Business news from Ukraine

Business news from Ukraine

CANADIAN DEFENSE COMPANIES MULLING ARRIVAL IN UKRAINIAN DEFENSE MARKET

The Canadian defense sector is working on plans to develop defense cooperation with Ukraine, Conservative MP from Canada James Bezan has said in an interview with UATV. Bezan said that soon supplies of Canadian small arms could be started to Ukraine.
“Canada and Ukraine have signed one contract to supply sniper rifles. We are waiting for the signing of the permit to export the arms by the Canadian government,” he said. Bezan did not specify the participants and details of the mentioned arms contract, saying only that the forthcoming delivery of Canadian small arms to Ukraine is planned to be provided on a commercial basis within the special export license issued by the Canadian government.
According to the Canadian politician, the prospects for working in the defense market of Ukraine are currently being studied by a number of Canadian defense companies. “I know that there are other manufacturers who produce machine guns, light armored vehicles and other equipment, and study the potential of work with Ukrainian companies, Ukrainian Armed Forces,” Bezan said, recalling that for the time being there are no legislative restrictions in Canada on the supply of certain types of weapons to Ukraine.
As reported, in December 2017, the government of Canada amended the rules of arms exports, allowing the sale of small arms to Ukraine.

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CHINESE COMPANIES READY TO INVEST IN HIGH-SPEED RAILWAY LINES IN UKRAINE

Public joint-stock company Ukrzaliznytsia has announced that China Eximbank and Industrial and Commercial Bank of China are ready to invest in the development of Ukrainian railway infrastructure, increase of its quality and the speed, according to a posting on the website of Ukrzaliznytsia after the discussion of issues of developing high-speed railway traffic and the upgrade of Ukrzaliznytsia’s rolling stock jointly with representatives of Chinese banks and railway companies in Kyiv. Ukrzaliznytsia reported that representatives of Chinese railway companies expressed their desire to find a successful economic model for promoting high-speed traffic in Ukraine.
“China’s Eximbank and Industrial and Commercial Bank of China will be willing to invest in the development of Ukraine’s railway infrastructure, improving the quality of its use and speed,” Ukrzaliznytsia said. Welcoming colleagues from China, acting Board Chairman Yevhen Kravtsov said that their readiness for dialogue testifies to the seriousness of their intentions.
“The construction of a high-speed railway line was discussed at the level of the ministry, and today we see the construction of this line as a national project. I see a great potential in it, but Ukrzaliznytsia’s own funds are not sufficient for its implementation,” Kravtsov said.
He said that Kovel, Lviv and Mukachevo are promising points for connecting them with European narrow gauge track, and this is a realistic project for Ukrzaliznytsia in the coming years. Kravtsov also invited Chinese companies to participate in the tender for the electrification of the Dolynska-Mykolaiv-Kolosivka line.
The meeting was attended by representatives of Chinese companies: China Road And Bridge Corporation, China Railway Construction Corporation International Limited, China Railway Siyuan Survey and Design Group, China Railway Engineering Co., Ltd., China Railway International Group and China Railway Limited Group.

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GLOBAL SUPPLIER OF ENGINEERING SERVICES TETRA TECH AWARDED $85 MLN CONTRACT BY USAID TO SUPPORT ENERGY SECURITY IN UKRAINE

Tetra Tech, Inc. (NASDAQ: TTEK), a large global supplier of consulting and engineering services, has announced that that the U.S. Agency for International Development (USAID) awarded the company an $85 million contract to support enhanced energy security in Ukraine. “Tetra Tech will provide technical services to support private sector-led energy investments, increased renewable energy generation, and reliable and affordable energy for all Ukrainians,” the U.S. company said.
The company said that specific tasks include developing energy market models to create competitive energy market reforms, completing renewable energy pre-feasibility assessments, and developing creative financial incentive mechanisms to facilitate private sector investment in renewable energy.
Tetra Tech also will collaborate with local organizations in implementing the program to develop Ukraine’s institutional capacity, encourage ownership of results, and ensure sustainability of reforms. The company reminded that the five-year USAID/Ukraine Energy Security through Competitive Energy Markets Program aims to improve the legal and regulatory environment in the energy sector and increase the resilience of energy supplies in Ukraine.

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HUTCHISON PORTS REGISTERS SUBSIDIARY TO WORK IN ODESA

Hutchison Ports (the parent holding is CK Hutchison Holdings) has registered subsidiary Hutchison Ports Ukraine (Odesa) for work in Ukraine. According to the single state register of legal entities, individual entrepreneurs and public associations, the charter capital of Hutchison Ports Ukraine is UAH 700,000, of which UAH 7,000 were contributed by Hutchison Ports Netherlander, UAH 693,000 by Hutchison Ports Turkey.
The company will deal with the transport processing of goods (the core business), as well as provide auxiliary services for water transport and carry out other supporting activities in the field of transport. Yevhenia Chirikova has been appointed head of the company since July 18, 2018. The company was registered on July 18 of this year.
As reported, in December 2017 the Infrastructure Ministry commission approved the application of Hutchison Ports to rent the territory of Chornomorsk port (Odesa region) in the area of berths Nos. 1-6.

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UKRAINE INCREASES PRODUCTION OF PIPES FROM FERROUS METALS BY 8.6%

Ukraine in January-June 2018 increased production of pipes from ferrous metals by 8.6% compared to the same period in 2017, to 544,000 tonnes, including 96,000 tonnes in June. The Ukrtruboprom association told Interfax-Ukraine, the enterprises of the association for the first six months of the year raised pipe production by 20.8%, to 406,000 tonnes, in June by 71,000 tonnes.
Khartsyzsk Pipe Plant (Donetsk region), located in the temporarily uncontrolled areas, was idle in January-June 2018, while in January-June 2017 it produced 3,400 tonnes of goods. The output of pipes at Interpipe Nyzhniodniprovsky Pipe Rolling Plant increased by 22%, to 149,200 tonnes, Interpipe Novomoskovsk Pipe Plant by 8.5%, to 51,000 tonnes, Interpipe Niko Tube by 31.2%, to 182,600 tonnes. Dnipropetrovsk Pipe Plant reduced output of pipes by 14.9%, to 9,700 tonnes, Centravis rose the figure by 14.8%, to 10,100 tonnes of stainless pipes. Trubostal plant kept the output of pipes at the level of the previous year, at 1,500 tonnes of pipes.

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MAIN BUYERS OF UKRAINIAN FRUIT AND BERRY – POLAND, FRANCE, TURKEY, BELARUS, GERMANY, EXPORT EQUALS TO $100 MLN IN H1

Ukraine in the first half of 2018 exported fruit and berries worth $100 million, which is 59% more than in the same period of 2017. According to the Ukrsadprom association, the main products in the structure of exports remain walnuts worth $64 million, frozen berries for $23 million, apples and pears for $8 million. “Compared with last year, the volume of walnut exports increased from 12,000 to 19,000 tonnes, apples and pears from 6,000 to 24,000 tonnes, while the deliveries of frozen berries decreased slightly from 17,000 to 14,000 tonnes,” the report says.
The main buyers of Ukrainian gardening products, according to the association, are the countries of the European Union, which account for more than 60% of the value of exports.
“In the six months, the largest fruit supplies in monetary terms from Ukraine were made to Poland for $11.2 million, France for $9.9 million, Turkey for $9.3 million, Belarus for $8 million, Germany for $5.1 million, Greece for $5 million and the Netherlands for $4.7 million,” the report says.
As noted, Ukrainian apples are mostly delivered to Belarus (46% of the value of supplies), Moldova (21%), and Sweden (10%).

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