Business news from Ukraine

ISD CONTINUES REALIZING LARGE INVESTMENT PROJECTS AT DZERZHYNSKY STEEL WORKS

KYIV. June 12 (Interfax-Ukraine) – Dzerzhynsky Dniprovsky Steel Works (Dzerzhynsk, Dnipropetrovsk region), part of Industrial Union of Donbas (ISD, Donetsk), continues realizing large investment projects, despite difficulties with financing and a lack of working capital.

The company said in a report, referring to Director General Maksym Zavhorodniy, the pulverized coal injection (PCI) facility is to be tested with the participation of specialists from Luxemburg’s Paul Wurth.

“The issue of automation is with the 400/200 block, as well as the reaching of projected parameters of production per hour. It will take more than one day to resolve the issue, and we will do this using our specialists and involving Danieli’s specialists,” the top manager said.

The slitting line is to be tested in late July, he said.

“As for the reconstruction of the sinter plant: today we have basic engineering, the feasibility study stage, then we are to send the advance payment of EUR 12 million for main technological equipment and detailed engineering. These are large funds for us. We will meet with representatives of Primetals Technologies at the METEC exhibition in Germany. We’ll try to agree how we will buy the equipment,” he said.

Dzerzhynsky Dniprovsky Steel Works produces cast iron, steel, steel roll and FMSGs.

UKRAINIAN METAL PLANTS PLAN TO BOOST CAST IRON OUTPUT BY 24% IN JULY COMPARED TO JUNE

DNIPROPETROVSK. June 12 (Interfax-Ukraine) – Ukrainian metal companies in July 2015 plan to increase steel smelting by 4.5% compared to expected production in June, to 2.3 million tonnes and steel roll production will grow by 5.6%, to 1.9 million tonnes.

According to the materials of the Metallurgprom association (Dnipropetrovsk), the plan for July foresees a rise of 23.5% in cast iron production, to 2.1 million tonnes.

In January-May 2015 cast iron output fell by 30% year-over-year, to 8.363 million tonnes, steel production was down by 28%, to 9.251 million tonnes and steel roll output – by 30%, to 8.005 million tonnes.

In April, 1.927 million tonnes of cast iron was made, as well as 2.177 million tonnes of steel and 1.836 million tonnes of steel roll.

“Since August 2014 this is the largest figures,” Metallurgprom Director General Oleksandr Zrazhevsky said.

Ukrainian iron ore supplies in May grew by 320,000 tonnes compared to April 2015, to 2.3 million tonnes. In January-May 2015, 9.8 million tonnes of Ukrainian-made iron ore was supplied to metal companies.

Imported iron ore suppliers (from Russia) totaled 240,000 tonnes in May, a rise by 200,000 tonnes compared to April. In January-May, imported supplies reached 530,000 tonnes.

Exported iron ore totaled around 4.1 million tonnes in May and 19 million tonnes in January-May 2015.

A total of 283,000 tonnes of scrap metal was supplied to metal companies in May and 1.186 million tonnes in January-May.

INELECTRONIC ADMINISTRATIVE SERVICE PROJECT USING BANK ID TO START IN LVIV

KYIV. June 12 (Interfax-Ukraine) – A project to provide electronic administrative services using bank identification will soon be launched in Lviv, Head of IT Division of the largest bank in Ukraine – PrivatBank (Dnipropetrovsk) and activist of non-profit-making organizations ICT Competence Center Dmytro Dubilet wrote on his Facebook page.

“Several months ago we presented BankID, and next Monday Lviv will be the first city in Ukraine which launches administrative services using the tool. Let me remind you that BankID is a way to indentify a person via online banking as an alternative to the electronic and digital signature,” Dubilet said.

He also said the electronic services could be launched in other cities of Ukraine in summer.

Previously, several IT specialists founded ICT Competence Center to support the development of government IT solutions and e-government in Ukraine.

