Business news from Ukraine

UKRAINIAN TRANSPORT ENTERPRISES INCREASE PASSENGER TRAFFIC BY 1.6%

Transport companies in Ukraine in January 2018 increased passenger transportation by 1.6% compared to January 2017, to 366.7 million people.
The State Statistics Service reported passenger turnover for the reporting period increased by 3.2%, to 7.5 billion passenger-kilometers.
Transportation by rail (taking into account transportation by the city electric train) decreased by 2.5%, to 11.5 million people.
Transportation by road in January 2018 fell by 2%, to 162.5 million passengers.
Air transport carried 700,000 passengers (6.5% more).
Transportation of passengers by trams, according to the State Statistics Service, rose by 5.5%, to 52.6 million people, by trolleybuses by 6.3%, to 84 million people, by the underground by 2.9%, to 55.4 million passengers.

U.S. ORBIS ASSET MANAGEMENT WILL ISSUE $30 MLN FOR LENDING TO FARMERS

The American asset management company Orbis Asset Management intends to invest more than $30 million in Imperiya-Agro, the manufacturer and distributor of agricultural products operating in the Ukrainian market.
According to Imperiya-Agro, the funds will be used to expand lending packages for agricultural enterprises, the company’s clients in Ukraine.
“We are waiting for the beginning of cooperation. In the years to come, together with Orbis Asset Management, we intend to create a national leader in lending and financial services for small and medium-sized farmers in Ukraine,” Imperiya-Agro CEO and founder Yuriy Otsabryk said.
The American company, in turn, noted Ukraine is an investment-attractive agricultural market.
“We believe that Ukraine today is the most attractive market for investment in the agricultural sector and will try to capitalize the expertise and experience of Imperiya-Agro as a platform with a focus on the needs of small farms in the country,” Orbis Asset Management CEO Vincent Ordonneau said.
Orbis Asset Management offers alternative solutions in asset management, deals with short-term loans in the field of real estate, real estate rights, aircraft engine leasing, carbon emission quotas, venture capital, corporate financing and crypto currencies. It is headquartered in San Francisco and has offices in New York, Paris and Hong Kong.

BRITISH-BASED FERREXPO INCREASES PAYMENTS TO BUDGETS BY 62%

The enterprises of British-based Ferrexpo plc, which controls the Poltava, Yeristovo and Belanovo ore mining and processing enterprises (GOK) in Ukraine, in 2017 increased payment of taxes and fees to the budgets of all levels by 62% compared to 2016, to more than UAH 1.3 billion.
According to a company press release, during the reporting period Poltava GOK (Ferrexpo Poltava Mining) transferred more than UAH 1.008 billion of taxes and fees to the budgets of all levels, Ferrexpo Yeristovo Mining more than UAH 305.6 million, while Ferrexpo Belanovo Mining more than UAH 6.1 million.
Poltava GOK paid more than UAH 167 million to the local budget, more than UAH 144 million to the regional budget, and more than UAH 500 million to the national budget of Ukraine (20.6%, 17.8% and 61.6% respectively). Social security tax paid by the company amounted to more than UAH 197 million.
Yeristovo GOK transferred more than UAH 53.5 million to the local budget, more than UAH 70.4 million to the regional budget, more than UAH 144.1 million to the national budget (19.9%, 26.3% and 53.8% respectively). Social security tax paid by the company amounted to more than UAH 37.6 million.
Belanovo GOK paid more than UAH 3.2 million to the local budget, over UAH 300,000 to the regional budget, and more than UAH 700,000 to the national budget (76.2%, 7.1% and 16.7% respectively). Social security tax paid by the company amounted to more than UAH 1.9 million.

DANISH FM SAMUELSEN: UKRAINE TO RECEIVE EUR 65 MLN FOR ECONOMIC GROWTH AND DEMOCRACY

Danish Foreign Minister Anders Samuelsen has announced a new program to support human rights, democracy and economy in Ukraine for a total amount of EUR 65 million.
“I am pleased to announce a new neighborhood program. Ukraine is one of the two priority countries in this program … The program provides for the allocation of EUR 65 million to Ukraine in such areas as human rights, stable economic growth and democracy,” Samuelsen said at a joint press conference with Ukrainian Foreign Minister Pavlo Klimkin in Kyiv on Wednesday.

UKRAINE-KUWAIT COOPERATION IN THE ENERGY SPHERE WILL DIVERSIFY ENERGY SUPPLIES

Ukrainian Deputy Prime Minister Pavlo Rozenko has said Ukraine-Kuwait cooperation in the energy sphere is strategic.
“Ukrainian ministries and agencies and Middle East energy resources can in the short term play a key role in solving Ukraine’s task of diversifying its energy supplies and creating a reliable system of energy security,” Rozenko said at a sitting of the Ukrainian intergovernmental commission on issues devoted to developing Ukraine-Kuwait cooperation, the deputy prime minister’s press service said. Participants of the talks discussed expanding cooperation, discussed transportation and infrastructure development. A protocol that will serve as the road map for bilateral cooperation before the next meeting was signed.

HARVEAST AGROHOLDING TO INVEST $4 MLN IN SEED PLANT

HarvEast agroholding plans to invest around $4 million in a seed plant in Donetsk region, Director General of the holding Dmytro Skorniakov has said.
“Near $3 million will be needed for launching, another $1 million for infrastructure,” he said during the signing of cooperation agreements with the seed company Maisadour in Kyiv on Thursday.
According to HarvEast, the plant will be launched in August 2018. Its capacity will be 8 tonnes per hour.
The enterprise will focus on the production of sunflower, beans (peas, lentils) and cereals (wheat, barley).
In addition, according to Skorniakov, HarvEast intends to invest almost $6 million in irrigation in the coming years, adding that the area under irrigation for growing seeds is planned to expand to 2,500 hectares.
“This year we are introducing almost 800 hectares of irrigation, and next year we are planning another 1,500 hectares. This is on the section between Berdiansk and Mariupol,” he said.
HarvEast’s core business is crop farming (growing wheat, sunflower, barley, perennial grasses, and corn) and dairy farming.
The holding was founded in 2011 on the basis of agricultural assets of Mariupol Illich Steel Works (Donetsk region).
Shareholders in HarvEast Holding are SCM and Smart-holding Group.