Business news from Ukraine

Business news from Ukraine

WEXLER STARTS SELLING BELARUSIAN BITUMEN IN UKRAINE

Sunrise Logistic LLC, part of Wexler Group, has launched the sale of road bitumen made in Belarus. The group hopes that monthly sales in the near term will be from 10,000 tonnes to 12,000 tonnes, the press service of Wexler has reported.
“The strategic goal is at least 20% of the market. Currently, long-term contracts are signed with Belarusian manufacturers, but the group is already working on supplies from Poland and the Russian Federation” the press service said.
The company also plans to enter the fuel oil market. In particular, Wexler is currently in the process of signing import contracts.
“At any time, as soon as generating facilities have a need to purchase fuel oil, we will immediately provide it. If there is a need for an urgent delivery of batches of fuel oil, we are ready to consider, among other things, the option of sea deliveries,” Sunrise Logistics Director General Oleh Yaskivets said.
As part of the development of the segment of heavy oil products, an own fleet of bitumen carriers has been created.
“Our goal is to reach the final consumer. In the future, as part of this task, we are thinking about our own production of road mixes,” Yaskivets said.
With the growth of the bitumen market, Wexler Group is exploring the possibility of starting a business of its own oil refining. This task is considered a priority for 2019.
Wexler Group is one of the largest suppliers of light petroleum products in Ukraine.

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39 NON-GOVERNMENTAL ORGANIZATIONS TO CHALLENGE FORMATION OF SOCIAL POLICY MINISTRY’S PUBLIC COUNCIL IN COURT

Thirty-nine non-governmental organizations are going to take a legal action to declare unlawful a constituent assembly held on Monday, April 22, to form the public council under Ukraine’s Social Policy Ministry.
Head of NGO All-Ukrainian Platform of Donbass, head of the public council under the Ministry of Temporary Occupied Territories and Internally Displaced Persons of Ukraine Hennadiy Borisichev announced this in a comment to Interfax-Ukraine.
According to him, the initiative group on the formation of the public council under the Social Policy Ministry has “committed gross violations of the law, and the meeting itself [on the formation of the public council] was held behind closed doors.”
“The activity of the initiative group was not transparent, with undisguised abuse of authority. Thirty-nine representatives of NGOs were not allowed to participate in the constituent assembly. This is an anti-record for the entire existence of the institution of public councils in our country,” he said.
According to Borisichev, human rights activists and journalists who arrived at the meeting were also not allowed to take part. Representatives of NGOs had a scuffle with the guards.
Members of anti-corruption NGOs were also not let in for the meeting, he said.
“The NGOs are now preparing documents for the court to recognize the constituent assembly on the formation of the public council under the Ministry of Social Policy as illegal,” he said.

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INKERMAN WINE MAKER STARTS SUPPLIES TO CHINA

Inkerman Ukraine LLC plans to increase wine production to 7-8 million bottles per year in 2019 compared to 7 million bottles in 2018, director general of the company Hanna Horkun has said.
According to her, the company intends to open several export markets in 2019, in particular, China, Japan, the Baltic countries, Nigeria, and Poland.
“In the Ukrainian market, we rank third following Villa Krim and Koblevo, and our export share is still scanty. In 2018, we had a goal to stand on our feet in our domestic market. At the same time, we have been exporting goods to Canada for a long time, exported sparkling wine to Switzerland,” the expert said.
She noted that the first shipment to China will be in June 2019.
At the same time, this year Inkerman plans to increase its share in the domestic market by redesigning the classic collection, penetrating the regions and launching the new Prima Maria line.

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OVOSTAR UNION SEES 2% FALL IN EGG SALES

Ovostar Union, one of the leading egg and egg products producer in Ukraine, in January-March 2019 cut shell eggs sales by 2% year-over-year, to 335 million.
According to a company report on the Warsaw Stock Exchange (WSE) last week, export sales of shell eggs grew by 35% year-over-year and reached 186 million, which represents 56% of total number of eggs sold in Q1 2019 (40% in Q1 2018).
Average price of eggs in Q1 2019 decreased 8% year-over-year in U.S. dollar terms, to $0.069 per egg.
The volume of eggs produced in Q1 2019 was 384 million, a slight decline year-over-year. The volume of eggs processed in Q1 2019 grew by 3% year-over-year and reached 142 million.
The volume of dry egg products sold amounted to 532 tonnes, out of which 373 tonnes, or 70%, were exported.
The volume of liquid egg products sold was 3,498 tonnes, out of which export sales equaled 1,636 tonnes or 47%.
Average price of dry egg products decreased year-over-year by 8% to $4.63 per kg; average price of liquid egg products fell by 2%, to $1.46 per kg.
As of March 31, 2019 the company’s total flock equaled 7.86 million hens, including 6.67 laying hens.
“In the first quarter of 2019 unfavorable price dynamics was observed on the local market. However, the company managed to balance the situation by increasing its exports. In general, we are satisfied with the results achieved in the reporting period,” Ovostar CEO Borys Bielikov said.

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