Business news from Ukraine

Business news from Ukraine

ECONOMY MINISTRY TO HELP PIPE MANUFACTURERS TO ENTER FOREIGN MARKETS – OFFICIAL

KYIV. Aug 31 (Interfax-Ukraine) – The Economic Development and Trade Ministry of Ukraine would help to receive access to foreign markets by Ukrainian pipe manufacturers, in particular, the markets of the Eurasian Economic Union (EAEU), especially Kazakhstan and Belarus.
The ministry said in a press release that the obstacles for supplies of Ukrainian pipes to foreign markets were discussed at a meeting of Deputy Minister of Economic Development and Trade, Ukraine’s Trade Representative Natalia Mykolska with representatives of the pipe industry.
According to the release, the sides discussed exports of Ukrainian products, including the problems of getting access to foreign market for pipe products, in particular, the EAEU market. Ukrainian manufacturers expressed alarm with the situation around the antidumping duties for steel pipes. The antidumping duty of 18.9-37.8% does not allow Ukrainian products to compete on the EAEU market.
At present, the safeguard measures are being reviewed. This was initiated by Ukrainian manufacturers aiming to liberalize them.
“It is important for us to oppose measures that restrict access of Ukrainian pipe products to foreign markets. We will consider the possibility of protecting Ukraine’s rights and interests in the trade and economic sphere within the WTO [World Trade Organization] agreements,” Mykolska said.
The participants of the meeting said that the safeguard measures related to the access of Ukrainian pipes, in particular to the traditional markets of Kazakhstan and Belarus, are artificial and do not meet the requirements of the international trade law established by the WTO. The ministry will work out the issue of protecting the interests of the domestic production sector, taking into account the mechanisms permitted under the WTO rules.

QATAR AIRLINE STARTS FLIGHTS TO UKRAINE

KYIV. Aug 30 (Interfax-Ukraine) – Qatar Airways (Qatar) on August 28 launched daily flights from Doha to the largest Ukrainian airport Boryspil (Kyiv), Qatar Airways CCO Ehab Amin has said at a press conference in Kyiv.
According to him, the duration of the flight will be 5 hours and 40 minutes. It will be performed on board Airbus-320 aircraft in a two-class arrangement (120 economy class seats and 12 business class seats).
Amin did not specify the average price of the flight on the Kyiv-Doha route, but according to the air carrier’s booking system, one-way flight will cost about EUR375.
He noted Qatar Airways expects a serious passenger flow, but did not voice absolute targets.
According to Amin, the company does not rule out the launch of two daily flights on the Doha-Kyiv route.
He also did not rule out the possibility of partnership in future with Ukraine’s leading airline Ukraine International Airlines and, if there is the demand, the possibility of flying to other Ukrainian destinations.

PIVDENMASH PREPARING NEW BATCH OF ENGINES FOR EUROPEAN VEGA LV TO SHIP THEM TO PARTNERS

KYIV. Aug 30 (Interfax-Ukraine) – State-owned Ukrainian rocket maker Pivdenmash (also known as Yuzhmash) Machine Building Plant is preparing a new batch of engines for the European launch vehicle (LV) Vega to ship to the European partners, the press service of the enterprise has reported.
According to the report, in Q2 2017 Pivdenmash produced two liquid fuel rocket engines RD-843 and prepared them for shipment to the customer.
The Vega was designed by the European Space Agency (ESA) in collaboration with the Italian Space Agency (ASI) for carrying satellites with a weight up to 1,200 kilos to a 1,200-kilometer Sun-synchronous orbit and satellites with a weight of 1,500 kilograms to a 700-kilometer polar orbit.
The contract to design and supply of the cruise engine of the fourth stage of Vega LV between Pivdenne (Yuzhnoye) Design Bureau and Pivdenmash and Italy’s Avio SpA was signed in February 2004.
In April 2012, the partners signed a three-year contract with Avio SpA to supply first batch production engines. The contract can be extended. In July 2017 the parties extended the contract until 2020.
The Ukrainian government and the ESA signed an agreement on cooperation in peaceful uses of outer space in 2008. The ESA unites 17 European countries.

