Business news from Ukraine

UKRSPYRT TO BUY 50,000-60,000 TONNES OF MOIST CORN IN SEPT-DEC 2015

KYIV. July 23 (Interfax-Ukraine) – State enterprise Ukrspyrt plans to buy 50,000-60,000 tonnes of moist corn from agricultural producers in the western regions of the country in September-December 2015.

The company said in a press release that the plans are linked to the lower prices of grain at farmers compared to the prices at ports.

“According to the plan, in September-December 2015, a total of 50,000-60,000 tonnes of moist corn will be bought. It does not require additional processing at elevators. We have special sleeves at the sites which allow storing 5,000-8,000 tonnes of grain,” reads the report.

In H1 2015, Ukrspyrt paid a debt of UAH 61.6 million to farmers out of a total of UAH 72.76 million.

Ukrspyrt is subordinated to the Ministry of Agricultural Policy and Food. In 2014, Ukrspyrt plants produced around 15 million decaliters of alcohol, the entire volume was sold in the domestic market.

FISH CATCH IN UKRAINIAN WATER BASINS 30% UP IN H1 2015 – STATE FISHING AGENCY

KYIV. July 23 (Interfax-Ukraine) – Fish catch in Ukrainian water basins (inland water basins and seas) totaled 19,200 tonnes in January-June 2015, which is 30.2% up year-over-year.

The State Fishing Agency reported on Wednesday that 13,300 tonnes of fish was caught in the Azov and Black Sea basin, which is 62.7% up year-over-year. The upward pace was achieved thanks to the increase of catch of Black Sea sprat (5,540 tonnes, a rise of 42% year-over-year), gobies (6,300 tonnes, a rise of 84%) and silver carp (2,594 tonnes, a rise of 146%).

Total fish catch (Ukrainian water basins and ocean fish catch) did not change compared to 2014: 35,096 tonnes in 2014 and 35,058 tonnes in 2015.

Ukraine boosted krill catch in ocean: it almost doubled, from 7,100 tonnes to 13,400 tonnes in 2015.

Fish catch in inland water basins of Ukraine fell by 10% year-over-year, to 5,900 tonnes.

Production of fish products fell by 22.8%, to 27,500 tonnes, which is linked to the decline in buying power and supplies of imported fish.

SPF RESCHEDULES SALE OF 94.5% STAKE IN ODESA PORT-SIDE PLANT FROM NOV TO SEPT

KYIV. July 23 (Interfax-Ukraine) – The State Property Fund of Ukraine (SPF) has rescheduled the sale of a 94.5% stake in public joint-stock company Odesa Port-Side Plant from November to September 2015.

The press service of the fund reported that the decision is stipulated in the ministry’s order dated July 22, 2015.

The stake will be put up for sale at auction with an open price.

SPF Head Ihor Bilous, who has predicted there will be considerable interest in the auction, said that the stake could be sold for at least $500 million.

The conditions and the price of the stake are to be approved by a cabinet decision.

The press service said that the fund moved the terms of sale of stakes in the following energy companies: public joint-stock company DTEK Dniprooblenergo, DTEK Dniproenergo, DTEK Zakhidenergo and Kyivenergo (25% each) from November to August 2015.

Odesa Port-Side Plant is in state ownership. The plant trans-ships ammonia to vessels and produces chemical products.

KSG AGRO, UKRSOTSBANK FINISH FIRST STAGE OF CREDIT RESTRUCTURING

KYIV. July 22 (Interfax-Ukraine) – KSG Agro and Ukrsotsbank (Kyiv, the UniCredit Bank trademark) as a part of a memorandum on the restructuring of credits, have finished the first stage of the credit restructuring program.

“The debt of agricultural enterprise Chumaky LLC (earlier Dnirpoagrostandard LLC) to Ukrsotsbank was paid by Dnirpoagro Group via the sale and purchase of corporate rights in Chumaky LLC. In addition, during the first stage of restructuring, Dnirpoagro paid a credit debt to Vidrodzhennia LLC,” KSG Agro said on Tuesday.

The company said that KSG Agro in June 2015 transferred operation management and control over Chumaky LLC to Dnirpoagro Group during the preparation of the corporate rights sale and purchase deal.

As reported, referring to KSG Agro Board Chairman Serhiy Kasyanov, KSG Agro agroholding has signed a memorandum on the restructuring of credits of around $7 million with Ukrsotsbank.

He also said that the debt burden of the company has been estimated at around $30 million. The debt of the company is mainly in hryvnias.

UKRAINE’S NUCLEAR FUEL CONCERN, CHINA’S CNEIC PLAN TO COOPERATE IN NUCLEAR SECTOR

KYIV. July 22 (Interfax-Ukraine) – Ukraine’s Nuclear Fuel state concern and China Nuclear Energy Industry Corporation (CNEIC) have signed a memorandum of cooperation in the nuclear fuel cycle area.

“The memo envisages the analysis of directions of potential cooperation, in particular, in the area of exploration and development of uranium fields, production and processing of uranium ore, modernization of existing mines and a hydrometallurgical plant, introduction of newest technologies in zirconium production, and attraction of investment for developing the nuclear fuel cycle in Ukraine,” the concern said in a report.

According to the report, in the near future a working meeting of specialists will be organized, and CNEIC will study the operation of nuclear industrial enterprises in Ukraine.

Nuclear Fuel was formed in order to organize various elements of the nuclear fuel production cycle in Ukraine, such as the production of nuclear fuel components for nuclear plants and fuel assemblies.

Nuclear Fuel includes four state enterprises: Skhidny Mining and Enrichment Combine, Smoly State Enterprise, Dnipropetrovsk Precision Pipe Plant State Company, and Ukrainian Industrial Technology Scientific Research and Project Exploration Institute.

 

ANOTHER 82 INVESTMENT PROJECTS WORTH UAH 360 MLN FROM 12 REGIONS APPROVED – CONSTRUCTION MINISTRY

KYIV. July 22 (Interfax-Ukraine) – The interagency working group on the selection of investment programs and regional development projects, financed at the expense of the State Fund for Regional Development, has approved 82 new investment projects in 12 regions of Ukraine.

The working group made the corresponding decision at a meeting on July 21.

“Given the projects [that were] submitted, sometimes I see that regional state administrations do not fully understand the strategy of the development of their region. They are trying to solve the problems that arise, but that are not associated with the development of the region,” Deputy Prime Minister, Minister of Regional Development, Construction, Housing and Utilities Services Hennadiy Zubko said.

As a result, he urged regional state administrations to expedite the preparation of perspective plans for the development of regions to stimulate the development of investment projects. Zubko refused to rule out changes to the Budget Code, according to which the regions that will be first to provide investment projects will receive additional bonuses.

According to the ministry, 726 investment projects are planed to be implemented by 2018, of which 645 should be implemented in 2015.