Business news from Ukraine

CHINA INTERESTED IN STRENGTHENING COOPERATION WITH UKRAINE – XI JINPING

KYIV. Jan 4 (Interfax-Ukraine) – President of the People’s Republic of China Xi Jinping congratulated Ukrainian President Petro Poroshenko and Ukrainian people on the occasion of the 25th anniversary of diplomatic relations between Beijing and Kyiv.

“In 25 years after establishing diplomatic relations Chinese-Ukrainian relations stably develop. Cooperation between the two countries in trade, economic, investment, agricultural, scientific, cultural and other spheres have achieved substantial results. The contents of Chinese-Ukrainian strategic partnership are permanently expanding, which brings real benefits to the two countries and their people,” Xi Jinping said in a greeting published by the press service of the Ukrainian president on Wednesday.

“China pays large attention to the development of Chinese-Ukrainian relations. China is ready to use the best opportunity of the 25th anniversary of diplomatic relations between the two countries based on mutual respect and mutual benefits to come to the further strengthening of the foundation for friendly cooperation between the two countries, promotion of bilateral relations and cooperation in all spheres to have even more achievements,” he said.

CABINET INTENDS TO CREATE 25 REGIONAL DEVELOPMENT AGENCIES IN 2017

KYIV. Jan 3 (Interfax-Ukraine) – The Cabinet of Ministers of Ukraine intends until the end of 2017 to ensure the creation of 25 regional development agencies the mission of which involves assistance to local authorities in the implementation of programs and projects of regional development and improvement of investment attractiveness.

The relevant data is contained in the draft of medium term plan of priority actions of the government until 2020.

In addition, the Cabinet plans to improve the system of regional investment projects financed by the State Fund for Regional Development.

According to the government, the current system does not provide a guaranteed stable funding for the duration of projects implementation, giving rise to incomplete construction projects and does not allow achieve the desired effect.

In addition, the Cabinet notes the need to ensure the transition from financing of projects aimed at solving current local problems to projects that merely create workplaces, innovative products and those improving standards of living.

The government also intends to provide regions with access to European funding instruments of regional development, including cross-border cooperation. For example, in 2017 the Cabinet plans to develop an international agreement on Ukraine’s participation in the Danube Transnational Program as earlier the European Commission decided to allocate EUR 5 million for Ukraine to participate in this program.

KYIVSTAR TO ENTER FINANCIAL SERVICES MARKET IN EARLY 2017

KYIV. Jan 3 (Interfax-Ukraine) – Kyivstar, the leading Ukrainian mobile operator, intends in early 2017 with the help of its subsidiary StarMoney LLC to launch the first set of financial services, in particular, public transfers and payments to third parties.

The press service of the company told the agency, bank issuing electronic money in the project will be state-controlled Ukrgasbank and Pravex-Bank controlled by Italia’s Intesa Sanpaolo, selected at a tender. Currently, the company is conducting a tender to select one of payment systems.

“The project to provide Kyivstar subscribers with mobile financial services consists of several blocks. One of them is currently undergoing pilot testing, while its commercial launch is scheduled for early 2017,” the press service said.

As reported, StarMoney LLC in June received a license from the National Bank of Ukraine for money transfers in the national currency.

UKRAINE TO SELL ZALK, TURBOATOM BY LATE OCT 2017

KYIV. Jan 3 (Interfax-Ukraine) – Ukraine’s government has ordered the privatization of 68.0095% in PJSC Zaporizhia Aluminium Plant (ZAlK), 75.224% of PJSC Turboatom and 99.999% of OJSC Oriana, according to corresponding resolution No. 1057 dated November 28 posted on the government’s website.

This document approves the plan of placement of the shares in these companies, providing for the sale of these packages at tenders with open bidding on the principle of auction until November 30, 2017.

In addition, the list of objects for privatization includes 22.555% in gas supply and gasification company PJSC Korostyshivgaz, 50.005% of OJSC Osnaschennia, 57.389% of PJSC Lviv plant Avtonavantazhuvach, 25.998% of Avtolyvmash, and 30.979% of PJSC Kamyanets-Podilsksilmash.

The government also extended the terms of auctioning a 99.995% stake in Sumykhimprom and 99.5% of Ivano-Frankivsk Locomotive Repair Plant until November 30, 2017.

GROYSMAN PREDICTS GROWTH OF LOCAL BUDGET REVENUES BY 25% IN 2017

KYIV. Jan 3 (Interfax-Ukraine) – Ukrainian Prime Minister Volodymyr Groysman predicts a 25% growth in revenues of local budgets in 2017.

“We have almost an annual rise of 50% in revenues of local budgets … We foresee another growth of 25% next year,” Groysman said on the air of the Espreso TV Channel.

According to the premier, simultaneously with the increase in revenues, the responsibility of local authorities will grow and decentralization in regions depends on their efficiency.

Groysman believes the public should also monitor the use of funds from local budgets to avoid corruption.

UKRAINE INCREASES GAS TRANSIT BY 22.5% IN 2016

KYIV. Jan 3 (Interfax-Ukraine) – Ukraine in 2016 increased transit of natural gas through its gas transportation system (GTS) by 22.5% (15.121 billion cubic meters) compared with 2015, to 82.2 billion cubic meters, according to live data from PJSC Ukrtransgaz.

In December 2016 gas transit increased by 24.5% (1.659 billion cubic meters) compared to the same month in 2015, to 8.421 billion cubic meters. In particular transit of gas through Ukraine to Europe last month amounted to 8.035 billion cubic meters, to Moldova 386.1 million cubic meters.

Total volume of Russian gas transit through the Ukrainian gas transportation system in 2016 was the highest in the last three years.

Ukrtransgaz, 100% owned by Naftogaz Ukrainy, operates a system of trunk gas pipelines and 12 underground gas storage facilities in the country.