Business news from Ukraine

Business news from Ukraine

SANOFI IN UKRAINE COULD RETURN TO REALIZATION OF PRODUCTION LOCALIZATION INVESTMENT PROJECTS IN 2016

KYIV. Nov 16 (Interfax-Ukraine) – Sanofi international pharmaceutical company could return to the realization of production localization investment projects in 2016, Sanofi CEO for Ukraine and Belarus Jean-Paul Scheuer has said.

“Ukraine will become more attractive for investors. In particular, we started investing in the country and the production of four our medicines was localized. Despite the fact that in the past 18 months we slightly suspended the projects, we plan to return to them. We hope that in 2016,” he said in an interview with Interfax-Ukraine.

Sanofi focuses on solutions for diabetes, human vaccines, innovative drugs, consumer health care, emerging markets, animal health, and is also engaged in the development and implementation of advanced technologies for the treatment of life-threatening diseases.

 

PIVDENNE DESIGN BUREAU, PIVDENMASH AGREE TO PREPARE FOR GRADUAL CREATION OF UNTIED STRUCTURE

KYIV. Nov 16 (Interfax-Ukraine) – Pivdenne design bureau and the Makarov Pivdenny Machine Building Plant (Pivdenmash, both based in Dnipropetrovsk) have started their preparations for the creation of a united structure.

Sources in the rocket and space sector told Interfax-Ukraine that the unification plans are stipulated in the agreement of cooperation on the stable development of Pivdenne design bureau and Pivdenmash.

According to the agreement, it is aimed at overcoming the crisis at Pivdenmash via the gradual unification of the enterprises.

Pivdenne design bureau is actively operating on the international market and has a large portfolio of current and promising contracts, which could additionally load Pivdenmash.

The measures included in the agreement are the joint design of a program on optimization and top-priority modernization of the production and experimental base of Pivdenmash, taking into account the existing infrastructure of Pivdenne design bureau.

The sides agreed to cooperate on the creation of pilot production at Pivdenne design bureau and realize pilot programs for new samples of rockets and spacecraft using Pivdenmash’s facilities. The sides will agree to the transfer of Pivdenmash’s facilities that are not on the balance sheet of Pivdenne design bureau or under the leasing conditions.

 

ANTONOV SIGNS MEMOS ON PROMOTIONS OF PRODUCTS TO SAUDI ARABIAN MARKET WITH TAQNIA AERONAUTICS

KYIV. Nov 16 (Interfax-Ukraine) – Antonov State Enterprise and Taqnia Aeronautics on November 12, 2015 signed two memorandums of understanding at the Dubai Airshow 2015 to promote four An−148−100EM medical aircraft, four ISR (intelligence search and rescue) and two Jamming versions of the An−132 aircraft in the Saudi Arabian market.

“Cooperation with Saudi Arabia is very important for us. Our experience, which we are gaining together on fitting the AN−132 with Western engines and avionics, should be continued on other modern Antonov aircraft including the An−148, An−158 and An−178 aircraft,” Antonov said in a press release, citing its head Mykhailo Hvozdev.

Taqnia Aeronautics President Ali Mohammed Al-Ghamdi said that there is demand for An−132, An−148−100EM and An−178 aircraft in Saudi Arabia.

“Promotion of new versions of the An−132 will assist us in study of the potential customers’ requirements for ISR and Jamming aircraft,” he said.

“Also we are starting work with Antonov Company on the composite and metallic materials to develop technical cooperation,” he said.

The company said that the memos were signed in the presence of Prince Turki bin Saud Mohammed Al−Saud and the president of KACST (King Abdulaziz City for Science and Technology).

During the exhibition, Antonov’s stand was visited by other official representatives of Saudi Arabia, including Saudi Air Force, Ministry of Defense, Ministry of National Guard, and Medevac delegations.

The prince drew attention to the advanced program of development and construction of new light transport An−132 aircraft which is being utilized jointly by Antonov, KACST and Taqnia Aeronautics company with participation of aerospace industry leaders.

GPA PARTICIPANTS UNANIMOUSLY SUPPORT UKRAINE’S APPLICATION TO JOIN THEM – OFFICIAL

KYIV. Nov 16 (Interfax-Ukraine) – The participants of the Agreement on Government Procurement (GPA) unanimously supported Ukraine’s application to join the agreement, Deputy Economic Development and Trade Minister of Ukraine Maksym Nefyodov wrote on his Facebook page.

“This is the diplomatic victory of Ukraine – to join the agreement under the WTO [World Trade Organization], which opens mutual access to the public procurement markets,” he wrote.

He said that joining GPA is beneficial for Ukraine, as the Ukrainian market has been opened for foreign companies for many years, while the markets of other countries were closed for Ukrainian companies. He said that Ukraine does not require changing legislation to receive access to tenders abroad.

BUSINESS COMMUNITY AND AUTHORITIES DEVELOP BAILOUT PLAN FOR UKRAINIAN ECONOMY

Organizations of industrialists, entrepreneurs, employers of Ukraine, scientific institutions, civil society activists, who have formed the Anti-Crisis Council of NGOs, are ready to introduce their fundamental document ‒ the anti-crisis program of joint actions of the government and businesses ‒ to the European community. It will be presented to participants in an international conference entitled “The European Parliament is the Civil Society of Ukraine” in Brussels in early December.

