Business news from Ukraine

Business news from Ukraine

AGRICOM GROUP STARTS PRODUCING CEREALS UNDER DOBRODIYA BRAND, FLAKES UNDER SUPER HERCULES BRAND

KYIV. April 27 (Interfax-Ukraine) – Agricom Group has started production of cereals under the Dobrodiya trademark and the new product line under the Super Hercules trademark consisting of five products, Director of the marketing department Halyna Horban has told Interfax-Ukraine.
“Flakes is the most nutritious, tasty and cheap breakfast. In 2017, we plan that the flake market would start growing and reach the pre-crisis level. We have started actively studying demand of our consumers in this segment,” she said.
Horban said that the company designed the Super Hercules flake product line.
She said that by the end of the year Super Hercules could occupy 3% of the flake market in Ukraine.
Agricom Group seeks to supply Super Hercules not only to the domestic market, but to Europe. The company is holding talks with partners.
The cost of new flakes at Ukrainian stores will be around UAH 30 per a 600 gram package.
“In 2017 we launched 10 cereals under the Dobrodiya brand under contracts, as demand of distribution channels was seen. The quality department permanently monitors all stages of cereal production at our partners,” Horban said.
She said that the products are made at the partner plant in Kyiv region, but this autumn the company plans to launch own flake plant in Chernihiv region.
Аgricom Group produces and distributes food made of grain at own production base. It unites agricultural, processing and trade enterprises.

MOBILE OPERATORS CLAIM THEIR NETWORKS READY FOR 4G

KYIV. April 27 (Interfax-Ukraine) – Kyivstar mobile operator has prepared 70% of its network for the introduction of 4G (LTE) communications and plans to reach 100% by the end of the second quarter of 2017.
“Traffic consumption has jumped. We have expanded the network capacity by 250%. We improve the technical specifications of the network. We have prepared 70% of the network for 1,800 MHz range and by the end of the second quarter 2017 we will prepare 100% of the network,” Kyivstar President Petro Chernyshov said at a press conference in Kyiv on Tuesday.
He said that in 2015-2016 Kyivstar invested UAH 9.4 billion in infrastructure, including the cost of the 3G license.
PR Director of Vodafone-Ukraine Viktoria Ruban said that 89% of the operator’s network is ready for the introduction of 4G.
“Investment in the network in 2015-2016 totaled UAH 10 billion, including the cost of the 3G license,” she said.
The press service of lifecell did not specify the percentage for the readiness of its network, adding that all equipment installed by the operator for introducing 3G is ready for the launch of LTE.
“Total investment of lifecell in 2015-2016 was UAH 8.5 billion,” the press service said.

ED&F MAN WILL INVEST OVER $60 MLN IN IRRIGATION SYSTEMS IN KHERSON AND MYKOLAIV REGIONS BY 2020

KYIV. April 27 (Interfax-Ukraine) – The investment of ED&F Man, one of the world’s largest sugar trading companies, in the first stage of an irrigation complex in the village of Kyselivka (Kherson region) amounted to $5 million.
According to a company press release, the first stage of the project is launched for irrigation of 1,000 hectares in Kherson region.
The company plans by 2020 to increase the total area under irrigation to 20,000 hectares in Mykolaiv and Kherson regions and invest more than $60 million.
“New automatic irrigation systems will ensure the proper moistening of fields around Zaselsky sugar plant, solve the problem of growing sugar beets in conditions of arid steppe,” the company said in the press release.
ED&F Man owns Zaselsky sugar factory (Mykolaiv region) with a production capacity of 50,000 tonnes of goods per year.
For the period of its work in Ukraine, ED&F Man has invested more than $150 million in development.

