Business news from Ukraine

Business news from Ukraine

CREATION OF SINGLE JSC IN AVIATION INDUSTRY BASED ON ANTONOV WILL ACCELERATE REVIVAL OF UKRAINIAN MILITARY TRANSPORT AVIATION – EXPERT

KYIV. July 29 (Interfax-Ukraine) – The quick revival of military transport aviation in Ukraine under the conditions of the new challenges to the defense and territorial integrity of the state is possible by optimizing the existing resources of the aviation industry as part of the creation and international certification of the single state joint-stock company based on Antonov State Enterprise, former head of Ukrainian Avia-Transport Company (UATC) Vitaliy Popov has said.

“The idea is that to bring the single state aircraft building joint-stock company to the global market that would operate under international standards and to raise investment and take orders first from western customers. The company could be created via the merger of all aviation and aircraft repair facilities that were previously transferred to Ukroboronprom on the basis of Antonov State Enterprise,” he said in an interview with Interfax-Ukraine.

The key issues that would ensure the survival and development of Ukrainian aircraft manufacturing, taking into account the halt of cooperation with Russia, are the inclusion of Ukraine, as represented by Antonov, in western sectoral, technological, industrial cooperation and defense programs.

“Fortunately, there is the interest to this cooperation today. Recently we discussed the issue with the advisor to the defense minister of Canada: the preliminary order for Ukraine and Antonov could be over $400 million. Israeli and U.S. companies also showed their interest in cooperation with Antonov. The possibilities for realizing promising partnership should be provided,” he said.

Popov also expressed his support for renewing the Ukrainian Armed Forces with new aircraft.

“According to Flightglobal Insight’s World Air Forces, in 2014 the number of operating aircraft of Ukrainian combat and transport aviation fell from 400 to 222. Some aircraft were restored: 82 planes, 44 helicopters and 27 drones have been restored since the start of the Anti-Terrorist Operation (ATO). However, the army needs new equipment, and the economic and aircraft industry needs orders,” Popov said.

“It is important to accelerate the realization of promising programs of Antonov Enterprise as a part of international cooperation: first of all this concerns An-178, An0132 and An-188 aircraft that have excellent export prospects,” he said.

UKRAINE SIGNS $800 MLN WORTH OF LOAN AGREEMENTS WITH WORLD BANK, JAPAN – MINISTER

KYIV. July 28 (Interfax) – Ukraine has signed loan agreements with the World Bank and Japan for $500 million and $300 million, respectively, Ukrainian Minister of Economic Development and Trade Aivaras Abromavicius said.

“One year on, the $500 million loan (agreement) with the World Bank and the $300 million from Japan have finally been signed. For budgetary needs,” the minister wrote on Twitter on July 24.

He expressed gratitude to the World Bank, the Japanese government and Ukrainian Finance Minister Natalie Jaresko and her team, as well as the Ukrainian parliament and Cabinet.

ODESA PORT-SIDE CHEMICAL PLANT POSTS UAH 152 MLN NET PROFIT IN H1, 2015

KYIV. July 28 (Interfax-Ukraine) – PJSC Odesa port-side chemical plant in January-June 2015 saw a net profit of UAH 151.953 million against UAH 116.806 million in net loss in the same period last year.

According to a company report in the information disclosure system of the National Commission on Securities and the Stock Market, its net income in the first half of the year increased two-fold, to UAH 5.801 billion, gross profit amounted to UAH 1.055 billion, whereas in January-June 2014 the company posted a gross loss of UAH 16.764 million.

In January-June 2015, the plant increased production of mineral fertilizers by 11.8% compared to the first half of 2014, to 803,000 tonnes, their sales – by 6.2%, to 784,000 tonnes.

As reported, in 2014 the plant reduced its net loss by 4.2 times, to UAH 270.473 million, while increasing net income by 10.7%, to UAH 5.428 billion.

Production of mineral fertilizers in 2014 amounted to 1.172 million tonnes, their sales – 1.186 million tonnes.

State-owned Odesa port-side chemical plant is engaged in the production of chemical goods, as well as ammonia transshipment by sea. The government recently announced it plans to privatize the plant in 2015 and hopes to receive at least $600 million for the company.

OVER 50% OF BUSINESS AND ELITE CLASS APARTMENTS IN KYIV BOUGHT BY RESIDENTS OF OTHER CITIES, DEMAND GROWS BY 7-10% IN JUNE-JULY – EXPERTS

KYIV. July 28 (Interfax-Ukraine) – Over 50% of business and elite class apartments in Kyiv are bought by residents of other regions of Ukraine, mainly from eastern regions of Ukraine, Park Stone residential complex (Kyiv) said in a press release on Monday, referring to the head of the sales department Dmytro Shostia.

“In 60% of cases finished apartments are bought with the purpose of investment and leasing apartments: people are trying to save their money via investing into high-quality and expensive property, which they believe would be always of great demand. It is hard to predict how capacious the prestige apartment leasing market would be in coming years,” Shostia said.

He said that business and elite class apartments in Kyiv with gross area of 85-150 square meters in Pechersky district are of great demand with buyers.

Despite the fact that since early 2015, prices in Kyiv’s business and premium class apartment blocks have stabilized at $2,000-4,000 per square meter, demand on them grew by 7-10% in June-July, he said.

He said that these apartments are bought using cash, and this allows buyers to receive a discount of 10-25%.

UKRSPECEXPORT SEES 52% RISE IN NET PROFIT IN H1 2015

KYIV. July 28 (Interfax-Ukraine) – State enterprise Ukrspecexport saw a rise of 52% in net profit under Ukrainian accounting standards in January-June 2015 year-over-year, to UAH 39.33 million, the company said in a report on Monday.

The company said that its net revenue grew by 98.35% in H1 2015, to UAH 713.16 million. Gross profit rose by 39.95%, to UAH 271.52 million, and operating profit fell by 13.69%, to UAH 20.39 million.

In January-March 2015, Ukrspecexport saw a rise of 2.1 times in net profit under Ukrainian accounting standards year-over-year, to UAH 34.57 million, and its net revenue grew by 90.335, to UAH 445.67 million.

Ukrspecexport is the state’s authorized mediator in foreign economic activities in the field of exports and imports of products and services that are subject to export controls.

Under the government decision, Ukrspecexport and its subsidiaries have been part of state-owned Ukroboronprom concern since December 2010.

UKRAINIAN-DUTCH AGRO-COMPANY INVESTS UAH 10 MLN IN LAUNCH OF MILK FARM IN SUMY REGION

KYIV. July 28 (Interfax-Ukraine) – Ukrainian-Dutch agro-company LLC (Sumy region) has invested UAH 10 million of own funds in the launch of a milk farm in Chapliyivka of Sumy region.

According to a report on the website of Sumy Regional Administration, the company finished building the cowhouse with a milk pipeline for 226 cows.

The company’s director, Vitaliy Hudymenko, said that today the farm has 718 heads of cattle, including 338 cows.

In 2015, UAH 6.8 million was invested in the development of the facilities.

According to the state register of companies and individuals-businesspeople, the founders of Ukrainian-Dutch agro-company LLC are Dutch Elzasel B.V. and Bontrup Ukraine.

Bontrup Ukraine was founded in 2007. It has around 20,000 hectares of farmland. Bontrup Ukraine is part of Bontrup Holding (the Netherlands) created by Franz Bontrup. The holding has branches in Belgium, Germany, Ukraine, Switzerland, Norway, Britain, Russia, Poland and the United States. Its core business is agriculture, navigation and granite production.