Ukraine open for business - Business news

Business news from the Ukrainian League of Industrialists and Entrepreneurs

AMERICAN BUSINESS ASKS UKRAINIAN AUTHORITIES TO ACCELERATE REFORMS, BOOST BATTLE AGAINST CORRUPTION

KYIV. June 26 (Interfax-Ukraine) – Representatives of American business have said they are satisfied with the level of dialogue they have with the Ukrainian government, but asked government ministers to accelerate the pace of the reforms and resolve corruption, judicial and bureaucracy issues, Andy Hunder, President of the American Chamber of Commerce in Ukraine has said.

Hunder thanked Ukrainian Prime Minister Arseniy Yatseniuk and his team for their cooperation in the last two months. There hasn’t been such a dialogue between the authorities and business for last 20 years, Hunder said at a meeting between the Prime Minister and business representatives in Kyiv on Thursday.

He said the current government includes truly competent individuals who were involved in business before joining the government.

In addition, Hunder said businesses still face problems and urged the government to pay attention to them. In particular, he said that a poll within the organization showed that businessmen thought corruption was the main problem and then – the situation with the judicial system and bureaucracy.

In addition, he asked for the announced reforms to be implemented quicker.

ENERGOATOM SEES ALMOST UAH 1 BLN IN NET PROFIT IN JAN-MAY

KYIV. June 26 (Interfax-Ukraine) – National Nuclear Generating Company Energoatom saw UAH 988 million of net profit in January-May 2015, while year-over-year its net loss stood at UAH 2.645 billion.

“One of the key factors influencing the financial result is expenses on exchange rate differences, purchase of foreign currency and payment of credit rates,” the press service of the company said.

Net revenue from the sale of products in January-May 2015 totaled UAH 12.851 billion, which is 46.6% up year-over-year. The cash cost of products over the period fell by 0.6%, and gross profit of UAH 4.173 billion was seen.

The press service said that this year the company had new expenses, in particular, interest for extended tax liabilities which total UAH 11.6 million now.

“The expenses are linked with systemic non-payments by State Enterprise Energomarket for electricity generated at Ukrainian nuclear power plants. Only this year the Energomarket’s debt grew by UAH 1.679 billion, and as of May 31, 2015 the debt totaled UAH 10.477 billion,” reads the press release.

Energoatom is the operator of all four nuclear power plants currently working in Ukraine: the Zaporizhia, Yuzhnoukrainsk, Rivne and Khmelnytsky power plants with 15 pressurized light water reactors and a total rated capacity of 13.835 gigawatts.

ECONOMY MINISTRY OFFICIALLY ASKS PAYPAL TO ENTER UKRAINIAN MARKET

KYIV. June 26 (Interfax-Ukraine) – The Economic Development and Trade Ministry of Ukraine has sent an official letter to the top managers of the PayPal international payment system with an invitation to enter the Ukrainian market, the ministry said on its website.

Previously, the ministry with the support of the IT business community in Ukraine formed a working group which also consists of representatives of the National Bank of Ukraine (NBU) and businesses, in particular, the consulting companies Baker&McKenzie and Deloitte.

“In June the ministry sent an official letter to the senior manager for Central and Eastern Europe at PayPal, where the ministry calls on the company to respond to the request of the Ukrainian IT community and enter the Ukrainian market. According to the letter, Ukraine has all the required infrastructure for the quick launch of PayPal, as well as a developed bank chain and a large number of payment card users,” reads the report.

The ministry said that it would promote the processes of amending legislation to create favorable conditions for PayPal to enter the Ukrainian market.

ENERGY MINISTRY ANNOUNCES TENDER TO SEARCH FOR POTENTIAL BUYERS OF STATE COALMINES

KYIV. June 25 (Interfax-Ukraine) – The Energy and Coal Industry Ministry of Ukraine has announced a tender to search for potential buyers of state-run assets in the coal mining sector, the ministry’s press service reported on Wednesday.

“The privatization of state coalmines, the major part of which are loss-making today, is intended to attract private investment to develop the coalmines thanks to financial resources, new technologies and management,” reads the report.

The official invitation for potential investors to participate in the tender to acquire the assets has been posted on the ministry’s website with reference information about 35 coalmines.

Ernst and Young and Deloitte will help looking for potential investors for coalmines.

Investors are to send their requests to the ministry and advisors and can receive more details on the assets.

The list of coalmines includes Krasnolymanska coalmines (produced 930,000 tonnes of rough coal in 2014), Novohrodovska 1-3 (636,000 tonnes), Stakhanov coalmines (547,000 tonnes), Pivdennodonbaska 1 (890,000 tonnes), Rossiya coalmine (725,000 tonnes) and others.

EARLY GRAIN CROPS HARVEST STARTS IN UKRAINE

KYIV. June 25 (Interfax-Ukraine) – Farmers in the southern regions of Ukraine have started harvesting early grain crops, and as of June 25, the first 20,000 hectares were threshed.

“The harvesting campaign has started in Ukraine. First [wheat on] 20,000 hectares have been threshed. The favorable weather and first results promise a good harvest,” Agricultural Policy and Food Minister of Ukraine Oleksiy Pavlenko wrote on his Facebook page.

As reported, referring to the ministry, grain was sowed in Ukraine in 2015 on 14.8 hectares: 7.9 million hectares with winter crops and 6.9 million hectares with spring crops.

EU SHOULD GIVE REALLY STRONG SIGNAL TO UKRAINE AS POTENTIAL EU MEMBER – SLOVAK PRESIDENT

KYIV. June 25 (Interfax-Ukraine) – The leaders of the European Union leaders should provide Ukraine with the prospect of membership to give impetus to a painful economic overhaul, Slovak President Andrej Kiska said.

“What I’m missing from the EU is to give a really strong signal that, yes, we do consider you potentially to be an EU member,” Kiska said in an interview with Bloomberg released on Wednesday.

He believes the protests that ousted President Viktor Yanukovych last year were driven by Ukrainians’ desire to belong to a democratic Europe.

However, he said that while transforming Ukraine’s economy and institutions for entry may take 20 years, “the EU must keep the possibility [of membership] alive.”

“People have to have a vision that now we are in tough times but it’s because we’ll have a nice future,” he said.

Kiska stressed: “We have to give our support to Ukraine and to put pressure on Russia and show that the EU is united.”

“There’s no way we should do a reduction of sanctions or anything before the Minsk agreement is fulfilled,” Kiska told Bloomberg.