Business news from Ukraine

Business news from Ukraine

PIVDENMASH EXTENDS CONTRACT FOR SUPPLY OF ENGINES FOR EUROPEAN VEGA CARRIER ROCKET UNTIL 2020

KYIV. July 25 (Interfax-Ukraine) – Pivdenmash (Dnipro) is expanding its participation in the programs of the European Space Agency (ESA), will continue the delivery of serial engines for the fourth stage of the European light carrier rocket Vega.
The company reported on its website “the documents on the continuation of the Vega project in the medium term” have been recently signed.
A source in the Ukrainian rocket and space industry told Interfax-Ukraine the Ukrainian and European sides extended till 2020 the contract for the delivery of engines for the fourth stage of the Vega RD-868P carrier rocket developed by Pivdenne Design Bureau and produced by Pivdenmash.
“The contract with Avio SpA has been prolonged until 2020,” the source said, adding that “the details of the contract were not revealed.”
The Vega carrier rocket was developed by the ESA together with the Italian Space Agency (ASI). It is designed for launching to a solar-synchronous orbit with a height of 1,200 km of satellites weighing up to 1,200 kg or to a polar orbit with a height of 700 km of satellites weighing 1,500 kg.

Ukrenergo annulling contract to join two wind power plants to power grid over standstill of projects

National energy company Ukrenergo has decided to annul contracts with Tilihulska wind power plant LLC and Azovinvestprom LLC on connecting their wind power plants to the company’s power grid over the long-lasting standstill of the projects, the press service of Ukrenergo has reported.

“It was decided to annul contracts with Tilihulska wind power plant LLC and Azovinvestprom LLC and warn other contractors that the terms for submitting the required documents to review the terms and extend contracts are expiring,” the company said.

Ukrenergo said that the reservation of the capacity without real construction of power plants results in the fact that new investors cannot connect to power grids.

Tilihulska wind power plant LLC planned to build a wind power plant with a capacity of 500 MW in Mykolaiv region and Azovinvestprom – with a capacity of 42.5 MW in Zaporizhia region.

The company said that today there is a risk of failure to implement the contracts by EuroCape Ukraine I (the wind power plant with a capacity of 500 MW in Zaporizhia rergion) and Energopark Yavoriv LLC (the solar power plant with a capacity of 63 MW in Lviv region).

INVESTMENT IN RECONSTRUCTION OF CHUDNIV ELEVATOR AIK EXCEEDS UAH 100 MLN

KYIV. July 24 (Interfax-Ukraine) – Investments in the reconstruction of Chudniv Elevator AIK LLC (Zhytomyr region) to increase its grain storage capacity amounted to more than UAH 100 million, according to the website of the agro-industrial development department of Zhytomyr Regional State Administration.
According to the report, after reconstruction grain storage capacity at the complex increased by 2.5 times, to 30,000 tonnes.
The enterprise plans to increase grain storage capacity to 50,000 tonnes by the end of this year.
Chudniv Elevator AIK LLC was established in 2014. It is part of the AIK group of companies, which is engaged in production of agricultural goods, their storage and sales.

CONTRACTS WORTH MORE THAN $40 MLN SIGNED AT UKRAINIAN-BELARUSIAN BUSINESS FORUM

KYIV. July 24 (Interfax-Ukraine) – Business contracts totaling more than $40 million have been signed during the Ukrainian-Belarusian business forum held on July 21 within the framework of the official visit to Ukraine of Belarusian President Alexander Lukashenko, the press service of the Ukrainian Chamber of Commerce and Industry has said.
According to the report, in general, 16 commercial contracts were signed during the forum held at the Ukrainian Chamber of Commerce and Industry, which was attended by over 300 Ukrainian and 90 Belarusian companies.
Among the signatories were Gomselmash, Technotorg Don, Ukravtozapchastyna LLC, Belarus-Ukraine Trade House, Baranovichi Cotton Production Amalgamation, Biltex LLC, Vostok-BELAZ-Service LLC, Novotroitske quarry management company, BelAZ, ArcelorMittal Kryvyi Rih, Mogilevliftmash, Karat-Liftkomplekt LLC, foreign investment company BNH Ukraine, and Eridon.
According to the chamber, the problems of lending and insurance of export supplies, prospects for using electronic trading platforms, increasing transport supplies, entering CIS markets, as well as the issues related to scientific and technical cooperation, the agro-industrial complex caused the greatest interest of both countries’ businesses.
One of the main priorities of cooperation is the development of joint projects in machine building.

CONSTRUCTION WORK IN UKRAINE 31.9% UP IN JUNE – STATISTICS

KYIV. July 24 (Interfax-Ukraine) – The volume of construction work in Ukraine in June 2017 increased by 31.9% compared with June 2016, while the growth in May 2017 from May 2016 was 24.5%.
According to the State Statistics Service, the data are given without taking into account the temporarily occupied territory of Crimea and Sevastopol and part of the ATO zone. Data on Donetsk and Luhansk regions could be reviewed.
According to the agency, the volume of construction works in June 2017 from May 2017 increased by 13.4%, whereas in May 2017 from April 2017 it grew by 11%.
According to the report, the growth in construction work in June 2017 compared to June 2016 was observed in all areas of construction. The largest increase in the figure was recorded in construction of engineering facilities – by 49.7%.
According to the service, in May 2017 from April 2017 the volume of construction work in construction of residential buildings declined by 6.1%, non-residential buildings by 18.6%, and in construction of engineering facilities grew by 17.1%.
In January-June 2017 on January-June 2016 a decline in construction works was recorded in three regions: Luhansk (by 17.1%, to UAH 225.1 million), Mykolaiv (11.5%, UAH 762.4 million) and Chernivtsi (8.4%, UAH 380.7 million).
The largest growth of construction works in January-June 2017 year-over-year was seen in Kirovohrad (1.8-fold, to UAH 415.1 million) and Zhytomyr (1.8-fold, to UAH 521.5 million) regions.

UKRAINE INCREASES ELECTRICITY EXPORTS BY 44.5% IN JAN-JUNE

KYIV. July 24 (Interfax-Ukraine) – Ukraine in January-June 2017 increased electricity exports by 44.5% (by 974.8 million kWh) compared to the same period in 2016, to 3.164 billion kWh, a source in the Ministry of Energy and Coal Industry has told Interfax-Ukraine.
Electricity supplies from the Burshtyn TPP energy island towards Hungary, Slovakia and Romania increased by 21.3% (by 324.9 million kWh), to 1.853 billion kWh.
Electricity deliveries to Poland declined by 6.3% (by 41.5 million kWh), to 615.6 million kWh.
A total of 695.1 million kWh was exported to Moldova compared with 3.7 million kWh in January-June 2016.
Ukrainian electricity was not exported to Belarus and Russia in January-June 2017.
In June 2017 exports of Ukrainian electricity amounted to 545.1 million kWh, which is 1.7 times (219 million kWh) more than in June 2016. This is linked to resumption of commercial exports to Moldova.
In addition, Ukraine in January-June 2017 imported 26.2 million kWh of electricity (25.6 million kWh from the Russian Federation, 600,000 kWh from Belarus) against 44.9 million kWh in the six months of 2016.