KHARKIV. Dec 15 (Interfax-Ukraine) – Director of the European Bank for Reconstruction and Development (EBRD) in Ukraine Sevki Acuner hopes an agreement on financing subway construction in Kharkiv will be signed in the first half of 2017.
“Now the procedure of due diligence is underway. We are completing preliminary preparations, developing the project. I hope we will be able to finalize it in the first half of next year,” the banker said at a press conference in Kharkiv.
He said EBRD representatives discussed the project at a meeting with Kharkiv Mayor Hennadiy Kernes on December 13.
“The city supports this project. The EBRD on its part too, therefore we will work on it and achieve results as soon as possible,” Acuner said.
According to him, now the issue is being discussed that the EBRD will issue a long-term loan of EUR175 million and simultaneously the European Investment Bank (EIB) will grant a loan of the same amount for subway construction in Kharkiv. It is expected the money will be spent on building a subway line in the direction of the airport, a depot and rolling stock purchase.
KYIV. Dec 15 (Interfax-Ukraine) – Frunze Plant (Kharkiv), the leading national manufacturer of perforated metal products, intends to invest around EUR 8 million in the implementation of an investment project on creating an enterprise for the import-substituting production of flooring grids, the press service of the enterprise has said.
According to Frunze Plant chairman Oleksandr Vasylenko, the company has already signed a contract to build a production line with a German company, the world’s leader in the creation of this type of equipment.
The factory will invest about EUR3 million in the new line, and this will be the first phase of the investment project to launch new production, and as a whole the duration of the project is estimated at two or three years.
The press service said the plant previously supplied these products to customers, but acquired it in Poland.
Frunze Plant, founded in 1885, produces sieves for agricultural machinery, flooring grids, netting and fencing systems, elements of urban environment (waste baskets, benches), storage racks, protective systems of engine crankcases for automobiles, as well as pellet boilers.
KYIV. Dec 15 (Interfax-Ukraine) – Automotive Electric Ukraine LLC (Chernivtsi), a manufacturer of electric cable products for cars, whose founder is Prettl Kabelkonfektion GMBH (Germany), was opened on December 13 with the participation of Prime Minister of Ukraine Volodymyr Groysman.
“We’ve opened Automotive Electric Ukraine LLC in Chernivtsi. Investment was UAH 80 million, some 1,000 jobs will be created,” Groysman wrote on his Facebook page.
According to the state register, Automotive Electric Ukraine with the charter capital of UAH 5.8 million was created on May 5, 2016. The ultimate beneficiary of the company is Gunther Ungericht.
As reported, Prettl Group (Germany) owns, in particular, two companies in the Czech Republic and a factory in Kamyanets-Podilsky. Prettl Cable Ukraine in Kamyanets-Podilsky has been working in Ukraine for 18 years. It produces wiring harnesses for cars.
KHARKIV. Dec 15 (Interfax-Ukraine) – The European Bank for Reconstruction and Development (EBRD) has opened a regional office in Kharkiv.
“Eastern Ukraine is also important for our work. It is important for the economy and for our cooperation not only in terms of large-scale projects, but also in terms of the development of small and medium-sized businesses. We are opening an office here because it is important to have an office here, in the region to work with small and medium-sized businesses,” EBRD Managing Director for Eastern Europe and the Caucasus Francis Malige said at a press conference in Kharkiv.
He noted this is the second EBRD office opened with the financial support of the EU in the framework of EU4Business initiative. The third one is to open in Odesa in February 2017.
“Thus, we are sending a strong signal that we see the prospects and a great potential of the country,” the banker said.
EU Ambassador to Ukraine Hugues Mingarelli noted the European Union supports reforms in Ukraine, in particular, advises on the issues of economy deregulation and support and development of small and medium-sized businesses.
“In this field the European Union funds a number of programs aimed at providing advice and support to small and medium-sized enterprises, training and improving their access to finance and credits,” Mingarelli said.
KYIV. Dec 15 (Interfax-Ukraine) – Gas deposits in the northwestern section of Black Sea shelf are assessed at no less than 40 billion cubic meters (bcm), Head of the State Service for Geology and Deposits Mykola Boyarkin has said after the first phase of sea works carried out by the Iskatel research vessel.
“According to estimates of scientists, gas deposits total no less than 40 bcm of gas on 7,000 square kilometers. This is the smallest figures we can receive,” the press service of the authority reported, citing Boyarkin.
Earlier the Iskatel research vessel finished it voyage carrying out exploration of the shelf near the Snake Island. The research work will continue next year.
KYIV. Dec 15 (Interfax-Ukraine) – Sumitomo Electric Bordnetze-Ukraine (Ternopil region), a manufacturer of cable products for Volkswagen Concern, and 100% in which is owned by Japan’s Sumitomo Electric Bordnetze, has opened the first stage of a new production site in Chortkiv (Ternopil region) with the participation of President of Ukraine Petro Poroshenko.
“When it was decided that the new production will be in Chortkiv and there was nothing, nobody believed that in December the plant will be launched and 500 new jobs will be created, and in 2018 their number will exceed 2,000. In March [the investor] was transferred Agromash plant, and there was only wind here, there were no walls, only ruins, and those who come here, including Audi representatives, thought nothing will happen. But the uniting of the potential of Ukrainian, German and Japanese investments have done their job,” the president said at the opening ceremony.
He said there is an agreement with the investor regarding increasing wages to the employees.
“We discussed with the investor what wage will be. First we talked about UAH 3,800-4,000. But no, it will be up to UAH 6,000! And we agreed that by the end of the year we’ll raise it by another 15% – and this will be a gift from the president,” Poroshenko said.
He said the investor is ready to continue investment in Ukraine.
Sumitomo Group is one of the largest Japanese corporations. The group consists of companies working in the financial sector, engineering industry, electrical industry, ferrous and nonferrous metallurgy, and many others.