Business news from Ukraine

Business news from Ukraine

NIKA-TERA PORT SEES TWO TIMES RISE IN CARGO HANDLING IN JULY 2019

Nika-Tera sea terminal (Nika-Tera specialized seaport, Mykolaiv), part of Group DF belonging to Dmytro Firtash, in July 2019 handled 790,000 tonnes of cargo, which is two times more than in the same period of 2018, the company reported on its website.
According to the report, the major volume of cargo turnover at Nika-Tera accounted for grain and leguminous cargoes (73%), bulk cargoes ranked second (27%).
In July, the terminal handled 37 vessels transshipping and that was the highest indicator of this month since the beginning of the work of the terminal.
As reported, Nika-Tera handled 335 vessels transshipping, 5.84 million tonnes of freights in 2018, which is 40% more than in 2017.
Nika-Tera is a highly mechanized marine terminal, part of Group DF’s port business. The terminal includes four specialized complexes: grain, for transshipment of fertilizers, bulk freight, and liquid cargo.

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NCER SETS FEED-IN TARIFF FOR SOLAR POWER PLANTS OF VR CAPITAL AND ICU

The National Commission for Energy, Housing and Utilities Services Regulation (NCER) has set feed-in tariff at 15.03 eurocents per kWh for Energy Den LLC with a capacity of 17.3 MWh (Bashtansky district, Mykolaiv region).
The commission approved this decision during a meeting on August 6.
The tariff is set until January 1, 2030.
The NCER also set feed-in tariff for the first stage of SPP Ternovytsia Solar LLC with a capacity of 13 MWh (Yavorivsky district of Lviv region). Another SPP in that region, Ternovytsia Solar Plus with a capacity of 12.8 MWh, received the aforementioned tariff.
Azymut Zakhid LLC with a capacity of 9.9 MWh and Tatarbunary Solar 2 LLC with a capacity of 9.9 MWh (both in Bilhorod-Dnistrovsky district in Odesa region) received feed-in-tariffs.

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UKRAINIAN VIOIL MORE THAN DOUBLES SOYBEANS PRODUCTION

Vinnytsia oil and fat mill of ViOil Industrial Group in 2018/2019 season has produced more nearly 89,000 tonnes of soybeans, which is 2.4 times more than last year.
According to the company’s press release, the combine processed over 17,000 tonnes of unrefined soybean oil and about 65,000 tonnes of soya oilseed meal.
The mill exports all processed soya products.
As reported, Kernel, one of the largest Ukrainian agrarian groups, in February-2019 acquired 5.85% of ViOil shares.
ViOil Industrial Group was created by Viktor Ponomarchuk in 2006 on the basis of agricultural assets of KMT industrial group.
Currently ViOil owns 13 granaries with a total capacity of 360,000 tonnes. The group exports products to more than 60 countries.

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ARCELORMITTAL KRYVYI RIH BUYS FOUR CZECH DIESEL LOCOMOTIVES

The Mining and Metallurgical Combine PJSC ArcelorMittal Kryvyi Rih has signed a contract with OTP Leasing financial support for purchase of four locomotives of CZ Loko based in Czech Republic. According to a press release from ArcelorMittal, the enterprise will receive diesel locomotives of an EffiShunter 1600 worth EUR 9 million in 2020.
OTP Leasing Director Andriy Pavlushyn said that the company had thoroughly prepared the given project with ArcelorMittal team and Czeck colleagues from CZ Loko.
“We are glad that the bargain was successful. For us this is a first step towards this direction: in financing operations with the locomotives, which together with our mobile and farm machineries, trucks and vans will enrich a portfolio of the main products of the company,” a press service quotes Pavlushyn as saying.
For his part, ArcelorMittal Transport Department Director Oleksiy Rybalkin said that the combine would be the first enterprise in Ukraine that will use Czech locomotives of the new generation.
Diesel locomotive EffiShunter 1600 is intended for shunting and line service. The locomotive is equipped with alternating/direct current power transmission (AC/DC) from the diesel engine to six powered wheelsets. Parameters of the vehicle are optimized for station shunting and for heavy operation on industrial sidings, e.g. in metallurgical, mining and petrochemical sectors, and for the line service.
CZ Loko is one of the largest Czech manufacturers of diesel-electric locomotives and special railway vehicles.

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ZELENSKY ARRIVES TO TURKISH REPUBLIC

Ukrainian President Volodymyr Zelensky has arrived in Turkey, Ukrainian Ambassador to Turkey Andrii Sybiha has said.
“The first official visit of Zelensky to the Turkish Republic has begun – the intense program and important meetings are ahead!” Sybiha wrote in his Twitter blog.
He posted a photo from the arrival of Zelensky.
As reported, Zelensky on August 7 and August 8, 2019 is to visit Turkey. During his visit in Ankara Zelensky is to meet with Turkish President Recep Tayyip Erdogan and representatives of the Ukrainian and Crimean Tatar communities. The Ukrainian president is to meet with Ecumenical Patriarch Bartholomew I in Istanbul.

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UKRAINIAN MANUFACTURERS OF AGRICULTURAL MACHINERY ASK GOVERNMENT TO LOWER LOCAL CONTENT OF HARDWARE

Ukrainian manufacturers of agricultural machinery has said it is necessary to reduce the local contents of domestic complex agricultural machinery set for 2019-2021 that should be observed for receiving a partial compensation for the cost of machinery and equipment.
UkrAgroMash Association of Agricultural Machinery and Equipment Manufacturers addressed to First Deputy Premier of Ukraine Stepan Kubiv with the respective request, the text of which was made available by the National Committee on Industrial Development on Facebook.
“Under present intense competition with the companies from other countries, which can afford cheap loans and enjoy various incentives and financial support of their countries…it becomes more difficult for the Ukrainian producers to uphold their position in the market and increase the local content with having no such kind of support,” reads the report.
The association says current year business realities make it impossible for the manufacturers of the complex self-propelled machinery to gain local contents, which have been set in 2013, for 2019/2020.
Thus, it is proposed to set local contents for self-propelled combine harvesters on the level of 40% in 2019, on the level of 45% in 2020, and on the level of 50% in 2021 (now these indicators are 55% and 60% respectively in 2019 and 2020), to set 45% and 50% contents for tractors for 2019 and 2020 (previously 55% and 60%), and 55% for 2021.
Besides, the manufacturers propose to fix local contents for special-purpose agricultural machines this and next years on the level of 50% and 55% (previously 55% and 60%), and 60% for 2021, local contents for self-propelled spraying machines on the level of 40% and 45% (55% and 60%) and introduce 50% for 2021.
The farm producers also ask to introduce spraying trailer machines into the list setting 45% of local content for 2019, 50% in 2020 and 55% in 2021.
As reported, the program of financial support for agricultural producers (subsidies for the purchase of agricultural machinery, equipment, railway cars) is about UAH 881.8 million. Of these, partial compensation for the cost of agricultural machinery and equipment made in Ukraine is UAH 681.79 million, special vehicles for the transportation of grain, equipment for the production of bioethanol and electricity from biomass, which were purchased from domestic producers – UAH 200 million.

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