Business news from Ukraine

UKRAINE-BELARUS TRADE TURNOVER REACHES $370 MLN IN JAN-FEB 2018

The volume of trade between Ukraine and Belarus in January-February 2018 reached $370 million, Ambassador of Belarus to Ukraine Igor Sokol has said.
“The growth of Ukrainian exports to Belarus outpaces the growth of Belarusian exports to Ukraine: if Belarus’ exports to Ukraine grow by 20-25%, then Ukrainian exports rise by 40-50%,” he said at a press conference in Kyiv.
According to the official, the growth of trade turnover between Ukraine and Belarus in 2017 was 20% and reached $4.6 billion.
Ukraine in the past year in terms of commodity turnover and exports ranked second among all trade partners of Belarus, in imports it ranked fifth.
“In turn, Belarus ranked fourth in the rating of the largest export markets of Ukraine. Belarusian exports increased by 18%, imports from Ukraine by almost 24%,” he added.
Sokol announced that the Made in Belarus exhibition of Belarusian producers will take place in the International Exhibition Center (Kyiv) on April 10-14, 2018. It is planned to present the achievements of 53 leading Belarusian companies in the sphere of machine building, petrochemistry, agriculture, food and light industry. Within the framework of the exhibition the “Belarus-Ukraine: Prospects of Cooperation” conference will be held.

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COAL PRODUCER SADOVAYA GROUP HAS $18 MLN LOSS

Sadovaya Group, a producer of steam coal, in its report for 2016 posted a loss of $18.07 million, which is 2.1 times ($20.724 million) less than in 2015.
According to the document posted on the website of the Warsaw Stock Exchange, the company’s revenue in 2016 was only $8,900 against $1.04 million a year earlier.
“Due to the difficult financial situation and the inability to resume the operation of subsidiaries located in the temporarily uncontrolled territory of Ukraine, in 2016 Sadovaya Group received heavy losses and is forced to postpone the audit of the report for 2016 until the end of hostilities,” the document says.
As reported, the assets of Sadovaya Group are located in the temporarily occupied areas of Donbas.
Sadovaya Group was founded in 1995. In December 2010, Sadovaya Group holding company held an initial placement of 25% of shares on the WSE and raised PLN 92.6 million ($31.9 million in dollar terms).

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NATIONAL BANK INTENDS TO TRANSFER UAH 15 BLN LESS TO STATE THAN FIXED IN LAW ON 2018 BUDGET

The National Bank of Ukraine (NBU) intends to transfer to the national budget part of profit in the amount of UAH 34.9 billion by the end of 2018, which is UAH 15.65 billion less than provided by the law on the national budget for 2018 (UAH 50.55 billion), NBU Council Head Bohdan Danylyshyn has said.
“The Council in accordance with Article 9 of the law of Ukraine on the National Bank of Ukraine has filed to the Verkhovna Rada and the Cabinet of Ministers information on part of profit for 2018 to be distributed, which is to be transferred to the national budget of Ukraine in 2019, in the amount of UAH 34.9 billion,” he wrote on Facebook.
According to the NBU balance sheet, its liabilities as of January 1, 2018 amounted to UAH 817.59 billion, of which cash in circulation and funds of banks stood at UAH 401.54 billion, general and other reserves at UAH 54.71 billion, reserves for revaluation of assets and liabilities some UAH 153.69 billion.
In 2017 the NBU sent UAH 44.38 billion to the national budget, another UAH 15.07 billion out of the UAH 59.45 billion profit for 2016 was used for formation of general reserves.

PERFUMES STORE RETAILER PROSTOR EXPANDS NETWORK TO 292 STORES

Style D LLC (Dnipro), which develops the network of PROSTOR perfumes and cosmetics stores in Ukraine, has opened six new shops in March 2018, expanding the network to 292 stores. According to a company press release, the network was replenished with two stores with an area of 100-150 square meters in Kryvy Rih and one in each of Odesa, Kyiv, Dnipro and Mariupol.
According to the company, the PROSTOR network as of April 2, 2018 had 292 stores in 111 cities of Ukraine.
Style D LLC was established in 2002. The first store of the largest national retail chain of stores in the drogerie format was opened in Dnipro in 2005.
According to the SPARK-Interfax analytical system, the company’s revenue in 2016 increased by 43% compared to 2015 and amounted to UAH 1.482 billion.
At the same time, the company’s net loss amounted to UAH 6.96 million against UAH 1.01 million of profit in 2015.

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GRAIN ALLIANCE RECEIVES LICENSE TO GROW SEED FLAX

Grain Alliance (Barishevka Grain Company LLC), a large agricultural producer in Ukraine, has received a license for planting seed flax, the company has reported on its website. “This year we received a license to grow seed flax. We are the only one in Ukraine that will do this,” said Oleksiy Kotliar, Director of Chernihiv region LLC (Barishevka Grain Company).
He also pointed out good harvests of flax in the region and added that for the third year the company will sow oil flax.
In addition to conventional crops – wheat, corn, sunflower, soybeans, this year the company plans to sow new varieties imported from Canada – bare-grained oats, simple oats and spring wheat, Kotliar said.
In 2009, the founders of Harvest Moon East LLC (Baryshivka, Kyiv region) and BZK Grain Alliance (Sweden) created a joint company – Grain Alliance.
Grain Alliance cultivates around 50,000 ha of farmland in Kyiv, Cherkasy, Poltava, Khmelnytsky and Chernihiv regions.
The company has five silos in Kyiv and Poltava regions and a seed post-harvesting plant with an annual capacity of 30,000 tonnes.

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COLIN’S WILL LAUNCH ONLINE STORE AND OPEN TEN NEWS STORES IN UKRAINE

Delta Tex LLC, which develops the Colin’s youth clothing store network in Ukraine, plans to open more than ten new stores in the next two years, as well as launch an online store by the end of May 2018. “I think we will launch an online store at the end of May-June … Over the next two years we plan to open about ten more stores, so we will have 75 stores in different cities,” Colin’s Ukraine Sales Director Volkan Peker said, speaking at the Retail & Development Business Expo 2018 exhibition held in Kyiv last week.
The first Colin’s brand store in Ukraine was opened in 2000.
As of the end of March 2018 the network had 62 stores with a total area of 21,000 square meters in 29 cities of Ukraine. Thus, the Ukrainian market is the third for the network after Turkey and Russia.
Colin’s is part of Eroglu Holding (Istanbul, Turkey), established in 1983. As of the end of March 2018 Colin’s network had about 600 stores in 38 countries. Delta Tex LLC was established in 2010.

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