Business news from Ukraine

UKRPOSHTA SEEKS TO BOOST REVENUE BY 20% IN 2017

KYIV. Dec 28 (Interfax-Ukraine) – Ukrposhta postal service enterprise seeks to increase net revenue by 20% in 2017 and this is UAH 1 billion more than the target for 2016.

Ukrposhta Director General Ihor Smeliansky told Interfax-Ukraine that according to the financial plan for 2017 approved by the Infrastructure Ministry net profit of Ukrposhta would be UAH 300,000, while in 2016 the company will be almost breakeven.

“It was planned to see UAH 16 million of net profit in 2016, but due to the increase in capital investment we plan to be breakeven,” he said.

Ukrposhta is managed by Infrastructure Ministry. It provides over 50 types of services in almost 12,000 departments all over Ukraine.

NOVA POSHTA STARTS DELIVERING PARCELS FROM CHINESE ONLINE SHOPS

KYIV. Dec 28 (Interfax-Ukraine) – Nova Poshta has launched the express delivery service from China to Ukraine designed in cooperation with China’s SF Express logistic operator.

The press service of the Ukrainian company reported that now buyers can order delivery from largest Chinese online shops (Gearbest, Sammydress, Everbuying, 139shopping.com, Banggood, JD.com, LightintheBox, DHGate), including Ali Express, to anywhere in Ukraine.

The test period preceded the official start of the service. Nova Poshta reregistered feedback and polished the service mechanism. The company in November 2016 delivered over 500,000 of parcels from China to Ukrainians.

The sellers pay for delivery. Clients that select free-of-charge SF Express and SF eParcel can use the delivery service. The clients are able to track all categories of parcels at all delivery stages. The quick delivery term, the absence of hidden payments and the client service are available for the clients.

According to Ukrainian legislation, after arrival to Ukraine all cargo is inspected by the Customs Service. Nova Poshta fully controls the cargo and the company is responsible for its safety from the arrival to the Boryspil airport to the door delivery.

“The company seeks to have leading positions in Ukraine in the volumes of e-commerce parcel imports from China and to deliver over 2 million parcels from China in 2017,” the company said.

VIETNAMESE AMBASSADOR SUGGESTS UKRAINIAN-VIETNAMESE FORUM IN KHARKIV

KHARKIV. Dec 28 (Interfax-Ukraine) – Head of Kharkiv Regional State Administration Yulia Svitlychna and Vietnamese Ambassador to Ukraine Nguyen Minh Tri have discussed the expansion of bilateral cooperation between Kharkiv region and Vietnam.

Nguyen Minh Chi suggested organizing a business forum with the participation of Vietnamese entrepreneurs in Kharkiv region, the regional administration’s press service reported.

“I would like to have a large-scale business forum organized in Kharkiv region as part of expansion of economic and trade cooperation between Ukraine and Vietnam. After all, we are very interested in your region, and the potential of our cooperation is huge,” the press service quoted the ambassador as saying.

For her part, Svitlychna said Vietnamese enterprises continue to develop their business in on the territory of Kharkiv region, and local enterprises also export their products to Vietnam.

“I believe that our cooperation will be expanding in various directions, and further cooperation has a great future and will bring stable and strong economic result,” Svitlychna said.

DNIPROPETROVSK REGIONAL ADMINISTRATION DECIDES TO RE-LAUNCH IDEA OF PAVLOHRAD INDUSTRIAL PARK

KYIV. Dec 28 (Interfax-Ukraine) – Head of Dnipropetrovsk Regional Administration Valentyn Reznichenko has liquidated the Pavlohrad industrial park created under a decision of his predecessor Ihor Kolomoisky dated February 5, 2015. He decided to create it again.

The decision approving the park concept was made on December 13.

According to the document, the park is created for the period of 30 years on a land parcel of 250 ha having borders with the territories of state-run enterprise Pivdenmash and Pavlohrad Technological Equipment Plant LLC.