SPF SELLS 33% STAKE IN ENTERPRISE FOR NUCLEAR FUEL PRODUCTION AT PRICE 15.9 TIMES HIGHER THAN STARTING PRICE

KYIV. Aug 30 (Interfax-Ukraine) – The State Property Fund of Ukraine (SPF) has sold 33.3% of shares in private joint-stock company Ukrainian-Kazakh-Russian JV Enterprise for Nuclear Fuel Production (Kyiv) at an open auction for UAH 47.8 million, which is 51.9 times more than the starting price, to Wise Trade LLC (Kyiv).
An Interfax-Ukraine correspondent has reported that the starting price of the stake was UAH 921,000. The bid increment was UAH 92,100.
Five bidders took part in the auction, and only two bidders increased their bids during the auction.
Deputy SPF Head Yuriy Nikitin told Interfax-Ukraine that he is satisfied with the results of the auction. Over 500 bid increments were made at the auction.
He said that the results of the auction and the number of bidders who took part in it confirm that the SPF organizes open and transparent auctions, and both Ukrainian and foreign companies can take part in them.
Nikitin expressed hope that Wise Trade will soon send the funds for the purchase of 33.3% of shares in the company.
Andriy Karimov fully owns Wise Trade LLC with the charter capital of UAH 229,565.
The JV was established in late 2001 with the aim of developing cooperation between nuclear power enterprises in Ukraine, Kazakhstan and the Russian Federation. Its shareholders in equal shares are the State Property Fund of Ukraine, Kazatomprom and TVEL.

FAMOUS ARCHITECT ROMERO FROM ROMERO-SLIM FAMILY SHOWS INTEREST IN UKRAINE’S INVESTMENT POTENTIAL

KYIV. Aug 30 (Interfax-Ukraine) – Famous Mexican architect Fernando Romero, a global investor and representative of the Romero-Slim family, believes that Ukraine is an interesting market for possible investment thanks to a large growth potential.
Romero told reporters in Kyiv on Tuesday that he is interested in airports, seaports, logistics and modern infrastructure projects.
The architect said that Ukraine has a lot of in common with Mexico – from a large gap between the rich and the poor to the proximity to larger and richer markets. However, its domestic market is also interesting, taking into account 40 million of population.
He said that among positive moments is the progress in the country seen in the past three years and the Deep and Comprehensive Free Trade Area (DCFTA) Agreement with the EU.
Romero said that today is the right moment to invest in Ukraine and implement public private or concession projects.
At the invitation of his strategic adviser for investment in infrastructure and agro-industrial complex in developing countries and managing partner of Octagonal Corporation Ivan Ogilchyn, Romero visited Odesa and Kyiv, in particular, he got acquainted with port infrastructure and metropolitan airports, including Hostomel.
He also met with Prime Minister Volodymyr Groysman.
“The implementation of large-scale infrastructure projects, the launching of landmark and modern architectural solutions in the development of our cities – this is all that strengthens and changes Ukraine, makes it recognizable and competitive in the modern world! I am convinced: Ukraine is interesting for investors. It has a great future in today’s globalized world. Fernando Romero supported me in this!” Groysman wrote on his Facebook page after the meeting.
In addition, the Mexican architect became the main speaker of Urban Talks devoted to the cities of the future and the driving forces of their development.
Romero, son-in-law of billionaire Carlos Slim, is the director of the international architectural firm FR-EE (Fernando Romero EnterprisE), founded by him, with offices in Mexico City and New York, and engaged in industrial design. Among the largest projects being implemented are a new international airport in Mexico City in cooperation with Foster and Partners and Netherlands Airport Consultants, ordered by the federal government with an area of 667,000 square meters. Construction was started in 2014 and will be completed in 2020. An estimated cost of the project is about $10 billion.
One of the most famous projects of Romero as an architect is Museo Soumaya in Mexico City.