Business news from Ukraine

UKRAINAIN AGRARIAN FUND DOUBLES PROFIT IN 2017

The net profit of PJSC Agrarian Fund in 2017 almost doubled compared to 2016, to UAH 94.8 million, according to the company’s website.
According to information, last year the income of the Agrarian Fund doubled, to UAH 4.3 billion. At the same time, the company paid UAH 949 million of taxes, dividends amounted to UAH 24.4 million.
Last year the company sold 616,100 tonnes of grain, 248,700 tonnes of flour, of which 19,000 tonnes under export contracts, while increasing its share in the Ukrainian flour market to 13% from 12.2%.
The Agrarian Fund sold flour both in wholesale and retail batches, in particular, in trade networks under its own brand.
In addition, the company last year began selling mineral fertilizers. In 2017 some 245,400 tonnes of mineral fertilizers were purchased with a total cost of UAH 1.88 billion, of which 61,300 tonnes were supplied to agricultural producers.
PJSC Agrarian Fund was established by a government decree in the spring of 2013.

IFC LAUNCHES PROGRAM TO DEVELOP UKRAINIAN DAIRY INDUSTRY

The International Finance Corporation (IFC) from the World Bank Group has announced the launch of a new five-year advisory program aimed at developing the dairy industry in Ukraine.
“The five-year project, implemented in partnership with the Austrian government, is expected to help 40,000 small- and medium-scale dairy farmers access financing, boost production, cut greenhouse gas emissions, and gain access to export markets. As well as supporting the development of dairy cooperatives, it will help farmers implement climate-smart, sustainable farming practices that meet global requirements,” reads a press release from the IFC.
“Ukraine has the potential to become a low-cost producer of high-quality milk. Our new advisory program will help bring in the right expertise, skills and technology, which will help crowd-in more private investment, unlock the industry’s potential, and enable the country to become a global dairy player,” Jason Pellmar, IFC Regional Head for Ukraine, Moldova, and Belarus, said.
Investing in the modernization, growth, and efficiency of the industry would also enable Ukraine to double its milk production by 2030, Pellmar added.
In the longer term, the IFC expects the advisory initiative to help bring in new investment. A one million tonne increase in production could create additional investment opportunities, estimated at about $1 billion.

SAUDI ARABIA AND UKRAINE WORKING OUT SCHEME FOR INDUSTRIAL COOPERATION UNDER AIRCRAFT PROGRAM

Ukraine and Saudi Arabia are working out a scheme for promising industrial cooperation under the program of the new An-132 light multi-purpose aircraft with a payload capacity of 9.2 tonnes, which was designed by the Kyiv-based Antonov State Enterprise and which will be mass-produced on the territory of the Saudi customer.
According to Antonov’s press service, the plans of industrial cooperation agreed upon by the parties, at the initial stage of the An-132 program, are stipulated in a memorandum of understanding signed by the enterprise with Saudi Arabia’s Taqnia Aeronautics and WAHAJ as part of the 4th AFED 2018 defense exhibition, which is taking place in Riyadh (Saudi Arabia) from February 25 to March 3.
Taqnia Aeronautics acts as a division of the Saudi Technology Development and Investment Company, and WAHAJ is a subsidiary of the Saudi International Petrochemical Company (SIPCHEM).
According to the agreement of the parties, it is planned that at the initial stage of production the first batch of An-132s will be built at the facilities of the Antonov State Enterprise in cooperation with Saudi partners.
At the same time, Antonov will act as the main executor of the work, whereas Taqnia and WAHAJ will produce units and elements in accordance with a cooperation scheme. In particular, WAHAJ will produce chassis and equipment for the aircraft.
“Subsequent stages envisage the deepening of cooperation in the production of Antonov aircraft based on the strategic plan for the creation of production facilities in Saudi Arabia,” the report says.

UKRAINIAN STATE BUDGET REVENUES 10.5% UNDERFULFILLED IN 2018

The revenues of the national budget of Ukraine in February 2018 amounted to UAH 50.7 billion, which is UAH 13.967 billion, or 21.6% less than the planned figures, while revenues for the first two months of 2018 reached UAH 105.887 billion, which is UAH 12.386 billion, or 10.5%, less than the target.
According to data on the website of the State Treasury Service, compared to February 2017 national budget revenues for the past month increased by UAH 8.226 billion or 19.4%, while revenues in January-February 2018 were up by UAH 3.968 billion, or 3.9%.
Tax revenues for the two months of 2018 decreased by 6.2% compared to the same period in 2017, to UAH 66.877 billion, while customs revenues rose by 24.8%, to UAH 48.52 billion. At the same time, customs revenues in January-February 2018 exceeded the target by 2.7%.
In February tax revenues amounted to UAH 31.888 billion, which is 7.4% lower than the plan. Customs revenues in the past month grew by 13.3% compared to February last year, to UAH 23.398 billion.
In general, the February plan of the State Fiscal Service was 21.3%, or UAH 11.842 billion, underfulfilled, while compared to February last year the rise was UAH 5.659 billion, or 14.8%.

TRADE BETWEEN UKRAINE AND LATVIA 27% UP IN 2017

Prime Minister of Ukraine Volodymyr Groysman and Latvian Prime Minister Maris Kucinskis have discussed the possibilities of investment and innovative cooperation in the agricultural sector and logistics.
“Among the important areas of innovative cooperation, the parties defined the agricultural sector and logistics, primarily in the context of using the Zubr train route that connects the ports of Illichivsk, Odesa and Yuzhny to the ports of Riga, Ventspils, Liepaja and Tallinn,” the press service of the Cabinet of Ministers of Ukraine said.
During the meeting, the prime ministers of Ukraine and Latvia also noted that the volume of mutual trade in goods and services increased by 27% last year with Ukraine’s surplus standing at $102.6 million. Trade turnover between the two countries totaled $462 million in 2017. The key items of Ukrainian exports to Latvia are mineral fuels, oil, boilers and machinery, organic goods, food, and metal. The items of imports are pharmaceuticals, light industry goods, and land transport.

PARLIAMENT ADOPTS BILL ON MANAGEMENT OF COPYRIGHT RIGHTS AT FIRST READING

The Verkhovna Rada of Ukraine has adopted at first reading the government bill (No. 7466) on the effective management of property rights of rightholders in the field of copyright and related rights. According to an Interfax-Ukraine reporter, 244 MPs voted for such a decision at a plenary meeting of parliament on Thursday, March 1.
According to the explanatory note to the bill, this document, if approved, will help reform the collective management system in Ukraine, taking into account current requirements and establish the procedure for control over the activities of collective management organizations on the part of the subjects of copyright and related right and the state, if necessary.
“Such changes will help improve the management of property rights of the subjects of copyright and related rights, which will lead to an increase in fees for creators and will contribute to improving Ukraine’s image in the international arena,” the document says.
The explanatory note also says that the draft law was worked out as part of the plan on the implementation of the Association Agreement between Ukraine and the EU.
The bill proposes establishing the procedure and requirements for the accreditation and registration of collective management organizations, especially the filling of the register of such organizations.
The authors of the legislative initiative propose resolving the issues of the collection, distribution and payment of remuneration by collective management organizations.