Business news from Ukraine

Business news from Ukraine

VOLUME OF CONSTRUCTION WORKS ACCOMPLISHED BY REGION IN 2016 (MLN.UAH)

17

Excluding the temporarily occupied territories the Autonomous Republic of Crimea, the city of Sevastopol and part of the anti-terrorist operation zone. Data can be corrected. Source: State Statistics Services

UKRENERGO TO ANNOUNCE TENDER TO BUY 25 MORE TRANSFORMERS

KYIV. July 20 (Interfax-Ukraine) – Ukrenergo intends to announce a tender to buy 25 more transformers, the company’s press service reported on Tuesday.

The press service said that acting Director Vsevolod Kovalchuk on July 21 will hold a press conference devoted to the announcement of the tender.

The press service told Interfax-Ukraine that the official tender procedure will be announced at the press conference.

The tender will be held via the ProZorro procurement system.

RADA ALLOWS AVIATION INDUSTRY SETTING UP JV WITH FOREIGN PARTNERS

KYIV. July 19 (Interfax-Ukraine) – The Verkhovna Rada of Ukraine has adopted a law that provides for the possibility of state Ukrainian aircraft enterprises’ setting up joint ventures (JVs) with foreign partners.

Some 241 MPs voted for relevant draft law No. 4809 on amendments to certain legislative acts of Ukraine regarding the establishment of conditions for international cooperation between aircraft entities and development of the national aircraft industry.

According to the law, the founders and/or members of such joint ventures can be foreign business entities, except for those located or operating in the territory of the state recognized an aggressor or occupant state and/or with respect to which sanctions are applied.

The act also provides for the extension until 2025 of state financial support to the system of sales of domestic aircraft through the mechanism of cheaper loans (partial compensation of interest rates).

It is expected the adoption of the law will allow up to 2020 to bring about UAH 5-10 billion of investment in the industry and increase sales by 20-25%.

UKRAINE TO EXPAND COOPERATION WITH GENERAL ELECTRIC

KYIV. July 19 (Interfax-Ukraine) – Ukraine’s Ministry of Infrastructure intends to expand cooperation with U.S. Corporation General Electric in various technological fields, Minister of Infrastructure Volodymyr Omelyan has said at a briefing in Kyiv.

“We’ve signed a memorandum with General Electric about testing their locomotive in Ukraine. This is the best design, which is now in the world. We also plan to sign a memorandum on cooperation with General Electric not only in the railway sector but also in aviation and others. This company is known for its electronic solutions, engines. I think we’ll hold consultations in this direction,” the minister said.

As reported, on July 14 General Electric and PJSC Ukrzaliznytsia signed an agreement under which the U.S. company will pass a locomotive to Ukraine to demonstrate its capabilities on the Ukrainian railway.

The locomotive of American production will arrive in Ukraine in the next two weeks. It will be on display on the Ukrainian railways for 120 days. Ukrainian experts will involve it in domestic rail transportation.

 

UKRGAZVYDOBUVANNIA, NAFTOGAZ, PHILIP MORRIS ARE UKRAINE’S LARGEST TAXPAYERS IN Q1, 2016

KYIV. July 19 (Interfax-Ukraine) – PJSC Ukrgazvydobuvannia in the first quarter of 2016 increased tax payments to the consolidated budget of Ukraine by 6.8 times and topped the rating of the largest taxpayers in the country, the State Fiscal Service reported in the Visnyk Rating edition.

According to its data, Naftogaz Ukrainy, the parent company of Ukrgazvydobuvannia, ranked second, despite the reduction in payments by 8%, while PJSC Philip Morris Ukraine ranked third, it increased tax payments by 75%.

These companies are followed by another representative of the tobacco industry – PJSC B.A.T. – Pryluky, which increased tax payments by 2.3 times, Energomarket with a 62% rise in payments ranked fifth.

The top ten largest taxpayers also included PJSC Ukrnafta (increased payments by 4.7 times), tobacco company PJSC JT International Ukraine (28%), Energoatom (247%), PJSC Naftogazvydobuvannia (90%), and PJSC Ukrtatnafta (two-fold).

FINANCE MINISTRY STARTS INTERNAL REFORM WITH SUPPORT OF PWC

KYIV. July 19 (Interfax-Ukraine) – The Ukrainian Finance Ministry next week will start internal reform with support of PricewaterhouseCoopers (PwC). The reform aims at improving business processes in the ministry.

“The project will be fully financed by international donors and it does not require budget funds spending,” the ministry said last week after a meeting of Ukrainian Finance Minister Oleksandr Danyliuk, his deputy Yevhen Kapustin and representatives of PwC.

The ministry said that the reform implies optimization of internal processes, improvement of internal communications, introduction of a project approach, increase of responsibility of employees and introduction of technological changes.

“The improvement of the ministry’s work would considerably increase the level and quality of work. We want that the Finance Ministry as a driver of reforms continue changing inside to become an example for other ministries,” Danyliuk said.