Business news from Ukraine

Business news from Ukraine

THE UKRAINIAN LEAGUE OF INDUSTRIALISTS AND ENTREPRENEURS AND BUSINESSEUROPE AGREED ON COOPERATION

The active work of the Ukrainian League of Industrialists and Entrepreneurs (ULIE) and Businesseurope, the most influential business lobbyist in the EU, which brings together business associations in almost 40 European countries, has entailed the signing of a memorandum of cooperation between the organizations in Brussels on December 9. This was preceded by the numerous preliminary contacts, a number of meetings between ULIE President Anatoliy Kinakh and Businesseurope CEO Markus Beyrer in Kyiv and the Belgian capital.

It should be mentioned that in spring this year, to maintain a continuous dialogue, Businesseurope contributed to the opening and the successful start of work in Brussels of the mission of the ULIE and all Ukrainian businesses in the EU.

The partners agreed to exchange information, hold bilateral and multilateral meetings both in Ukraine and in the EU. The agreement also foresees the possibility of joint participation in international projects that promote partnership relations between entrepreneurs, developing the potential of organizations with the assistance of businesses.

“Today’s meeting was very fruitful and rich, we worked on all the aspects of interaction between the ULIE and Businesseurope within the main tasks of the Ukrainian business to enhance cooperation with European entrepreneurs, access to EU markets, the possibility of seeking mechanisms for participation in tenders of the union structures. I want to note that Businesseurope provides tremendous support for the ULIE in implementing the European integration aspirations of our country and the domestic business,” Anatoliy Kinakh said.

Deepening communications in various sectors of the economy, including banking, the IT sector, energy efficiency and energy saving, entrepreneurship were noted among the priority areas of cooperation between the two business organizations. Another important issue is the joint monitoring of the mutual obligations of Ukraine and the EU within the framework of the Association Agreement, the evaluation of effectiveness of the EU programs aimed at supporting Ukrainian businesses, including small and medium. Separate working groups of Businesseurope and the ULIE, the profile associations of Ukrainian businesses that are members of the Anti-Crisis Council of Non-Governmental Organizations will work on these and other issues.

Reference. Businesseurope is the largest business association of the European Union, representing 20 million small, medium and large companies united into 40 national associations of industrialists and entrepreneurs from 34 European countries. Among the core businesses of this structure are the organization of interaction between business circles in Europe in the development of economic and foreign policy of European countries and primarily the EU member states.

THE EUROPEAN PARLIAMENT SUPPORTED UKRAINE ON THE EVE OF LAUNCHING A FREE TRADE AREA

A joint conference of representatives of the Ukrainian civil society and members of the European Parliament entitled “The prospects and challenges of the deep and comprehensive free trade area between Ukraine and the EU, which comes into effect on January 1, 2016” has been held in Brussels. The Ukrainian delegation headed by President of the Ukrainian League of Industrialists and Entrepreneurs Anatoliy Kinakh included members of the parliament, leaders of the national business associations, industry unions, industrialists and businessmen.

Vice President of the European Parliament Ryszard Czarnecki, representatives of the interparliamentary delegation for Ukraine and the European Parliament Committee on International Trade expressed support for the European intentions of Ukrainians and stressed the need for the entry into force of the agreement on a free trade area (FTA) on January 1, 2016 without further delays and making changes.

“Together with our European colleagues, we support the need for the full opening of the FTA in certain terms as it’s a unique opportunity for domestic producers to become competitive in the European, global sense. We also offer a more efficient cooperation within the Eastern Partnership, strengthening work in preparation for a visa-free regime with the EU. However, we ourselves should understand that where there are benefits there are risks as well. It is necessary to work more effectively to adapt the domestic economy to the European standards, hold its modernization as soon as possible. Therefore attention to this issue on part of the Ukrainian government, in particular in the framework of comprehensive state programs, understanding, support and the willingness to share the experience on part of the European side are very important now,” Kinakh said.

The Europeans urged their Ukrainian colleagues – people’s deputies and the government of Ukraine – to accelerate the adoption of all legislative changes necessary for a successful implementation of the FTA, the development of entrepreneurship and attracting foreign direct investment. They agreed that the European Commission on its part should also pay more attention to the planning and implementation of programs funded by the EU and aimed at supporting the development of industry, small and medium business, the export potential of Ukraine.

It was noted at the conference that the high level of trust and partnership does not remove from the agenda the implementation by Ukrainians of their own “home” task: overcoming corruption, creating an attractive business and investment climate, strengthening the internal market.

The European Parliament members approved the active work of the civil society in Ukraine aimed at expanding a dialogue with the authorities, highly appreciated the anti-crisis program of joint actions between businesses and the government, presented by the delegation the Ukrainian League of Industrialists and Entrepreneurs, which was prepared by hundreds of industrialists, entrepreneurs and scientists who are members of the Anti-Crisis Council of Non-Governmental Organizations.

The issue of joint work on the successful launch of a free trade area with the European Union is now at the top of priorities in the country’s only comprehensive plan of overcoming the socio-economic crisis. The document proposes a number of practical solutions, such as the implementation of the state program on adapting the Ukrainian economy to the conditions of free trade with the EU, the immediate setting up of a certification center in Ukraine, using the experience of the Baltic States and Eastern Europe, the implementation of government programs to support small and medium businesses, industry and so on.

Following the conference, a joint communiqué was made, in which the parties reaffirmed their desire for cooperation, in particular, a more structured and regular interaction of public organizations with the governing authorities of the EU. Participants in the conference approved the creation of the National Forum “Transformation in Ukraine,” aimed at building a strong and constructive dialogue between all social groups and governmental structures of Ukraine and the EU. The Ukrainian side expressed conviction that the support of the European Parliament would encourage European industrial, trade and sectoral associations to more actively work with the Ukrainian colleagues, invest in the economy of our country.

