Ukraine open for business - Business news

Business news from Ukraine

RADA EXEMPTS COAL SUPPLY IN UKRAINE FROM VAT UNTIL JULY 2017

KYIV. Nov 25 (Interfax-Ukraine) – The Verkhovna Rada of Ukraine has made changes to the Tax Code by exempting transactions on coal supply and coal enrichment products from VAT until July 2017.

These changes are contained in government bill No. 3073, which was supported by 232 deputies.

As reported, the parliament by the same draft law amended the Tax Code, by which changed the conditions for calculating the actual price of natural gas when paying royalties for subsoil use during its production. For Ukrgazvydobuvannia the calculation of royalties is linked to the price of gas sold to Naftogaz Ukrainy, for other gas producers – to the average price of gas imports.

Previously the calculation of royalties was tied to the ceiling level of prices for natural gas, which until October this year has been established by the National Commission for Energy, Housing and Utilities Services Regulation (NCER).

PHARMACY SALES UP 25% IN MONETARY TERMS, 18% DOWN IN NATURAL TERMS IN TEN MONTHS

KYIV. Nov 24 (Interfax-Ukraine) – Pharmacy sales in Ukraine in January-October 2015 in monetary terms increased by 25% compared to the same period in 2014, to UAH 38.08 billion, while in natural terms sales decreased by 18%, to 1.08 billion packages, Business Credit company has told Interfax-Ukraine.

According to the company’s analysts, retail sales of medicines in January-October 2015 in monetary terms increased by 25%, to UAH 31.167 billion, but declined in real terms by 18%, to nearly 671.961 million packs.

Cosmetics sales by drugstores for the first ten months of 2015 in monetary terms increased by 28%, to UAH 866.026 million, while sales decreased in real terms by 14%, to 22.481 million packs.

In addition, Business Credit noted that the average weighted price of a pharmacy basket in January-October amounted to UAH 165.57, the average weighted price of one package of drugs UAH 295.22, cosmetics – UAH 82.18.

CANADIAN MOBIFY ACQUIRES UKRAINIAN JEAPIE STARTUP

KYIV. Nov 24 (Interfax-Ukraine) – Mobify IT company (Canada), which specializes in the development of mobile apps, has acquired the Ukrainian startup Jeapie.

A report by AIN edition on the acquisition was confirmed by GrowthUP Group, one of the investors in the startup.

According to fund managing partner Denys Dovhopoly, the transaction has been fully completed and amounts to a “seven-digit figure”.

“Yes, the transaction has been fully completed. The transaction is estimated at a seven-digit figure, other details of the deal are secret,” he said.

For GrowthUP+, this is the first deal to get out of the company’s portfolio company.

“We now have around 30 companies in the portfolio and at least once a month they get takeover offers,” the expert said.

The Ukrainian startup has posted information confirming the deal and about its future plans on its blog.

Jeapie, which delivers mobile push notifications, was founded in 2013.

Mobify was founded in 2007. Its headquarters are in Vancouver (Canada).

UKRZALIZNYTSIA TO UPGRADE LARGE BRIDGE IN IVANO-FRANKIVSK REGION BY LATE NOV

KYIV. Nov 24 (Interfax-Ukraine) – Lviv railways is repairing the Yamnytsia-Yezupil section on the railway bridge across the Dnipro River consisting of five bridge spans 307 meters long.

The press service of Lviv railways reported that wooden sleepers are being replaced by concrete sleepers and continuous rail will be laid.

The works will be finished by late November and in summer 2016 the metal structures will be painted.

Lviv railways has finished overhauling six bridges and work on 11 bridges is underway.

Lviv Railways operates in the south-western part of Ukraine in six regions: Lviv, Ivano-Frankivsk, Zakarpattia, Chernivtsi, Vinnytsia, and Volyn.

KYIV PRESENTS ‘OPEN BUDGET’ PROJECT AT SMART CITY CONGRESS IN BARCELONA

KYIV. Nov 23 (Interfax-Ukraine) – Kyiv City State Administration has presented the “Open Budget” project at the Smart City international congress in Barcelona, the press service of the administration has reported.

“Now the team of the Kyiv Smart City project is at the Smart City congress in Barcelona. This is a congress where companies present their solutions in terms of various technologies in making cities “smart” and comfortable to live in. The presentations of the most progressive cities in the world, such as New York, Barcelona, Istanbul, Tel Aviv, Tallinn and many others are held here,” first deputy head of Kyiv City State Administration Ihor Nikonov said.

According to him, the report on the “Open Budget” project has been successfully implemented by the city authorities headed by Mayor Vitali Klitschko, caused considerable interest.

“A lot of questions were asked, they offered to share our experience. This is just the beginning of the way, however, our Western colleagues highly appreciated the changes that have been implemented,” Nikonov said.

He also said that the Kyiv Smart City team held a number of important meetings during the conference. In particular, meetings were held with the administration of Barcelona, as well as leading companies such as IBM, Microsoft, SAP, Cisco, at which the parties discussed the possibility of introducing advanced technologies in Kyiv.

AVTOKRAZ TO INVEST UP TO $10 MLN IN EXPANSION OF MODELS IN 2016

KYIV. Nov 23 (Interfax-Ukraine) – Public joint-stock company AvtoKrAZ (Kremenchuk, Poltava region), the only Ukrainian producer of heavy trucks, plans to invest at least $10 million in expanding the number of its truck models and improving their quality in 2016, using its own working capital.

“This year we’ve invested at least $10 million in this direction, and next year we plan at least for the same investment,” AvtoKrAZ Director General Roman Cherniak said in an interview with Interfax-Ukraine.

He said that next year the company will present several new models, including military and civil vehicles.

“[We will present] a 4×4 wheat low-tonnage truck with a carrying capacity from three to five tonnes: the design documents are being drawn up, and spare parts and elements are being selected,” he said.

He said that by the end of this year AvtoKrAZ plans to present an 8×4 wheel cab-over-engine dump truck which can be used for construction and transportation of crushed stone.

A 4×2 wheel dump truck will also be presented.

Cherniak said that the desire of the company to invest in the permanent improvement of its trucks is linked to plans to expand its presences in foreign markets.

“We’re trying to enter the European markets, as these are science-based markets, compared to our market, and they carry out researches and we want to be part of this,” he said.

AvtoKrAZ makes 33 basic vehicle models, and more than 260 modifications and trim levels for civilian and military vehicles.