Business news from Ukraine


KYIV. Dec 7 (Interfax-Ukraine) – Textile-Kontakt (Kyiv), a leading textile fabric seller in Ukraine, seeks to open new cotton fabric production site TK-Bohuslav Textile (Bohuslav, Kyiv region) in January 2018, the company’s press service has told Interfax-Ukraine.
“This production site has been created on the basis of production facilities of Bohuslav Textile for improving the quality of fabric and designing of new fabric for the armed forces, enforcement agencies, producing workwear and expanding production from small pilot batches to bulk production,” the press service said.
The approximate investment plans for 2018 are UAH 20-30 million. It is planned to create 50-70 jobs.
The plan for the next year is production more than 2 million running meters of fabrics with special properties, namely rip-stop (TK warrior), Pixel type 3, type 4, oxford, tarpaulin and belt braid.
“This will allow Textile-Kontakt to establish a full cycle of production of military uniforms and ammunition for power structures – from processing cotton to tailoring finished products, improve the quality of finished products and reduce the cost of finished products, as well as produce in Ukraine fabric analogs that until today Ukrainian law enforcement agencies purchase for their needs from Russian manufacturers, for example, waterproof canvas 11292 SKPV,” the company said.
The press service reminds that by 2014 the enterprise provided the needs of the light industry of Ukraine with cotton fabrics at the expense of the production division of TK Donbas production association in Donetsk, where 700 people worked. The production capacity was about 2 million running meters of fabric per month.
At the first stages of the development of TK-Bohuslav Textile production capacity will be 90% less than at the factory in Donetsk (currently it is frozen), but in the company’s future plans are the expansion of production and output for export.


KYIV. Dec 7 (Interfax-Ukraine) – Ukraine and Belarus have decided to develop navigation across the Dnipro and Pripyat Rivers.
The press service of the Ministry of Infrastructure of Ukraine said Minister Volodymyr Omelyan gave the information after a meeting with Minister of Transport and Communications of Belarus Anatoly Sivak, which took place in Kyiv on December 5, 2017. The meeting was also attended by representatives of the European Investment Bank (EIB), the European Bank for Reconstruction and Development (EBRD) and the EU Delegation to Ukraine.
The infrastructure minister said that Ukraine and Belarus are giving priority attention to the development of transport communications between the two countries, in particular, the work on improving navigation on common waterways is being intensified and is expanding.
“One of the priority areas for the development of relations between Ukraine and Belarus is to ensure conditions for the transit of goods by water transport across the territory of Ukraine, including using the river-sea class vessels,” Omelyan said.
He also pointed out the joint work of the two countries on the restoration of navigation between Ukraine and Belarus, in particular the E-40 waterway, and the creation of safe shipping conditions on the Dnipro and Pripyat rivers.
The minister of infrastructure of Ukraine thanked the minister of transport of Belarus for constructive and fruitful work on the approval of the road map project, which was signed at the ministerial meeting.
“The presidents of our states pay special attention to this issue. Today we have signed the road map with details and stages of the implementation of projects to develop navigation on the Dnipro and Pripyat rivers,” Omelyan said.
The implementation of the provisions of the road map requires financial resources that are planned to be drawn from international financial institutions (IFIs) and donors.
The parties pointed out a positive pace in the growth of road transport and confirmed their interest in further increasing freight turnover between the countries. They also discussed other issues in the transport sector.
In addition, the parties agreed to increase the quota of permits for international transportation of passengers and goods by road to 65,000 units, and division by types of permits will be carried out taking into account the needs of carriers of the two countries.
In addition, the participants in the meeting spoke about the development of the North-South transport link across the territory of Ukraine and Belarus with the goal of providing optimal logistics schemes for the delivery of goods using the infrastructure of Belarus and Ukraine.


