kyiv) plans to expand its operation in international markets in 2015, the co-founder of the company Viacheslav Klimov said in an interview with Interfax-Ukraine.

He said that two companies – Nova Poshta Moldova and Nova Poshta Georgia – were previously created and that test deliveries to the countries have been made.

“We’ve faced rather serious obstacles linked to Ukrainian law in the customs area. These are external factors for us with which we could work. There are Nova Poshta employees in the two countries, and they are working on the organization of deliveries from/to Ukraine and in the domestic market of the countries,” he said.

Klimov said that the two countries differ considerably.

“If Georgia is a European country with large influence and presence of leaders of global express delivery, in Moldova there is no such market, and the main problem is to explain what we offer, as it was in Ukraine in early 2000s. Anyway, we’re satisfied with starting this market venture, despite the crisis. This is a huge experience, and we believe it [to be] an element of development. I’m absolutely sure that in 2014 Nova Poshta would appear in several other countries,” he said.

Klimov did not disclose what other countries the company plans to enter.

When asked if the strategy is justified, Klimov said that it is absolutely justified, as Ukraine is becoming more and more open for Europe and the world each day, despite the events happening in Ukraine.

BRITAIN’S HUNNEWELL PARTNERS TO INVEST $100 MLN IN UKRAINIAN ASSETS

KYIV. April 20 (Interfax-Ukraine) – Britain’s Hunnewell Partners, the manager of a fund worth around $1 billion, has opened an office in Kyiv to invest in Ukrainian assets, member of the National Commission of Ukraine for Energy and Housing and Utility Services Regulation (NCER) Andriy Herus has said.

“In plans is to invest $100 million in projects in Ukraine by late 2016. We want to believe that this is the start of a trend,” Herus wrote on his Facebook page.

Herus told Interfax-Ukraine that Hunnewell Partners has leased space in the Gulliver shopping center in Kyiv. At present, its employees are selecting projects, including in the energy and agricultural sectors. The commission plans to offer some investment projects in the energy sector.

Hunnewell Partners was founded in September 2011. Its core business is venture investment.