Business news from Ukraine

AGRICULTURE MINISTRY, SOUTH KOREA’S POSCO DAEWOO SEEK TO COOPERATE TO UPGRADE AGRICULTURAL MACHINERY FLEET OF SMALL, MEDIUM-SIZED FARMERS

KYIV. Oct 5 (Interfax-Ukraine) – Ukraine’s Agricultural Policy and Food Ministry and South Korea’s Posco Daewoo have signed a protocol of intent to implement a project to upgrade agricultural machinery in Ukraine for small and medium-sized farmers.

The ministry’s press service reported that the protocol was signed by Deputy Minister for European Integration Olha Trofimtseva and Posco Daewoo Corp. Senior Executive Vice President Kim Se-Hyun.

“With the signing of the protocol the sides agree to design a joint program on provision of small and medium-sized farmers in Ukraine with newest agricultural machinery. It will help to make an important contribution to the stabilization and consequent development of its agro-industrial complex,” Trofimtseva said.

Next step in cooperation is to be the creation of a joint working group to draft an action plan to start the implementation of the program.

COUNCIL OF EUROPE TO ALLOCATE EUR 45 MLN FOR REFORMS IN UKRAINE – KLIMKIN

KYIV. October 5 (Interfax-Ukraine) – The Council of Europe plans to allocate EUR 45 million to support reforms in Ukraine, Foreign Affairs Minister of Ukraine Pavlo Klimkin has said.

“The Day of Ukrainian reforms in the Council of Europe. The Council of Europe’s action plan for Ukraine envisages 45 million [euro] to support Ukrainian reforms, which is the largest support package for a member state in the organization’s history,” he wrote on Twitter.

The foreign minister also said that Ukraine in the future will continue to work with the Council of Europe for the sake of reforms in the country and to strengthen rule of law and human rights in Europe.

FULL TRANSITION TO INSURANCE MEDICINE IN UKRAINE TO TAKE PLACE IN 2020 – DEPUTY PRIME MINISTER ROZENKO

KYIV. Oct 3 (Interfax-Ukraine) – Full transition to insurance medicine and the medical reform in Ukraine should take place within three years: a gradual transition to the application of the principles of health insurance is to begin in 2017, while the final model to be formed in 2020, the press service of Deputy Prime Minister of Ukraine Pavlo Rozenko said.

“According to our program, the full transition to insurance medicine and medical reform should take place within three years in order not to shock either people or the doctors’ community,” the press service quoted Rozenko.

The deputy premier said that the health system is switching from the principle of financing of hospital beds to the principle of financing services provided to patients. The mechanism of “money follows the patient” is introduced.

“This process is complicated and painful. It is not fully accepted by the medical community as it is necessary to go through the competition, improve the quality of services,” Rozenko said.

In early September Deputy Health Minister Pavlo Kovtoniuk said the Ministry of Health plans to introduce a plan of implementation a national health insurance system in Ukraine in 2017. It involves changes in the legal framework, including laws, the adoption of the Cabinet decisions.

According to Ukrainian insurers – participants of the sixteenth International Financial Forum, which was held in Odesa on September 14-17, 2016, voluntary development and implementation of compulsory health insurance are in need of stimulation, in particular, by supporting bill No. 4981 “On Compulsory Social Health Insurance in Ukraine”, organizing its promotion and refinement in the relevant committees of the Verkhovna Rada.

Head of the Health Committee of the Verkhovna Rada Olha Bohomolets registered alternative bill No. 4981-2 in the Verkhovna Rada in early August. The bill provides for the introduction of compulsory state social health insurance in Ukraine from January 1, 2018.

 

UKRGAZVYDOBUVANNIA SUCCESSFULLY CARRIES OUT FIRST HYDRAULIC FRACTURING USING OWN EQUIPMENT

KYIV. Oct 3 (Interfax-Ukraine) – Public joint-stock company Ukrgazvydobuvannia has successfully carried out first hydraulic fracturing operations using own equipment, the company’s press service has reported.

The press service said that after dry well stimulation its gas flow rate reached 48,000 cubic meters a day. It is expected that the well will be used optimally with the production rate of 74,000-90,000 cubic meters a day. After its connection the operation of the well will start.

Around 100 hydraulic fracturing operations were carried out in 2000s by the equipment the company now uses for hydraulic fracturing, but due to unskilled specialists and low quality of materials the efficiency coefficient then was around 30% instead of the 70% acceptable for industry.

The press service said that after three years of idle period of hydraulic fracturing equipment Ukrgazvydobuvannia repaired it and expanded with modern equipment. The company used modern materials and introduced advanced preparation methods. The company also involved the best team of foreign specialists in Eastern Europe.

“Successful first hydraulic fracturing operations open a new horizon to increase gas production by Ukrgazvydobuvannia. We use the most modern technologies, attract equipment and competence of global technological leaders such as Halliburton and Weatherford. This program would be successfully expanded with the involvement of servicing companies Belorusneft and Tacrom that offered the better price for stimulation operations. Our top priority is to boost hydrocarbon production. We are trying to do this as effectively as possible,” Production Director Yuriy Nahorniak said.

GOVERNMENT TO CREATE COMMITTEE FOR RESTORING UKRAINIAN INDUSTRY – PM

LVIV. Oct 3 (Interfax-Ukraine) – Ukraine’s Cabinet of Ministers plans to create the committee for restoring Ukrainian industry in October, Ukrainian Prime Minister Volodymyr Groysman has said.

“In October we plan to create the committee for restoring Ukrainian industry. Ukrainian industry today is on the roadside and requires government support,” he said at a briefing in Lviv on Friday.

The prime minister said that the government intends to establish cooperation between enterprises that lost traditional markets and help in searching for new markets for their products.

“It is important that we not only sell grain in the amounts of millions of tonnes, but also sell products processed in Ukraine,” Groysman said.

He said that the Office for Accompanying Investment will be created at the next government meeting.

GERMAN, JAPANESE INVESTORS TO HELP BUILD PODILSKO-VOSKRESENSKY BRIDGE – KYIV MAYOR

KYIV. Oct 3 (Interfax-Ukraine) – Kyiv authorities are attracting investors from Japan and Germany to implement a project to build the Podilsko-Voskresensky Bridge, Kyiv Mayor Vitali Klitschko has said on TV Channel Newsone.

“I promised to Troyeschyna residents that the Podilsko-Voskresensky Bridge would be opened in Klitschko’s tenure… I discussed cooperation issues in Japan and Germany. We are mulling many options and attracting investors to help in the implementation of this project – construction of the bridge. The subway to Troyeschyna remains important for us. We will finish the project,” the press service said, citing Klitschko.

He said that according to the existing plans, 250 km of roads are to be repaired in Kyiv by the end of this year, adding that 200 km have already been repaired.

“I talked to Kyivavtodor and contractors – they provide a five year guarantee for the roads,” he said.

He said that movement of heavy trucks will be restricted in the city to prevent road damage. Weighing complexes are being installed at the entrances to Kyiv.