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Business news from the Ukrainian League of Industrialists and Entrepreneurs

UKRAINE SOWS 50% OF PLANNED WINTER GRAIN AREA

KYIV. Oct 2 (Interfax-Ukraine) – Farmers in Ukraine have sown 3.7 million hectares out of 7.4 million hectares planned to sow with winter grain, the Agrarian Policy and Food Ministry has said.

This includes 3.5 million hectares of winter wheat and triticale, or 56% of the forecast, 109,000 ha of rye (70%) and 136,000 ha of winter barley (13%).

The ministry said 568,000 ha of winter rapeseed crops have been sown with the forecast of 823,000 ha.

As reported, the ministry projects that winter crops will be sowed on 7.4 million ha, which is 17.5% down on 2014.

UKRAINE INSTALLS SUSTAINABLE ENERGY BOILERS WITH TOTAL CAPACITY OF 740 MW IN 18 MONTHS

KYIV. Oct 2 (Interfax-Ukraine) – The facilitation of the procedure for commissioning heating supply facilities which consume sustainable energy and the stimulating tariff for heating generation using sustainable energy ensured that boilers with the capacity of 740 MW were installed in 2014 and the first half of 2015, Head of the State Agency for Energy Efficiency and Energy Saving of Ukraine Serhiy Savchuk has said.

“In 2014, boilers consuming sustainable energy with the total capacity of around 450 MW were installed, which is equal to the half of a reactor’s capacity. In H1 2015, similar boilers with the capacity of 290 MW were installed in H1 2015,” the agency said in a press release, citing Savchuk.

Savchuk added that in general, thanks to administrative and stimulating measures, in the past heating season (from October 2014 to April 2015) Ukraine managed to cut gas consumption by some 12% or 2.4 billion cubic meters.

JAPANESE SPECIALISTS DRAW UP ENERGY POLICY PLAN FOR UKRAINE

KYIV. Oct 2 (Interfax-Ukraine) – Japanese Parliamentary Vice-Minister of the Economy, Trade and Industry Shigeki Iwai presented a plan for Ukraine’s energy policy at a meeting with Ukrainian Prime Minister Arseniy Yatseniuk, which was drawn up with the help of Japanese experts.

The information and public relations department of the secretariat of the Cabinet of Ministers of Ukraine said that at the meeting, Iwai confirmed that the Japanese government plans to deepen its cooperation with Ukraine, first of all, on energy, and will also introduce relevant innovative technologies.

The meeting participants discussed Ukrainian-Japanese energy projects and the prospects of cooperation on responses to emergencies at nuclear power plants, reads the report.

The National Science and Technology Association of Ukraine told Interfax-Ukraine that as a part of the visit of the parliamentary delegation from Japan, which was headed by Chairman of the Japan-Ukraine Friendship Parliamentary League Eisuke Mori and included Japanese businessmen, ended on October 1, and meetings with Ukrainian Parliamentary Speaker Volodymyr Groysman, Energy and Coal Industry Minister of Ukraine Volodymyr Demchyshyn, Deputy Head of the Presidential Administration Dmitry Shymkiv, Managing Director of ICU financial group Makar Paseniuk and Deputy Infrastructure Minister of Ukraine Volodymyr Omelyan were held.

At the later meeting, the association presented the project entitled “Odesa Transport and Logistics Cluster. Ukrainian Gates for Japanese Goods to Europe.”

The Japanese delegation also visited Chornobyl NPP and the Ukrainian-Japanese center of the National Technical University of Ukraine KPI.

UKRAINIAN GOVERNMENT APPROVES CONCEPT OF RURAL DEVELOPMENT

KYIV. Oct 1 (Interfax-Ukraine) – The Cabinet of Ministers has approved the concept of rural development which is scheduled to be implemented in 2025.

The decision on approving the concept was fixed in Cabinet order No. 995-r of September 23, 2015, the text of which has been posted on the government’s website.

“The concept defines the main priorities for the development of rural areas and the mechanism of preparing state agricultural and rural sectors for functioning under the conditions of the free trade area with the EU,” the order said.

In addition, the implementation of the concept will reorient state agrarian policy from support of the agricultural sector to support for rural development and improving the quality of life and economic well-being of the rural population.

According to the document, the population of rural areas will increase, the rural mortality rate will reach the same level as in urban areas, wages will be increased, the number of jobs in agriculture will be increased to one million, rural employment will rise by 1.5 times, rural households’ income from business will rise to 15%, and the share of certified organic farmland will also rise to 7%.

 

KYIV INVESTMENT AGENCY PLANS TO LAUNCH 17 INVESTMENT TENDERS SOON

KYIV. Oct 1 (Interfax-Ukraine) – Kyiv Investment Agency municipal enterprise is preparing to launch tenders under 17 investment projects in the near future.

“Now six innovation tenders are looking for investors, and another 17 tenders will be launched in the near term,” First Deputy Director General Vitaliy Boiko said at a conference of the Financial Club devoted to bank collateral property and its management and prospects, which was held on Tuesday.

He said that 12 investment tenders have been held. Around UAH 1 billion will be allocated to Kyiv during the realization of the projects that already have investors.

He said that today the agency has around 190 projects with a construction area of 1.4 million square meters, and the realization of them could give around UAH 18 billion.

He said that the key problems in the realization of investment projects in Kyiv is the ineffective work of the court system in protecting the rights of investors, closeness of information on city assets and their owners, and the large number of permits required to start construction.

Boiko said that cooperating with Kyiv Investment Agency investors could lift most of risks concerning the purchase of land parcels.

UKRAINE COULD BOOST SUGAR EXPORTS BY DOZENS OF TIMES FROM 2016 – MINISTER

KYIV. Oct 1 (Interfax-Ukraine) – Fields sown with sugar beets in Ukraine could be increased in 2016, as if Asian markets are opened, exports will grow considerably, Agricultural Policy and Food Minister of Ukraine Oleksiy Pavlenko said at a briefing on Wednesday.

“We’ve raised the issue of foreign markets at a meeting of the Chinese commission and with several Asian countries. I think that next year it is better to sow more sugar beets. If we are able to open several markets in the next six months, we will be able to increase exports,” he said.

Pavlenko said that sugar beet exports could reach 1 million tonnes.

“The figure of 100,000 tonnes for export is not the limit. We can export dozens times more, and I don’t see any problem of exporting 1 million tonnes. Yes, refineries require modernization, but investment and foreign markets are required for this,” he said.

Pavlenko said that as of September 30, 2015, sugar beets were dug up from 34,000 hectares or 18% of fields with a yield of 388 centners per hectare. A total of 1.7 million tonnes of sugar beets have been dug up.

He said that the ministry has not changed its forecast for sugar production: 1.2-1.3 million tonnes in the current season (September-August).