Business news from Ukraine

UKRAINE INCREASES CHEESE IMPORT AND CUTS CHEESE EXPORT IN H1

Ukraine exported 3,870 tonnes of cheese in January-June 2018, which was 6.1% less than in the same period in 2017.
According to customs statistics released by the State Fiscal Service (GFS), cheese exports in monetary terms increased by 1.1%, to $14.51 million.
Cheese imports in January-June 2018 totaled 5,460 tonnes, which is 26.3% higher than the same period in 2017. Cheese imports in monetary terms increased by 42.1%, to $ 27.17 million.
Exports of creamery butter from Ukraine in January-June 2018 increased by 40.3%, to 17,210 tonnes. This indicator in monetary terms increased by1.7 times, to $73.99 million. Butter imports grew by 2.2 times, to 516 tonnes ($ 3.4 million).
Exports of condensed milk and cream in January-June 2018 decreased by 25.4%, to 17,400 tonnes. Ukraine shipped condensed milk and cream worth $28.93 million abroad, this is compared to $40.41 million in January-June 2017. Imports of this group of products increased by 1.6 times to 1,000 tonnes ($2.47 million).
As reported with reference to customs statistics, Ukraine in 2017 exported 9,050 tonnes of cheese, which is 12% more than in 2016. Imports of cheese into the country rose by 42%, to 10,000 tonnes.

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TWO COMPANIES FOUNDED BY AMERICAN AND LITHUANIAN CITIZENS TO BUILD WIND POWER PLANTS IN ODESA REGION

Ukraine Power Resources and Yuzhne Energy intend to build wind power plants with an installed capacity of 120 and 72 megawatts in the Lymansky district of Odesa region, the press service of the Ukrainian Wind Energy Association (UWEA) has said, following the signing of a memorandum between these companies and Odesa Regional State Administration.
According to UWEA estimates, the total investment in these two projects will be about EUR 270 million.
The press service did not say when the projects would be implemented.
Ukraine Power Resources was founded by American Peter A. Gish and Yuzhne Energy by Lithuanian Egidijus Simutis.

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EUROPEAN INVESTMENT BANK TO GRANT UKRAINE EUR 75 MLN LOAN FOR ROAD SAFETY

Ukraine and the European Investment Bank (EIB) on the margins of the Ukraine-EU summit in Brussels on Monday signed an agreement on the allocation of a EUR 75 million loan for the implementation of the project on improving road safety in Ukrainian cities. “The EIB allocates EUR 75 million, which will be received by five largest cities in Ukraine – Dnipro, Kyiv, Lviv, Odesa and Kharkiv,” the press service of Ukraine’s Deputy Prime Minister for European and Euro-Atlantic Integration Ivanna Klympush-Tsintsadze reported.
The EIB said in a press release due to the signing of the agreement that in addition to the loan, an EU grant of EUR 4.25 million will be provided as part of the so-called Neighborhood Investment Facility (NIF), allocated for the preparation of the project, development and monitoring.
The executor of the project is the Ukrainian Infrastructure Ministry, and the recipients of financial assistance from the EIB are the authorities of these cities. Investment will be directed to eliminate the most dangerous sections by creating better interchanges and modern transport systems, as well as improving intersections and updating the road infrastructure, the bank said.
According to the bank, other changes planned within the project will include the development of a network of safe bike and pedestrian paths, urban transport planning system, introduction of speed limits in residential areas and school areas, and the introduction of an IT-based traffic management system.

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SWEDISH IKEA OFFICIALLY ANNOUNCES HIRING CAMPAIGN FOR ITS FIRST STORE IN KYIV

