Business news from Ukraine

UKRAINE’S PRESIDENT VETOES LAW ON LIMITING DOMESTIC USE OF UNPROCESSED TIMBER AND TEMPORARY EXPORT BAN

Ukraine’s President Petro Poroshenko has vetoed the law adopted by the Verkhovna Rada on limiting domestic consumption of raw timber to 25 million cubic meters per year and on a temporary ban on timber exports. As reported on the website of the Ukrainian parliament, the relevant bill (No. 5495) on July 23, 2018 was returned with president’s proposals, which are not currently available on the parliament’s website.
As was earlier reported, on July 3, 234 deputies passed the bill (No. 5495) on making amendments to some laws of Ukraine concerning the preservation of Ukrainian forests and preventing the illegal export of unprocessed timber in the second reading and as a whole.
According to amendments taken into account in the second reading of the document, administrative and criminal liability for illegal logging and its timber exports outside customs control (smuggling) has been significantly strengthened.
The Code of Ukraine on Administrative Offenses, in particular, introduces a clause according to which illegal cutting and transportation, storage of illegally cut trees entail the imposition on citizens of a fine of 15 to 30 non-taxable minimum incomes of citizens (1 non-taxable minimum – UAH 17), and on officials – from 75 to 150 non-taxable minimum incomes of citizens (in current legislation – from five to ten and from seven to 12 non-taxable minimum incomes of citizens, respectively).
In case of a repeated offense within a year, the amount of the fine is from 30 to 60 non-taxable minimums for citizens from 300 to 600 for officials. In addition, according to changes in Ukraine’s Criminal Code, movement across the customs border of Ukraine outside the customs control or concealment from the uncontrolled control of unprocessed timber or sawn valuable or rare species is punishable by imprisonment for three to five years.
The same actions that have been committed repeatedly or by prior conspiracy by a group of persons or an official using his official position are punishable by imprisonment for a term of five to ten years, with deprivation of the right to occupy certain positions and with confiscation of property. If these actions are committed by an organized group of individuals or on a particularly large scale, a penalty of imprisonment of ten to 12 years is provided, with deprivation of the right to engage in certain activities for three years and with confiscation of property.

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CONFECTIONERY COMPANY KONTI TO BUILD NEW CHOCOLATE FACTORY IN UKRAINE

Owner of one of Ukraine’s largest confectionery companies PJSC Production Association Konti (Donetsk region) Borys Kolesnikov plans to build a chocolate factory in the center of Ukraine. “We are thinking about expanding the range of both APK-Invest and Konti, and we want to build a large chocolate factory for Konti in the center of Ukraine, and several other APK-Invest production facilities, some of which will be unique for our country. I will not disclose details yet. As the construction is over, you’re invited to a ribbon-cutting ceremony,” the owner of the companies said in an interview with Radio NV.
As reported, PrJSC APK-Invest (Donetsk region), one of the largest pork producers in Ukraine, plans to increase pig population by 75%, to one million pigs. The company also intends to introduce several new technologies in agriculture, which are widely used in Western Europe and the United States, but are new not only for Ukraine, but also for many countries of Eastern Europe. APK-Invest (TM Myasna Vesna) is a vertically integrated agro-industrial company with a complete closed cycle for the production of chilled pork: from growing grain and making compound feeds to producing and selling meat products.
In 2017, APK-Invest increased its net profit by 3.5 times to UAH 889.1 million, net income by 37.9%, to UAH 2.664 billion.
According to the National Securities and Stock Market Commission’s information disclosure system, the direct owner of 98% of the PrJSC’s shares at the end of 2017 was Ukrinvest LLC, the beneficiaries of APK-Invest, according to the state register, are Borys Kolesnikov and his wife Svitlana. The Konti Group was founded in 1997. The main production assets are Donetsk, Kostiantynivka, Horlivka confectionery factories (Ukraine) and two factories in Kursk (Russia). The main brands are Bonjour desserts, SuperKontik and Belissimo cookies, BisKonti soft biscuits, Amour and Jack sweets.