“The top priority directions of operation for determining the functional importance of the Pavlohrad industrial park are new production facilities that use environment friendly, energy saving, innovative and hi-tech technologies in a wide range of sectors, particularly: engineering, construction materials, logistics, light and processing industries,” reads the document.

It is planned that infrastructure for the park will be built in three stages: 50 ha, 100 ha and 100 ha.

Almost UAH 156 million is required to create the park. The funds would be raised from the national and regional budgets and a managing company. UAH 11 million is required to build power lines and some UAH 4 million to connect to gas, water and roads. It is planned that the creation of the park would help to raise $375 million of investment.

Dnipropetrovsk Regional Administration has announced a tender to select a managing company for the industrial park. Bids can be submitted until January 13, 2017.

UKRAINIAN DANUBE NAVIGATION’S FLEET EXPANDED WITH 60 BARGES

KYIV. Dec 28 (Interfax-Ukraine) – The many-year process of transferring barges of Europe-IIb type to ownership of Ukrainian Danube Navigation (Odesa region) was finished on December 13 in Vienna, the press service of Ukrainian Danube Navigation has reported.

Twenty seven years ago, in 1989, Sovkomflot signed a contract with Austria’s BAWAG leasing GmbH to build Europe-IIb type barges. When the USSR dissolved, Ukrainian Danube Navigation became the legal successor of liabilities of Sovkomflot.

Under the agreement, the advance payment of 15% of the cost of the barges was paid, and the rest of the sum was to be paid under a schedule. However, there were breaks in the schedule during more than 25 years and then payments were stopped due to financial difficulties of the enterprise over the UN embargo against Yugoslavia, war in this country and destruction of bridges on the Danube River.

As of December 2014, the debt for building the barges was over EUR 7 million and around EUR 2 of interest.

“After long talks Ukrainian Danube Navigation managed to arrange the reduction of the debt by 90% in 2015 with BAWAG leasing GmbH and Österreichische Kontrollbank AG (OeKB) acted as a guarantor of the Austrian government. The debt was cut to EUR 1.5 million if it is paid under the schedule before November 30, 2016,” the company said.

The debt was settled on November 24, and on December 13, 60 barges were transferred to ownership of Ukrainian Danube Navigation in Vienna.

Ukrainian Danube Navigation performs over 30% of the transportation on the Danube River. The company’s fleet includes nearly 400 self-propelled and towed river vessels, and 30 seagoing vessels.

ERV STARTS COOPERATING WITH PRIVATBANK INSURING BANK CARD HOLDERS

KYIV. Dec 27 (Interfax-Ukraine) – European Travel Insurance (ERV, Kyiv) has signed an agreement with PrivatBank to provide travel insurance services to holders of bank cards, the insurance company has said in a press release.

Under the agreement the insurer has been providing the possibility of getting a one-year travel policy when clients register payment cards for the clients and their families since December 2016.

“Ten insurance programs with various insurance coverage sums will be offered to clients of PrivatBank – from basic Classic that includes mandatory insurance for people travelling abroad to the Diamond premium package covering over 45 risks, including the cancelation of a trip, delay of flights, loss of luggage and other risks each traveller can face before and during his or her trip,” Sales Department Head Oleksandr Vishtaliuk said.

The company said that insurance sums depend on the program and vary from EUR 30,000 to EUR 100,000. Programs for children of card holders and relatives aged under 80 are foreseen.

Insurance programs are effective in all countries, apart from Ukraine during one year if the length of each trip does not exceed 60 days. All insurance programs cover urgent medical care, in-patient and out-patient treatment, repatriation. Euro-Center Holding SE assistance company provides for 24-hour assistance to the client if insurance events occur.

ERV Board Chairman Myroslav Boichyn said that personal insurance companies would allow expanding the range of services for the clients of the bank and will stimulate them to use banking cards more actively.

ERV was founded in 2006. It is a leading company on the Ukrainian tourist insurance market.