Business news from Ukraine

UKRAINIAN AGRIBUSINESS CLUB PROPOSES TO INCLUDE DRONES, ELEVATOR EQUIPMENT IN LIST OF COMPENSABLE AGRICULTURAL MACHINERY

The Ukrainian Agribusiness Club association considers it necessary to include drones and equipment for elevators in the list of compensable agricultural machinery.
According to a press release of the association, Ukrainian agrarians in 2017 used a little more than UAH 134 million as part of the program to compensate the cost of equipment for UAH 550 million. Under this mechanism, agricultural enterprises purchased about 80 tractors, one harvester, more than 2,000 units of tillage and sowing equipment for the total amount of UAH 804.3 million.
“We propose to expand the list of equipment that falls under the compensation program. For example, add unmanned aerial vehicles (drones) for agriculture or equipment for elevator farming,” the coordinator of the association technical committee, Oleh Nesterov, said.
The volume of funds under the program of reimbursement for the cost of machinery and equipment in 2018 increased from UAH 550 million to UAH 945 million.
At the same time, according to Nesterov, the doubling of this amount looks illogical, even taking into account the fact that the machinery market in the past year doubled.
The position of the technical committee on the state support program is to amend the existing procedure for allocating funds.
The association proposes to expand the list of equipment and machinery covered by the compensation program.

MILK ALLIANCE ENTERS UAE, US MARKETS

Milk Alliance in the end of 2017 carried out the first deliveries of cheese to the United Arab Emirates and the United States of America, according to the group’s website.
“Processed cheese under the brands Shokoladny, Medovy and Yantar made at Bashtanka cheese factory were shipped under the Family Harvest trademark to the UAE in November 2017. And on the eve of the new year we exported Provvollone and Provvollone Smoked soft cheese. Negotiations on the supply of our products to the Arab countries had lasted about nine months. And we have already signed a long-term contract. In future we plan to expand the range of products for exports and look forward to continued and fruitful cooperation,” Milk Alliance Commercial Director Viktoria Predborska said.
Milk Alliance in 2017 also carried out two shipments of hard and processed cheese produced at Pyriatyn cheese factory to the United States. In particular, 11 names of cheese were exported.
As reported, in June Milk Alliance made the first delivery of dairy products to Georgia and Azerbaijan within the framework of a one-year contract, and at the end of 2016 the group of companies carried out the first supply of butter to Holland.
Milk Alliance was established in June 2006 as a holding company with a charter capital of UAH 23.5 million and a balance sheet, 99.9% of which consists of long-term financial investments.

UKRAINE IN 2017 BOOSTS OUTPUT OF CARS BY 68.1%, BUSES BY 2.5 TIMES – UKRAUTOPROM

Ukrainian vehicle manufacturers produced 8,586 vehicles in 2017, which was 63% more than in 2016; the output of passenger cars alone increased by 68.1%, to 7,296 units, the Ukrautoprom Association has reported.
According to the association’s rough estimates, the production of buses during the year grew by 2.5 times, to 804 units; however, the data does not include reports from AutoKrAZ, which has not provided such information since last August.
The output of commercial vehicles (excluding trucks KrAZ) totaled 486 units.
Eurocar remained the leader in terms of production, as it produced 6,145 Skoda passenger cars, which was 56.1% up on 2016.
It is followed by ZAZ with 1,674 vehicles (1,151 passenger cars, 479 commercial vehicles and 44 buses), whereas its output in 2016 included 526 vehicles, namely 403 passenger cars, 118 commercial vehicles and five buses.
NJSC Cherkasy Autobus (Cherkasy Bus) boosted production of buses by 93%, to 382 vehicles. It also manufactured seven commercial vehicles against five in 2016.
Chasiv Yar bus plant produced 90 buses last year (37 in 2016), Etalon Corporation’s Chernihiv automobile plant manufactured 178 buses (3), while Bogdan Corporation 110 (78).
Ukrautoprom reported that in December 2017 alone, Ukrainian vehicles manufacturers produced 932 vehicles, which was 37.5% up on December 2016, but 8.1% down on November 2017.
Passenger cars accounted for the lion’s share of the country’s total vehicle output in December 2017: 752 units, which was 16% down on November 2017, but 39.3% up on December 2016.
The output of buses last month was 117 units, which was 30% up on November 2017 and 42.7% up year-on-year.
In particular, Eurocar produced 586 passenger cars, 17.2% up on December 2016, but 20.3% down on November 2017. ZAZ produced 234 vehicles in December 2017 against 202 in November 2017 and 99 in December 2016, including 166 passenger cars, 60 commercial vehicles and eight buses (40 passenger cars, 46 commercial vehicles and three buses in December 2016).
Most buses were produced by Cherkasy Bus (58 units), followed by Chernihiv automobile plant (20 units), ZAZ and Chasiv Yar bus plant (eight each), Bogdan Corporation (23 units).
Also, 63 trucks were manufactured in December 2017 with PJSC ZAZ accounting for the lion’s share. It was 2.2 times up on November 2017 and 12.5% up on December 2016.
As reported, the production of passenger cars in Ukraine in 2016 decreased by 23.2% from 2015, to 4,340 units.

CABINET APPROVES CONCEPT OF FIVE-YEAR STATE PROGRAM FOR ROAD DEVELOPMENT WORTH UAH 322 BLN

The Cabinet of Ministers of Ukraine on Thursday, January 11, approved the concept of the state targeted economic program for the development of public roads for 2018-2022.
According to the concept, the program aims at creating a modern network of highways that will allow increasing traffic, improving the investment climate and ensuring the efficiency of transport services.
The program, in particular, provides for the rehabilitation and development of the road network on a route basis, for example, from the West to the East, the completion of construction of almost completed facilities, the phased introduction of long-term contracts, the intensification of cooperation with international financial organizations to raise funds, creating conditions for attracting investors, the introduction of a geo-information system for road management, etc.
Among the expected results of the program implementation are the improved state of 9,100 km of roads, the construction and reconstruction of 1,000 km of roads, obtaining additional funds from transit road transport, a wide use of export and logistics potential, the reduction of transportation costs.
It says that the estimated need for labor resources for the program implementation is about 55,000 jobs.

ANTONOV AIRLINES WILL PROVIDE TRANSPORTATION OF MISSILE COMPONENTS TO CAPE CANAVERAL FOR U.S. SPACEX

Antonov Airlines, one of the world’s leading operators of heavy-duty An-124-100 Ruslan aircraft with a cargo capacity of 150 tonnes, will provide transportation of missile components from Los Angeles to the spaceport at Cape Canaveral (the United States) in the interests of the U.S. SpaceX.
According to the application of the Ukrainian operator, posted on the website of Daily Airlines Filings of the U.S. Department of Transportation (DOT), a cargo flight, within which part of the nose fairing of the carrier rocket with a total bulk of 28.1 tonnes will be delivered to the launch site, is scheduled for January 11-13.
According to the application, the provision of cargo transportation is “critically important” for SpaceX and its customers, taking into account the company’s starting mission plans.
Antonov Airlines is the air transportation division of Antonov state enterprise, the leading Ukrainian developer and manufacturer of aircraft equipment, which has been part of Ukroboronprom state concern since 2016.