Business news from Ukraine


KYIV. June 22 (Interfax-Ukraine) – A memorandum of understanding between the Ukrainian regions and on the creation of the national tourism organization was signed in Kyiv on Tuesday by 13 regions that have tourism associations.

“We will try to create the national tourism organization in shortest terms. It will be a platform for cooperation between the state, regions and business,” Director of the tourism and resorts department at Economic Development and Trade Ministry Ivan Liptuha said during the signing of the memo at the destination branding conference.

He said that Ukraine maybe the last country in the world that does not have the national tourism organization that consolidates the sector.

Liptuha did not specify the concrete terms for the creation of the organization. There is no platform where the project could be launched: the state cannot support the tourism sector and no one can consolidate business.

Deputy Economic Development and Trade Minister Yulia Klymenko said that the 2016 national budget did not include funds for tourism development: everything was done using donor and partner funds. As for 2017, the ministry intends to allocate around UAH 32 million to implement the tourism development program (the formation of Ukraine’s image, participation in exhibitions). The ministry hopes that the Finance Ministry will support the program.

Klymenko said that the number of tourists in Ukraine halved since 2013 – from 25 million to 12 million a year and this is the small figure for the large country. The share of the tourism of Ukraine’s GDP does not exceed 1%. Ukraine has a potential and resources required to develop the sector and achieve the indicators of most developed countries with upstanding tourism with 10% of GDP and each 11th job, she added.

“Tourism should become a driver of small and medium businesses for the government and the country, a driver of the economy,” Klymenko said.

Liptuha said that visa liberalization (talks to remove visas with some countries (India, Iran) are being held for a year), the launch of the single tourism information portal and promotion of Ukraine across the world helps to do this.

Klymenko said that the Economic Development and Trade Ministry will cooperate in tourism development with the Foreign Ministry and the Ukrainian diaspora in the world.

World Tourism Organization (UNWTO) Secretary-General Taleb Rifai who was present at the conference said that Ukraine has a strong team ready to develop tourism. He said that UNWTO would provide support.


KYIV. June 22 (Interfax-Ukraine) – Ukraine’s Ecology and Natural Resources Ministry has received several proposals from Canadian businessmen to build clean energy facilities in the Chornobyl zone, the ministry’s press service has reported.

“Canadian investors have showed their interest in a possibility of building biofuel plants and sustainable energy power plants (first of all solar power plants) on the territory of the Chornobyl zone. Canadian businessmen presented several realistic offers,” Minister Ostap Semerak said.

The ministry recalled that the Chornobyl Exclusion Zone has all equipment to connect plants to the power grid, but new legislation is required to approve to implement these projects.



KYIV. June 22 (Interfax-Ukraine) – Ukrainian metallurgical enterprises in May 2016 increased steel production by 5.7% compared to May 2015, to 2.297 million tonnes, remaining tenth in the ranking of the 66 world’s major manufacturers of these products, compiled by the World Steel Association (Worldsteel).

A rise in steel production in May was recorded in most top ten countries, apart from Japan, the United States, South Korea and Brazil.

The top ten steel makers in May are as follows: China (70.504 million tonnes, a rise of 1.8%), Japan (8.841 million tonnes, a drop of 0.9%), India (8.044 million tonnes, a rise of 4.9%), the United States (6.82 million tonnes, a decline of 0.4%), Russia (5.952 million tonnes, a rise of 0.4%), South Korea (5.807 million tonnes, a drop of 3.5%), Germany (3.858 million tonnes, a rise of 4%), Turkey (3.041 million tonnes, a rise of 5.4%), Brazil (2.59 million tonnes, a drop of 13.2%), and Ukraine (2.297 million tonnes, a rise of 5.7%).

In general, in May 2016, the 66 countries produced 139.154 million tonnes of steel, which is 0.1% lower than in May 2015.

The top ten steel makers in January-May 2016 includes: China (329.95 million tonnes, a drop of 1.4%), Japan (43.18 million tonnes, a drop of 2%), India (38.599 million tonnes, a rise of 2.4%), the United States (33.072 million tonnes, a drop of 0.2%), Russia (29.159 million tonnes, a drop of 2.8%), South Korea (27.891 million tonnes, a drop of 2.7%), Germany (18.195 million tonnes, a drop of 1%), Turkey (13.624 million tonnes, a rise of 3.4%), Brazil (12.326 million tonnes, a drop of 13.9%), and Ukraine (10.612 million tonnes, a rise of 14.7%).

