Business news from Ukraine

ODESA PORT-SIDE PLANT ANNOUNCES TENDER TO SELECT PARTNER FOR TOLLING PRODUCTS

Public joint-stock company Odesa Port-Side Plant until July 12, 2018 accept applications for selecting a new partner for processing gas into mineral fertilizers on a tolling basis. “We invite interested companies to send their bids, meeting the mandatory conditions regarding the processing of tolling natural gas at the plant until 16:00 Kyiv time on July 12, 2018,” the enterprise said on its website.
First Deputy Director Mykola Schurikov said that if it is necessary to conduct preliminary negotiations, it is possible to organize working meetings with the management of the enterprise.
As reported, All-Ukrainian Energy Company won a tender to use the facilities of Odesa Port-Side Plant for processing gas into mineral fertilizers on a tolling basis in December 2017.
However, on April 30, 2018, the plant was stopped, as the company violated the contract with Ukrtransgaz.
Schurikov said that the plant in two months of cooperation with All-Ukrainian Energy Company received over UAH 140 million and saw no losses.
Odesa Port-Side Plant refers to work on a tolling basis as the only possible option for resuming its operation in the conditions of a failure of privatization attempts and accumulated debt for gas to Naftogaz Ukrainy, which exceed UAH 1.5 billion.
The State Property Fund this week announced a tender to select an adviser for another attempt to privatize the plant and solve the problem of its debts to Naftogaz and Ostchem belonged to Dmytro Firtash. The adviser is given up to six months to find a way out of the situation.

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GENERAL ELECTRIC SIGNS A CONTRACT WITH DTEK

General Electric (GE) has signed a contract with DTEK to supply high-voltage equipment for the 150 kV central power distribution station and two 150/35/10 kV substations, which would ensure the transmission of electricity from the first stage of Prymorska wind farm (Zaporizhia region) to the Ukrainian power grid, the press service of the Ukrainian energy holding has reported.
“The innovative technology “digital substation” will be used at the wind farm… The digital substation technology allows making real-time assessment of the state of equipment and automatically reacting to deterioration or malfunctions. This relaxes maintenance of the substation, implementing it as soon as the event occurs and without scheduling repairs,” DTEK said.
As reported, GE Renewable Energy will supply 26 wind turbines with a capacity of 3 MW each for the first stage of Prymorska wind farm and maintain them after the delivery. The turbines will be delivered to Ukraine and installed in 2018. The first stage would be launched in 2019.
DTEK was established in 2005 to manage the energy assets of System Capital Management Group (SCM, Donetsk) belonging to Rinat Akhmetov.

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S&P RAISES UKRAINE NATIONAL SCALE RATINGS TO ‘UABBB’ ON CRITERIA CHANGE

S&P Global Ratings has raised its long-term national scale ratings on Ukraine to ‘uaBBB’ from ‘uaBBB-‘ and removed the UCO designation from the ratings.
“Our global scale issuer and issue credit ratings on Ukraine are not affected by today’s rating action,” S&P said.
On April 20, 2018, S&P Global Ratings affirmed its ‘B-/B’ long- and short-termforeign and local currency sovereign credit ratings on Ukraine. The outlook is stable.
According to the report, the next scheduled rating publication on Ukraine will be on Oct. 19, 2018.
S&P recalled that National scale ratings express its opinion of the creditworthiness of an issuer or a debt instrument relative to other issuers and issues in a given country. The purpose is to provide a rank-ordering of credit risk within the country.

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KYIVSTAR LAUNCHES 4G MOBILE COMMUNICATIONS IN KYIV FROM JULY 1, IN ODESA FROM JULY 3, IN LVIV FROM JULY 5

The Kyivstar mobile communications operator from July 1, 2018 launched 4G (LTE) mobile Internet in the 1800 MHz band in Kyiv, and then with intervals of two days it will be launched in Odesa, Lviv and other regions, Kyivstar President Peter Chernyshov told reporters at a meeting in Lviv.
“Starting July 1, we are launching 4G in the 1800 MHz band. These are additional frequencies that will make broad coverage. Our competitors want to announce in a beautiful way that they are launching immediately and everywhere. We have another strategy: we want everything to work well. There are a lot of towers in Kyiv, and we want us to have two days to check how it works, and if everything works well, then on July 3 we start in Odesa and the resorts, and on July 5 – in Lviv and the suburbs,” he said.
Chernyshov also said that in the event that something will not work perfectly – the company plans to postpone the dates of subsequent launches until troubleshooting is finished.
At the same time, the operator’s president said that Kyivstar does not have any problems with the General Staff of the Armed Forces or receiving approved documents.
As reported, lifecell on July 1 will launch 4.5G (LTE Advanced Pro) mobile Internet in the 1800 MHz band in 232 cities and towns in Ukraine.

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AVK CONFECTIONARY ENTERS MALAYSIAN MARKET

One of the largest confectionary producers in Ukraine AVK Confectionary has supplied first 50 tonnes of its products to Malaysia, the company’s press service has reported. “AVK is one of the first Ukrainian confectionery companies that supplied chocolate products to the Malaysian market. We have already carried out the first three deliveries of sweets and are working on the next orders,” Deputy Director General for Strategic Development of the company Andriy Radchuk said in the message.
The company plans to develop this direction, gradually increasing its sales volumes.
As reported, AVK group of companies was founded in 1991. Now its produces goods at a confectionery factory in Dnipro. It also owned factories in Donetsk and Luhansk, control over which was lost.

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TOTAL AMOUNT OF WAGE ARREARS IN UKRAINE 3.5% UP IN MAY

The total amount of wage arrears in Ukraine in May 2018 increased by 3.5%, and as of June 1, 2018 amounted to UAH 2.561 billion, the State Statistics Service has said. According to its data, in May 2018 wage arrears at economically active enterprises increased by 6.5% and on June 1 this year amounted to UAH 1.411 billion.
Wage arrears in May 2018 increased in Ternopil (17.5%), Zakarpattia (13.6%), Ivano-Frankivsk (11.8%), Kherson (9.2%), Sumy (7.9%), Zaporizhia (7.2%), Mykolaiv (6.2%), Kharkiv (5.6%) and Luhansk (5.4%) regions.
At the same time, the decline of wage arrears was recorded in Volyn (34.2%), Chernivtsi (8.3%), Zhytomyr (3.6%), Poltava (2.9%), Odesa (1.4%), Rivne (0.8%) regions and Kyiv city (1.7%).
According to the statistics service, in May 2018 arrears in payment of wages increased in the sphere of healthcare – by 12.1%, to UAH 23.9 million, industry – by 3.9%, to UAH 2.036 billion, construction – by 2.2%, to UAH 82.3 million and agriculture – by 7.7%, to UAH 17.4 million.
The wage arrears fell by 0.2% in the professional, scientific and technical activity, to UAH 113.4 million, in financial and insurance activity – by 0.5%, to UAH 17 million and in the sphere of arts, sports, entertainment and recreation – by 10.4%, to UAH 1.4 million.

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