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Business news from the Ukrainian League of Industrialists and Entrepreneurs

UKRAINE INCREASES SCRAP METAL EXPORTS BY 41% IN TEN MONTHS

KYIV. Nov 6 (Interfax-Ukraine) – Ukrainian enterprises working with scrap ferrous metals in January-October 2015 increased exports of these products by 41.1% compared to the same period in 2014, to 1.125 million tonnes.

According to customs statistics made public by the State Fiscal Service of Ukraine, scrap metal exports in monetary terms rose by 6.4%, to $269.353 million.

In January-October 2015 the country reduced imports of scrap metal in natural terms by 92.2% compared to January-October 2014, to 2,154 tonnes. In monetary terms, imports fell by 83.8%, to $2.262 million.

The goods were mainly imported from Turkey (93.81% of supply in terms of money), and Moldova (3.89%). Exports mainly went to Turkey (79.10%), and Moldova (19.36%).

FRENCH-UKRAINIAN BUSINESS FORUM TO BE HELD IN PARIS ON NOV 18

KYIV. Nov 6 (Interfax-Ukraine) – The French-Ukrainian business forum will be held in Paris on November 18, the Ministry of Economic Development and Trade has reported on its website.

The ministry said that on the eve of the forum, Ukrainian Trade Minister of Ukraine Aivaras Abromavicius met with representatives of French companies operating in Ukraine, namely Soufflet, Renault Ukraine, L’Oreal, Arcelor Mittal Steel, BNP Paribas, Danone and Auchan, to discuss the problems that prevent foreign investors from developing business in Ukraine. The meeting was focused on the extension of the moratorium on business inspections, VAT refunds, and resolving the issues of land allocation.

 

CONSTRUCTION OF VINNYTSIA POULTRY FARM IN LINE WITH UKRAINIAN, EU CERTIFICATION STANDARDS – MHP

KYIV. Nov 6 (Interfax-Ukraine) – The construction of the Vinnytsia poultry farm, including its second phase, is in line with the Ukrainian and European Union (EU) certification standards, Myronivsky Hliboproduct (MHP) told Interfax-Ukraine.

“Our companies are certified under European standards. How could production facilities that are certified not only under Ukrainian, but also under European standards negatively impact the environment? Under Ukrainian standards, the sites cannot be placed closer than one kilometer from a settlement. We’ve built [the sites] under [Ukrainian and EU] standards, otherwise we would not have received the permit. If we even did this, we would not pass European certification,” the press service of MHP reported.

The holding said it is perplexed about complaints of local residents.

“We conducted an analysis, we check odors at distances of 100, 200, 500 and 1,000 meters. The smell is almost unnoticeable at 500 meters…We don’t understand why people are outraged. Maybe due to other reasons which should be cleared up,” the press service said.

MHP said that the entire Vinnytsia poultry farm project is worth over $1 billion in investment, and the second phase includes 12 additional sites for breeding and additional slaughtering facilities.

The start of the construction of the second phase of the farm is scheduled for 2016.

On Thursday, residents of Chetverynivka of Vinnytsia region set up a roadblock and started an indefinite protest against the construction of the poultry farm. The protestors are concerned that if the farm is built, an unpleasant odor will affect settlement and the ecological situation in the area would worsen.

UKRAINE INTENDS TO ENTER TOP 50 OF 2016 DOING BUSINESS RANKINGS – ECONOMY MINISTER

KYIV. Nov 6 (Interfax-Ukraine) – Ukraine plans to enter the top 50 in the Doing Business rankings of the World Bank next year, Economic Development and Trade Minister of Ukraine Aivaras Abromavicius has said.

“Now Ukraine is 83rd, while two years ago we were 112th. We plan that next year we will enter the top 50 of the Doing Business rating,” he said while speaking at IV CEE Investment Conference organized by CFA Institute in Kyiv on Friday.

He said that deregulation will remain the top priority for his ministry over the next few years, adding that 40% of permits have been liquidated and special attention has been given agriculture and transport.

Abromavicius also announced the creation of the new deregulation office with 70 employees which will focus on relaxing tax administration, connections to power lines, and other issues.

WORLD BANK BOARD APPROVES DECISION TO PROVIDE $560 MLN TO IBRD TO DEVELOP ROADS IN UKRAINE

KYIV. Nov 5 (Interfax-Ukraine) – The board of directors of the World Bank has approved a decision to provide a loan of $560 million to the International Bank for Reconstruction and Development (IBRD) to finance a project on developing roads in Ukraine, the press service of the Infrastructure Ministry of Ukraine reported on Wednesday.

“The new loan will secure support for the realization of some measures regarding the improvement of road network management, transport communications, and exploitation of roads and road safety on the Poltava-Kharkiv section of the highway,” the ministry said.

 

AZOVMASH TO ENTER MIDDLE EASTERN, AFRICAN MARKETS

KYIV. Nov 5 (Interfax-Ukraine) – Azovmash, the leader in the Ukrainian heavy engineering market, has signed a dealership agreement with the Turkish company Vitas Velioglu Insaat ve Ticaret on the purchase and sale of railcar and heavy machinery goods manufactured by PJSC Azovzahalmash in Middle Eastern and African markets

According to a company press release, the agreement was signed during the visit of a delegation headed by the chairman of the Turkish company to the enterprise.

According to the press release, during the visit the first contract on the supply of wagons produced by Azovzahalmash in 2016-2017 was signed. The volume of the contract and its other parameters has not been disclosed.

“The signing of this contract is the first step towards the restoration of the enterprise. We’ll have to certify wagons, update technical documentation, and work to promote the products in non-traditional markets. Entering the markets of the Middle East and Africa is a real possibility and alternative to the market of the Customs Union, we’ve done major preparatory work for this,” the press service said, citing President of Azovmashinvest Holding Taras Polischuk.

Azovmash (Azovmashinvest Holding) is one of the largest machine building complexes in Ukraine.