Business news from Ukraine

Business news from Ukraine

ALSTOM INTERESTED IN COOPERATION WITH UKRAINIAN RAILWAYS

France’s Alstom, the producer of rolling stock and infrastructure solutions, is interested in cooperation with public joint-stock company Ukrzaliznytsia, Managing Director for Western and Central Asia at Alstom Bernard Peille said during the presentation of the first freight electric locomotive for Azerbaijan Railways in Astana (Kazakhstan), an Interfax-Ukraine correspondent has reported.
“We recently held talks with Ukrzaliznytsia. According to them, they will need about 210 locomotives of four different types in the next five years. Basically, as we know, they are freight locomotives. We are ready to do this, but everything depends on financing, as well as on what percentage of localization is required,” he told Interfax-Ukraine.
Peille also said that Alstom is actively seeking various options for financing supplies of traction to the Ukrainian railways.
Prima T8 AZ8A freight electric locomotive presented in Astana on Wednesday is made under a contract signed by the company and Azerbaijan Railways for supply of 50 locomotives, including Prima M4 AZ4A passenger locomotives.

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RENEWABLE ENERGY GENERATING FACILITIES WITH 109.6 MW CAPACITY ARE PUT INTO OPERATION IN UKRAINE IN Q2, 2018

New generating facilities on renewable energy sources with a total installed capacity of 109.6 MW were put into operation in Ukraine in April-June 2018, which is 1.7 times more than in the same period in 2017, the press service of the National Commission on Energy, Housing and Utilities Services Regulation has stated. “The objects of wind power plants and solar power plants account for 99% of the commissioned facilities,” the report said.
According to the commission, in the second quarter a wind power plant with a capacity of 3.2 MW, a solar plant with a total capacity of 106.1 MW, and a biogas plant with a capacity of 0.3 MW were commissioned.
Thus, as of June 27 Ukraine had wind power plants with a total installed capacity of 515.4 MW, solar plants of 947.5 MW, biomass stations of 43.8 MW, biogas plants of 41 MW, and hydro power plants of 95.6 MW.
The total installed capacity of renewable energy facilities is 1.643 GW (excluding the annexed Crimea, where previously renewable energy facilities with a total capacity of 494.9 MW were launched).
At present the share of renewable energy in electricity production in Ukraine is 1.9%, the share in the total cost of electricity is 8.5%.

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UKRTRANSGAZ ANNOUNCES TENDERS TO BUY GAS

Public joint-stock company Ukrtransgaz on June 22 and June 23 announced 12 tenders to buy gas for technological needs and balancing in the amount of 2.437 billion cubic meters with the expected cost of UAH 21.202 billion (VAT not included).
The bids can be submitted before July 23 and July 24 (depending on the lot). The auctions will take place on August 28 and August 29.
The final price of gas to be paid by Ukrtransgaz to the winners of the tenders will be determined, taking into account quotations at NetConnect Germany (NCG) in the period when gas is delivered.

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ICE CREAM EXPORTS FROM UKRAINE TO 50 COUNTRIES, PRODUCTION SLIGHTLY UP IN 2018

Ukrainian enterprises in January-May 2018 increased production of ice cream by 1.7% compared to the same period in 2017, to 42,800 tonnes.
“In January-May the volume of ice cream production in Ukraine amounted to 42,800 tonnes, growth stood at 1.7%. For the five months, 2,900 tonnes were exported, a growth of 23.1%. Ice cream exports to the EU amounted to 232 tonnes, or 8% of the total export. I expect that by the end of this year production and exports will show growth,” Ihor Bartkovsky, the president of the Association of Ukrainian Producers “Ice Cream and Frozen Food,” at a press conference in Kyiv.
According to him, ice cream is exported from Ukraine to more than 50 countries.
“In 2017 Ukraine produced 96,600 tonnes of ice cream, which is 2.4% more than in 2016. Exports totaled more than 5,000 tonnes, an increase of 13.5%, in particular, 336 tonnes were exported to EU countries, or 7% of total exports,” Bartkovsky said.
He noted that over the past three years, ice cream consumption in Ukraine has increased.
At the same time, ice cream consumption per capita in Ukraine remains low.

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FRANCE’S ALSTOM PLANS TO OPEN OFFICE IN UKRAINE

France’s Alstom, the producer of rolling stock and infrastructure solutions, plans to open a representative office in Ukraine in several months, in particular, the office in Kyiv, Managing Director for Western and Central Asia at Alstom Bernard Peille told Interfax-Ukraine during the presentation of the first freight electric locomotive for Azerbaijan Railways in Astana (Kazakhstan). “We have found a person who would present the interests of Alstom in Ukraine and develop business for us. This person would be also responsible for opening of our office in Kyiv,” he said.
Peille also said that Alstom plans to open the office in Kyiv in coming months, adding that he cannot specify the date, as many things depend on administrative work in Ukraine, which the company does not know well.
Prima T8 AZ8A freight electric locomotive presented in Astana on Wednesday is made under a contract signed by the company and Azerbaijan Railways for supply of 50 locomotives, including Prima M4 AZ4A passenger locomotives.

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NORWAY PLANS TO INVEST IN UKRAINIAN ENERGY SECTOR – NORWEGIAN FM INE ERIKSEN SOREIDE

Norway is considering the possibility of expanding investments in the energy sector of Ukraine, Norwegian Foreign Minister Ine Eriksen Soreide has said. “We will continue to provide support for energy efficiency, reforms, our dialogue with Naftogaz, corporate governance … We are also looking at how we can expand this support,” she said at the second international Ukraine Reform Conference, held in Copenhagen (Denmark). She noted that Ukraine’s reform efforts in recent years have stimulated a flow of investment in the energy sector of Ukraine, in particular, in renewable energy.
However, we would like to see more investment between Ukraine and Norway in both directions, she added, stressing that investments are possible as a result of effective structural reforms.
A truly independent Anti-Corruption Court will only become a catalyst for private investment, she said.
At the same time, the official said that even pre-election moods should not prevent Ukraine from realizing its goals, so that the expectations of Western partners remain at a high level.

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