Business news from Ukraine

Business news from Ukraine

UKRKHARCHOZBUTSYROVYNA-TERMINAL TO BUILD 240,000 TONNES GRAIN ELEVATOR BY 2019

KYIV. Nov 2 (Interfax-Ukraine) – The Ukrkharchozbutsyrovyna-Terminal maritime complex for handling liquid food products (Mykolaiv) intends to build a grain elevator with a capacity of 240,000 tonnes at Dnipro-Buzky sea port by 2019.

“Our company has a land plot. According to the project, over the next two or three years the following construction is expected: further development of the filling complex and then a transfer to the construction of warehouses for floor storage with a capacity of 60,000 tonnes with acceptance of road and railways transport,” managing director Dmytro Falko said at the international conference “The new projects of grain and oilseeds terminals in Ukrainian ports” in Kyiv.

According to him, the second stage of the project involves the construction of a silo with a capacity of 240,000 tonnes.

“The grain business is new for us, but having a history of increasing grain exports by Ukraine as a grain state, we also want to get into this business and begin the construction of a grain complex. I believe there are prerequisites for this,” he said.

Falko also said that in the long-term prospect, particular in 2019-2022, his company plans to carry out dredging work and attract investors to the construction of terminals for different types of cargo.

The implementation of the first and second stages of the project has been estimated to cost $180 million.

 

GOVERNMENT APPROVES AGREEMENT ON OPENING WORLD FOOD PROGRAM OFFICE IN UKRAINE

KYIV. Oct 30 (Interfax-Ukraine) – The Cabinet of Ministers has approved the signing of an agreement to open an office of the World Food Program in Ukraine.

Corresponding Cabinet decree No. 1106-r of October 28, 2015 has been posted on the official website of the Ukrainian government.

The person authorized to sign the agreement on behalf of Ukraine was Ambassador to Italy Yevhen Perelyhin.

The World Food Program is the world’s largest humanitarian organization which provides 4 million tonnes of food anually. It was founded in 1963 as an agency to provide food under the UN and is engaged in providing assistance to the poor in developing countries and fighting against hunger and poverty.

CABINET INCLUDES IMF, WORLD BANK, IFC, EBRD, USAID REPRESENTATIVES IN AD HOC GROUP FOR COMPANIES PRIVATIZATION

KYIV. Nov 2 (Interfax-Ukraine) – The Cabinet of Ministers has included representatives of the International Monetary Fund (IMF), the World Bank, the International Finance Corporation (IFC), the European Bank for Reconstruction and Development (EBRD) and the U.S. Agency for International Development (USAID) in a working group to prepare recommendations and proposals for the government on the privatization and terms of the sale of state enterprises.

The decision is stipulated in government decree No. 849 of October 21.

As reported, the Cabinet of Ministers on June 24, 2015 established a working group led by the head of the State Property Fund of Ukraine (SPF) to prepare recommendations for the government on privatization. The government also defined the members of the group: its deputy head is the SPF deputy chairman, the secretary is a fund representative. The group also includes the Deputy Minister of Economic Development and Trade, the Senior Adviser to the Minister of Economic Development and Trade, the Deputy Minister of the Cabinet, the First Deputy Finance Minister, the First Deputy Minister of Energy and Coal Industry, the director of the department for effective state property management at the Secretariat of the Cabinet, and the state commissioner of the Antimonopoly Committee.

UKRAINE, AUSTRALIA REACH UNDERSTANDING ON FUTURE NUCLEAR SECTOR AGREEMENT

KYIV. Nov 2 (Interfax-Ukraine) – Ukraine and Australia have reached an understanding on the key issues of a future intergovernmental agreement on the peaceful use of nuclear energy, Head of the European integration department at the Energy and Coal Industry Ministry Mykhailo Bno-Airiian wrote on his Facebook page.

“We’ve managed to reach an understanding on the key sections of the new agreement on cooperation in the peaceful use of nuclear energy between the Ukrainian and Australian governments and lift all outstanding problems. Now we are to start interior procedures for preparing for signing the agreement,” he said.

He said that the four-day negotiations with a delegation of the Australian Safeguards and Non-proliferation Office (ASNO) finished on October 29.

As reported, Ukraine is holding talks on purchasing uranium concentrate in Australia and Kazakhstan.

KYIV, WASHINGTON DEVELOP ROADMAP TO ATTRACT INVESTMENT – YATSENIUK, PRITZKER

KYIV. Nov 2 (Interfax-Ukraine) – Ukrainian Prime Minister Arseniy Yatseniuk and U.S. Secretary of Commerce Penny Pritzker after talks on October 26 made a statement, which, in particular, concerns the development of a roadmap for taking steps aimed at attracting private capital.

“As a result of our consultations, both sides developed a roadmap featuring several short-term, actionable steps that will further increase business confidence and attract private capital. Both sides underscored the urgency of such steps and the importance of actions by both Ukrainian government officials and the Verkhovna Rada to deepen the said reforms,” reads a joint statement by the officials.

“With the support of the United States, Ukraine will intensify anti-corruption efforts through reforms in the Prosecutor General’s Office and implementation of judicial reform, improve tax administration to ensure a level playing field for all companies, reduce gas royalty rates to encourage investment by world class firms, continue deregulation and eliminate unnecessary licensing and permitting, approve and implement anti-piracy legislation to support intellectual property rights, fully execute an e-procurement system and complete accession to the World Trade Organization’s Government Procurement Agreement,” reads the document.

“Ukraine also underscored its commitment to move forward on putting in place agricultural standards that will attract investment; development and implementation of a thoughtful and transparent privatization plan that provides genuine opportunities for international investors; and civil service reform,” according to the posting.

 

SOME 11,960 HA OF FARMLAND LEASED OUT AT AUCTIONS IN UKRAINE IN JAN-SEPT

KYIV. Oct 30 (Interfax-Ukraine) – Some 518 farmland parcels with a gross area of 11,960 hectares (ha) were leased out at land auctions in January-September 2015, the State Agency for Geodesy, Cartography and Cadastre reported on Thursday.

According to the report, thanks to leasing out land parcels local budgets would obtain over UAH 16.286 million in rent rates.

“Land auctions are the most transparent mechanism, as well as appropriate from the economic point of view, for managing land. Open competition itself offsets risks of corruption,” reads the report, citing Agency Head Maksym Martyniuk.

He said that local budgets receive three times more funds on average than they spend on the organization of trading.

The largest number of land parcels was leased out to investors in Volyn region – 2,253 ha with annual rent rates of UAH 1.617 million. Some 1,357 ha of land for UAH 1.957 million of annual rent rates were leased out in Ternopil region, 1,862 ha for UAH 3.8 million in Lviv region and 595 ha for UAH 562,000 in Kharkiv region.

However, no land auction was held in Kyiv, Ivano-Frankivsk and Odesa region over the period.

“The State Agency for Geodesy, Cartography and Cadastre has instructed heads of the territorial divisions of the agency to stir up work on holding land auctions,” reads the report.