Swedish company IKEA, the world’s largest retailer of furniture and household goods, has officially announced a hiring campaign for its first store in Ukraine. “The recruitment of employees in Ukraine is the next step of IKEA in the process of realizing its intention to enter the Ukrainian market. The company is recruiting staff to work in a store in Kyiv, which will become one of the world’s first IKEA stores of a new format,” IKEA told the Kyiv-based Interfax-Ukraine news agency.
The company did not say where the first store will be located, but noted that it will have a city format. “More details about the city store in Kyiv, its location, assortment of goods and benefits the company will be given out in the near future,” the company said.
As earlier reported, Ukrainian job agencies announced vacancies at IKEA’s city store in Kyiv last week.
The report of the Swedish retailer for 2017 says that the company is testing a new city store format, one with a smaller area and closer to the city.
As was announced earlier, IKEA plans to open stores with an area of up to 5,000 square meters in Warsaw’s Blue City shopping and entertainment mall (Poland) and in the center of Paris (France). They will stock a smaller assortment of goods, with emphasis shifted to online commerce services. As reported, in December 2017, IKEA announced plans to open the first facility in Kyiv within two years.
According to the press service, the development of the network in Ukraine will be under the aegis of IKEA South-Eastern Europe, which is part of the IKEA Group (Ingka Holding B.V.). The company is engaged in retail business IKEA in Croatia, Serbia, Romania and Slovenia.
Swedish IKEA is one of the world’s largest retail chains for furniture and household goods. The owners of the IKEA Group are Ingka Holding B.V. and structures under its control.

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CHINESE MANUFACTURER INTERESTED IN JOINT PRODUCTION OF ELECTRIC BUSES IN UKRAINE

Chinese manufacturer of dual-layer capacitors Shanghai Aowei Technology Development Co. is interested in creating a joint production base for manufacturing electric buses at the Chernihiv Automobile Plant (ChAZ) of the Etalon Corporation, the press service of the Chernihiv City Council has informed. Representatives of the Chinese company met with city mayor of Chernihiv Vladyslav Atroshenko last week, prior to visiting the Chernihiv trolleybus management company for the general condition of the enterprise, trolleybus depot and networks, as well as the Chaz to study its capabilities to create a base for the production of electric buses.
Representatives of the Chinese company noted that they have similar successful experience with Belarus.
According to the message, a representative of the company Hua Lee noted the potential of the ChAZ to create such a base and said that soon negotiations would be held with the management of the plant to make a final decision on joint production. “We did not come here to sell you electric buses; we want to introduce our technologies together with the local manufacturer. We would like to create a production base, as we did it in Belarus,” the press service of the City Council quoted Hua Lee as saying.
Atroshenko, in turn, expressed interest in attracting lending from China, including the creation of the necessary infrastructure for electric buses.
Shanghai Aowei Technology Development intends to send a group of designers to Chernihiv in late July and early August to research the existing contact network and the state of public transport, then provide reports and options for resolving these issues in a comprehensive manner. Shanghai Aowei Technology Development is an export-oriented enterprise specializing in the development, manufacture and sale of electric double-layer capacitors and ultra capacitors which was established in 1998. They are used in the construction of electric motors and other electronic equipment for electric buses. It exports its products mainly to Asia.
ChAZ produces buses of various modifications on the chassis of Indian TATA and Ashok Leyland, including school buses. In addition, the plant has established the production of trolleybuses.

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UKRAINE INCREASES COPPER EXPORTS BY 43%

Ukrainian enterprises in January-June 2018 increased copper and copper products imports in money terms by 6.5% year-over-year, to $42.566 million. According to the customs statistics released by the State Fiscal Service of Ukraine, exports of copper and copper products in the first six months of the year increased by 43.8%, to $87.590 million.
In June alone, copper and copper products were imported to the amount of $7.189 million, exports were estimated at $12.736 million.
In addition, Ukraine in January-June increased imports of nickel and its products by 18.9%, to $47.603 million ($8.715 million in June alone), reduced imports of aluminum and products from it by 2.2%, to $ 175.507 million ($31,950 million), and boosted imports of lead and its products by 90.3%, to $5.663 million ($1.390 million). Imports of tin and products from it grew by 10.3%, to $ 2.346 million ($211,000) and those of zinc and zinc products by 30%, to $44.566 million ($6.480 million).
Exports of aluminum and its products in January-June 2018 increased by 22.8%, to $ 71.462 million ($12.319 million in June), those of lead and products from it decreased by 18.6% to $19.414 million ($3.320 million). Exports of nickel and products grew by 24.3%, to $4.179 million ($1.026 million in June).
Exports of zinc in January-June 2018 amounted to $118,000 ($17,000 in June), while in January-June-2017 they were estimated at $44,000. Shipments of tin and goods made of it abroad in January-June 2018 amounted to $269,000 (tin was not exported in June), whereas in January-June-2017 tin exports stood at $148,000.

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