SPF TO SELL 5% OF ODESSA PORT-SIDE PLANT IN JULY, 25% DNIPROENERGO, KYIVENERGO, ZAKHIDENERGO IN AUGUST, CONTROLLING STAKES IN AUTUMN

KYIV. June 11 (Interfax-Ukraine) – The State Property Fund of Ukraine (SPF) plans to put 5% each in Odesa Port-Side Plant, Odesa and Kherson combined heat and power plants up for sale in July on the stock exchanges, reads a fund order of June 8 on the approval of the privatization schedule for 2015.

According to the document published in the Vidomosti Pryvatyzatsii newspaper on Thursday, 25% each in DTEK Dniprooblenergo, DTEK Dniproenergo, Kyivenergo and DTEK Zakhidenergo will be put up for sale on exchanges in August.

In September, a 5% stake in Zaporizhiaoblenergo, 25% each in Odesaoblenergo and Texterno in November, 25% each in Donbasenergo and DTEK Donetskoblenergo, 46% in Cherkasyoblenergo and 16.537% in Zasiadko Mine will be put up for sale.

As for auctions where controlling stakes will be put up for sale, in September it is planned to put 70% in Mykolaivoblenergo, 70.009% in Khmelnytskoblenergo, 50.999% in Ternopiloblenergo and 50% in Ukrnaftoproduct up for sale.

In October an auction to sell 65.001% in Kharkivoblenergo, in November 94.99% in Odesa combined heat and power plant, 94.833% in Kherson combined heat and power plant and 94.567% in Odesa Port-Side Plant will be held.

In December, it is planned to hold an auction to sell 55.248% in Zaporizhiaoblenergo and 94.995% in Sumykhimprom.

The fund said that auctions to sell energy facilities and Odesa Port-Side Plant will held if the Cabinet of Ministers decides to sell them.

EU EXPERTS APPROVE GRAIN SEED CONTROL, CERTIFICATION SYSTEM IN UKRAINE – OFFICIAL

KYIV. June 11 (Interfax-Ukraine) – Representatives of the General Directorate of the European Commission examined the Ukrainian grain seed control and certification system from May 26 to June 4, 2015 and its compliance with the requirements of the European Union.

“In general, EU experts have approved the official grain seed control and certification system and their compliance with the requirements of the EU. After receiving positive conclusions of the European Commission Ukraine will have good opportunities for entering the global seed market,” Deputy Agricultural Policy and Food Minister for European Integration Vladyslava Rutytska told Interfax-Ukraine.

She said that the audit was conducted under the request of Ukraine which was first made in 2011.

She said that representatives of the European Commission visited farms in Kyiv, Cherkasy and Khmelnytsky regions.

AGENCY FOR MODERNIZATION OF UKRAINE TO DRAW UP PROGRAM BY AUTUMN

KYIV. June 11 (Interfax-Ukraine) – Experts from the Agency for the Modernization of Ukraine plan to draw up a program on the country’s modernization by September, a representative of the agency, Austrian politician and former Foreign Minister and Finance Minister of Austria Michael Spindelegger has said.

“We’ve started work in late March. We hope that by the middle or end of September the program on Ukraine’s modernization will be ready and we will be able to present it to the public,” he said during a press conference at Interfax-Ukraine on Wednesday.

He said that firstly, the program will be presented to the agency’s partners – the Federation of Employers of Ukraine and the Federation of Trade Unions, and then it will be presented to the public and then to the Ukrainian parliament.

“Our plans after September are to create the Fund for the Modernization of Ukraine. The fund would invest in small and medium-sized companies and infrastructure development,” he said.

When asked about the sources of financing for the agency, he said that the agency signed a contribution agreement with the financial group of Dmytro Firtash. However, the agreement states that the agency acts independently, he said.

“No director or section head feels pressure,” he said.

Spindelegger said the agency is currently expanding the platform of partners who will provide financial aid to the institution.

He said that Agency for the Modernization of Ukraine was founded in March 2015. It is based in Vienna (Austria).