Business news from Ukraine


KYIV. Aug 26 (Interfax-Ukraine) – Public joint-stock company Azovobschemash (Mariupol, Donetsk region), the flagship company of the leader of Ukrainian heavy engineering Azovmash Group, will ship 3,000 wagons to Iran, the Ukrainian Embassy in Iran has reported.

The cost of the agreement signed with the help of the embassy exceeded EUR 100 million.

“This is only a first agreement to supply Azovobschemash’s products to Iran. The total need of Iranian state-run companies Pars Wagon and Kors Wagon exceeds 35,000 wagons, gondola cars and tank wagons. Thus, the total potential of Azovobschemash’s cooperation with Iranian enterprises is over EUR 1 billion,” the embassy said.

Early August Ukrainian Ambassador to Iran Serhiy Burdyliak said in an interview with Iranian Tasnim news agency that Azovmash and Kriukov Car Building Works (KCBW) are holding talks with Pars Wagon and Kors Wagon on creation of joint ventures to work in Iran.

On July 13, 2016, Ukraine’s Infrastructure Ministry and Infrastructure Ministry and Roads and Urban Development Ministry of Iran signed a memorandum of understanding.

Iran has invited Ukraine to build 1,000 kilometers of railroad tracks in Iran and participate in projects worth $10 billion provided by Teheran for modernization of railway infrastructure and development of intermodal transportation.


KHARKIV. Aug 25 (Interfax-Ukraine) – Kharkiv Mayor Hennadiy Kernes and Czestochowa Mayor Krzysztof Matyjaszczyk (Poland) have signed a memorandum of cooperation between the cities to boost tourism.

The press service of Kharkiv City Council reported that the document was signed on August 23.

“Under the memo the sides will exchange experience, draft and implement joint projects and initiatives aimed at stimulating development of tourism of the two cities,” the press service reported.

Kharkiv is famous with hosting events intended to develop business tourism, while Czestochowa is developing religious tourism. The city has many holy places. The city is the center of a pilgrimage of the faithful from Poland and other countries.

“Kharkiv continues expanding its international cooperation. It is important for us. We are interested in best practices and achievements of other cities of Europe and from the whole world. We would be pleased if our foreign partners will come to Kharkiv – to adopt our best practices,” the press service said, citing Kernes.

Matyjaszczyk expressed hope that cooperation between Kharkiv and Czestochowa will be useful for the two cities and it would help to implement various joint projects.


KYIV. Aug 25 (Interfax-Ukraine) – Newly appointed U.S. Ambassador to Ukraine Marie Yovanovitch presented copies of her credentials to Ukrainian Deputy Foreign Minister and chief of the ministry’s secretariat Vadym Prystaiko on Tuesday.

The parties mentioned a high level of relations between Ukraine and the U.S. and the importance of their further development in all areas, particularly in the security and economic fields, the Ukrainian Foreign Ministry website reported.

Prystaiko and Yovanovitch exchanged opinions on the state and prospects of the Minsk peace process and discussed bilateral interaction within the UN framework.

Yovanovitch pointed out to a qualitatively new level of relations between the U.S. and Ukraine and the U.S.’ determination to continue to help Ukraine defend its territorial integrity, pursue reforms, and fight corruption.

It was reported earlier that previous U.S. Ambassador to Ukraine Geoffrey Pyatt had left Ukraine on August 18 after three years of his service in the country.

U.S. President Barack Obama had earlier announced his intention to appoint Yovanovitch new U.S. ambassador to Ukraine. Pyatt was reportedly named as the U.S.’ prospective ambassador to Greece.

Yovanovitch earlier served as principal deputy assistance secretary in the U.S. Department of State’s Bureau of European and Eurasian Affairs. From 2001 to 2004, Yovanovitch served as deputy chief of mission at the U.S. embassy in Kyiv and charge d’affaires.



