Business news from Ukraine

Business news from Ukraine

CARGILL TO INVEST $100 MLN IN CONSTRUCTION OF GRAIN TERMINAL IN YUZHNY PORT

KYIV. Feb 24 (Interfax-Ukraine) – U.S. company Cargill and M.V. Cargo, operating in the Yuzhny seaport in Odesa region, have signed an investment agreement, on the construction of a grain terminal in the port.

The agreement was signed at the Ukrainian government’s building on Wednesday.

“Cargill decided to invest $100 million in the construction of a grain terminal in the Yuzhny port to make it one of the largest hubs in Ukraine,” Ukrainian Prime Minister Arseniy Yatseniuk has said.

As reported, in August 2015, the Ukrainian Sea Port Authority and MV Cargo LLC signed a trilateral memo on the joint implementation of investment project in Yuzhny port (Odesa region).

The document confirmed Cargill’s intention to acquire 51% in a transshipment terminal, which M.V. Cargo stevedoring company will build in Yuzhny seaport. Under the terms of the memorandum, before construction the Ukrainian Sea Ports Authority undertakes to establish water area on the way to the terminal with an appropriate level of dredging.

“The new terminal implies more port charges, more revenues to the local and national budgets, more high paid jobs for Ukrainians. In fact, after the implementation of the Cargill investment project Odesa region will get up to 350 new jobs. We want the similar projects of the world renowned companies to become a positive signal for businesses preparing to enter Ukraine,” Minister of Infrastructure Andriy Pyvovarsky said then.

The terminal will allow Cargill to handle grains, cereals and other goods. The capacity of the first phase of construction will amount to 5 million tonnes. The second phase would increase the capacity by another 2-4 million tonnes.

 

UKRAINE INCREASES STEEL OUTPUT BY 3.6% IN JAN, BEING TENTH IN WORLDSTEEL RANKING

KYIV. Feb 24 (Interfax-Ukraine) – Ukrainian metallurgical enterprises in January 2016 increased steel production by 3.6% compared to January 2015, to 1.938 million tonnes, remaining tenth in the ranking of the 66 world’s major manufacturers of these products, compiled by the World Steel Association (Worldsteel).

A fall in steel production in January was recorded in most of the top ten countries, except for Turkey and Ukraine.

The top ten steel makers in January are as follows: China (63.214 million tonnes, a drop of 7.8%), Japan (8.772 million tonnes, a drop of 2.8%), India (7.418 million tonnes, a drop of 1.2%), the United States (6.618 million tonnes, a drop of 8.8%), South Korea (5.667 million tonnes, a drop of 4.5%), Russia (5.554 million tonnes, a drop of 10.6%), Germany (3.605 million tonnes, a drop of 2%), Turkey (2.598 million tonnes, a rise of 0.8%), Brazil (2.451 million tonnes, a drop of 17.1%), and Ukraine (1.938 million tonnes, a rise of 3.6%).

In general, in January 2016, the 66 countries produced 127.724 million tonnes of steel, which is 7.1% lower than in January 2015.

As reported, in 2015, the top ten steel makers included China (803.83 million tonnes, a drop of 2.3%), Japan (105.152 million tonnes, a drop of 5%), India (89.582 million tonnes, an increase of 2.6%), the United States (78.916 million tonnes, a drop of 10.5%), Russia (71.114 million tonnes, a drop of 0.5%), South Korea (69.673 million tonnes, a drop of 2.6%), Germany (42.678 million tonnes, a drop of 0.6%), Brazil (33.245 million tonnes, a drop of 1.9%), Turkey (31.517 million tonnes, a drop of 7.4%), and Ukraine (22.933 million tonnes, a drop of 15.6%).

In 2015, the 66 countries produced 1.599 billion tonnes of steel, which is 2.9% lower than in 2014.

GOVERNMENTAL OFFICE FOR EU INTEGRATION PUBLISHES REPORT ON PROGRESS OF INTEGRATION IMPLEMENTATION FOR 2015

KYIV. Feb 24 (Interfax-Ukraine) – The governmental office for European integration has drawn up and published a report on the implementation of the Ukraine-EU Association agenda for 2015.

