The Ukrainian League of Industrialists and Entrepreneurs (ULIE) and the Spanish Confederation of Employers’ Organizations (CEOE) have signed a cooperation agreement to set up the Spain-Ukraine Business Council.
The press service of the Export Support Center under the ULIE reported this on May 4.
The main goal of the signed agreement is to promote the development of partnership of entrepreneurs of Ukraine and Spain, as well as to expand opportunities for economic cooperation between the two countries’ businesses.
According to the report, the facilitation of trade and investment will be implemented in the form of providing technical assistance in various spheres of partnership, taking into account the professional specifics of the companies of the two countries. Particular attention is given to the exchange of up-to-date information on the current economic situation and regulatory and legal aspects. In addition, business contacts will be supported by the exchange and dissemination of information on business proposals and exports of goods, as well as assistance in finding potential partners.
“The Spanish market is potentially very interesting for Ukrainian entrepreneurs, while the main articles of Ukrainian exports to Spain are farm produce, namely fodder grains and sunflower oil, but in the foreseeable future, our export-oriented commodities can be expanded at the expense of high value-added products,” Coordinator of the Export Support Center under the ULIE Denys Krasnikov said.
According to him, Spanish investors are now interested in investing in the agrarian sector of Ukraine.
KYIV. May 15(Interfax-Ukraine) – PJSC Zhydachiv Pulp and Paper Mill in Lviv region, which stalled in autumn of 2014, has resumed work, Lviv Regional State Administration has said on its website.
“Ukraine has seen fewer examples when, after 2.5 years of idle time, an enterprise has not turned into a heap of scrap metal and has resumed work and launched production. Furthermore, over $1 million has been invested in its equipment,” Lviv Regional Governor Oleh Syniutka said at an official event devoted to the re-launch of the enterprise on Friday.
As of today, the corrugated cardboard and paper enterprise’s personnel numbers 539 people, and in the next four months the factory’s management plans to reach full production capacity, increasing the number of employees to 750 people.
Zhydachiv district administration invited qualified personnel to the enterprise, as some of the factory’s former workers have found new jobs at other enterprises in Lviv region over the 2.5 years of idle time.
Among the problematic issues the enterprise has is the wage backlog estimated at UAH 28 million. Moreover, its tax debts as of May 1, 2017 was UAH 21 million.
KYIV. May 15 (Interfax-Ukraine) – Ukraine intends to raise a $300 million loan from Export-Import Bank of China via China Road and Bridge Company (CRBC) to build a bridge in Kremenchuk.
The press service of Ukraine’s Infrastructure Ministry reported that this was discussed during a visit of Deputy Minister for European Integration Viktor Dovhan to Beijing, China, on May 11 through May 13. He discussed three top priority infrastructure projects for Ukraine with the top managers of the Transport Ministry of China: the possible options for the implementation of the Air Express project, a bridge in Kremenchuk and concession of the railway ferry complex at the Chornomorsk seaport.
“The important infrastructure projects were presented to potential Chinese investors – state-owned China Railway Company, which is mulling investment in modernization and production of electric locomotives at production facilities of public joint-stock company Ukrzaliznytsia,” the press service said.
Dovhan also discussed dredging works at the Yuzhny port with China Harbor Engineering Company and parent company China Communication Construction Company, which are interested in cooperation with Ukraine.
The press service of the Economic Development and Trade Ministry reported that Economic Development and Trade Minister Stepan Kubiv who was present at the meeting pointed out the good presentation of a project to build a bridge near Kremenchuk and a project to reconstruct the Shuliavka Bridge in Kyiv. He said that the total cost of the two projects is $400 million. Thus, the total cost of the project to reconstruct the Shuliavka Bridge is $100 million.
“I propose to you to finish preparatory works for the projects no later than September and eventually switch to the signing of loan agreements and an agreement to implement the works with the corporation. A working group will be created to analyze these investment projects. The group would include representatives of the Economic Development and Trade Ministry, Infrastructure Ministry, Finance Ministry and Ukravtodor,” Kubiv said.
He also recalled that under the One Belt, One Road initiative it is important to improve existing and develop new logistics opportunities.
