Ukraine will discuss development of strategic cooperation in the space sector with European partners at the ILA 2018 aerospace exhibition held in Berlin (Germany) on April 25 through April 29. The press service of the Economic Development and Trade Ministry, Deputy Economic Development and Trade Minister, Head of the interagency commission for defense industry at the National Security and Defense Council (NSDC) Yuriy Brovchenko, who heads the Ukrainian delegation to ILA 2018, will hold some meetings strategically important for the development of the Ukrainian aerospace sector with top managers of European agencies on the issues of partnership in the aerospace sector.
Brovchenko is to meet with top officials of the Economy Ministry, Defense Ministry of Germany, German Aerospace Center (DLR), French Centre national d’études spatiales (CNES) and the European Space Agency (ESA). ILA Berlin Air Show is a large exhibition in Europe. Leading Ukrainian enterprises of the aerospace sector – Pivdenne Design Bureau, Pivdenmash and Antonov State Enterprise (part of the Ukroboronprom State Concern) are among Ukrainian participants of ILA 2018.
Potential European partners-visitors to the Ukrainian stand at ILA 2018 are able to study themselves, among other things, the Cyclone-4M, Zenit-3SL, Mayak-33-4H promising Ukrainian launch vehicles (LV) and the Sich-2M spacecraft.
Public joint-stock company Agrarian Fund has signed a contract with Turkey’s Alapala Makina Gida Sanayi Ve Ticaret A.Ş. to supply equipment of a new flour mill. The company said on its website that the cost of the first part of the framework contract is EUR 2.5 million. The sum of the tied loan is EUR 2 million. “The Agrarian Fund has concluded a beneficial contract with the Turkish company Alapala on the terms of attracting a tied loan for a period of three years. In a year and a half, Ukraine will have a new high-tech production facility,” Board Chairman of the Agrarian Fund Andriy Radchenko said.
The equipment will be manufactured within six months, then it will be delivered to Ukraine, installed and launched. The mill should be put into operation in 18 months.
The production capacity of the future flour-grinding complex will amount to 300 tonnes of grain per day. The enterprise will have with high-tech equipment, which has no analogues in Ukraine. The equipment will allow expanding the product line (bakery, confectionery mixes and vitaminized flour).
Now the Agrarian Fund considers four areas where the future flour milling complex can be built – Kyiv, Cherkasy, Kharkiv or Vinnytsia. PJSC Agrarian Fund was created in the spring of 2013 under a government resolution.
Ukraine in January-February 2018 considerably increased exports of medicines to Russia, cutting their imports from the country. According to the State Statistics Service, in January-February 2018, Ukraine exported medicines for $3.5 million to Russia, which is 18% more than a year ago. Imports of medicines from Russia to Ukraine over the period fell by 40.4%, to $2.85 million.
Last year Ukraine exported medicines to Russia for $27.89 million, which is 31.9% more than a year ago, and imported medicines for $29.79 million from Russia (15.9% down). In 2017, Ukraine exported medicines for $171.17 million, including to the CIS for $143.057 million.
As reported, at present, because of the sanctions imposed on Russia, Russia is discussing the ways of replacing imported medicines and reducing dependence on foreign pharmaceutical companies. The decline in the imports of Russian medicines to Ukraine began after the introduction of the requirement of compliance of drugs with GMP standards in Ukraine.
France’s AgroGeneration Group with assets in Ukraine saw EUR 13.18 million of net loss in 2017, which is almost 15 times more than a year ago. According to a company report on its website, revenue fell by 10.1%, to EUR 54.2 million, gross profit decreased 30.9%, to EUR 16.03 million, and operating profit – by 92.9%, to EUR 0.84 million. Earnings before interest, taxes, depreciation and amortization (EBITDA) totaled EUR 9.1 million in 2017, which is 52.4% less than in 2016. Net debt grew by 14%, to EUR 45.44 million.
The share of exports sales grew to 57% in 2017 from 45% in 2016.
In 2017, AgroGeneration produced 359,200 tonnes of grain and oilseed (vs. 387,200 in 2016) over a sown area of 105,400 ha (versus 109,000 ha in 2016). The decrease in area is driven by the sale of a farm in Kharkiv region in 2017. The decline in production is mainly driven by the drought during summer 2017 that significantly affected sunflower and corn crops, although the group generally performed well above its peers.
The group plans to sow 106,000 hectares, out of which 48,000 have already been sown with winter crops. Under favorable weather conditions, the group started the fertilization for its spring crops with a reduction (versus last year) in corn and peas in favor of winter crops.
The 2018 crop season was secured thanks to the renewal of its season’s financing with Alfa-Bank Ukraine for $35 million and a $10 million prepayment contract with Switzerland’s Quadra Commodities.
AgroGeneration is furthermore implementing a comprehensive plan of cost savings. This includes a reduction of production costs and decrease in general and administrative costs for a total estimated amount of roughly EUR 4.2 million. In this context and with this cost savings plan having its full effect in 2018, the group aims to return to its recent years’ EBITDA performance in 2018.
The French group AgroGeneration was founded in 2007. It grows grains and oilseeds. In Ukraine it currently processes about 120,000 hectares. In October 2013, AgroGeneration completed its merger with Ukrainian agricultural company Harmelia.