Business news from Ukraine

UKRAINIAN EXPORT TO EU GROW 12% IN 2014 – HEAD OF EU DELEGATION IN KYIV

KYIV. June 3(Interfax-Ukraine) – Ukrainian exports to the European Union went up 12% in 2014, “if one doesn’t take account of last December and January, which were poor months,” said the head of the EU Delegation to Ukraine, Jan Tombinski.

Though the EU-Ukraine free trade treaty takes effect on January 1, 2016, the Union has already lifted its import duties for Ukrainian goods.

“Despite all the economic difficulties we can see slow but important growth of exports from Ukraine to the EU,” Tombinski told Forbes Ukraine. He said exports to all other destinations had suffered “a major drop,” however.

NBU REGISTERS WEBMONEY.UA AS NATIONAL PAYMENT SYSTEM

KYIV. June 3 (Interfax-Ukraine) – The National Bank of Ukraine (NBU) has registered the WebMoney.UA payment system with the register of payment systems, reads a report issued by WebMoney.UA on the official Facebook page.

“WebMoney.UA has got the official status of the national payment system. The system was included in the relevant section of the register of NBU payment systems on May 21 this year,” reads the report.

The company also noted that because of its new official status, WebMoney.UA’s legal basis has been strengthened, accordingly legal guarantees for system users and the possibility of monitoring its work by the NBU has increased.

The company added that obtaining official status won’t affect tariffs, the order of funds withdrawal, and other procedures provided by WebMoney.UA.

As reported, in 2013 the then Income and Tax Ministry of Ukraine searched company and froze UAH 60 million held in its accounts. Afterwards, the central investigation department found that the rules of the system’s operations were not agreed with the NBU.

AVTOKRAZ INCEREASES OUTPUT BY 20% IN FIVE MONTHS

KYIV. June 2 (Interfax-Ukraine) – PJSC AvtoKrAZ (Kremenchuk, Poltava region), the only Ukrainian producer of heavy vehicles, in January-May 2015 increased production by 20% from the same period in 2014, to 452 units.

According to a press release issued by the company, truck sales for the period increased by 16%, to 392 units.

The share of exports of total shipments during this period was 37%, while the domestic market – 63%.

According to the press release, besides basic production – trucks, for five months of this year the company produced and shipped two semi-trailers and eight trailers, while over the same period last year these products were not made.

Truck production in May totaled 96 units, in particular the share of lorries was 95%, chassis – 3%, tractors – 2%.

Last month 96% of manufactured products were for the Ukrainian market, the rest – for exports.

The press service noted that AvtoKrAZ’s production plan for June significantly exceeds the figures of the previous months, however it did not specify the figures.

ELECTRONIC SYSTEM TO SUBMIT DOCUMENTS FOR CONSTRUCTION LICENSES TO BE INTRODUCED IN UKRAINE

KYIV. June 2 (Interfax-Ukraine) – There is a plan to introduce a system to submit applications and documents of companies that want to receive construction licenses in an electronic format on the website of the Electronic Administrative Services of the State Architectural and Construction Inspectorate of Ukraine.
The inspectorate reported on Friday that the draft cabinet resolution was drawn up by itself as the law on licensing types of economic activities will take effect from June 28, 2015, and the draft document has been agreed with the Economic Development and Trade Ministry, Finance Ministry and the State Regulatory Service of Ukraine.
“According to the bill, the construction license will be issued by the licensing agency in the electronic form via an entry on the decision of the licensing agency on the issue of the license to companies in the state register of companies and individuals-businessmen,” reads the report.
The inspectorate believes that the electronic form of submitting documents will reduce errors, which would reduce the number of construction licenses which are refused.

TENDER TO SELECT HEAD OF MEDICINAL SERVICE NOT TRANSPARENT – ASSOCIATION OF DRUG PRODUCERS

KYIV. June 2 (Interfax-Ukraine) – The Association of Drug Producers of Ukraine has said that the selection of a candidate for the post of chairman of the State Service for Medicinal Products and Drugs Control of Ukraine initiated by the Health Ministry of Ukraine was not transparent.
“The Association of Drug Producers of Ukraine has to say that top managers of Health Ministry had a biased approach to the selection of the candidate for the post of chairman of the State Service of Medicinal Products and Drugs Control being formed now,” the association said in a statement.
The association said that after Mykhailo Pasichnyk was dismissed from the post of the head of the State Service for Medicinal Products who headed the service in the past nine months, nongovernmental anticorruption organizations, particularly, the Anticorruption Action Center addressed Health Minister Alexander Kvitashvili in public demanding to hold a public tender to select candidates for the post of the head of the service, which is under the decision of the cabinet is merged with the State Service for Drugs Control.
“Reacting to the calls of the public, Health Ministry announced an open tender to select candidates, but unfortunately, the further process shows that the transparency principles declared by the top managers of the Health Ministry remained declarations in practice,” the association said.
The association said that the association, the European Business Association (EBA) and the American Chamber of Commerce, the total share of the Ukrainian pharmaceutical market is around 80%, presented an initiative to hold a public even on May 26, 2015, and representatives of the professional society, public figures and the health minister were invited to the event. Candidates for the post chairman of the State Service for Medicinal Products and Drugs Control had a chance to present their vision of settling urgent issues in the sector, own concepts of developing the pharmaceutical sector and hold consultations with business and experts.
“Unfortunately, Health Minister Alexander Kvitashvili decided not to join the wide discussion of urgent issues of the sector… The Health Ministry increased the pace of holding interviews with the candidates, paying no more than 10 minutes to each, and the ministry announced as of May 25, 2015 the ministry selected seven candidates and the additional interview for them was scheduled for May 26, 2015, which made impossible the holding of the broad discussion,” the association said.
“The further functioning of the relevant authorized agency is very important for the companies-members of the association and the association plans to apply to the cabinet and prime minister who appoint chairman of the State Service for Medicinal Products and Drugs Control under a proposal of the health minister under Ukrainian law, asking them to attract professional business society to consultations,” the association said.

DE-MONOPOLIZATION MEANS SETTING CLEAR PRINCIPLES, NOT FIGHTING CONCRETE OLIGARCHS – POROSHENKO

KYIV. June 2 (Interfax-Ukraine) – Ukrainian President Petro Poroshenko has said that the country’s economy should be de-monopolized and oligarchs should be barred from influencing power.
“Today we should de-monopolize the Ukrainian economy and ban oligarchs from influencing power via transparent and effective European mechanisms,” Poroshenko said on the “Year of Poroshenko” program to mark the first year of his tenure, which aired on Ukrainian television channels on Thursday evening.
“Would oligarchs quickly retreat? No, they protect themselves and they will protect themselves. First they tried to protect themselves with private armies, [which are] threatening to the Ukrainian authorities, but they got a rap on their knuckles and they will get it more,” he said.
He said oligarchs were previously convinced that they could buy any power they sought.
“What did I start doing in fighting against oligarchs? I am independent from any of them. I financed my election campaign myself and until now no kopeck of so-called “aid to the president and administration” has arrived and [such money] will not arrive,” Poroshenko said.
He added that he believes this is not a fight against what he called concrete oligarchs, but is rather the setting of clear principles.