“Aiming at improving the conditions, increasing the capacity and speed and boosting competitiveness of multimodal container transportation on the China-Western Europe-China route and transit across Ukraine, we are ready to make efforts to develop and modernize transport infrastructure on the basis of the public private partnership projects and other modern forms of cooperation,” Kubiv said.
He said that the implementation of some logistics projects in Ukraine would create additional opportunities for transit flows under the One Belt, One Road initiative. This is construction of port terminals, elevators, rolling stock for transportation of agricultural products and storage facilities.
KYIV. May 15 (Interfax-Ukraine) – Fairfax Financial Holdings Limited on May 12, 2017 acquired 7.81% more shares in Astarta agroindustrial holding. Fairfax acquired in total 1,951,583 shares in the company from Aluxes Holding Limited belonged to one of the founders of Astarta Viktor Korotkov.
The holding said in a report on the Warsaw Stock Exchange (WSE) that the purchase price was PLN 60 per share or $30.15 million for the deal.
Taking into account the previous transactions, today Fairfax holds 7.002 million shares in Astarta, representing 28.01% of the total voting rights of the company.
As reported, on August 24, 2016, Fairfax signed the agreement with the companies of the founders of Astarta Viktor Ivanchyk – Albacon Ventures Ltd. – and Korotkov – Aluxes Holding Ltd. Albacon held 37.8% (9.45 million shares) and Aluxes– 25.99% (6.497 million shares) in Astarta.
Fairfax shall acquire 450,000 of shares from Albacon and 2.048 million shares from Aluxes.
Fairfax shall also have the right to acquire from Aluxes an additional 4.449 million shares in Astarta.
Fairfax shall have the right to acquire from Aluxes an additional 2.498 million shares in the company, representing approximately 9.99% of the voting rights in the company which can only be exercised 61 days after the sale of shares (First Tranche Call Option).
Fairfax shall have also the right to acquire from Aluxes a further 1.952 million shares in the company, representing approximately 7.8% of the voting rights in the company, which can only be exercised after the 61st day after acquisition of shares.
Aluxes also has the right to put the above shares to Fairfax should Fairfax not exercise its rights above.
In addition, Albacon has granted a tag along right to Fairfax in case Albacon sells a certain percentage of its shares in the company to a third party.
Furthermore Fairfax has been granted the right to nominate the chairman of the board. In addition, Astarta has agreed that the company shall agree some issues concerning shares with Fairfax.
Astarta is a vertically integrated agro-industrial holding, uniting six regional divisions in Poltava, Vinnytsia, Khmelnytsky, Ternopil, Zhytomyr, and Kharkiv regions. They include nine sugar factories, agricultural farms with a land bank of about 250,000 hectares and dairy farms. The holding also has a plant for processing soybeans in Poltava region (Globyno processing plant).
KYIV. May 15 (Interfax-Ukraine) – Ukrainian President Petro Poroshenko has promised to sign the bill amending the law on banks and banking operations regarding guaranteeing deposits of individuals by the state (No. 5553).
“We have tried to thoroughly calculate possible risks linked to the signing and enacting the bill on guaranteeing deposits at PrivatBank. The bill will be signed. I would not veto it. Nothing is threatening the depositors,” he said at a press conference in Kyiv on Sunday.
KYIV. May 12 (Interfax-Ukraine) – The United States Department of Agriculture (USDA) forecasts grain harvest in Ukraine in the 2017/2018 marketing year (MY, July-June) in the amount of 61.79 million tonnes, while exports could reach 38.31 million tonnes.
According to a report on the website of the U.S. agency, the forecast for the harvest of fodder grain is 36.79 million tonnes, of which maize is 28 million tonnes, barley is 7.4 million tonnes. The forecast for the wheat yield is 25 million tonnes.
USDA forecasts wheat exports by Ukraine in the 2017/2018 MY at the level of 14.5 million tonnes. Exports of feed grain, according to the forecast, will amount to 23.81 million tonnes, including 20 million tonnes of maize.
According to USDA forecasts, in the 2016/2017 MY Ukraine will be able to export 41.96 million tonnes of grain, including 19 million tonnes of corn, 17.3 million tonnes of wheat and 5.5 million tonnes of barley with a total grain crop of 66.1 million tonnes.
As reported, Ukraine since the beginning of the 2016/2017 MY and as of May 10, 2017 had exported 37.956 million tonnes of grain.
