Business news from Ukraine

BIOFARMA PLANS TO ENTER POLISH, TURKISH, CHINESE MARKETS – COMPANY OFFICIAL

KYIV. June 16 (Interfax-Ukraine) – Private joint-stock company BIOFARMA (Kyiv) plans to enter the Polish, Turkish and Chinese markets and continue its development in the Mongolian and Vietnamese markets, Head of the supervisory board Kostiantyn Yefymenko has told reporters.

“New markets we’re developing now are Mongolia and Vietnam. The newest that we will develop are Poland, Turkey and China,” he said at a ribbon-cutting ceremony devoted to the launch of the first phase of the new biopharmaceutical research and production facility in Kyiv region on Tuesday.

Yefymenko said that BIOFARMA plans to bring two medicines to the Chinese market – Albumin and 10% liquid intravenous immunoglobulinum.

“We’ve handed [over] our dossiers. They were translated to register [our] own products in China,” he said.

Yefymenko found it difficult to say when BIOFARMA’s medicines would enter the Chinese market.

“It’s hard to say when this would happen in China. I can say when it will happen in the CIS states, as we understand the way of thinking there, but it’s hard to say about China,” he said.

He also said that by late 2015 BIOFARMA plans to export blood products worth $7 million and he expressed his confidence that the company would not face problems in receiving permits to export anymore, happened last year.

“We started exporting blood products only in May, as they did not give us permits. After complicated negotiations we’ve managed to avoid paying fines of $1.5 million for disrupted supplies. We’ve managed to agree with partners, but we could have lost a good contract, markets and reputation. When the issue reached the boiling point we gave a press conference. High-ranking authorities read the materials of the press conference and the issue was settled. BIOFARMA received this permit for 15 years, and only in 2015 we had problems. We hope that we would not face these problems in the future,” he said.

“Ukraine has the most powerful pharmaceutical industry among the former Soviet countries. This should be developed. This cannot be lost,” Yefymenko said.

As reported, on Tuesday BIOFARMA launched the first stage of the new biopharmaceutical research and production facility. Investment in the project totaled over $40 million. BIOFARMA plans to invest $30 million in the construction of a fractionator for blood product production. The second stage could boost blood production capacity by 90 tonnes a year today.

PHARMACY SALES 15% UP IN VALUE TERMS, 19% – IN PACKAGES IN JAN-MAY OF 2015

KYIV. June 18 (Interfax-Ukraine) – Pharmacy sales in Ukraine in January-May 2015 in U.S. dollar terms grew by 15% compared to the same period in 2014, to UAH 3.53 billion, in packages they declined by 19%, to 99.336 million packages, Business Credit has told Interfax-Ukraine.

According to the company, pharmacy sales of medicines in January-May this year in dollar terms rose by 13.4%, to UAH 2.868 billion, in packages they fell by 26%, to 60.725 million packages.

Pharmacy cosmetic sales grew by 48%, to UAH 81.515 million and in packages they fell by 135, to 2.018 million packages.

The average price of goods in retail pharmacies in the first five months of 2015 was UAH 34.91, the average price of a package of medicine was UAH 45.87 and cosmetics – UAH 35.69.

The experts said that prices of medicine grew slowly than the prices of consumer goods. In April-May the prices of medicines did not grow.

AEROC TO INVEST AROUND EUR 3.6 MLN IN PRODUCTION DEVELOPMENT UNTIL 2016 – DIRECTOR

KYIV. June 18 (Interfax-Ukraine) – Aeroc LLC (Obukhiv, Kyiv region), part of Russia’s LSR Group, plans to invest around EUR 2.1 million in one steam chamber and a boiler in 2015 at an aerated concrete plant in Obukhiv, and around EUR 450,000 in a new steam chamber at a plant in Berezan in Kyiv region in 2016, Aeroc LLC Director General Dmytro Rudchenko said at the sixth international conference “Energy, Economic and Ecological Advantages of Construction Using Aerated Concrete,” which was held in Kyiv on Wednesday.

