Business news from Ukraine

ITALY’S TERMOMECCANICA TO SUPPLY PUMPS TO ENERGOATOM FOR UAH 175 MLN

KYIV. Dec 5 (Interfax-Ukraine) – TM.P. S.P.A. – Termomeccanica Pompe (Italy) has won a tender of National Nuclear Generating Company Energoatom to supply give pumps for Yuzhnoukrainsk nuclear power plant (NPP) for UAH 175 million (VAT included), according to information in the ProZorro e-procurement system.

The expected cost of the equipment in the tender announced in June was UAH 327.275 million (VAT included). Technopolis LLC was permitted to participate in the tender. The company presented a pump producer from China.

Director of the corruption prevention center at Energoatom Oleh Polyschuk said that the tender was delayed by those who wanted to earn on it. Many complaints to Ukraine’s Antimonopoly Committee and law enforcement agencies were submitted.

Energoatom is the operator of all four Ukrainian-based operating nuclear power plants, which have 15 VVER reactors with an overall generating capacity of 13.835 gigawatts.

QATARI BUSINESSMEN TO VISIT UKRAINE SOON

KYIV. Dec 5 (Interfax-Ukraine) – A delegation of Qatari businessmen will visit Ukraine in the near future, the press service of the Cabinet of Ministers has said.

Prime Minister of Ukraine Volodymyr Groysman on December 2 met with advisor of the Emir of Qatar for culture Hamad Bin Abdulaziz Al-Kuwari and discussed practical measures to deepen cooperation between Ukraine and Qatar in various fields.

“Ukraine expects a delegation of Qatar business representatives to visit the country in the near future. In particular, during their visit the parties will discuss the expansion of opportunities for investment,” the report reads.

The premier noted bilateral trade turnover between Ukraine and Qatar does not match the capabilities of the two countries and there is a significant potential to increase it.

“During the meeting the sides also discussed the exchange of visits by the prime ministers of the two countries aimed at enhancing interaction between Ukraine and Qatar in trade, economic and financial spheres,” the press service of the government said.

EBRD TO HELP IN UKRPOSHTA’S CORPORATIZATION

KYIV. Dec 5 (Interfax-Ukraine) – The European Bank for Reconstruction and Development (EBRD) intends to start cooperation with Ukrainian state-run postal enterprise (Ukrposhta) to improve the corporate management at the enterprise and would consider investment in the company in the future.

The EBRD has been working with Ukrposhta under the EBRD program to support the state enterprise sector reform, EBRD Director for Ukraine Sevki Acuner said. He said that the bank would work on the plan to improve Ukrposhta’s corporate management. If the bank sees a need in investment later, the EBRD is ready to work in this direction, he said.

He added that the EBRD is holding a dialog about investment with other Ukrainian postal and logistics operators.

The bank is ready to finance any company meeting the conditions of the bank’s financing, Acuner said.

As reported, corporatization of Ukrposhta was started in July 2016. Its completion is scheduled for the end of the first quarter of 2017.

UKRZALIZNYTSIA TO BUY 9,000 NEW FREIGHT CARS IN 2017 – GROYSMAN

POLTAVA REGION. Dec 5 (Interfax-Ukraine) – PJSC Ukrzaliznytsia intends in 2017 to purchase 9,000 new freight wagons, Prime Minister of Ukraine Volodymyr Groysman has said.

“We are approving a serious program of Ukrzaliznytsia modernization. Next year we will purchase 9,000 new cars, I mean cargo wagons, plus there will be passenger carriages,” he told reporters during a visit to Kriukov Car Building Works (Poltava region).

Groysman added that due to the increased investment in production the enterprises will be able to get orders.

As reported, Ukrzaliznytsia plans in the next five years to finance the modernization and purchase of rolling stock for more than UAH 108 billion.

DRAGON CAPITAL COULD DOUBLE INVESTMENT IN UKRAINE IN 2017

Dragon Capital investment company could in 2017 double investment in assets in Ukraine compared to 2016, company CEO Tomas Fiala has said.

“We’ve decided the situation has improved to such an extent that we can be cautiously optimistic and can start to invest. We’ve started doing this – bought three assets here: East Gate Logistic and West Gate Logistic, and the Piramida trade and entertainment center. Next year we plan to again increase investment, in particular on transactions that are now in process. Perhaps, we plan together with the partners to invest even twice as much in acquisition of assets,” Fiala said at the fourth Retail and Development Business Summit in Kyiv.

He said Dragon Capital is interested in buying controlling stakes in the companies, whose income structure includes a forex component.

Managing Director for Direct Investment at Dragon Capital Volodymyr Tymochko said the company is considering retail and commercial real estate for investment.

Dragon Capital, established in 2000, is one of the largest investment companies in Ukraine. It works in the field of direct investment and financial services, provides a full range of investment banking and brokerage services for corporate and private clients.

UKRAINIAN CAR MARKET SEES 48% SPLASH IN SALES IN NOV

KYIV. Dec  5 (Interfax-Ukraine) – Sales of new passenger cars in Ukraine grew by 48% in November year-over-year and by 26% compared to October 2016, to 7,372 units, Auto-Consulting has reported.

“A record-breaking splash in sales of new passenger cars was recorded in November first in the past two years,” the experts said.

The Ukrainian car market expanded by 39% in January-November 2016, to 56,934 units.

Growth of car sales in November was seen almost at all market players.

Toyota and Renault were the two leaders on the market in November with 811 cars sold and market share of over 11%.

New Kia cars sales rose by 54%, exceeding 500 cars (third in November and sixth in October). The brand’s market share grew by 1.2 percentage points, to 6.1%.

Skoda dealers boosted sales by 18.2%, Ford dealers – by almost 57%, VW – by almost 70%, Hyundai – by 31.4% and Nissan – by 30.3% (all from the top ten brands with large sales).

Many brands boosted sales by several times. In particular, Seat, Great Wall, Chery, Fiat and Infiniti finished the month with record-breaking sales.

Auto-Consulting said that the increase in new passenger car sales in Ukraine in November is linked to two factors: stirring up in the corporate segment and currency instability.