A year ago, business organizations and associations, having realized the depth of the social crisis in the country, decided to combine their efforts to implement effective anti-crisis measures for industrial development and create a favorable business and investment climate. The said program covers all areas of social and economic development in the country, its cooperation with international partners, demands of society, existing resources and competitive advantages. The program is a public document and is being constantly updated simultaneously with developments of the situation and in line with new proposals that come from the business community.

The entrepreneurial community is convinced that the most important task today is to pursue a modern industrial policy. Nowadays Ukraine has seen signs of de-industrialization, when large factories and even entire industries, such as the titan of the aerospace industry, Pivdenmash, and transport engineering enterprises, are on the verge of closure. For example, the State Rail Transport Administration, also known as Ukrzaliznytsia, is facing the following problem: 92% of its locomotives and 83% of its passenger cars are old. At the same time, the domestic transport engineering sector has posted a decline in production at about 80%. Isn’t that time to launch large-scale state-supported programs for the modernization of railway rolling stock, support unique, skilled personnel, strengthen the positions of the domestic market and to gradually enter new markets?

The anti-crisis program of joint actions of the government and businesses features the creation of favorable conditions for small- and medium-sized businesses, which are key to economic stability. Industrialists demand resumption of issuing loans to the real economy at affordable rates, reduction in the administrative and fiscal burden on businesses, and the quick adoption of high-quality tax reform. They also insist on the rapid search for new markets to sell Ukrainian products and lifting of restrictions on imports and exports.

Separate sections are devoted to preparation for successful entry to the EU market as of January 1, 2016, which requires the development and launch of programs for adaptation of technical regulations and standards of Ukraine to EU requirements.

The anti-crisis program stresses that every effort must be made to combat corruption. Every corrupt official should be made liable ‒ regardless of status, position, political affiliation, as all are equal before the law. At the same time, the public and the business community should facilitate the rejection of corruption.

The anti-crisis program of joint actions of the government and businesses calls on the authorities to a productive partnership with the business community. Only by joining hands it is possible to overcome the crisis and achieve sustainable economic development, the industrialists and entrepreneurs emphasize.

ULIE, EXPORTERS COUNCIL UNDER FOREIGN MINISTRY TO JOIN HANDS TO BOOST UKRAINIAN EXPORTS

The Ukrainian League of Industrialists and Entrepreneurs (ULIE) has supported a proposal put forward by the Council of Exporters and Investors under the Ministry of Foreign Affairs of Ukraine to coordinate efforts in expanding export opportunities for Ukrainian producers. This was discussed at a bilateral working meeting of the heads of the two organizations in Kyiv.

As was noted by Executive Secretary of the Council and Ambassador-at-Large Oleksandr Danyleiko, boosting exports of Ukrainian products is critical for economic growth, and therefore efforts by the government, the public and the business community should be doubled to help national businesses in the most efficient way possible.

He offered wide-range cooperation with the ULIE as a powerful association of industrialists and entrepreneurs that has visible results in promoting national exports and cooperation on a wide range of issues. This includes providing businesses with information about the needs and tenders of foreign partners, conditions of doing business abroad, assistance in concluding contracts as well. Representatives of the Council are also interested in conducting joint activities, using the platform of the actively working Center for Export Support, which was opened under the ULIE.

“We receive much information from our embassies as for business activity of foreign partners but we are not sure if all of it reaches Ukrainian businessmen. We need real guidance per sectors and practical steps. We look forward to your support in this,” Oleksandr Danyleiko said.

“The export policy is crucial today because the domestic market is at the stage of “freezing” amid the population’s falling solvency. We’ll have to work in both directions, as negative trends are seen everywhere: exports have fallen by 35% amid an 18% decline in domestic industrial production,” ULIE President Anatoliy Kinakh said.

According to him, exports promotion means addressing a number of domestic problems: the adoption of state programs for industrial development, support of small- and medium-sized businesses, qualitative upgrading of fiscal policy and the creation of a favorable business and investment climate. In addition, the state should work on compliance with the requirements of product quality and technical regulations of the EU, the possibility of diversifying exports from the eastern to western markets or the markets of third countries and so on. These proposals are articulated in a constantly updated anti-crisis program of joint actions of the government and businesses, sent to the country’s leaders and key ministries, including the Foreign Ministry.

The ULIE president informed his partners that a memorandum is to be signed in Brussels in early December on cooperation between the ULIE and BUSINESSEUROPE, which is the most powerful European business association, which includes national associations from 40 European countries.

“After this, we could more closely work in particular with those sectoral national associations that are most interesting to Ukrainian producers,” Anatoliy Kinakh said.

Vice President of the ULIE, Chair of the Center for Export Support at the ULIE Denys Krasnikov said that suggestions of some foreign business associations that are ready for sectoral partnerships with the Ukrainian side were collected at the U.S.-Ukraine Business Forum and the forum entitled “Ukraine-Canada: A Look into the Future.” Canadians alone have submitted more than 150 requests.

In order to better coordinate joint work, Executive Secretary of the Exporters Council Oleksandr Danyleiko suggested that the ULIE should finalize the concept of the organization, and invited Anatoliy Kinakh to join the Council.

The Council of Exporters and Investors at the Ministry of Foreign Affairs of Ukraine is a permanent platform that includes more than 60 representatives of sectoral unions and associations, leading Ukrainian enterprises and companies that actually represent the full range of export-oriented industries of Ukraine (primarily metalworking, engineering, chemical, agriculture, and services). It also involves the leaders of the American Chamber of Commerce in Ukraine and the companies that implement large investment projects in Ukraine.