Business news from Ukraine

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.

AGRARIANS RECEIVE UAH 79.8 MLN IN STATE SUBSIDIES IN FEB – AGRICULTURE MINISTRY

KYIV. April 20 (Interfax-Ukraine) – The Ministry of Agricultural Policy and Food has announced the transfer of UAH 79.8 million in budgetary subsidies to agricultural producers on the basis of their activities for February.
According to a report on the Facebook page of Minister Taras Kutoviy, this amount is one-fiftieth of the planned state support to agricultural producers on VAT compensation.
The minister thanked the State Treasury Service and the State Fiscal Service for coordinated work in payment of subsidies.
As reported, the Cabinet foresaw UAH 4 billion for the system of subsidies in the agro-industrial complex in 2017.
Payment of such subsidies for February 2017 was carried out under separate conditions in connection with the terms of entry into force of the relevant regulatory and legal acts. Payment of state support from March is carried out as normal.
According to the Association of Milk Producers, a number of enterprises included in its structure received state compensation in the amount of 30% to 57% of the VAT paid.

NOVA POSHTA TO TRIPLE VOLUME OF DELIVERIES IN MOLDOVA, MORE THAN DOUBLE IN GEORGIA IN 2017

KYIV. April 20 (Interfax-Ukraine) – Nova Poshta group of companies plans by the end of 2017 to triple the total volume of deliveries in Moldova, and increase it by 2.5 times in Georgia.
According to a press release from Nova Poshta, in 2016 the volume of domestic deliveries in Georgia grew by 4.6 times, international by almost nine times.
“At the same time, a higher demand in the Georgian market is seen for domestic deliveries: the number of deliveries inside the country in 2016 was 3 times higher than the number of international shipments. As a whole, the company delivered about 200,000 items over the year in Georgia,” the report says.
The development of Nova Poshta in Moldova began with the B2B segment and is now continuing in the B2C category. In this country, the volume of domestic deliveries in 2016 quadrupled, international almost tripled. As a whole, in Moldova the company in 2016 delivered more than 50,000 items. At the same time, international deliveries are of a greater demand in the Moldovan market. This is due to the geographical location of the country, as well as the developed logistics solutions with Ukraine and other states.
Nova Poshta, founded in 2001, is the leader in the local delivery market. The company’s network consists of more than 2,300 offices throughout Ukraine. In 2016 Nova Poshta delivered more than 100 million items.