Business news from Ukraine

EBRD APPROVES PROVISION OF $85 MLN TO MHP TO REPLENISH WORKING CAPITAL

KYIV. Oct 30 (Interfax-Ukraine) – The board of directors of the European Bank for Reconstruction and Development (EBRD) has approved a project which includes the provision of $85 million to Myronivsky Hliboproduct (MHP) to replenish its working capital.

EBRD Senior Adviser for External Affairs Anton Usov told Interfax-Ukraine that the decision was made on October 28.

MHP will use these funds to replenish its working capital related to the cultivation of crops and feed production and purchase equipment for the soybeans plant.

MHP is the largest poultry producer in Ukraine and it is also engaged in the production of grains, sunflower oil, and meat.

MHP in 2014 saw poultry sales rise by 18% in comparison with 2013, to 525,460 tonnes. The net loss of MHP in 2014 totaled $412 million against $162 million in 2013, while its revenues over last year decreased by 8%, to $1.379 billion.

PRESIDENTS OF UKRAINE, TURKMENISTAN SIGN JOINT STATEMENT

KYIV. Oct 29 (Interfax-Ukraine) – Ukrainian President Ukraine Petro Poroshenko and his Turkmen counterpart Gurbanguly Berdimuhamedow have emphasized the need to strengthen political dialogue between the two countries at the highest level and deepen trade cooperation on trade, economic, energy, financial, scientific, technical, cultural, humanitarian, and other areas.

A joint statement signed by the two presidents was posted on Poroshenko’s official website on Thursday.

“The presidents have reaffirmed their intention to strengthen mutually beneficial cooperation in the international arena. The two leaders stressed the need for coordination and mutual support within the framework of universal and regional organizations which Ukraine and Turkmenistan belong to,” the statement said.

Both leaders also reaffirmed the importance of enhancing the role of the UN and its institutions in addressing global issues, ensuring sustainable development, and strengthening security and stability in the world. The two leaders also declared their readiness to boost their efforts in the fight against terrorism, organized crime, and illicit drug trafficking.

“The parties reaffirm their commitment to comply with the generally recognized principles and norms of international law, including the principles of national sovereignty, territorial integrity, inviolability of borders and non-interference in the internal affairs of other nations, as well as the peaceful settlement of disputes. The leaders of the two countries noted the need to enhance bilateral and multilateral cooperation of regional security and stability,” the statement said.

The two presidents reaffirmed their mutual intent in ensuring the growth of bilateral trade and its diversification, the development of long-term forms of economic cooperation, and further investment cooperation.

The sides also confirmed their readiness to develop and deepen bilateral relations on culture, education, science, tourism and sports. In particular, they agreed to take measures to organize Days of the Culture of Turkmenistan in Ukraine and Days of the Culture of Ukraine in Turkmenistan.

Poroshenko is on an official visit to Turkmenistan on October 28-29, 2015.

AUSTRIA’S ASTEBO COULD LAUNCH HEATING EQUIPMENT PRODUCTION IN LVIV REGION

KYIV. Oct 29 (Interfax-Ukraine) – Austria’s ASTEBO, an industrial boiler manufacturer, is mulling the possibility of launching boiler production in Ukraine – at the Karpaty experimental mechanical plant in Lviv region.

According to a press release of the Chamber of Commerce and Industry of Ukraine, the project was discussed at the Ukrainian-Austrian business forum that took place last week in Vienna.

“Soon ASTEBO representatives with the help of the Chamber of Commerce and Industry would visit the Karpaty plant to study the technical conditions and prepare bids for a tender,” reads the press release.

Karpaty experimental mechanical plant LLC produces chemical and mining equipment and spare parts to it, fuel storage and transportation reservoirs for filling stations and autohydraulic hoists. The plant also produces hopper cars and gondola cars.

According to the state register, 41.3% of the limited liability company belongs to Yevhen Pohrebniak, around 41% to Olegro Ltd. (Cyprus) and 17.7% to the company head Hryhoriy Bevz.

ASTEBO is a global leader in designing, manufacturing and installation of industrial boilers and steam and hot water systems.

NOVOTECH-TERMINAL TO BUILD ELEVATOR WITH GRAIN STORAGE CAPACITY OF 110,000 TONNES AT ODESA SEAPORT

 

KYIV. Oct 29 (Interfax-Ukraine) – Novotech-terminal LLC (Odesa) plans to start building an elevator with a grain storage capacity of 110,000 tonnes at Odesa maritime merchandise port.

