Business news from Ukraine

AGROPRODSERVICE THRESHES 120,000 TONNES OF EARLY GRAIN, LEGUME CROPS

KYIV. Aug 28 (Interfax-Ukraine) – Agroprodservice Corporation has finished harvesting early grain and legume crops, and has threshed 120,000 tonnes of grain, the company has said.

The company said that the harvest is the largest in the history of the company.

Average grain yield is over 7 centners per hectare, and wheat yield is 8 centners per hectare.

“This has become possible as Agroprodservice considerably improved organization and production technologies, planting of high-yielding grain crops [was successful], and more attention was paid to farming standards on the remote fields,” the company said on Thursday.

Agroprodservice Corporation was created in 1999. As a diversified enterprise, it operates in 50 settlements in seven districts of Ternopil and Ivano-Frankivsk regions. The company cultivates 37,000 hectares of land.

UKRAINE EXPECTS EU TO INCREASE QUOTAS FOR UKRAINIAN GOODS UNDER FTA – YATSENIUK

KYIV. Aug 28 (Interfax-Ukraine) – Ukraine expects the European Union to increase quotas for Ukrainian goods under the Free Trade Area (FTA) agreement, Prime Minister of Ukraine Arseniy Yatseniuk said during a joint briefing with Lithuanian Prime Minister Algirdas Butkevicius in Kyiv on Friday.

“You, as an EU member state, perfectly understand that we need to find new markets, and the European market is a key one for us. That’s why we’ll appreciate support of your [Lithuanian] government when considering increasing quotas of Ukrainian products, which could be supplied to the European market as a FTA Agreement with EU,” Yatseniuk said.

 

KYIVENERGO INTENDS TO TRANSFORM ENERGIA INCINERATION PLANT INTO A FULLY FUNCTIONAL PUMPED STORAGE POWER PLANT BY 2019

KYIV. Aug 27 (Interfax-Ukraine) – Public joint-stock company Kyivenergo (Kyiv), as part of its modernization plan, will ensure that Energia incineration plant will become a fully functional pumped storage power plant running on alternative energy by the end of 2018, the company’s press service has reported.

“This resolves two very urgent tasks: the provision of alternative energy to Kyiv and waste recycling,” the press service said, citing Kyivenergo CEO Yuriy Mahera.

At present, Kyivenergo has started the second stage of modernization of the incineration plant during which boiler four and the electric filter will be overhauled with a replaced heating surface, external pipelines, water eco-meter, and restored setting and insulation. Clamshells for cranes in the slag and solid waste sections will be bought. This stage would be completed by the end of the year.

The press service said that after the overhaul, the effectiveness of the boiler and waste incineration volumes would grow by 20%, and emissions would be reduced to 40-50% of the limits

By the end of 2018, all the boilers and electric filters of the plant are scheduled to be overhauled.

“This would result in the increase of solid waste incineration by 20% (from 235,000 to 280,000 tonnes a year) and heating production would grow by 60% (to 360,000 gigacalories a year). The Energia incineration plant would be able to supply heating and hot water to over 300 apartment blocks (120,000 apartments), and in the summer period – supply hot water to 700 apartment blocks (around 280,000 apartments). In general, Kyivenergo would invest UAH 210 million in the development of the plant in 2015-2018,” the report said.

In 2017-2018, Kyivenergo also plans to install a 4 MW turbine at the Energia incineration plant, which would generate 14 million kWh of electricity every year (this is enough to cover needs of around 30 apartment blocks). The company also plans to build a modern emission gas purification system in 2018.

Kyivenergo said that the company has finished the first stage of the plant’s reconstruction by building a pipeline through which heating from waste incineration is sent to the heating supply pipelines of the city (UAH 28 million of investment).

Energia incineration plant belongs to Kyiv city and it is under the management of Kyivenergo. Its annual waste incineration capacity is around 240,000 tonnes (Kyiv creates around 1.3 million tonnes of waste a year in general).

