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Business news from Ukraine


WARSAW. June 19 (Interfax-Ukraine) – The privatization of state objects in Ukraine should start with the sale of the largest enterprises, President of the Warsaw Stock Exchange (WSE) Board Pawel Tamborski, who is a member of the supervisory council for the reform of state enterprises under the Ministry of Economic Development and Trade of Ukraine, has said.

“We [the supervisory council] have just started work: under the leadership of Odesa Region Governor Mikheil Saakashvili we gathered a professional team, consisting of representatives of the European Bank for Reconstruction and Development (EBRD), the World Bank, as well as experts from Ukraine, having international experience. The council in terms of its structure consists of several departments and I was involved in the division responsible for privatization. Speaking about the privatization process, we encourage our colleagues in Ukraine first to enter the market with relatively large transactions, which to some extent reflect the state of the county’s economy. This is what helps to attract international investors and expand their presence in Ukraine, which in the future might serve as a foundation for the development of the domestic stock market,” he said while speaking at Warsaw Capital Market Summit 2015 in Warsaw.

According to him, relevant transactions could be carried out not only through the capital market, but also by special procedures – through sales to a strategic investor or merger and acquisition procedures (M&A).


Interfax-Ukraine news agency has started issuing a news product devoted to the trends of the pharmaceutical market and the development of healthcare and medicine, “Pharmaceuticals Industry and Medicine.”

The specialized news and analytical product is designed for large and medium-sized Ukrainian and foreign businesses, and representatives of power and the media.

Through the new product, Interfax-Ukraine will inform clients about news in healthcare and related sectors, as well as the economic issues of its development.

The news product is a weekly specialized issue “Pharmaceuticals Industry and Medicine,” presented as an online news wire which also includes the most important general economic news.

The key topics are news on regulatory policy, state procurement, pharmaceutical production, distribution and pharmacy chains, functioning of clinics and medical institutions, the medical insurance market, legislative base, and the comments of experts.

“The core audience of the new news product is state power agencies, state-run structures and companies which are interested in the development of the sector. Our information is oriented to those who show interest in the healthcare economy and development of the pharmaceutical sector, which could be a good technological powerhouse for the Ukrainian economy in the difficult times of decline on the raw material markets,” Interfax-Ukraine Head Oleksandr Martynenko said.

“Ukrainian society has a stereotype that the pharmaceutical market is grey and non-transparent. With the help of additionally realized opportunities of our news agency and efforts of the players of this important sector we will try to make this market informative, dynamic, easily understandable for citizens, representatives of the state and media,” Marketing Director at Interfax-Ukraine Maksym Urakin said.

Interfax-Ukraine contentiously expands and updates its product line, offering new products to its clients and improving existing news services using innovative technologies. Interfax-Ukraine is the largest news agency in Ukraine. It is part of the European Business Association (EBA), the American Chamber of Commerce in Ukraine, and Interfax-Ukraine acts as a news partner of these organizations.


KYIV. June 16 (Interfax-Ukraine) – Private joint-stock company BIOFARMA (Kyiv) plans to enter the Polish, Turkish and Chinese markets and continue its development in the Mongolian and Vietnamese markets, Head of the supervisory board Kostiantyn Yefymenko has told reporters.

“New markets we’re developing now are Mongolia and Vietnam. The newest that we will develop are Poland, Turkey and China,” he said at a ribbon-cutting ceremony devoted to the launch of the first phase of the new biopharmaceutical research and production facility in Kyiv region on Tuesday.

Yefymenko said that BIOFARMA plans to bring two medicines to the Chinese market – Albumin and 10% liquid intravenous immunoglobulinum.

“We’ve handed [over] our dossiers. They were translated to register [our] own products in China,” he said.

Yefymenko found it difficult to say when BIOFARMA’s medicines would enter the Chinese market.

“It’s hard to say when this would happen in China. I can say when it will happen in the CIS states, as we understand the way of thinking there, but it’s hard to say about China,” he said.

He also said that by late 2015 BIOFARMA plans to export blood products worth $7 million and he expressed his confidence that the company would not face problems in receiving permits to export anymore, happened last year.

