Business news from Ukraine

BORYSPIL AIRPORT SAYS RAIL LINK WITH KYIV WILL BE NEEDED IN THREE YEARS

KYIV. April 21 (Interfax-Ukraine) – Boryspil International Airport, the largest airport in the country, predicts the emergence of an acute need for rail link with Kyiv in 2020-2021.
“At such a rate of growth, we will have an urgent need to organize rail transportation of passengers to the airport in three years. And this is the task that should be solved only in cooperation with Ukrzaliznytsia, Kyiv city administration and the airport,” airport head Pavlo Riabikin said at the Ukrainian Infrastructure Forum in Kyiv.
According to him, this will entail a number of investment projects in the territory of the enterprise, which will be implemented involving investors.

DNIPROVAHONMASH INCREASES WAGON SALES BY ALMOST 6 TIMES IN 2016

KYIV. April 21 (Interfax-Ukraine) – PJSC Dniprovahonmash (Dnipropetrovsk region), a large car building enterprise in Ukraine controlled by TAS Financial and Industrial Group, in 2016 sold 404 wagons, while in 2015 only 68 wagons were sold.
According to the company’s annual financial statements, production of wagons grew by 5.7 times, to 402 cars.
Taking into account these indicators, the unconsolidated net income of Dniprovahonmash (excluding subsidiaries) increased by 5.3 times in 2016 from 2015, to UAH 324.12 million, and net profit amounted to UAH 4.61 million against a loss of UAH 74.68 million a year earlier.
The plant’s subsidiary, PJSC Stalzavod, last year more than quadrupled sales of products in natural terms, to 2,408 tonnes.
According to the consolidated financial statements of the company, which, in addition to Stalzavod, takes into account the performance of DVM Trading House (Russia), its net income in 2016 increased by 5.3 times, to UAH 385.49 million, net profit was UAH 12.76 million against a loss of UAH 98.96 million.

BIOFARMA TO INVEST $5 MLN IN DEVELOPMENT OF NEW DRUGS OVER FIVE YEARS

BILA TSERKVA. April 21 (Interfax-Ukraine) – Biofarma LLC manufacturer of blood products (Kyiv) intends to invest $5 million in the development of new medicines within five years, company president Kostiantyn Yefymenko has said at a press conference at the enterprise in Bila Tserkva (Kyiv region).
“In the next five years we will spend $5 million on the development of new drugs and conducting preclinical trials,” he said.
In addition, according to Yefymenko, Biofarma plans to invest about $10 million in the construction of blood plasma collection centers.
“We will invest about $10 million in the construction of plasma collection centers. We have already built a modern center in Sumy, in which we invested $3.5 million. European experts recognized that our center is better than its international counterparts,” he said.
According to the company president, over the next five years Biofarma intends to invest $40 million in building a new fractionator for production of plasma preparations and clotting factors.
For the implementation of the projects the company intends to attract own funds, as well as borrowed resources. In particular, Biofarma signed a contract with Raiffeisen Bank Aval on opening a ten-year line of EUR10 million for 10 years, as well as a $5 million contract with BNP Paribas.

OVER 2,700 PHARMACIES SIGN CONTRACTS TO PARTICIPATE IN MEDICINE REIMBURSEMENT PROJECT

KYIV. April 21 (Interfax-Ukraine) – Over 2,700 pharmacies have signed contracts to participate in the government-sustained program to reimburse the cost of medicines to treat cardiovascular diseases, bronchial asthma and type 2 diabetes mellitus, Deputy Prime Minister of Ukraine Pavlo Rozenko said at a conference on Thursday.
“I want to pay attention that at the Health Ministry’s website there is an interactive map of the entire territory of Ukraine where one can find a pharmacy that is taking part in the Affordable Medicines program in own region. This service is ready and it is being filled with new pharmacies,” he said.
Acting Health Minister Ulana Suprun said that the reference pricing helped to cut the prices of the medicines which international nonproprietary names (INN) are placed on the list of the reimbursement program, but not participating in it.
She said that the price of some medicines made both in Ukraine and abroad has fallen by 50% since early 2017.
Suprun said that in the near term the ministry plans to conduct a poll on its website regarding the implementation of the Affordable Medicines program.

DTEK INTENDS TO INCREASE TOTAL PRODUCTION BY DOBROPILLIAVUHILLIA, BILOZERSKA MINE BY 27% IN 2017

KYIV. April 21 (Interfax-Ukraine) – DTEK energy holding plans to increase total production of DTEK Dobropilliavuhillia LLC and Bilozerska double liability company by 27% or 700,000 tonnes of coal in 2017, to 3.5 million tonnes, the press service of DTEK has reported.
“According to the new development program, by the end of this year it is planned to produce 700,000 tonnes of coal more at DTEK Dobropilliavuhillia’s coalmines than in 2016 (totally 3.5 million tonnes),” the company said.
In 2017, over UAH 1 billion will be invested in DTEK Dobropilliavuhillia. This is twice more than in 2016.
“Over UAH 4 billion will be sent [to develop the enterprise] by 2020, which would allow boosting annual production to 5 million tonnes,” DTEK said.
The company said that along with development of own production it continues buying coal from state-owned coalmines. In January-March 2017 DTEK bought 225,000 tonnes of gas coal from state-run enterprises.

BUSINESS WAITING FOR TRANSPARENT INFRASTRUCTURE ACCESS MECHANISM – EBA

KYIV. April 20 (Interfax-Ukraine) – Business and investors are waiting for the creation of a transparent and clear mechanism for having access of investors to infrastructure, European Business Association (EBA) Executive Director Anna Derevyanko has said.
A transparent mechanism for having access of investors to infrastructure should be introduced and they should have absolutely equal rights, she said at the Ukrainian Infrastructure Forum in Kyiv on Thursday. Transparent regulation of tariffs and the clear regulatory base are required, she said.
As for the port infrastructure, Derevyanko said that competitiveness of ports should be increased and port dues are to be brought to the competitive level.
She said that the rules for compensation of investment in the port sphere should be adopted, adding that this issue is important for investors.