Business news from Ukraine

GOVERNMENT SEEKS TO SELL ARTYOMSOL, UKRSPYRT, BILSHOVYK R&D COMPANIES IN 2017

KYIV. Sept 8 (Interfax-Ukraine) – Ukraine’s Cabinet of Ministers has expanded the list of facilities to be put up for sale in 2016-2017 after they were removed by the Verkhovna Rada from the list of companies ineligible for privatization. The list includes Artyomsol, Ukrspyrt state-run enterprises, Bilshovyk research and development (R&D) enterprise and Lviv state-run jewelry factory.

The amendments are outlined in government resolution No. 588 dated August 31, 2016 posted on its website.

According to the document, the list also includes PJSC Electroprylad R&D complex, Powder Metallurgy Plant, Cherkasy Instrument-Making Plant, the property of Azov Shipyard and Ukrinterautoservice.

The updated list also has eight regional peat state-run enterprises, Kharkiv Electromechanical Plant, Melitopol Plant Hydromash, Kyiv Automatics Institute, Chimtextilmash, 60.888% of shares in PJSC Berezhny Ukrainian Refractory R&D Center, 72.692% in PJSC Conveyor Building R&D Institute and Ukrzinc.

In addition, the list includes several state-run R&D institutes in aviation industry, titanium, ferroalloys, nitrogen and nitrogen compound making industry, organic synthesis, wagon building, coal chemistry, coke chemistry, mining and textile industry and other sectors.

WESTERN NIS ENTERPRISE FUND INVESTS $10 MLN IN TECHNICAL ASSISTANCE PROGRAMS FOR UKRAINE SINCE 2015

KYIV. Sept 8 (Interfax-Ukraine) – NIS Enterprise Fund (WNISEF) created using funds of the U.S. government since March 2015 has invested around $10 million to Ukraine under some 20 technical assistance programs and projects.

“We plan to work with the Economic Development and Trade Ministry to develop an export promotion policy for Ukraine. We are also going to provide support to at least 200 exporters and at least 100 social enterprises as well as strongly influence the development of startup-ecosystems in Ukraine and Moldova. We hope to create over 30,000 new working places in Ukraine,” WNISEF CEO Jaroslawa Z. Johnson said at a meeting with journalists in Kyiv on Wednesday.

She recalled that the WNISEF has been implementing the $35 million legacy program focused on assisting Ukraine and Moldova, since 2015. The three-year program could be extended.

Johnson said that this covers the following areas: export promotion, local economic development, impact investing and economic leadership.

Local Economic Development Program Manager Iryna Ozymok said that WNISEF provided an initial funding of $50,000 to develop ProZorro public e-procurement system and then the funding reached $300,000. This has already saved some UAH 3 billion in state money.

The fund has promoted access to international markets for about 70 Ukrainian manufacturers, founded five Ukrainian Leadership Academies (Kyiv, Lviv, Kharkiv, Myrhorod and Mykolaiv) that enrolled over 200 secondary school graduates in 2016, restored four schools in Donbas for 320 children and supported 24 hub schools – one in each region.

CANactions school for urban studies was financed by WNISEF. Grants to implement seven projects of graduates in seven Ukrainian cities were provided. A first project incubator 1991 was created in Ukraine. School of Mayors and operation of Agency of Mykolaiv Development were supported. The fund also cooperates with banks to launch a low-interest loan mechanism for social enterprises.

WNISEF seeks to increase the number of Leadership Academies in various regions of Ukraine to 15 by 2018. It is planned to launch two 1991 incubators on the basis of universities and one urban incubator. The program then will be expanded to Moldova and their number will be brought to six.

Export Promotion Program Manager Vitaliy Bihdai said that at present WNISEF is participating in designing the National export strategy, supports operations of the Export Promotion Office and creation of the Investment Promotion Office at the government.

Economic Leadership Program Manager Roman Tychkivsky added that WNISEF also finances Seed Grant program that helps Ukrainians to get business education abroad. In 2015-2016, over $1 million for 19 grant holders was provided to allow them to study at top universities of the United States and Britain. The fund plans to increase expenses on business education of Ukrainians to $5 million by 2018. Tychkivsky said that recipients of this assistance agree to work in Ukraine for at least three years after graduating.

Western NIS Enterprise Fund is a $150 million regional private equity fund, a pioneer in Ukraine and Moldova with more than two decades of successful experience in investing in small and medium-sized companies. Since its inception, WNISEF’s cumulative investments total over $168 million to 118 companies in Ukraine and Moldova.

