Business news from Ukraine

Business news from Ukraine

GOVERNMENT PERMITS CREATING BATCHES OF GRAIN OF VARIOUS CLASSES AT ELEVATORS FOR EXPORT

KYIV. Nov 24 (Interfax-Ukraine) – The Ukrainian government has approved a resolution permitting the creation of batches of grain of various classes at elevators for export.

“A strange requirement is in effect in Ukraine. When you send grain of various classes for export and when it crosses the territory of Ukraine it should be stored separately to meet Ukrainian quality standards. Instead of putting grain of various classes to one tanker you should store it in several tankers,” First Deputy Economic Development and Trade Minister Maksym Nefyodov said at a government meeting on Wednesday.

He said that the adoption of the resolution would help exporters to save up to 15% on logistics.

Earlier grain market players declared problems with creating grain batches for exports at elevators. A lack of infrastructure for storing grain of various classes is seen.

The European Business Association (EBA) said that these problems surfaced because of non-compliance of old standards and the agency’s rules with the current demands of the market.

EMZA LLC WINS TENDER TO SELL MYHIA HPP PAYING UAH 52.5 MLN

KYIV. Nov 24 (Interfax-Ukraine) – EMZA LLC (Kyiv) has won a privatization tender to sell non-operating Myhia hydroelectric power plant (HPP) on the Southern Bug River paying UAH 52.5 million with the starting price of UAH 10.863 million, Head of Ukraine’s State Property Fund (SPF) Ihor Bilous told reporters after the tender.

He said that 16 companies submitted bids. Some 25 price increments were made and the starting price was increase by five times.

Bilous said that a group of companies that incorporates EMZA is operating four HPPs.

“We are waiting that the sale and purchase agreement with the winner will be signed and hope for fruitful cooperation in the future,” he said.

Marko Kravchenko is the owner of EMZA LLC founded in 2000.

Kravchenko jointly with Dmytro Nikulin own Science Innovation Production that is building a small HPP on the Sluch River in Zhytomyr region.

Nikulin also holds shares in Balford Ukraine LLC (via Chemtrade Estonia) that is building a small HPP on the Stryi River in Lviv region.

Chemtrade Estonia and Balford Chemicals OU (Estonia) sell titanium dioxide, fertilizers and other chemicals made in Ukraine to consumers from Europe and Asia.

GOVERNMENT CUTS RENT RATES FOR MOBILE COMMUNICATIONS TOWERS BY 55%, RELAXES TOWER INSTALLATION RULES

KYIV. Nov 24 (Interfax-Ukraine) – The Ukrainian government has decreased the rent rate for state-owned property where mobile communications equipment will be installed from 40% to 18% and significantly relaxed the procedure for launching mobile communications towers.

“We want to ease the work of mobile operators in two spheres: changing the dissonance for how rent rates for state-owned premises are calculated for mobile towers. Sometimes rental of roofs was calculated as rental of offices. We have facilitated launching of easy-to-assemble towers that could be assembled in three days, while it takes ten times more time to receive permits for them,” First Deputy Economic Development and Trade Minister Maksym Nefyodov said.

He said that the decease of the rates would make rental of state-owned property more attractive and help to additionally raise some UAH 50 million a year. The relaxation of tower launch would shorten time to install them by at least one month. The operators would quicker expand 3G networks in the country.

According to Nefyodov’s presentation, technical telecommunications equipment would be removed from the list of construction facilities for which the preconstruction and construction works are approved in advance.

UKRAVTODOR PLANS TO BUILD NEW ROAD TO HUNGARY

KYIV. Nov 24 (Interfax-Ukraine) – The State Agency of Automobile Roads of Ukraine (Ukravtodor) intends to build a new road, which will connect the M-06 Kyiv-Chop highway with the Hungarian road M-3 Budapest-Nyiregyhaza.

According to the press service of the agency, the corresponding decision was made after a joint review of infrastructure on the Ukrainian-Hungarian border.

“This will allow combining the two roads of the first category, will significantly improve transport links between Ukraine and Europe because today only the Tysa-Chop-Zahony international checkpoint on the Ukrainian-Hungarian border is able to transit truck transport to Hungary and other EU countries,” the report reads.

In addition, the parties are considering two options for possible transport communication. The first one is the reconstruction and expansion of the existing Luzhanka checkpoint, the approach to which passes through the densely built-up streets of Berehove and now works exclusively for passenger transport, while the second one is the construction of a new checkpoint near the settlement of Dyida.

DAN-FARM UKRAINE TO LAUNCH PIG FARM IN ZHYTOMYR REGION EARLY 2017

KYIV. Nov 24 (Interfax-Ukraine) – Dan-Farm Ukraine LLC seeks to launch a pig farm with 25,000 pigs in Korosten district of Zhytomyr region.

“We started building it [the pig farm] in 2014. It is being finished. We plan to launch it early next year,” First Deputy Director General Vadym Shestakov told reporters at the Agricultural Olympus 2016 international congress in Kyiv on Tuesday.

He said that the company has a sow farm with 3,000 sows in Khalcha. The farm can produce up to 100,000 pigs a year.

Some EUR 10 million has been invested in the pig farm in Zhytomyr region. The total cost of the project is EUR 12 million.

“The project has five phases. Now we are launching two pig farms, a feed processing room and two administrative buildings,” he said.

The company does not plan to slaughter pigs. This will be discussed after boosting the number of pigs and the launch of new pig farms.

Dan-Farm Ukraine is not involved in exports due to the complicated epizootic situation in Ukraine due to African swine fever (ASF).

According to the unified register of companies, the owners of the company are Dutch companies Berry Farm ApS and Ukraine-Agro A/S.

POROSHENKO ENACTS RATIFICATION OF AGREEMENT WITH ISRAEL ON UKRAINIANS’ TEMPORARY EMPLOYMENT – MEETING WITH KNESSET SPEAKER

KYIV. Nov 24 (Interfax-Ukraine) – President of Ukraine Petro Poroshenko and Speaker of the Israeli Knesset Yuli-Yoel Edelstein have met in Kyiv to discuss the acceleration of the signing of a free trade agreement between the two countries and also touched on political cooperation.

“The head of the state said that he had signed the Law of Ukraine on the ratification of the agreement between the Cabinet of Ministers of Ukraine and the Government of the State of Israel on temporary employment of Ukrainian workers. The agreement will provide for the employment of thousands of qualified Ukrainian specialists who will get reliable social guarantees and rights during their work in Israel,” the president’s press service said.

The parties discussed the issue of accelerating the conclusion of the Free Trade Agreement between Ukraine and Israel where the special attention is paid to boosting investment cooperation.

Poroshenko thanked the Israeli side for the support of the United Nations General Assembly’s resolution on human rights in Crimea.

In turn, the speaker of the Israeli Knesset thanked Ukraine for hosting events to honor the memory of victims of the Babi Yar (Babyn Yar) tragedy that occurred 75 years ago.

As reported, on November 16 the Verkhovna Rada, Ukraine’s parliament, ratified the agreement on temporary employment of Ukrainian workers in certain industries in Israel.