Business news from Ukraine

FINANCE MINISTRY PROPOSES EXPANDING ‘ONE FACE TO THE CUSTOMER’ APPROACH TO ALL CUSTOMS OPERATIONS FROM FEB 1, 2018

KYIV. Sept 1 (Interfax-Ukraine) – The Finance Ministry of Ukraine intends to expand the “one face to the customer” approach to the transactions of moving goods in all customs modes and make some other changes to the operation of the system from February 1, 2018.
According to a posting on the website of the ministry, the draft resolution will be presented to the government next week.
Today the “one face to the customer” approach applies only to import and export transactions, the ministry said.
It is planned to expand the system to regular customs declarations and previous declarations that contain the full amount of data, while the system now applies to a limited number of customs declarations for imports and exports, the ministry said.
According to the release, the innovations will also allow reducing the number of scanned documents, since the necessary information will be received from the previous declarations. In addition, this will shorten the inspection period for goods by regulatory authorities from 24 to 12 working hours and reduce the period for the decision-making for goods that are imported to Ukraine from 24 to 4 hours.

FARMAK HAS NO PLANS TO LAUNCH VACCINE PRODUCTION IN NEAR FUTURE

KYIV. Aug 31 (Interfax-Ukraine) – Public joint-stock company Farmak pharmaceutical company (Kyiv) does not plan to launch vaccine production in the near term, Farmak CEO Augustin Dubnicka has said.
“Farmak does not plan to develop these projects in the near future,” he said in an interview with Interfax-Ukraine.
“From our side, as a national producer, it would be more rational to create a proposal in those areas where we are competent, for example, endocrinology,” he said.
Dubnicka said that “the full-cycle production of vaccines and quality control is a scientifically and technically very sophisticated process that requires high-level specialists and large investments, which does not make it attractive to pharmaceutical companies.”
“Earlier, Farmak planned to open this production facility. It will be possible to complete the implementation of these plans in close cooperation with some foreign partners that specialize in these preparations,” he said.
Farmak is the largest pharmaceutical company in Ukraine. The ultimate beneficiary of the company is Filia Zhebrivska.

NEAR 300 COMPANIES FROM 11 COUNTRIES TO TAKE PART IN ARMS AND SECURITY 2017 EXHIBITION IN KYIV IN OCT

KYIV. Aug 31 (Interfax-Ukraine) – Around 300 companies from 11 countries will exhibit own projects in the defense and security sector at the 14th international exhibition Arms and Security 2017 to he held in Kyiv on October 10 through October 13.
The organizing committee of the exhibition told Interfax-Ukraine on Wednesday that along with Ukrainian companies, the United States, Turkey, Poland, Pakistan, Germany, France, Italy, Israel, China and the United Arab Emirates have already confirmed their participation in the Kyiv’s Arms and Security-2017. At the same time, Turkey, Poland and Pakistan plan to present national exhibits at the show.
Among the foreign exhibitors are Turkish Aselsan and Roketsan, U.S. Night Vision Devices, Chinese BACEI, French Rockwell Collins France and Ouvry, Polish PGZ and WB Electronics, Israeli Opgal Optronic Industries, Italian CMS Industries, German Rohde & Shwarz, Pakistani DEPO and UAE’s International Armored Group.
The defense enterprises of the public and private segments of the defense industry, including enterprises of the Ukroboronprom State Concern and the League of Defense Enterprises of Ukraine, as well as industry flagships well-known on the global market, including AvtoKrAZ, Kuznia na Rybalskom, TASKO Corporation, Arsenal and Pivdenne Design Bureau (Yuzhnoye) will present the capabilities of the Ukrainian defense industry complex at the Arms and Security 2017.
According to the organizing committee, the main focus of the exhibition reflects the challenges facing the Ukrainian defense industry in the conditions of long-term challenges of the country’s defense capability to ensure large-scale rearmament of the Armed Forces and the development of the Ukrainian defense market, the increase international military cooperation, the expansion of the presence of Ukrainian defense companies in the global arms market and the introduction of NATO standards in production of defense goods.

OPIC TO SUPPORT BUILDING WIND POWER PLANTS IN ZAPORIZHIA REGION FOR $400 MLN

KYIV. Aug 31 (Interfax-Ukraine) – President of the U.S. Overseas Private Investment Corporation (OPIC) Ray Washburne has stated the company intends to support the project of building wind power plants in Zaporizhia region for $400 million.
“Another agreement, in the issue of which we are becoming closer to signing. This is EuroCape Wind Farm I, the amount of which is $400 million,” he said during a meeting with Ukrainian Prime Minister Volodymyr Groysman in Kyiv.
As reported, EuroCape Ukraine I LLC has coordinated the issues of all debt and equity investments for building the first stage of a wind farm with a total design capacity of 500 MW in Zaporizhia region, plans to formalize its financing until December 31, 2017, director of the operator Peter Justin O’Brien said.
EuroCape Ukraine I is registered in Nicosia (Cyprus).

ECONOMY MINISTRY TO HELP PIPE MANUFACTURERS TO ENTER FOREIGN MARKETS – OFFICIAL

KYIV. Aug 31 (Interfax-Ukraine) – The Economic Development and Trade Ministry of Ukraine would help to receive access to foreign markets by Ukrainian pipe manufacturers, in particular, the markets of the Eurasian Economic Union (EAEU), especially Kazakhstan and Belarus.
The ministry said in a press release that the obstacles for supplies of Ukrainian pipes to foreign markets were discussed at a meeting of Deputy Minister of Economic Development and Trade, Ukraine’s Trade Representative Natalia Mykolska with representatives of the pipe industry.
According to the release, the sides discussed exports of Ukrainian products, including the problems of getting access to foreign market for pipe products, in particular, the EAEU market. Ukrainian manufacturers expressed alarm with the situation around the antidumping duties for steel pipes. The antidumping duty of 18.9-37.8% does not allow Ukrainian products to compete on the EAEU market.
At present, the safeguard measures are being reviewed. This was initiated by Ukrainian manufacturers aiming to liberalize them.
“It is important for us to oppose measures that restrict access of Ukrainian pipe products to foreign markets. We will consider the possibility of protecting Ukraine’s rights and interests in the trade and economic sphere within the WTO [World Trade Organization] agreements,” Mykolska said.
The participants of the meeting said that the safeguard measures related to the access of Ukrainian pipes, in particular to the traditional markets of Kazakhstan and Belarus, are artificial and do not meet the requirements of the international trade law established by the WTO. The ministry will work out the issue of protecting the interests of the domestic production sector, taking into account the mechanisms permitted under the WTO rules.

QATAR AIRLINE STARTS FLIGHTS TO UKRAINE

KYIV. Aug 30 (Interfax-Ukraine) – Qatar Airways (Qatar) on August 28 launched daily flights from Doha to the largest Ukrainian airport Boryspil (Kyiv), Qatar Airways CCO Ehab Amin has said at a press conference in Kyiv.
According to him, the duration of the flight will be 5 hours and 40 minutes. It will be performed on board Airbus-320 aircraft in a two-class arrangement (120 economy class seats and 12 business class seats).
Amin did not specify the average price of the flight on the Kyiv-Doha route, but according to the air carrier’s booking system, one-way flight will cost about EUR375.
He noted Qatar Airways expects a serious passenger flow, but did not voice absolute targets.
According to Amin, the company does not rule out the launch of two daily flights on the Doha-Kyiv route.
He also did not rule out the possibility of partnership in future with Ukraine’s leading airline Ukraine International Airlines and, if there is the demand, the possibility of flying to other Ukrainian destinations.