KYIV. Dec 7 (Interfax-Ukraine) – !FEST Holding (Lviv), developing a network of creative restaurants and projects, will double the capacity for beer production to almost one million liters per year, head and co-owner of the company Andriy Khudo has said.
“The capacity of our brewery Theater of Beer Pravda in the Market Square (Rynok Square) in Lviv is 500,000-600,000 liters per year. We will double the figure by launching a new brewery in the territory of the former Halychsklo plant,” he said.
According to him, in November the company began to use production capacity at the new site.
“Craft beer is a trend we caught a few years ago, the tradition of brewing development in the United States confirms it. Craft allows us to experiment with tastes. We do not pasteurize beer – it’s “live,” and we give a guarantee of one year for it,” the expert said.
He said !FEST has started exporting Pravda beer in small batches to Britain, Belgium, Austria, Switzerland, and Belarus.
!FEST Holding was founded in 2007. In Ukraine, it develops a network of creative restaurants, coffee houses and other projects.


KYIV. Dec 7 (Interfax-Ukraine) – Ukraine and China celebrate the 25th anniversary of establishing diplomatic relations and are reaching the new strategic level of cooperation, which envisages the implementation of joint projects for the total amount of near $7 billion, the press service of the Cabinet of Ministers of Ukraine.
According to a report published on Tuesday, the relevant agreements were reached during a meeting of Prime Minister of Ukraine Volodymyr Groysman and Vice Premier of the State Council of the People’s Republic of China Ma Kai. The meeting was held during the third session of the commission on bilateral cooperation between the governments of Ukraine and the People’s Republic of China.
Groysman congratulated the meeting participants on the completion of important negotiations aimed at enhancing the comprehensive collaboration between the two states.
“China has been and still remains our strategic partner and our strategic priority. And today, we are opening up new opportunities for deepening our partnership and re-launching the implementation of joint projects and initiatives,” Groysman said.
In response, Ma Kai said that China pays great attention to cooperation with Ukraine, both in the political sphere, as well as in trade and economy.
“We believe that we are united in this regard. Hence, we express readiness to encourage and boost our cooperation,” Ma Kai said.
The parties said that China had demonstrated strong support for Ukraine and enters the top three trading partners of Ukraine. In the first nine months of 2017, trade turnover between the countries has increased by 14.5%, up to $5.6 billion. For its part, Kyiv is pursuing the chosen path of internal reforms aimed at leveraging investment from China into the agricultural sector, industry, banking, and joint implementation of large-scale logistics and infrastructure projects both of the continental, in particular the One Belt One Road initiative, and local significance.
Kyiv counts on the active participation of Chinese investors in the major privatization of Ukrainian assets. Groysman also said that the year of 2019 would be declared The Year of China in Ukraine.
“We will open up new opportunities for investment, including through the adoption of new legislation on privatization and concession. In doing so, we shall create a tool for raising capital in Ukraine. Moreover, we possess sufficient human resources and technology development opportunities, so we can talk about joining efforts to strengthen common positions in the world market,” Groysman said.
“Ukraine reiterates its commitment to be a reliable partner in cross-border projects, primarily, in logistics domain. We are open to cooperation and elaboration of initiatives that would be included in the general strategy for the development of the aforesaid projects,” he said.
The Vice Premier of the State Council of China welcomed the striving of Ukraine to actively engage in the implementation of international projects, as well as to create the most favorable business climate to bolster entrepreneurship development.
“For our part, we are keen on encouraging investments. Thus, it will contribute to the restoration of Ukraine’s economy. So, we propose to step up our cooperation on the international project “One Belt One Road” and, in this context, we consider Ukraine as one of the logistics and industrial hubs on the way to the European Union. We also hope to resume work on our joint infrastructure projects. The spectrum of our interaction is not limited to the agricultural sector or the construction of infrastructure facilities. We are also interested in technological cooperation, the creation of industrial parks, and cooperation in the field of aircraft engineering, space exploration and energy,” the Vice Premier of the State Council of China said.
The head of the Ukrainian government thanked the Chinese side for the proposals and assured that the potential of cooperation between the states is really significant.
“We are ready to work out different incentives and promote their implementation. There are plenty of plans, opportunities even more, so we must be responsible to address the tasks that we outlined”, he said.
After the third session of the China-Ukraine intergovernmental commission on cooperation a number of documents were signed. Among them are an action plan on jointly building the Silk Road Economic Belt and the 21st Century Maritime Silk Road, Memorandum of Understanding on Energy Efficiency, Renewable Energy and Alternative Fuels between the State Agency for Energy Efficiency and Energy Saving of Ukraine and National Energy Administration of China, Program of Cultural Cooperation between the Ministry of Culture of Ukraine and the Ministry of Culture of the People’s Republic of China for 2018-2022, Agreement between the Ministry of Education and Science of Ukraine and the Ministry of Education of the People’s Republic of China on cooperation in education area, Memorandum on cooperation in the field of health and medical science between the Ministry of Health of Ukraine and the National Health and Family Planning Commission of the People’s Republic of China, The Program of Ukrainian-Chinese Investment Cooperation in the agro-industrial complex between the Ministry of Agrarian Policy and Food of Ukraine, the Ministry of Economic Development and Trade of Ukraine, the Ministry of Agriculture of the People’s Republic of China and the Ministry of Commerce of the People’s Republic of China.
At present, the structure of Ukrainian exports to China is dominated by the supply of ore, slag and ash, fats and oils of animal or vegetable origin, cereals and other things. Total exports for the first nine months of this year amounted to $1.5 billion.
Since 2002, there have been signed 14 agreements between China and Ukraine, which stipulate the provision of free assistance to Kyiv. Its volume reached CNY 470 million (more than $70 million).
China is the second largest economy in the world after the United States, which has the world’s largest growth of 6.7%. Total turnover of China is almost $3 trillion per annum, and the volume of foreign investments in the economies of third countries in 2016 amounted to $170 billion, the press service said.


