Business news from Ukraine

LARGEST UKRAINIAN MOBILE COMMUNICATIONS OPERATOR KYIVSTAR DENIES COMPLAINTS AGAINST 4G TENDER

The 4G communications tender for the 1800 MHz band on March 6 was held honestly, professionally and openly, fully in line with the Ukrainian legislation, President of the largest Ukrainian mobile communications operator Kyivstar Petro Chernyshov has said. “We are thankful for support of authorities in holding the successful tender, in particular, the president of Ukraine. I regret about my previous comments. I had no intention to criticize the tender process,” he said in a statement published on Wednesday.
Earlier on Wednesday, an interview of on March 6 was published. He criticized the fact that Ukrainian President Petro Poroshenko spoke at the tender between the session for the second and third lots.
In the new statement, the Kyivstar president pointed out concerted efforts of all power institutions, the regulator and the government during the entire period of preparations and holding the 4G tenders for 1800 MHz and 2600 MHz to make them successful.
Chernyshov recalled that the company invested over UAH 14 billion in the development of new technologies in Ukraine and seeks to expand its presence in the sphere, in particular, to install over 600 additional towers in 2018 to expand the 4G coverage territory on the major part of Ukraine, including in rural areas.
Kyivstar highly appreciates the potential of 4G development in Ukraine and believes that access to new technologies became possible thanks to the holding of the successful and transparent 4G tender for radio frequencies.

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REPRESENTATIVE OF SWISS SORBES TO HEAD SUPERVISORY BOARD OF UKRAINIAN MANUFACTURER OF POLYWOOD AND FLAKEBOARD

Ukrplyta LLC (Kyiv) has become the owner of an 88.018% stake in the large Ukrainian manufacturer of polywood and flakeboard – private joint-stock company Fanery and Plyty (Fanplyt, Kyiv). The company acquired over 86.49% of shares (119,189 shares) from private joint-stock company Fanplyt Personnel at the price of UAH 51 per share of a face value of UAH 50. According to the report, PrJSC Fanplyt on its website said, referring to the notification received from Ukrplyta LLC, that the sale and purchase agreement was signed on March 29, 2018.
According to the public register, the owner of 100% in Ukrplyta LLC with a charter capital of UAH 7,400 is Cyprus-based Vetesha Investment Limited. The ultimate beneficiary is not mentioned.
According to a draft decision of the company’s shareholders at a meeting scheduled for April 26 posted on the Fanplyt’s website, the company plans to re-elect its supervisory board and elect Bohdan Tsuprik as chairman of the supervisory board as a representative of Ukrplyta LLC.
Tsuprik is head of Sorbes Ukraine LLC, founded by Switzerland’s Sorbes LLC. He also heads the sector committee of the European Business Association. Sorbes Group in Ukraine owns two large wood processing enterprises: Swispan Limited LLC (Kostopil, Rivne region) and Interplyt Nadvirna (Ivano-Frankivsk region). The new shareholders of Fanplyt plan to re-elect the company’s board at the meeting: Palladiy Horbatiuk would be replaced by Volodymyr Hantsiuk. Horbatiuk would remain a member of the board.

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INFRASTRUCTURE MINISTRY HAS THREE OPTIONS FOR FINANCING CONSTRUCTION OF A BIG ORBITAL ROAD AROUND KYIV

The press service of the ministry reported that this was discussed at a meeting on April 16 chaired by Deputy Infrastructure Minister of Ukraine Yuriy Lavreniuk. Deputy Regional Development, Construction, Housing and Utilities Economy Minister Lev Partskhaladze, Deputy Chairman of the Kyiv City Administration Dmytro Davtyan, acting Deputy Chairman of Ukravtodor Oleksandr Kharchenko, representatives of the State Service for Geodesy, Cartography and Cadastre in Kyiv region, Kyivavtodor, Kyiv City Administration and Kyiv Regional Administration took part in the meeting.
Lavreniuk determined three financing options: at the expense of the national budget, attracting international investors or concession.
“It is necessary to solve all the problematic issues as soon as possible and start construction of the first stage of the big orbital road, which will relieve and save the roads of Kyiv, reduce the number of road accidents in the city, contribute to strengthening Ukraine as a transit state and development of the infrastructure of Kyiv region,” he said.
According to the ministry, at the end of the meeting all participants were instructed to submit proposals to the Ministry of Infrastructure in two weeks to find solutions to the problematic issues.