“Investment in the modernization of the Obukhiv plant today amounts to some EUR 1.5 million, and this is only to increase its capacity [the installation of one more steam chamber], and we also invest EUR 1.6 million in the construction of [our] own boiler in Obukhiv,” he told reporters.

Rudchenko said the company decided to build the boiler which will be launched in late 2015 due to the necessity of cutting expenses on steam, which the plant has to buy from other companies.

He said that in 2015 Aeroc plans to install a new steam chamber at its plant in Berezan.

“Investment is smaller, as there is no need in accelerating the technological cycle, equipment is ready, and the only thing is to do – to install the steam press. Investment will total around EUR 450,000,” he said.

He said that by June 2015 Aeroc increased its production capacity to over 1 million cubic meters a year from around 450,000 cubic meters in 2011.

Aeroc LLC was founded in 2006. It has two plants in Kyiv region: a plant in Berezan which opened in 2008 and a plant in Obukhiv, the acquisition of which was completed in 2008.

LSR Group was founded in 1993. Its core business is the production of development and construction materials as well as providing construction services.

RADA RATIFIES AIR COMMUNICATION AGREEMENT WITH U.K.

KYIV. June 17 (Interfax-Ukraine) – The Verkhovna Rada on Wednesday ratified an agreement on air communication with the United Kingdom.

A total of 282 MPs voted for respective bill No. 0029.

The agreement was signed in Kyiv on November 21, 2011. It will become effective after the receipt of the last written notification by the signatories about their introduction of domestic procedures needed for the agreement to take effect.

After ratification, the agreement will be conducive to the creation and operation of a reliable international legislative mechanism to support and boost ties between the two countries, according to an explanatory note to the agreement.

It will also facilitate the further development of cooperation in aviation transportation, establishment of business contacts and geographic expansion of Ukrainian flights.

UKRAINIAN GOVT CREATES COORDINATION COUNCIL FOR TOURISM DEVELOPMENT

KYIV. June 17 (Interfax-Ukraine) – The Ukrainian government has created a Coordination Council for Tourism Development as a temporary ad hoc conciliatory agency.

Representatives of relevant ministries and agencies, as well as tourism-related public unions, trade unions and businesses have been included in the council.

Corresponding Cabinet of Ministers decree No. 388 dated May 14 on the creation and approval of members of the council has been posted on government’s website.

According to the provision on the council, its main tasks are to facilitate the coordination of executive agencies’ actions to realize state policy on tourism and resorts, as well as to prepare corresponding suggestions on policy formation.

In addition, its tasks include improving Ukraine’s current regulatory framework and facilitating the development and execution of international programs and projects, taking into account global experience, as well as initiating international tourism-related agreements.

According to the decree, the council will be headed by Deputy Prime Minister Culture Minister of Ukraine, Economic Development and Trade Minister will be First Deputy Head of the council, and Infrastructure Minister – Deputy Head of the council.

Other council members may include Head of the All-Ukrainian Union of Tourist Operators, Director of Hamalia PrJSC, representatives of the American Chamber of Commerce in Ukraine and others.

UKRAINE SEES RECORD HIGH GRAIN EXPORTS AT 33.5 MLN TONNES IN 2014/2015 MY – AGRICULTURE MINISTER

KYIV. June 17 (Interfax-Ukraine) – Ukraine has exported 33.494 million tonnes of grain since the beginning of the current 2014/2015 marketing year (MY), which is higher than last MY’s historic record of 32.3 million tonnes, according to Ukrainian Agrarian Policy Minister Oleksiy Pavlenko.

“Over this marketing year, grain exports have reached a record high of 33.494 million tonnes. Ending stocks were almost 3.5 million tonnes bigger than in the previous year,” he said at a government meeting on Wednesday.

Concerns that the sowing campaign would fail were unfounded, he added.

“The sowing campaign is over today, the plan has been met by 100%,” he said.

Pavlenko said the total area sown with crops corresponds to last year’s area, which is 26.5 million hectares, including 14.8 million hectares sown with grain crops alone. Of them, 7.9 million hectares were sown with winter crops and 6.9 million hectares with spring crops.