INFRASTRUCTURE MINISTRY HOPES TO START BUILDING LVIV-KHERSON ROAD IN 2017

KYIV. Sept 8 (Interfax-Ukraine) – Ukraine’s Infrastructure Ministry intends to start building the Lviv-Kherson highway in 2017 if the required funds are available, Infrastructure Minister Volodymyr Omelyan has said, adding that this would solve transit issues.

“If we manage to obtain the doubled sum – the prime minister promises it – we would be able to start systemic construction of roads. In particular, this year we are to hold tenders and next year to start building a large European highway that would joint Lviv and Kherson,” he said on Channel 5 TV late on Monday.

He said that these plans suit the situation with transit in Ukraine, in particular, this concerns a ban to transit across Russia.

The minister said that construction of the highway would solve the transportation of cargo between southern ports in Ukraine and the European Union.

“This road is built with this purpose. I think that the project would be a success. We would find good contractors,” he said.

POROSHENKO ADVOCATES SUPPORT FOR UKRAINIAN IT SECTOR

KYIV. Sept 8 (Interfax-Ukraine) – Ukrainian President Petro Poroshenko advocates support for the Ukrainian IT sector and its development.

“We have a huge staff potential and the most dynamic growth in the number of IT specialists. Our task is to support the developing IT sector,” he said in his address to the Ukrainian parliament in Kyiv on Tuesday.

The president said that in 2015 the IT sector became the third sphere in Ukraine in terms of exports, reaching $2.5 billion. This is 3% of Ukrainian GDP.

Poroshenko said that over 2,000 startups have been registered in Ukraine. They show high growth – up to 100% in a year.

“Last year investment reached $132 million, and foreigners invested a half of it. Ten Ukrainian IT companies were included in top 100 of global outsourcing companies,” he added.

UKROBORONPROM REPRESENTS POTENTIAL OF UKRAINIAN DEFENSE INDUSTRY AT MSPO 2016 EXHIBITION IN POLAND

KYIV. Sept 8 (Interfax-Ukraine) – The Ukroboronprom State Concern is representing the potential of the Ukrainian defense and industrial complex at the 24th International Defence Industry Exhibition MSPO 2016 held in Kielce (Poland) on September 6 through September 9.

The concern’s press service reported that 14 Ukroboronprom’s enterprises will be presented in Kielce that would present the potential of the Ukrainian defense and industrial complex in the sphere of designing, modernization and repair of aircraft and armored vehicles, production of artillery weapons, aviation, optical and radar equipment.

Among the enterprises exhibiting their products are Antonov State Enterprise, Konotop Aircraft Repair Plant Aviacon, Izyum Instrument-Making Plant, Lviv State Plant Lorta, Zhytomyr, Mykolaiv and Kyiv armored plants.

The Ukrainian delegation is headed by Ukroboronprom Director General Roman Romanov.

MSPO 2016 is the largest military industry exhibition in Poland and Central Europe. This forum unites potential buyers and suppliers; this is the showcase for military equipment, technologies and products; a platform for display of the customers’ needs and requirements.

UKRAINE, CZECH REPUBLIC AGREE TO HOLD MEETING OF JOINT COMMISSION FOR ECONOMIC COOPERATION

KYIV. Sept 8 (Interfax-Ukraine) – Ukraine and the Czech Republic have agreed to hold a meeting of the joint intergovernmental commission on economic, industrial, scientific and technical cooperation soon.

“When discussing the prospects for deepening economic and trade cooperation, the two sides agreed to resume the work of the Ukrainian-Czech joint intergovernmental commission on economic, industrial, scientific and technical cooperation, and to hold its meetings in Ukraine soon,” the press service of the Ukrainian Cabinet of Ministers reported with reference to the results of the meeting of Ukrainian Prime Minister Volodymyr Groysman and his Czech counterpart Bohuslav Sobotka.

Groysman noted Ukraine’s interest in enhancing cooperation with the Czech Republic, particularly in the areas of infrastructure, business activities and defense.

The Ukrainian prime minister also said that the government decided to raise the level of co-chairs of the commission, the Ukrainian part of which will be headed by Deputy Prime Minister for European and Euro-Atlantic integration Ivanna Klympush-Tsintsadze.

“I think the intergovernmental commission will be a good tool to improve our cooperation,” Groysman said.