Business news from Ukraine

ATTRACTION OF LARGE INVESTMENT FROM LIECHTENSTEIN TO UKRAINE DISCUSSED BY ALOIS, POROSHENKO

Hereditary Prince of Liechtenstein Alois advocates the increase in investment of his country in the Ukrainian economy. “We talked about expanding economic cooperation. There are Liechtenstein firms that are already working in Ukraine… We talked about the possibility of developing this cooperation and attracting more Liechtenstein investments to Ukraine,” the prince said in a statement to the press after a meeting with Ukrainian President Petro Poroshenko in Kyiv. He said that in recent years Liechtenstein participated in various projects in Ukraine – both in supporting the reform process and in the humanitarian sphere.
In turn, Poroshenko said that half of the investments that come from Liechtenstein to Ukraine are directed to industry. “This shows the long-term and strategic nature of Liechtenstein investors’ plans for Ukraine,” the head of state said.

, , ,

HUNGARY, POLAND, MOLDOVA ARE TOP MARKETS FOR UKRAINIAN ELECTRICITY

Ukraine in January-May of this year exported electricity worth $137.168 million, in particular in May for $27.837 million. According to the State Fiscal Service, Hungary received electricity worth $85.312 million, Poland for $32.575 million, Moldova for $15.629 million, other countries for $3.652 million.
Thus, in monetary terms exports of Ukrainian electricity in January-May 2018 increased by 25% compared to the same period in 2017 ($109.749 million). In addition, Ukraine for this period imported electricity for $658,000 (from the Russian Federation for $629,000, from Belarus for $28,000, and from Moldova for $1,000).

, , , ,

UKRAINE NEEDS EUR 3 BLN TO MODERNIZE WASTE INFRASTRUCTURE

The modernization of the waste management infrastructure in accordance with the National Waste Management Strategy until 2030 requires more than EUR 3 billion of investments during 2019-2030, expert for waste management Mykola Doichinov has said at the conference “New Waste Management Policy is a Way to a Circular Economy” in Kyiv. According to the expert, calculations were carried out as part of the development of the National Waste Management Plan until 2030. According to the expert, as a result of the new waste management policy, tariffs for garbage disposal for the population will grow from EUR 0.6 per month in 2020 to EUR 1.4 per month in 2030.
At the same time, the expert stressed the implementation of the new strategy requires intensification of cooperation with international financial donors. At the same time, the state should also extend the responsibility of producers to cover the costs of garbage collection and sorting.
In addition, according to Doichinov, it is necessary to differentiate environmental tax on landfills that do not meet modern environmental requirements. As a result, the use of such landfills will become expensive, while the state will be able to send additional funds received from the tax for the renovation of these territories, the expert said.

,

50 MLN EUR BAKERY COMPLEX CONSTRUCTION STARTS IN KHARKIV REGION

Construction of a bakery complex with a capacity of 150 tonnes a day for EUR 50 million was started in Kharkiv region. According to a posting on the website of the Kharkiv Regional Administration, it is planned to launch the enterprise in the first quarter of 2019.
The area of the new complex will be 12,000 square meters. A total of 14 production lines will be installed.
The specifics of the enterprise will be a possibility of producing frozen types of bread and semi-finished products, which would allow exporting bread.

,

TRUCK PRODUCER AVTOKRAZ PLANS TO TRIPLE SALES IN NON-CIS MARKETS

JSC AvtoKrAZ (Kremenchuk, Poltava region) plans to triple supplies of vehicles to non-CIS countries compared with 2017. “The increase in export deliveries to non-CIS countries is planned, first of all, by entering new markets and, of course, consolidating in already mastered ones,” the head of the company’s press service, Dina Stehantseva, told Interfax-Ukraine, in addition to the press -release about the shipment of the all-wheel-drive trucks to one of the countries of the South-East Asia.
“This is a new contractor of the enterprise. We have not been present in this market before,” she said. At the same time, the size of the batch and the customer were not disclosed.
According to the financial statement of the enterprise, 677 vehicles were shipped in 201.The share of foreign countries accounted for 8%.
According to the press release of the enterprise, tropical versions 12 cubic meter KrAZ-65032 dump truck and KrAZ-63221 container truck are designed for use in extremely harsh environment, construction works on the shore, mostly in aggressive environment, in salt water up to the waist in compliance with customer’s specification.
Both tropical versions are right-hand drive vehicles. Taking into account specific job location, exhaust system of these dump trucks and container trucks exhaust gases go out via silencer mounted on the left side behind the cab. All removable connections are tight, cooling system has aluminum radiator without wind shutter, the vehicles are provided with tropical tires without tire inflation system.
The vehicles are equipped with Euro-2 engine rated at 380hp and manual 9-speed transmission. The KrAZ-65032 dump truck designed for carrying loads on and off road is provided with strong dump body. The KrAZ-63221 container truck is used for carrying 20 feet container and towing trailer on all kinds of roads and off road. The vehicle is provided with crane for cargo handling.

LARGEST AGRICULTURAL HOLDING IN EURASIA UKRLANDFARMING HAS $158 MLN LOSS, NET DEBT RISES TO $1.684 BLN

Ukrlandfarming agricultural holding saw $658 million of revenue in 2017, which is 31% less than a year ago, the company has said in a report. According to the report, the figure declined mainly due to the 45% fall in revenue in the agricultural machinery and agricultural raw materials segment, to $157 million. Revenue from production of agricultural crops fell by 20%, to $278 million. Net loss in 2017 deceased 9.4%, to $158.616 million. Assets grew by 2.8%, to $2.128 billion.
Gross profit of the company decreased 67%, to $62.6 million, earnings before interest, taxes, depreciation and amortization (EBITDA) – by 44%, to $91 million.
Total debts grew by 5.3% year-over-year, reaching $1.758 billion, and net debt rose by 6%, to $1.684 billion.
Ukrlandfarming is the largest agricultural holding in Eurasia. It is engaged in growing grains, producing eggs and egg goods, breeding cattle, distributing machinery, fertilizers and seeds.