Business news from Ukraine

UDP SEEKS TO START BUILDING TWO SOLAR POWER PLANTS IN KHERSON, ODESA REGIONS IN Q4 2017

KYIV. Sept 28 (Interfax-Ukraine) – The UDP Group seeks to start building two solar power plants in Kherson and Odesa regions in Q4 2017, the company’s press service has reported.
The press service said that the capacity of the plant in Kherson region will be 17.5 MW and in Odesa region – 10 MW.
In addition, UDP plans to boost the capacity of its power plant in Dymerka, Kyiv region, from current 6 MW to 50 MW in 2018.
In coming five years UDP seeks to invest $300 million in renewable energy.
As reported, a majority shareholder in the UDP Group is Ukrainian businessman Vasyl Khmelnytsky.

KONTI LAUNCHES BONJOUR KONTI DESSERT LINE WITH 200 TONNE MONTHLY CAPACITY

KYIV. Sept 28 (Interfax-Ukraine) – Public joint-stock company Konti industrial association (Donetsk region), a large Ukrainian confectionary company, has resumed production of Bonjour Konti desserts, Chantal and BizKonti tartlets launching the line at Kostiantynivka confectionary factory.
According to a company press release, there are no similar lines in Ukraine. Its monthly capacity is 200 tonnes of products.
All production is automated. Ukrainian and imported raw materials are used in production.
The company said that it plans to bring Bonjour Konti dessert to foreign markets.
“We want to sell Bonjour Konti dessert in the EU (Latvia, Lithuania, Poland, Romania and Germany), the United States, Iran, Iraq, Israel, Georgia, Moldova, Armenia, Azerbaijan and Belarus,” the company said.
Konti was founded in 1997. Its main production assets are located in Donetsk, Kostiantynivka, Horlivka confectionery factories (Ukraine), and two factories in Kursk (Russia). Its main brands are Bonjour Konti Amour, Timi, SuperKontik, Belissimo and others.
The main beneficiary of Konti is Borys Kolesnikov.

NEW DEZEGA’S SELF-RESCUERS PLANT IN TURKEY SEEKS TO REACH PROJECTED CAPACITY IN 2018

KYIV. Sept 28 (Interfax-Ukraine) – The self-rescuers plant of DEZEGA opened in Izmir (Turkey) last week seeks to reach the projected annual capacity of 120,000 self-rescuers in 2018.
The company’s press service told Interfax-Ukraine that the new plant is to supply the products to the markets where earlier Donetsk rescue equipment plant located on the uncontrolled territory of Donetsk region supplied its equipment. Deliveries from the Donetsk plant were stopped early March over the blockage of the area.
“The new plant is to supply products all over the world. Turkey was selected including thanks to convenient logistics to African, Asian countries and Australia. Of course, the Turkish market is attractive for us. The company pays much attention to increasing safety standards,” the press service said.
The company did not specify investment in the new plant, adding that these were own funds of DEZEGA and Turkish capital. No money was borrowed.
Commenting on competition on the markets, the company said that there are few specific local rivals. DEZEGA competes with the same European and U.S. producers on most of the markets. Recently Chinese producers were attacking the markets.
The company also has a production site in Russia – YuZSO LLC.
“The enterprise is operating. It focuses on the Customs Union markets – Russia, Belarus, Kazakhstan and the CIS states,” the press service said.

UKRAINE, ISRAEL REACH PRELIMINARY AGREEMENTS ON LIBERALIZATION OF INDUSTRIAL GOODS MARKETS – TRADE REPRESENTATIVE

KYIV. Sept 28 (Interfax-Ukraine) – The seventh round of talks between Ukraine and Israel on signing of the free trade agreement was held in Tel-Aviv. The sides reached preliminary agreements on the liberalization of the industrial goods markets, the Economic Development and Trade Ministry of Ukraine has reported on its website.
“We conducted an intensive round with Israel and worked on the most important issues linked to the liberalization of the goods markets and approved the relevant provisions of the draft agreement,” the ministry’s press service said, citing Deputy Minister of Economic Development and Trade, Ukraine’s Trade Representative Natalia Mykolska.
She said that according to the exports strategy Israel for Ukraine is the market to focus on.
The ministry said that now exports of Ukrainian goods to Israel shows confident growth: in seven months through July 2017 exports of goods from Ukraine to this country totaled $345.7 million, which is 25.6% more than a year ago.
Mykolska said that the future joining of Ukraine the Regional Convention on pan-Euro-Mediterranean preferential rules of origin (PEM Convention), and Israel is the contracting party of the convention, would allow Ukrainian goods to become a part of global chains of added value.
As reported, Ukraine could join the PEN Convention on January 1, 2018.

UKRAINE SHOULD STICK TO CATALOGUE OF MEASURES BY JULY 2022 TO JOIN ENTSO-E – UKRENERGO

KYIV. Sept 27 (Interfax-Ukraine) – The deadline for implementing a catalog of measures to join the European Network of Transmission System Operators (ENTSO-E) by Ukraine is July 2022, according to a presentation of Ukrenergo Head Vsevolod Kovalchuk at a roundtable in the Verkhovna Rada held on September 22.
According to the document, then Ukraine is to work in the isolated mode (detached from Russia). Eventually ENTSO-E is obliged to discuss the integration of its operation with the Ukrainian power grid.
Ukrenergo said that the integration with ENTSO-E would considerably strengthen stability of the Ukrainian power grid and minimize dependence on coal supplies to the country’s power plants. The general technological level of exploitation of the power grid and security of supplies would expand thanks to tough requirements for the preparation for the integration.
Ukrenergo predicts that the integration would allow boosting annual volumes of trade with electricity with European countries from current 4-5 billion kWh to 18-20 billion kWh. This is linked to the more effective use of existing production facilities, in particular, nuclear power plants.
The integration would also bring European rules of protecting consumers’ rights and improve the quality of services.
The company said that consumers would be able to freely choose the best supplier for themselves, including foreign ones, in the conditions of the new market model.
“The free commercial exchange of electricity, its exports and imports on the transparent market conditions between Ukraine and Europe is the best tool for preventing monopoly, forming the fair price of electricity and related services on the domestic market,” Kovalchuk said.
He proposed that the key tasks for the integration at the parliamentary level are set, a coordination center at the Cabinet of Ministers is created and a meeting of the National Security and Defense Council (NSDC) on the issue is held to coordinate the processes linked to Ukraine’s joining ENTSO-E.

DTEK NAFTOGAZ STARTS DRILLING NEW WELL ON SEMYRENKIVSKE FIELD

KYIV. Sept 27 (Interfax-Ukraine) – DTEK Naftogaz on Monday started drilling well No. 25 in the Semyrenkivske gas condensate field seeking to reach the depth of 5,714 meters, the press service of the company has reported.
The press service said that Belorusneft is involved in drilling. The company won a tender to drill four wells in this field. Italy’s Drillmec 1500HP drilling rig made in 2014 and other equipment will be used for drilling.
DTEK Naftogaz attracted one of the leaders of the international service market – Schlumberger – to drill a tilting section of the well.
“Less than two months have passed since the conclusion of the contract until full mobilization with the installation of the rig. We are ready to start drilling operations using modern equipment and technologies. We are confident that our cooperation with Belarusian partners will be a successful example for the entire industry and will provide the new contribution to the energy independence of the country,” DTEK Naftogaz CEO Ihor Schurov said.