In general, in January-May 2016, the 66 countries produced 658.227 million tonnes of steel, which is 2.2% lower year-over-year.

As reported, in 2015, the top ten steel makers included China (803.83 million tonnes, a drop of 2.3%), Japan (105.152 million tonnes, a drop of 5%), India (89.582 million tonnes, an increase of 2.6%), the United States (78.916 million tonnes, a drop of 10.5%), Russia (71.114 million tonnes, a drop of 0.5%), South Korea (69.673 million tonnes, a drop of 2.6%), Germany (42.678 million tonnes, a drop of 0.6%), Brazil (33.245 million tonnes, a drop of 1.9%), Turkey (31.517 million tonnes, a drop of 7.4%), and Ukraine (22.933 million tonnes, a drop of 15.6%).

In 2015, the 66 countries produced 1.599 billion tonnes of steel, which is 2.9% lower than in 2014.


KYIV. June 22 (Interfax-Ukraine) – The United States will allocate $220 million on the improvement of work of the State Customs Service of Ukraine, Minister of the Cabinet of Ministers of Ukraine Oleksandr Sayenko has said in an interview with Channel 5.

“The amount of $220 million has been confirmed during a meeting with Vice President [of the United States] Joseph Biden. We are speaking about three key goals on which these funds would be spent. One of them is reform of the customs service. First of all, the money from the U.S. will be spent on the purchase of equipment that allows to control and track the smuggling flows which today unfortunately manage to pass our customs checkpoints,” Sayenko said.

The minister stressed that customs employees would be provided with access to databases through which they can “monitor customs value correctly and impose relevant charges on goods.”

The second goal is the purchase of customs monitoring equipment.

“When a customs officer comes to a car, inspects it and writes the results in paper documents, it is difficult to control him or her. Technical equipment will allow automatically check what is transferred. A new system will determine value of goods automatically,” Sayenko said.


KYIV. June 21 (Interfax-Ukraine) – Antonov State Enterprise (Kyiv) would equip next generation An-148/158/178 family jets with aircraft avionics made by Canada’s CMC Electronics.

The press service of Antonov Enterprise reported on June 17 that western equipment for new Ukrainian aircraft will be shipped under contracts signed in June with Esterline CMC Electronics, Canada. The Canadian company will supply display, automatic pilot and navigation systems.

The Ukrainian enterprise has not disclosed the conditions and terms of the contract. According to the Visnyk Derzhavnykh Zakupivel public procurements bulletin, the equipment is to be shipped to Ukraine by late June 2021.

“Under the contract, equipment made by CMC Electronics adapted for Antonov aircraft will be certified by the Canadian company at Transport Canada and will meet western standards and requirements. This is an important factor for the further certification of the aircraft in line with European requirements,” the press service said.

Antonov said that CMC Electronics will also participate in the program on modernization of An-124-100 Ruslan aircraft with a carrying capacity of 150 tonnes used by Antonov Airlines that ensures the provision of services under the NATO SALIS program in the interests of 18 countries of the Alliance and the EU.

The installation of certified spare parts to the Ruslan aircraft will allow Ukrainian Ruslan aircraft to fly using modern and promising navigation specifications, the press service said.

State-run Antonov company, the leading Ukrainian aircraft manufacturer, became part of Ukroboronprom in April 2015 under a government decision.



KYIV. June 21 (Interfax-Ukraine) – Japan’s Fujikura, the electrical equipment manufacturer, intends to launch one more automotive parts plant in Yavoriv District of Lviv region in October 2016.

According to a posting on the website of Lviv Regional Administration, referring to Administrative Head of Fujikura Automotive Ukraine Oksana Lashmanova, the gross area of the new production facility will exceed 16,000 square meters.

The range of products will be expanded and 3,000 jobs will be created.

The first plant of the Japanese company in Lviv region started operating in April 2016. Total investment in the first phase reached UAH 87 million.

Total investment in the investment project is EUR 60 million for three years. Fujikura started producing automotive parts for European car manufacturers at the facilities with a gross area of 12,000 square meters.

The decision to build the plant would be made if the first phase is a success.

The projected production capacity of Fujikura Automotive Ukraine Lviv, which will be built in the industrial park in Lviv, would reach 4 million electric equipment sets.

Fujikura was founded in 1885 in Japan and gradually transformed into an international corporation providing innovation solutions. Its turnover exceeds EUR 5 billion a year.