The report consists of several sections. The report is based on the data presented by power authorities that are involved in the implementation of the relevant tasks.

The report is intended to inform Ukrainian citizens, representatives of NGOs and international society, including EU institutions and EU member states on the progress of Ukraine in the implementation of the goals of the political association and economic integration into the EU.

The report covers the period from January 2015 to October 2015. It contains information on the attraction of international technical assistance to implement the tasks in the European integration area and gives examples of the use of the assistance.

The report has the results of the key measures aimed at introducing the Ukraine-EU Association agenda, including on the bills registered in the Ukrainian parliament.

The section contains information on the realization of top-priorities of the Association agenda in part of the Constitutional reform, election reform, the reform to prevent and fight corruption, deregulation, public procurement reform, tax reform, including VAT refunding, independent audit and reformation of the energy sector.

MAIN KINDS OF ANIMAL PRODUCTION BY REGIONS IN JANUARY – DECEMBER 2015

Source: State Statistics Services

Source: State Statistics Services

5

Source: State Statistics Services

6

Source: State Statistics Services

7

Source: State Statistics Services

Excluding the temporarily occupied territories of the Autonomous Republic of Crimea, the city of Sevastopol and part of the anti-terrorist operation zone.

Data can be corrected.

 

 

PIVDENNE BUREAU LOADS PIVDENMASH WITH ORDERS WORTH OVER UAH 430 MLN IN 2015

KYIV. Feb 23 (Interfax-Ukraine) – The volume of orders placed by Pivdenne Design Bureau in 2015 at Pivdenmash (both based in Dnipropetrovsk) is estimated at over UAH 430 million, managers of the bureau have told Interfax-Ukraine.

“As part of the joint plan on stabilization of the Pivdenmash’s economy in the conditions of the abruption of traditional cooperation with Russia, in 2015 and January-February 2016 Pivdenne Design Bureau placed orders at Pivdenmash and financed works worth almost UAH 480 million. Only from July as of today Pivdenmash was financed by the bureau by over UAH 220 million as part of the order to fulfill works of a good commercial potential,” Head of the working group for financial and economic issues at the bureau Oleksandr Kamyshov said.

He expressed optimism over the positive trends in loading of Pivdenmash in the near future.

Kamyshov pointed at the contract being prepared with U.S. Orbital ATK under the Antares missile carrier project and the order to supply engines for European Vega missile carrier that has been signed.

“Negotiations with potential customers to design and produce new liquid missile engines of various classes to place the orders at Pivdenmash are being held,” he said.

Kamyshov is optimistic about the prospects of resuming production of Zenit missile carrier under the Sea Launch project.

He said that it is planned that in 2016 Pivdenmash will be able to return to the four-day working week and in 2017 – the five-day working week.

In Q1 2016 it is planned to fully pay wage arrears being around UAH 95 million now, he said.

ANTONOV, SAUDI ARABIA’S TAQNIA SIGN AGREEMENT ON JOINT PRODUCTION OF AN-32 MULTIPURPOSE AIRCRAFT IN SAUDI ARABIA

KYIV. Feb 23 (Interfax-Ukraine) – State Enterprise Antonov (Kyiv) and Saudi Arabia’s Taqnia have signed an agreement of cooperation in organization of production of new An-32 multipurpose aircraft with a carrying capacity of 9.2 tonnes in Saudi Arabia, the press service of Antonov reported on Monday.

The signing ceremony was held at AFED−2016 being held on February 21 through February 28 in Riyadh in the presence of Mohammed Al−Ayish, Assistant Secretary of Defense of the Kingdom of Saudi Arabia, His Highness Prince Turki bin Saud Mohammed A.Al−Saud and other officials of Saudi Arabia.

This agreement sets certain plans as for delivery, organization of operation, after-sale support of Antonov aircraft of the An−132, An−148 families and An−178. It also concerns further joint works on organization of cooperative production of the An−132 in Saudi Arabia.

“It is very important event in our cooperation with partners from Saudi Arabia. Today we made the certain step in our relations based on the preliminary agreements. This document could be considered as the roadmap for our interaction by joint programmes,” Antonov President Mykhailo Hvozdov said.