NBU’S FOREX RESERVES EXPAND TO $12 BLN – YATSENIUK

KYIV. Aug 27 (Interfax-Ukraine) – The forex reserves of the National Bank of Ukraine (NBU), which totaled $10.38 billion as of early August 2015, have expanded to $12 billion, Ukrainian Prime Minister Arseniy Yatseniuk said while opening a cabinet meeting in Kyiv on Wednesday.

He said that the World Bank on August 25 approved the provision of a $500 million IBRD loan to finance the Second Multi-Sector Development Policy Operation in Ukraine, which will be transferred to the government’s accounts by September 9.

“This opens the doors for additional financial resources which could be received from Japan – $300 million and other contributors,” he said.

Yatseniuk said that the World Bank could provide another $500 million under the Second Financial Sector Development Policy Loan (FSDPL2), which would also be transferred to the government’s accounts, which would create a cushion of financial stability.

He said that government has accumulated financial resources this year, taking into account possible threats from international financial markets, and at present, it has UAH 30 billion in the single treasury account, and UAH 35 billion in currency accounts.

“In general, the financial situation in Ukraine is rather stable, and all measures taken by the government jointly with our international partners show that there is [a large] enough financial cushion, and enough resources to retain stability,” Yatseniuk said.

UKRZALIZNYTSIA PLANS FOR CARGO SHIPMENTS REVENUE TO GROW BY 23.5% IN 2015

KYIV. Aug 27 (Interfax-Ukraine) – Ukrainian railways expect that in 2015, revenue from cargo shipments will total UAH 47.5 billion, which is 23.5% up on 2014, according to an explanatory note to the financial plan of railways which has been posted on the website of the Infrastructure Ministry of Ukraine.

The revenue will grow as the tariffs for cargo shipments within Ukraine have grown by 30% since February 1.

Revenue from cargo exports will total UAH 16.062 billion and cargo imports – UAH 4.832billion, while revenue from transportation within Ukraine will total UAH 15.904 billion.

According to the document, transit cargo will reach UAH 4.619 billion, which is 30.6% down on 2014 due to a decline in passenger transportation by 9.1% year-over-year. The share of passenger transportation of total revenue from transportation will be 8.9%.

The financial plan of Ukrainian railways for 2015 foresees an increase in tariffs for passenger transportation in Ukraine by 21% from June onward. Additional expenses are expected at UAH 251 million.

The share of revenue from the provision of auxiliary services of net revenue from sales of products will be 9.8% in the amount of UAH 5.131 billion. Other operation revenue in 2015 will be UAH 751.9 million, which is more than twice less than in 2014 due to drop in revenue from sales of working assets by UAH 177.6 million, revenues from sale and purchase of foreign currency – by UAH 17.9 million and operation exchange rate differences – by UAH 430.2 million.

Other financial revenues will total UAH 1.047 billion.

Total revenues in 2015 are planned to reach UAH 59.554 billion, which is 17.5% up on 2014.

BANKS ISSUE CREDITS WORTH UAH 357 MLN UNDER STATE ENERGY SAVING PROGRAM – OFFICIAL

KYIV. Aug 27 (Interfax-Ukraine) – Banks-participants of the state program to partially compensate the cost of credits taken for the modernization of heating efficiency and energy efficiency measures in the housing sector of Ukraine, since the start of its realization in 2014, and as of August 25, 2015, have provided 21,052 credits worth UAH 357 million, the State Agency for Energy Efficiency and Energy Saving of Ukraine reported on Wednesday.

The agency said that in the period from August 3 to August 25, banks-participants provided credits worth UAH 106.9 million.

As reported, with reference to agency head Serhiy Savchuk, as of August 17, 2015, banks-participants had provided 18,823 credits worth UAH 321.3 million.

By the middle of August 2015, state-run Oschadbank, Ukreximbank and Ukrgasbank were participating in the program.