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STATE PROPERTY FUND GETS FIRST BIDS FROM ADVISERS ON PRIVATIZATION

A number of companies have applied for tenders called by the State Property Fund (SPF) of Ukraine to select advisors for the privatization of insulin producer Indar, President Hotel and Odesa Port-Side Chemical Plant with July 20 set as the deadline for applications, an informed source in the government has told Interfax-Ukraine. “There are applications, and there are many of them,” the source said without giving details.
The SPF’s press service told Interfax-Ukraine that it was not authorized to disclose details at the current stage, advising waiting for the results of the tenders. As was reported, the SPF late in June called tenders to hire advisers to sell 100% of Kyiv-based PJSC United Mining and Chemical Company (UMCC), 70.7016% of PrJSC Indar, 100% of PrJSC President Hotel (all three are based in Kyiv), and two wholly state-owned enterprises: Krasnolymanska Coal Mining Company in the town of Rodynske, Donetsk region, and Kharkiv-based Electrotyazhmash Plant (ETM), as well as 99.5667% of PJSC Odesa Port-Side Chemical Plant (OPZ) in Odesa region.
The deadline for Indar, President Hotel and OPZ is July 20 inclusively. The first stages of the tenders are scheduled for July 26, and the second stages for July 30.
In case of UMCC and ETM, the deadline for applications is July 23, and tenders will be held in two stages: on July 27 and on July 31.
Ukraine on July 12 met with representatives from the ‘big four’ auditors, namely Ernst&Young, Deloitte, PwC, KPMG, as well as Morgan Stanley, Rothschild, ICU, Concorde Capital, Dragon Capital to present details of tenders to select advisers on large-scale privatization,.
The adviser’s tasks include an analysis of the economic, technical and financial performance of an enterprise; bringing the main indicators of its financial statements in line with international accounting standards; carrying out audits (financial, environmental and others), implementation of due diligence and a SWOT analysis of the assets, including assessment of the competitive positions in Ukraine and international markets.

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MINISTRY OF FOREIGN AFFAIRS RECOMMENDES NOT TO TRAVEL TO ZAMBIA DUE TO CHOLERA

The Ministry of Foreign Affairs of Ukraine (MFA) has recommended that Ukrainians refrain from traveling to Zambia due to the outbreak of cholera in the capital until the epidemiological situation returns normal, the ministry’s consular service has said. “The diplomatic office recommended that those compatriots who are already in Zambia exercise special caution and adhere to the recommendations of local authorities, medical and other competent services, as well as monitor the latest news,” the report says.
According to the ministry, an epidemic of cholera broke out in Zambia, in particular in the capital city of Lusaka, and especially in the Kanyama area.
The report also notes that in case of symptoms of the disease or other circumstances that require immediate consular response, Ukrainians are advised to apply to Ukraine’s Embassy in the South African Republic.

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UKRAINIAN BOXER OLEKSANDR USYK BECOMES THE FIRST MAN TO UNIFY FOUR WOULD CRUISERWEIGHT BELTS (WBC, WBO, WBA, IBF)

Ukrainian boxer Oleksandr Usyk has defeated Russian Murat Gassiev in Moscow to become the first man to unify four would cruiserweight belts (WBC, WBO, WBA, IBF). The fight between Usyk and Gassiev took place in Moscow in the early hours of Sunday, July 22, as part of the World Boxing Super Series (WBSS). The fight lasted all 12 rounds and the Ukrainian boxer won on points. The judges unanimously recognized Usyk’s victory – 120-108, 119-109, 119-109 in favor of the Ukrainian.
In addition to becoming the absolute world champion in the cruiserweight division, Usyk won the Muhammad Ali Trophy and the Ring Magazine title.
In September 2016, 2012 London Olympics champion Usyk became the WBO world cruiserweight champion in his tenth professional bout.

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