Business news from Ukraine

Business news from Ukraine

GOVT APPROVES BILL INTRODUCING EUROPEAN STANDARDS FOR CONSTRUCTION MATERIALS IN UKRAINE

KYIV. Aug 21 (Interfax-Ukraine) – The Cabinet of Ministers of Ukraine has approved a bill on the main requirements to structures and the conditions for the marketing of construction products.
The decision was made at a government meeting on Friday. Ukrainian Prime Minister Volodymyr Groysman read the document among those passed without discussion.
The bill is intended to implement the EU Regulation No. 305/2011 laying down harmonised conditions for the marketing of construction products.
The bill sets the key requirements to structures and the construction materials technical approbation rules for marketing them, as well as to the entities that take part in the technical approbation and declaration in the construction sphere. The bill introduces a rule for determining the essential characteristics.
The bill also describes obligations of manufacturers marketing

U.S. GESS INTERESTED IN KHERSON CHPP

KYIV. Aug 21 (Interfax-Ukraine) – Representatives of GESS Ukraine, the Ukrainian division of U.S. Green Energy Sustainable Solution – GESS International – have shown their interest in Kherson combined heat and power plant (CHPP), Deputy Head of the State Property Fund of Ukraine (SPF) Yuriy Nikitin has said after a meeting with them.
The parties discussed the conditions of the sale, the prices and possibility of restructuring debts of the plant. The plant’s debt has reached almost $4 million.
“After three failures [to sell the plant] in the previous years we want to put the CHPP up to sale… The announcement of the tender is preliminarily scheduled for October 2017,” Nikitin said.
He said that the fund has drawn up the conditions of the sale. A government working group is to discuss them and then the Cabinet of Ministers is to approve them.
He said that the fund would do its best to conduct transparent privatization of the plant and the fund is ready to consider any acceptable offers, in particular, the involvement of Kherson CHPP in a project to develop alternative energy.
“The company wants to make a privatization project. No project participant, including the CHPP and consumers, should lose, on the contrary, they should earn,” the SPF said, citing a representative of GESS Ukraine Shaun Edward Lee.
He said that the company has three business projects in Kherson region.
Nikitin also told Interfax-Ukraine that there is an interest to Mykolaiv CHPP. The auction to sell the plant was failure this week, but there were two preliminary bids. However, the deposit guarantee was not confirmed.
He said that Kryvy Rih and Severodonetsk CHPPs are being prepared for sale.
“There is Odesa CHPP, but we have bankruptcy there,” Nikitin said.

ENERGY MINISTRY SEEKS TO REVIEW PLAN OF FIRST PHASE OF UKRAINE’S ENERGY STRATEGY UNTIL 2035 BY LATE 2017

KYIV. Aug 21 (Interfax-Ukraine) – Ukraine’s Energy and Coal Industry Ministry will review the plan for the first phase of the implementation Ukraine’s Energy Strategy until 2035, for the period until 2020, by late 2017, Deputy Energy and Coal Industry Ministry Natalia Boiko has said.
“The road map for the first phase will be finalized by the end of this year. We have many proposals,” she told reporters after a government meeting on Friday.
Boiko said that the strategy will be implemented in three stages – until 2020, until 2025 and until 2035.
The document approved by the government does not require the approval of the Verkhovna Rada, she said.
“We had a discussion. There are strategies approved by the Verkhovna Rada… We made a political decision that the government takes responsibility, and today’s decision is enough,” Boiko said, adding that this is the first energy strategy of the country approved by the government after the Revolution of Dignity.
As reported, the Cabinet of Ministers of Ukraine on Friday approved the Energy Strategy of Ukraine until 2035 with the condition of a three-day revision of this document.

SUMY NPO ACQUIRES PROJECTENERGOSERVICE CONSTRUCTION COMPANY IN KAZAKHSTAN

KYIV. Aug 21 (Interfax-Ukraine) – Public joint-stock company Sumy Machine-Building Science and Production Association (Sumy NPO), a large manufacturer of gas pumps and compressor stations in Europe, has acquired 100% of ProjectEnergoService LLC (Karaganda, Kazakhstan), according to a report in the information disclosure system of the National Commission for Securities and the Stock Market.
The company in Kazakhstan was bought for $50,000 (UAH 1.285 million).
ProjectEnergoService LLC was registered in 2011. Its core business is construction and assembly works, including special purpose works.
Sumy Machine-Building Science and Production Association is one of the biggest producers in Europe of gas re-pumping units and outfitted compressor stations for various uses: centrifugal, vacuum, and chemical pumps, and centrifuges and other equipment for the chemicals gas and oil-refining industries.

DUTCH INVESTMENT FUND SAFEDAM BUYS 23.76% OF SHARES IN VOLODYMYR-VOLYNSKA POULTRY FARM

KYIV. Aug 18 (Interfax-Ukraine) – Dutch investment fund Safedam has become a shareholder in private joint-stock company Volodymyr-Volynska poultry farm (Volyn region, the Kurka Cheboturka trademark), acquiring 23.76% shares in the farm.
“Transparent business processes, prospects of development, high production standards and the quality of the products of Volodymyr-Volynska poultry farm were well appraised in Europe. As a result, a deal with private investment fund Safedam has been finalized. The discussion on the possibility of joining the company as an investor was started two years ago,” the Ukrainian company said in a press release.
Volodymyr-Volynska poultry farm is among top three leaders in the poultry sector with 6% share of the domestic market and turnover of UAH 1.6 billion (the target for 2017).
Head of the supervisory board and shareholder in the farm, the founder and CEO of OpenMind Group, Oleksiy Kovalenko said that cooperation of the company with representatives of the Dutch company started a long time ago.
“The deal would allow us to use various financial tools that would cheapen the value of raised funds. Our poultry farm is becoming a Ukrainian-Dutch enterprise,” he said.
The farm buys equipment from Dutch Stork company. The farm will buy Dutch chickens to breed them in Ukraine.
According to the report, the deal with Safedam is aimed at stimulating development of new segment in poultry production.
“A new product would appear on the Ukrainian market. It is being created not only with the help of European technologies, but also taking into account European values in the quality of life and healthy food,” the company said.
The poultry farm has started implementing an investment plan to modernize production facilities with the total funding of over EUR 25 million. The company said that the appearance of the new investor would allow speeding up the process.
Ukrainian branding agency Fedoriv has been attracted to launch the new brand.

KAZAKHSTAN’S ENERGY MINISTRY SELECTS UKRAINIAN COMPANIES FOR IMPLEMENTING PROJECTS – CHAMBER OF COMMERCE AND INDUSTRY OF UKRAINE

KYIV. Aug 18 (Interfax-Ukraine) – The Energy Ministry of Kazakhstan has selected several Ukrainian companies for implementing projects in Kazakhstan, Vice President of the Chamber of Commerce and Industry of Ukraine Serhiy Svystil said at a briefing at the EXPO 2017 exhibition.
“The Energy Ministry has selected a project of the Fuhrlander Windtechnology LLC to implement it in Kazakhstan. In addition, three projects were included [into the plan] by the Energy Ministry to implement them later in Kazakhstan – the Passive House (the autonomous module of the eponymous company), SolarGaps smart blinds and a collector based on the energy concentrator made by Sineko company,” he said.
As reported, Fuhrlander Windtechnology LLC is the only manufacturer of modern wind turbines in Ukraine. The company also builds wind farms.
The company makes its products at the facilities of Kramatorsk Heavy Machine Tool Plant.
Since 2010, Fuhrlander Windtechnology has built seven wind farms in Ukraine and one in Kazakhstan.