KYIV. Aug 25 (Interfax-Ukraine) – The Cabinet of Ministers of Ukraine, Federation of Employers of Ukraine (FEU) and Federation of Trade Unions of Ukraine (FPSU) have signed a general agreement on regulating the key principles and standards for implementing the social and economic policy and labor relations in the country for 2016-2017.

An Interfax-Ukraine correspondent has reported that Ukrainian Prime Minister Volodymyr Groysman, Deputy FEU Head Oleksiy Miroshnychenko and FPSU Head Hryhoriy Osovy signed the document.

“We must create relevant labor conditions, produce competitive products and pay fair salaries to Ukrainian citizens. I said this before and today I will repeat this at a government [meeting] – labor of Ukrainian citizens is underestimated,” Groysman said during the signing of the agreement.

The prime minister said that ministries must deepen cooperation with trade unions and employers.

The agreement will be implemented in 2016 and 2017. Osovy said that trade unions are waiting for an increase in minimum wages by 20% after the signing of the agreement.

Groysman said that the government first since 1993 has passed a resolution on the signing of this trilateral agreement. According to the FEU, this is the 11th similar agreement in the history of the country.

The government said that the document contains 191 provisions and three sections: increase of competitiveness of national producers and provision for a rise of employment; salaries, conditions, labor protection and social protection of employees; and social dialog. The document has seven attachments.

The economic section contains general agreements of the sides on taking joint measures aimed at development the domestic market, support of Ukrainian production and solving issues of concern. They include agreements to increase crediting of the real economic sector, pay the public debt to business in VAT refunds and overpaid profit tax.

The sides will hold consultation on setting prices/tariffs of natural monopolies at the economically justifiable level, their regulation and joint control, minimizing their negative impact on the public and producers, as well as targeting assistance to some categories of citizens.

The social section determine the pace of growth of average salaries for the non-budget-funded areas; the rate of remuneration for first labor grade workers and extra bonuses to the remuneration rates and salaries.

Attention should be paid to payment of wage arrears and preventing them. Also important are taking agreements on labor protection, social protection and humanitarian issues.

The parties of the agreement are 95 Ukrainian trade unions represented by five unions of trade unions, 93 organizations of employers and their associations (28 sector and 65 territorial organizations) represented by four Ukrainian unions of employers.


KYIV. Aug 25 (Interfax-Ukraine) – Polish President Andrzej Duda has said that Ukraine and Poland should join efforts to ensure energy security, develop economic and human ties based on mutual respect.

“We need to combine our efforts to ensure energy security, and we have talked a few times about this today, and Mr. President Poroshenko stressed this,” he said speaking with Ukrainian diplomats in Kyiv on Wednesday.

Duda stressed the need to actively develop ties between the two countries to “overcome the isolation”, to develop the transport infrastructure, which will ensure the free exchange of services, to develop investment cooperation between Ukraine and Poland, to promote tourism and interaction between citizens of the two countries.

“We need to break the blockade of cooperation that stems from the issues of history and identity. We will not change our history, but we must always maintain an open dialogue based on mutual respect and historical truth,” the Polish president said.

Duda also said that Warsaw will consistently promote the reforms in Ukraine and provide its assistance.


KYIV. Aug 23 (Interfax-Ukraine) – KSG Agro (Luxembourg) with assets in Ukraine saw $1.95 million of net profit in January-June 2016 compared to net loss of $3.825 million a year ago.

According to a company report on the Warsaw Stock Exchange (WSE), its revenue over the period grew by 40%, to $7.14 million.

KSG Agro saw a 22.5% rise in operating profit in H1 2016, totaling $5.29 million and a 7.5% rise in gross profit, reaching $4.86 million.

Earnings before interest, tax, depreciation and amortization (EBITDA) over the period fell by 3.3%, to $6.04 million from $5.24 million in January-June 2015.

KSG Аgro is a vertically integrated agricultural group, working in almost all the segments of the agricultural market, including the production, storage, processing, and sale of agricultural products. The total arable land leased by the company is around 63,000 hectares.