“Near berth 25 an elevator with a storage capacity of around 110,000 tonnes will be built. As far as I know our partners have drawn up the blueprints which are being examined,” Deputy Head of Administration of Odesa seaport Ruslan Sakhautdinov said at the investment forum “New projects of grain and oilseeds terminals in the ports of Ukraine” in Kyiv on Wednesday.

He said that construction and assembly works will start soon and that the Novotech-terminal has shown good results in grain handling.

“The wagon turnover is 3.5 days compared to eight days at large elevators in Odesa region. This is a very good indicator,” he said.

It is also planned to create a grain complex at berth 7, which is operated by Metals Ukraine.

“[The berth] requires reconstruction. We’re at the stage of designing with the port’s administration. The length of the berth is 350 meters. All the required permits have been received. Next year we’re ready to start construction and assembly works and it could take around two years to finish them,” he said.

Sakhautdinov said that two stevedoring companies – Metals Ukraine and Olimpex Coupe International – are mulling the technology of uniting their elevators into a gallery and would create a “grain hub” on the territory of Odesa seaport.

ENERGOATOM WANTS TO COOPERATE WITH BELGIAN COMPANIES ON NUCLEAR MATERIALS SHIPMENT, INFRASTRUCTURE PROJECTS

KYIV. Oct 29 (Interfax-Ukraine) – National Nuclear Generating Company Energoatom in Brussels on Wednesday signed several documents on cooperation with Belgian companies Transnubel Engineering and Tractebel Engineering, the company’s press service has reported.

The press service said that during the negotiations with Transnubel, the possibility of delivering fresh nuclear fuel to Ukrainian nuclear power plants (NPPs) from Sweden’s Westinghouse plant was discussed.

“Transnubel is one of the European leaders in the area of transportation of radioactive materials and affiliated services. The procedures and service provision standards are in line with the EU requirements, ensuring the highest safety level during transportation of radioactive materials,” reads the report.

The protocol of on cooperation with Tractebel Engineering foresees the participation of the Belgian company in the implementation of the comprehensive program on increasing the safety of reactors of Ukrainian NPPs being realized by Energoatom.

The sides are also interested in joint work on a project to increase the capacity of reactors of the VVER-1000 type at Ukrainian NPPs. In addition, Tractebel Engineering is ready to provide engineering and technical support during the completion of construction of reactors three and four of Khmelnytsky NPP and take part in the realization of other projects of new construction by Energoatom.

Energoatom is the operator of all four Ukrainian-based operating nuclear power plants, which have 15 VVER reactors with an overall generating capacity of 13.835 gigawatts.

Tractebel Engineering is a global engineering consultancy company with worldwide expertise in energy, water and infrastructure projects. Tractebel Engineering’s services cover the whole lifecycle of these projects, from feasibility studies to decommissioning.

Tractebel Engineering is part of ENGIE Energy Services, which is the European leader in provision of engineering services in the energy sector.

IZMAIL SEAPORT LOOKING FOR INVESTORS TO DEVELOP GRAIN HANDLING CAPACITY

KYIV. Oct 29 (Interfax-Ukraine) – Izmail maritime merchandise port state enterprise (Odesa region) plans to attract investors to develop the port’s grain handling capacities, Head of the Infrastructure Development Service of the port Liudmyla Hirus has said.

“Since 2002 we’ve been working on the issue of special terminals and today we’ve finished only with technical offers where we discuss two land parcels not far from berth 12 with a gross area of around 1.5 ha and behind berth 26 with area of 3.2 ha,” she said at the investment forum “New projects of grain and oilseeds terminals at the ports of Ukraine” in Kyiv on Wednesday.

Hirus said that the option of a separate railway track to these parcels is foreseen. A capacity of up to 700,000 tonnes a year is planned for the first land parcel with the possibility of servicing vessels of up to 145 meters long and with the draft of up to 5.5 meters.

She said that the cost of the project for the first land parcel as of 2009 was estimated at UAH 27.1 million of capital investment. Today, it is UAH 81 million.

She said that the second site foresees two construction stages. Its capacity is 550,000 tonnes.

The cost of the project in 2001 was UAH 32 million, and today it is around UAH 100 million.