GEORGIAN COMPANY WINS CENTRENERGO’S TENDER TO SUPPLY 700,000 TONNES OF COAL

KYIV. April 27 (Interfax-Ukraine) – Sakhnakhshiri LLC (GIG Group, Tbilisi, Georgia) has won a tender of public joint-stock company Centrenergo to supply 700,000 tonnes of coal, according to the results of an auction held in the ProZorro procurement system.
Sakhnakhshiri offered to supply coal for UAH 1,808,789,000, while the second bidder – I–COAL Sp z o.o. (Poland) – offered UAH 1,808,790,000 (VAT not included).
If the results of the tender are approved, the cost of coal for Centrenergo will be around $97 per tonne with the initially expected around $102 per tonne.
The Georgian company earlier shipped coal to two Armenian and one Bulgarian companies, and inside Georgia – around 300,000 tonnes every year.
Sakhnakhshiri belongs to GIG Holding, part of GIG Group, the founder of which is David Bezhuashvili, brother of former defense minister and former foreign minister of Georgia Gela Bezhuashvili.
Earlier Centrenergo annulled two tenders announced in March and April to supply 700,000 tonnes of coal due to the absence of bids and announced the third tender.
The first tender’s initial price was up to UAH 1.523 billion (around $81-82 per tonne), the second – up to UAH 1.714 billion (around $91-92 per tonne) and the third – up to UAH 1.904 billion (around $101-102 per tonne).
Coal will be shipped to Zmiyivska and Trypilska thermal power plants (TPPs) in May-December 2017 (CIF Black Sea ports, Ukraine). The smallest batch is 70,000 tonnes.

SME REPRESENTATIVES NOTE IMPROVEMENT OF BUSINESS CLIMATE IN UKRAINE IN 2016 – SURVEY

KYIV. April 27 (Interfax-Ukraine) – Representatives of small and medium-sized enterprises (SME) have noted the improvement of the business climate in Ukraine: the corresponding index in 2016 rose to plus 0.06 from plus 0.01 in 2015 (on a scale from minus 1 to plus 1), according to the results of the “Annual assessment of the business climate 2016.”
“The index has improved by 5 percentage points. This not much but nevertheless it is a positive trend,” the coordinator of the analytical component of the USAID LEV program, the executive director of the Institute for Economic Research and Policy Consulting, Oksana Kuziakiv, said at a press conference at Interfax- Ukraine in Kyiv.
According to the results of the survey, low demand became the main obstacle to the development of small and medium-sized enterprises in 2016. It ousted the “unfavorable political situation,” which was the main obstacle in 2015, to the second place.
The optimism of small and medium-sized enterprises regarding the short-term plans has grown, while its growth rate relative to the two-year plans has slightly decreased. This suggests that there is no time for “postponing” the reforms, the expert explained.

ORLAN-TRANS INTENDS TO START WORKING WITH CRYPTOCURRENCIES

KYIV. April 27 (Interfax-Ukraine) – Orlan-Trans Group operating with the A2B Direct online platform for cargo companies plans to start working with cryptocurrencies.
An Interfax-Ukraine correspondent has reported that Director General Volodymyr Baida gave the information at the Logistic Up 2017 forum in Kyiv on Tuesday.
“Strange as it may sound for a Ukrainian carrier, now we see our monetization on starting work with cryptocurrencies. At present we intend to introduce a technology on the basis of blockchain. On May 24 we want to enter the ICO. We look at the work in the future,” he said.
As reported, Ukrainian businessman, a partner of Orlan-Trans and former transport minister of Ukraine Yevhen Chervonenko presented the A2B Direct online platform for haulers late 2016.
A2B Direct online service ensures direct cooperation between haulers and cargo owners at all stages. One can find an optimal hauler online. A2B Direct is able to connect to the driver 24/7. It maintains the entire document cycle, insurance and legal accompanying. The service users will be able to track their cargo online and fully get rid of forwarders’ markups.
Haulers and cargo owners will be able to quickly find deals and plan their loading, reducing no-load trips to minimum.
From October the service operated in the test mode in Ukraine. In 2017 it would be available for CIS states.
Among partners of the project are Kyivstar, WOG, OKKO, Alfa-Bank Ukraine, Bank Vostok and Unison insurance company. The project is launched with support of the Association of International Road Carriers of Ukraine (AsMAP).