DUNA-VESTA TO OPEN TWO OWN STORES IN POLAND IN 2016

KYIV. Dec 14 (Interfax-Ukraine) – Duna-Vesta (Chervonohrad, Lviv region), one of the largest Ukrainian manufacturers of hosiery, plans in 2016 to open two own stores in Poland, company sales director Yuriy Odemchuk has said.

“We plan in 2016 to open two own shops in Poland. I think we will succeed,” he said during the third Retail & Development Business Summit in Kyiv.

According to Odemchuk, in 2013 and 2014 the company tried to enter the Polish market of hosiery but failed.

“Today we are developing a franchise network in Ukraine, holding consultations with Polish and German companies which sell franchise in Europe, we already have some agreements but have no stores,” he added.

Odemchuk noted that the company started work with the EU states only in 2015 after the opening of access to the European market for Ukrainian producers, he added.

“In 2015 we changed the strategy of entering the European market and started retail sales. Today we have seven contracts with large retailers, such as Auchan and other companies,” he added.

Duna-Vesta as a successor of the eponymous public joint-stock company was founded in 2002 on the basis of Duna and Chervonohrad hosiery factory, one of the largest manufacturers of such products in Ukraine, founded in 1965.

CABINET PROPOSES PROVIDING UAH 300 MLN TO CHEAPEN CREDITS IN AGRICULTURE IN 2016, UAH 50 MLN TO SUPPORT CATTLE BREEDING

KYIV. Dec 14 (Interfax-Ukraine) – The draft 2016 national budget foresees support of farmers in the amount of UAH 350 million, including UAH 300 million for the program on cheapening credits in agriculture and UAH 50 million to support cattle breeding.

The information is outlined in the draft 2016 national budget registered by the government in the parliament on September 14, 2015.

The total sum earmarked to the Agricultural Policy and Food Ministry for 2016 is UAH 2.008 billion. UAH 656.937 million will be sent for the operation of the ministry’s staff, UAH 84.794 million for general management in agriculture, UAH 86.763 million for researches and training of scientific staff, UAH 14.316 million for training of specialists in the sector and UAH 13.04 million for organization and regulation of operation of institutions in the agricultural system and provision for the operation of the Agrarian Fund.

Some UAH 546.196 million will be sent to finance operation of the State Veterinary and Biosecurity Service, UAH 134.745 million for the State Agency of Fishing Industry, UAH 129.921 million for the State Agency of Forest Resources, UAH 11.978 million for the State Inspectorate of Agriculture and UAH 528.368 million for the National Academy of Agrarian Sciences of Ukraine.

 

ARTERIUM DESIGNING SOME MEDICINES FOR EMERGENCY, MILITARY MEDICINE

KYIV. Dec 14 (Interfax-Ukraine) – The Arterium Corporation is designing some promising medicines that could be used in emergency and military medicine, the public relations service of the corporation has told Interfax-Ukraine.

The corporation cannot say when the medicines will start circulating on the market, as the period from designing medicines to their appearance on the market is around three or four years.

The corporation said that Tramix hemostatic drug used in surgeries and gynecology was registered in December 2014. Since the moment of its appearance on the market around 9,000 packages have been shipped.

“Ukrainian medicines are able to satisfy the needs in drugs used in the conflict zone. The corporation’s product portfolio has 148 drugs, including modern antibiotics of all key groups and generations and artificial plasma extenders. The medicines were sent military hospitals by way of a grant many times in 2014 and 2015,” the corporation said.

Arterium Corporation includes the Kyivmedpreparat manufacturer of antibiotics and Galychpharm, a leader in the production of plant-based drugs. One of the key owners of the corporation is Finance and Credit financial group (Kyiv), controlled by Kostiantyn Zhevaho.

DCFTA WITH EU WILL COMPENSATE LOSSES FROM CLOSURE OF RUSSIAN MARKET TO UKRAINIAN PRODUCERS IN SEVERAL YEARS – POROSHENKO

KYIV. Dec 14 (Interfax-Ukraine) – Ukrainian President Petro Poroshenko is confident that Ukraine will manage to compensate the losses from the closure of the Russian market for Ukrainian producers in several years with the help of the deep and comprehensive free trade area (DCFTA) between Ukraine and the EU.

“We’re introducing the deep and comprehensive free trade area, we will introduce it less than in one month, from January 1, despite the resistance and pressure from Kreml… I have no doubt: in several years the agreement will compensate all the losses our national economy, the national budget, social area of the country and the purse of each Ukrainian faced due to the aggressive closure of its market for the Ukrainian market by Russia – we will overcome that,” Poroshenko said on Saturday, speaking at the forum of members of local councils from Petro Poroshenko Bloc’s Solidarity.

The president hopes that the European Commission will make a positive decision on the establishment of the visa-free regime for Ukrainian citizens shortly.

Poroshenko said that the key value for his party was European and Euro-Atlantic choice.

He said that further steps on decentralization of power are required in the country.

The president said that the fate of peace in eastern Ukraine depends on the amendments to the Constitution in part of decentralization.

“It happened that now the issue of the peace in Donbas is tightly linked to the decentralization issue. The moment of final voting for amendments to the Constitution is gradually approaching, and I have no doubt that it would be not easy to get this decision,” Poroshenko said.

The president said that the main tasks for the next year would be efficient struggle against corruption and achievement of sustainable peace in Donbas.

The head of state informed that he had found out about the absence of funds for the anti-corruption prosecution in the state budget 2016.

“I think it is a misunderstanding and a technical error, which will be corrected immediately,” Poroshenko said.