Business news from Ukraine

Business news from Ukraine

ENERGOATOM DECREASES POWER GENERATION BY 1.6%

Electricity generation by all power plants of state-owned enterprise Energoatom in 2019 decreased by 1.6% (by 1.398 million kWh) compared to 2018, to 83.228 billion kWh.
According to the press service of the company, the plan for production of electricity in 2019 was exceeded by 1.8%. The share of Energoatom in the overall structure of electricity production in the country amounted to 54.1%, which is 1 percentage points more than in 2018.
The power plants of the state enterprise supplied 78.199 billion kWh of electricity to the market, which is 1.77% less than in 2018.
The volume of capital investments in 2019 amounted to UAH 14.083 billion. The financing of capital investments amounted to UAH 14.258 billion.
Energoatom transferred UAH 16.706 billion to the budgets of all levels, and insurance payments amounted to UAH 2.592 billion.
The installed capacity utilization factor of the company’s nuclear power plants amounted to 68.5%, which is 1.1 p.p. more than in 2018.
In 2019, 13 violations were recorded in the operation of Ukrainian nuclear power plants (nine less than in 2018).
Energoatom is the operator of all four operating nuclear power plants in Ukraine. It operates 15 power units equipped with water-cooled power reactors with a total installed electric capacity of 13.835 GW.

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KOVALSKA GROUP COMPLETES PURCHASE OF PRODUCTION IN LVIV

The Kovalska industrial and construction group has finalized a deal to acquire Rozvadov Construction Materials LLC (Rozvadov, Lviv region), which owns a production facility located on around 140 ha, for UAH 63 million, the press service of the group reported on Tuesday.
The facility includes sand and limestone quarries, shaft furnaces for calcining limestone and a sand-lime bricks plant.
Sand deposits in the sand pit are estimated at almost 10 million cubic meters, the planned production volumes are 400,000-500,000 tonnes per year. Sand will be used to make Siltek dry mortar.
In addition, Kovalska plans to build another Siltek plant in the next two years on the acquired site. In addition, sand mined at the site will be sold in Western Ukraine.
According to the group, the limestone deposit has deposits at the level of 6 million tonnes. “Annually, it is planned to extract 200,000 tonnes of limestone, which will be processed at our own facilities and sold at enterprises throughout the country,” the press service added.
At the same time, to improve the quality, the sand processing and limestone calcining lines will be modernized, modern equipment for its pollution-free processing will be installed.
The Kovalska industrial and construction group has been operating in the construction market of Ukraine since 1956. The company is a leading manufacturer of building materials, developer and builder of Ukraine. The group unites nine manufacturers of building materials, which are known in Ukraine under the brands Concrete by Kovalska, Avenu, Siltek, and Granite by Kovalska.

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PRESIDENT OF UKRAINE SIGNS LAW ON COUNTERING RAIDING

President of Ukraine Volodymyr Zelensky has signed the law on amending the Land Code of Ukraine and some other legislative acts to combat raiding adopted by the Verkhovna Rada on December 5, 2019.
According to information on the website of the Verkhovna Rada of Ukraine, on January 13 the document was returned with the signature of the president.
As reported, bill No. 0858 establishes that if a party to the contract wishes to refuse to automatically renew the land lease, then no later than 30 calendar days before the expiration of the contract, it must submit an application to the state register of property rights. In the absence of such a statement after the relevant expiration date of the contract, it is extended for the same period and with the same conditions.
The lease payment for land plots of state and municipal property leased at land tenders cannot be reduced by agreement of the parties during the term of the lease, as well as upon its renewal, as indicated in the document.
The bill also provides for the establishment of a guarantee contribution amount per lot at the level of 5% of the starting price for the sale of a land plot and 50% of the starting amount of the annual fee for using a land plot, but not less than 500 tax-free minimum incomes of citizens and not more than 5,000 tax-free minimum incomes of citizens.

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UKRAINE ENTERS TOP FIVE WORLD EXPORTERS OF POULTRY

Ukraine is one of the five world exporters of poultry, Minister of Economic Development, Trade and Agriculture Tymofiy Mylovanov has stated.
“Ukraine has entered the top five of the world’s poultry exporters. Brazil, the EU and Thailand are ahead of Ukraine,” he wrote on his Facebook page.
In addition, the minister said that the EU issued import permits for 58,000 tonnes of Ukrainian wheat as part of the first distribution of the tariff quota (TRQ) for 2020.
“Almost the entire quota was issued for duty-free supplies of Ukrainian wheat,” he said.
As reported, with reference to the ministry, Ukraine as of January 10, 2019 and since the beginning of the 2019/2020 marketing year (MY, July-June) has exported 32.08 million tonnes of grain, which is 7.8 million tonnes more than for the same period of the last marketing year.
In particular, the following amount was delivered to foreign markets: wheat in the amount of 15.1 million tonnes, corn some 12.8 million tonnes, and barley some 3.8 million tonnes.
Ukraine in the 2018/2019 MY exported a record 50.4 million tonnes of grain, legumes and flour, which is 23% more than in the previous MY. It is expected that 54 million tonnes will be exported in the current MY.

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UKRAINIAN GOVERNMENT COULD SELL SHARES IN UKRTRANSGAZ, UKRGAZVYDOBUVANNIA, UKRTRANSNAFTA

The Ukrainian government on Wednesday will consider the revised bill on the list of state-owned facilities that are not subject to privatization, which envisages the retaining of at least 50% plus one shares in Ukrtransgaz, Ukrgazvydobuvannia and Ukrtransnafta and 100% in Ukrhydroenergo, Ukrenergo and Energoatom.
According to an explanatory note to the document available at Interfax-Ukraine, after the first consideration of the bill at a meeting of the Cabinet of Ministers on December 27, 2019, a conciliation meeting and a meeting of the government committee took place, as a result of which the lists underwent significant changes.
If in the first version the Ministry of Economic Development, Trade and Agriculture allowed selling up to 50% in all facilities, now their number has been reduced to 22, while for 135 facilities it is proposed to fix all their shares in state ownership.

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FOREIGN MINISTER OF UKRAINE TO VISIT UNITED KINGDOM

Foreign Minister of Ukraine Vadym Prystaiko will visit the United Kingdom on January 15-16, where he intends to meet with the foreign ministers of five countries whose citizens died as a result of the crash of the Ukraine International Airlines (UIA) plane in Iran. “On January 15-16, 2020, Ukrainian Foreign Minister Vadym Prystaiko will pay a working visit to the United Kingdom of Great Britain and Northern Ireland,” the Foreign Ministry’s press service said on Wednesday.
It is noted that during the visit, Prystaiko will take part in the meeting of the Ministers of Foreign Affairs of Ukraine, Canada, Great Britain, Sweden and Afghanistan in order to coordinate efforts to ensure a proper investigation of the circumstances of the UIA plane crash of PS 752 flight in Tehran.

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