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LARGEST SUNFLOWER OIL EXPORTER KERNEL SEES DECLINE IN GRAIN SALES, FALL IN SUNFLOWER OIL SALES

Kernel, a large Ukrainian agrarian group, cut grain sales by 21.8% in the third quarter of FY2018 (July 2017-June 2018), to 1.088 million tonnes. According to a company report posted on its website, bulk sunflower oil sales in January-March 2018 fell by 14%, to 252,740 tonnes, and bottled oil sales decreased 24.4%, to 26.16 million liters. Over the period the holding crushed 848,860 tonnes of sunflower seeds, which is s1.4% less than in Q3 FY2017.
According to the document, the throughput volumes at the company’s export terminals fell by 6.1%, to 1.515 million tonnes.
In 9M FY2018 Kernel cut grain sales by 25.1%, to 3.074 million tonnes, bottled oil sales by 6.9%, to 85.8 million liters and boosted bulk oil sales by 14%, to 914,680 tonnes.
Grain sales stemmed from a countrywide harvest decline, delayed harvesting campaign, and low willingness of farmers to sell crops waiting for better prices.
According to the document, In Q3 FY2018 Kernel completed the disposal of corporate rights in subsidiaries leasing in total 34,000 hectares of farmland in Ukraine, which were suboptimal for company’s operations. Combined proceeds are expected to be $19 million. Kernel is the world’s largest producer and exporter of sunflower oil, the leading producer and supplier of agricultural products from the Black Sea region to the world markets.

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GRAIN EXPORTER NIBULON PLANS TO START BUILDING CARGO SEA VESSELS

Nibulon plans to start building cargo sea vessels in summer 2018, Director General of Nibulon Olekskiy Vadatursky has said in an interview with the Ports of Ukraine publication. “In March this year, for the first time at our shipyard, building of a dry cargo ship with a length of 100 meters was launched. And in the summer, after the reconstruction of the shipyard facilities, we will be able to build full-sized cargo ships of 140 meter length. We plan to build a specialized marine vessel with deadweight of 10,000 tonnes as a transshipment raid station,” he said.
According to Vadatursky, the vessel will be equipped with two cranes, which can handle up to 20,000 tonnes of grain per day. The deadline for its delivery is July 1, 2019.
“As we build our own marine fleet, we will extend the transport chain from the agricultural producer to the final consumer on the Nile,” he said.
The general director of Nibulon said that for the 12 years since the beginning of the implementation of infrastructure projects, to date, $1.76 billion has been invested, in particular about $100 million over the past year.
Nibulon LLC was established in 1991. It is one of the largest operators in the grain market of the country. It has elevators with a total capacity of about 2 million tonnes, as well as its own transshipment terminal with a capacity of 5 million tonnes in Mykolaiv. Infrastructure ministry mulling three options for financing construction of big orbital road around Kyiv

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UKRAINE FULLY USES QUOTAS FOR EXPORTING HONEY, MALT GLUTEN, PRESERVED TOMATOES, GRAPE AND APPLE JUICES, WHEAT AND CORN TO EU

Ukraine as of April 17, 2018 fully used six quotas for duty free exports of goods under the agreement on the Deep and Comprehensive Free Trade Area with the EU (DCFTA), in particular for honey, malt and wheat gluten, preserved tomatoes, grape and apple juices, as well as wheat and corn. According to a report on the website of the Ukrainian Agribusiness Club (UCAB), Ukraine also used the second quarterly quota for export of poultry and the six month quota for butter. The quotas for cereals and flour have been used by 95%.
“This year there was a revival in the pace of using the quotas: as of the same date in 2017, the volume of wheat had not yet been used, and the quota for malt and wheat gluten had not been used in the past year. The fact that along with six key quotas four more are closed indicates the intensification of trade relations with the EU,” an analyst of the foreign trade in agricultural products of the UCAB, Daria Hrytsenko, said.
According to the results in January-February of this year, agri-food exports from Ukraine to the EU increased 28.1%, or $224.7 million compared to the same period last year, and reached $1.025 billion, according to the Ministry of Agrarian Policy and Food.

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