KYIV. Dec 7 (Interfax-Ukraine) – The total investment in a five-year project to create the joint production of Skif 280 Superior harvesters on the basis of Kherson machine building plant together with the Finnish Sampo Rosenlew is estimated at UAH 373.8 million.
According to a report on the website of Kherson Regional State Administration, this figure was presented by the director of Kherson machine building plant, Oleksandr Oliynyk, during a meeting on the ways of financing and accelerating production of combines and preparations for the corresponding meeting chaired by First Deputy Prime Minister Stepan Kubiv.
“The enterprise has started the development of combines. This year we have assembled three harvesters, now the fourth one is being prepared. Moreover, one has already been purchased by the local agricultural producer, i.e. the project has been launched,” Oliynyk said.
The planned total output of agricultural machinery for the five years of project implementation (2017-2022) is 1,460 combines for UAH 5.87 billion, spare parts for combines and other agricultural machinery for UAH 2.77 billion. For this period it is expected to receive almost UAH 1.5 billion of net profit.
As reported, in June this year Kherson machine building plant at the Agro-2017 exhibition presented the first sample of Skif 280 Superior harvesters and planned to produce up to ten combines per month.


KYIV. Dec 7 (Interfax-Ukraine) – Kernel Trade was the largest recipient of VAT refunds in November 2017, which received UAH 1.04 billion (UAH 23.47 million in October), the State Treasury Service has said.
According to the State Treasury Service, the top five recipients of VAT refunds in November slightly changed compared with October. Mariupol Steel Works was second with UAH 671.433 million (UAH 619.215 million in October), ArcelorMittal Kryvyi Rih was third with UAH 633.194 million (UAH 439.383 million), State Food-Grain Corporation was fourth with UAH 527.694 million (no refunds in October) and AT Cargill was fifth with UAH 377.782 million (UAH 333.291 million).
Ten largest recipients of VAT refunds were also AMD Trading Ukraine with UAH 343.4 million (UAH 599.691 million in October), Nibulon LLC with UAH 335.7 million (UAH 548.463 million), Zaporizhstal with UAH 305.218 million (UAH 238.151 million), Myronivsky Hliboproduct with UAH 300 million (UAH 110 million) and Katerynopil Elevator with UAH 230 million.