“We started exporting blood products only in May, as they did not give us permits. After complicated negotiations we’ve managed to avoid paying fines of $1.5 million for disrupted supplies. We’ve managed to agree with partners, but we could have lost a good contract, markets and reputation. When the issue reached the boiling point we gave a press conference. High-ranking authorities read the materials of the press conference and the issue was settled. BIOFARMA received this permit for 15 years, and only in 2015 we had problems. We hope that we would not face these problems in the future,” he said.

“Ukraine has the most powerful pharmaceutical industry among the former Soviet countries. This should be developed. This cannot be lost,” Yefymenko said.

As reported, on Tuesday BIOFARMA launched the first stage of the new biopharmaceutical research and production facility. Investment in the project totaled over $40 million. BIOFARMA plans to invest $30 million in the construction of a fractionator for blood product production. The second stage could boost blood production capacity by 90 tonnes a year today.


KYIV. June 18 (Interfax-Ukraine) – Pharmacy sales in Ukraine in January-May 2015 in U.S. dollar terms grew by 15% compared to the same period in 2014, to UAH 3.53 billion, in packages they declined by 19%, to 99.336 million packages, Business Credit has told Interfax-Ukraine.

According to the company, pharmacy sales of medicines in January-May this year in dollar terms rose by 13.4%, to UAH 2.868 billion, in packages they fell by 26%, to 60.725 million packages.

Pharmacy cosmetic sales grew by 48%, to UAH 81.515 million and in packages they fell by 135, to 2.018 million packages.

The average price of goods in retail pharmacies in the first five months of 2015 was UAH 34.91, the average price of a package of medicine was UAH 45.87 and cosmetics – UAH 35.69.

The experts said that prices of medicine grew slowly than the prices of consumer goods. In April-May the prices of medicines did not grow.


KYIV. June 18 (Interfax-Ukraine) – Aeroc LLC (Obukhiv, Kyiv region), part of Russia’s LSR Group, plans to invest around EUR 2.1 million in one steam chamber and a boiler in 2015 at an aerated concrete plant in Obukhiv, and around EUR 450,000 in a new steam chamber at a plant in Berezan in Kyiv region in 2016, Aeroc LLC Director General Dmytro Rudchenko said at the sixth international conference “Energy, Economic and Ecological Advantages of Construction Using Aerated Concrete,” which was held in Kyiv on Wednesday.

“Investment in the modernization of the Obukhiv plant today amounts to some EUR 1.5 million, and this is only to increase its capacity [the installation of one more steam chamber], and we also invest EUR 1.6 million in the construction of [our] own boiler in Obukhiv,” he told reporters.

Rudchenko said the company decided to build the boiler which will be launched in late 2015 due to the necessity of cutting expenses on steam, which the plant has to buy from other companies.

He said that in 2015 Aeroc plans to install a new steam chamber at its plant in Berezan.

“Investment is smaller, as there is no need in accelerating the technological cycle, equipment is ready, and the only thing is to do – to install the steam press. Investment will total around EUR 450,000,” he said.

He said that by June 2015 Aeroc increased its production capacity to over 1 million cubic meters a year from around 450,000 cubic meters in 2011.

Aeroc LLC was founded in 2006. It has two plants in Kyiv region: a plant in Berezan which opened in 2008 and a plant in Obukhiv, the acquisition of which was completed in 2008.

LSR Group was founded in 1993. Its core business is the production of development and construction materials as well as providing construction services.


KYIV. June 17 (Interfax-Ukraine) – The Verkhovna Rada on Wednesday ratified an agreement on air communication with the United Kingdom.

A total of 282 MPs voted for respective bill No. 0029.

The agreement was signed in Kyiv on November 21, 2011. It will become effective after the receipt of the last written notification by the signatories about their introduction of domestic procedures needed for the agreement to take effect.

After ratification, the agreement will be conducive to the creation and operation of a reliable international legislative mechanism to support and boost ties between the two countries, according to an explanatory note to the agreement.

It will also facilitate the further development of cooperation in aviation transportation, establishment of business contacts and geographic expansion of Ukrainian flights.