Business news from Ukraine

UKRAINE BUYS NUCLEAR FUEL WORTH $96.4 MLN IN Q1 2018 – STATISTICS

Ukraine in January-March 2018 purchased nuclear fuel for a total of $96.409 million, which is 20.6% less than a year ago ($121.458 million).
According to the State Statistics Service, for this period Ukraine purchased Russian fuel for $67 million and that of Swedish production for $28.415 million.
Thus, Ukraine’s purchases of nuclear fuel for the first three months of 2018 from TVEL (Russia) in monetary terms accounted for 70.5%, from Westinghouse (Sweden) for 29.5%.
As reported, Ukraine in 2017 purchased nuclear fuel for a total of $533.422 million (from Russia for $368.964 million and Sweden for $164.458 million), in 2016 for $548.81 million (from Russia for $386.782 million, from Sweden – $162.28 million), in 2015 – $643.57 million (from Russia for $610.883 million, Sweden – for $32.688 million), in 2014 – for $628.176 million (from Russia for $588.831 million, Sweden – for $39.345 million), in 2013 – for $600.596 million (all from Russia), in 2012 – for $ 600.334 million (from Russia for $555.355 million, Sweden – for $44.979 million).
The operator of all four operating nuclear power plants in Ukraine is the state-owned enterprise National Nuclear Generating Company Energoatom, which acquires nuclear fuel under contracts with TVEL (Russia) and Westinghouse Electric Sweden (Sweden).

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OTIS TO SEND ALL PROFIT OF UAH 18.8 MLN TO PAY DIVIDENDS

Private joint-stock company Otis (Kyiv) plans to send all net profit for 2017 to pay dividends – UAH 18.835 million or UAH 27.98 per share.
The company reported that the issue will be discussed at an extraordinary general meeting of its shareholders scheduled for June 4, 2018.
ОТІS Investments L.L.C. (Wilmington, Delaware, the United States) would receive UAH 18.411 million and Liftovyk Society LLC – UAH 424,056.
In 2017, Otis cut net profit by 63% in 2017, to UAH 18.834 million and revenue fell by 35.8%, to UAH 477.87 million.

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S&P AFFIRMS LONG-TERM ISSUER CREDIT RATING ‘B-‘ ON KYIV CITY, OUTLOOK STABLE

S&P Global Ratings has affirmed its ‘B-‘ long-term issuer credit rating on the Ukrainian capital city of Kyiv. The outlook is stable, S&P has said in a press release.
After debt restructuring, the city of Kyiv has no commercial debt, and its direct debt consists of intergovernmental obligations to Ukraine’s central government. The city’s cash reserves will likely remain high and serve as a buffer in case the city needs to support its government-related entities, S&P said.
The stable outlook reflects our view that, in 2018-2020, Kyiv’s strong budgetary performance and solid cash position will counterbalance institutional uncertainties and the potential crystallization of contingent liabilities.

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UKRAINE EXPORTS WALNUTS FOR $101 MLN IN 2017

Exports of walnuts from Ukraine in 2017 totaled 31,000 tonnes or $101 million, the Ukrsadprom association has reported.
“Traditionally the leading exported goods were walnuts ($101 million) and frozen and boiled fruit ($61 million). Businessmen received large revenue from supplies of various berries – $11 million, drupaceous fruit ($10 million) and apples and pears ($7 million),” Ukrsadprom Head Dmytro Kroshka told Interfax-Ukraine.
Exports of walnuts in kind fell from 40,000 tonnes to 31,000 tonnes, and exports of frozen, boiled and raw fruit remained at 42,000 tonnes.
The association said that revenue grew thanks to growth of exports prices of walnuts, first of all, shelled nuts. Exports of pomaceous fruit grew from 14,000 tonnes to 24,000 tonnes, thanks to apples, and drupaceous fruit from 2,000 tonnes to 12,000 tonnes, mainly thanks to cherries and plums.
In addition, blueberry and honeysuckle are becoming more popular in Ukraine, as well as organic fruit. Industrial enterprises planted currant, blackberry, chokeberry trees and hazel nut trees.
“These crops will soon take a worthy place in the structure of production and exports, since their planting is not an experiment, but it is connected with the demand for them from new partners,” the expert said.
In general, according to Ukrsadprom, the export of fruit and berry products in 2017 exceeded $195 million, having increased by almost a third compared to 2016.
“The main achievement in the export for Ukraine was the creation of a surplus in trade balance for the traditional products for us, as well as an almost twofold increase in the average selling price. The EU countries have become the main vector of the export of Ukrainian fruit and berry products,” the association said.

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GADZ FARM TO START PRODUCTION OF JUICE, PUREE, JAM, MARMALADE, BABY FOOD IN 2019

Gadz Farm (Ternopil region) intends to start production of juice, puree, jam, marmalade and baby food in 2019.
“This year we plan to sign an agreement on cooperation with foreign companies that produce equipment for processing fruits and vegetables. Next year we intend to launch production of juice, puree, jam and marmalade at full capacity. In addition, we will develop production of baby food for different age groups, depending on the needs of children,” the report said.
Currently, the leadership of Gadz is negotiating with the representatives of the Italian companies FME and Navatta Group on the supply of new special equipment and the selection of packaging technologies for products.
Gadz farm was established in 2011. It specializes in cultivation of fruits and berries, the sale of seedlings. It has more than 600 hectares of orchards (apples, pears, plums). In future it plans to expand the garden area to 2,500 hectares.

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SVITOCH CONFECTIONARY FACTORY DOUBLES EXPORTS IN 2017

Public joint-stock company Svitoch Lviv confectionary factory under control of Nestle, a large confectionary producer in Ukraine, exported 1,328 tonnes of products in 2017, Operations Supervisor Ihor Savka has said.
“In 2017, we doubled exports compared with the previous year, to 1,328 tonnes,” he said at a press conference in Lviv last week.
He said that the company plans to boost exports. In 2018, Nestle seeks to increase production of Lion chocolate bars by 20% for these purposes.
Savka said that the largest volume of chocolate bars is exported to Brazil.
“Last year 400 tonnes of Lion bars were exported to Brazil,” Savka said.
In turn, Director for Corporate and Public Relations at Nestle in Ukraine Volodymyr Spivak said that the key importer of Svitoch products is Hungary, as well as Poland and Germany.
Savka said that the plant plans to invest UAH 95 million in 2018 compared with UAH 31 million in 2017 and UAH 149 million in 2016.
Nestle owns 96.96% of shares in Svitoch.

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