Business news from Ukraine

ODESA CUSTOMS OFFICE SENDS RECORD-BREAKING SUM TO NATIONAL BUDGET IN MARCH

ODESA. April 19 (Interfax-Ukraine) – Odesa customs office of the State Fiscal Service of Ukraine in March 2017 sent UAH 2.24 billion of customs payments to the national budget.
The press service of the main department of the State Fiscal Service in Odesa region reported on Tuesday that this is a record-breaking figure. In the whole history of Odesa customs office since Ukraine’s independence the office’s monthly payments had not even reached UAH 2 billion.
“Average daily payments are also record-breaking. They are twice more than in March 2016, being UAH 102 million. In the first quarter of 2017 Odesa customs office collected over UA H 4.083 billion of customs payments. This is UAH 1.76 billion more than a year ago,” the press service said.
As reported, Ukrainian President Petro Poroshenko in September 2015 signed law No. 666-VIII amending Section IV “Final and Transitional Provisions” of the Budget Code of Ukraine related to the experiment in Odesa, Volyn, Lviv and Chernivtsi regions in financial support for the reconstruction and maintenance of public roads of national importance.
The document clarifies in case of meeting the monthly budget customs payments revenue target more than by 100%, 50% of the extra sum should be sent to the regions in proportion to their share of this sum.
The Verkhovna Rada in December 2016 expanded the experiment on financial support for the reconstruction and maintenance of public roads of national importance at the expense of part of customs duties for all the regions of Ukraine.

TRIPMYDREAM SEEKS TO BOOST AIR TICKETS SALES VIA OWN PORTAL IN 2017

KYIV. April 19 (Interfax-Ukraine) – The TripMyDream trip search service plans to increase sales of air tickets by six times using own portal this year, the co-founder of the service Andriy Burenok has said in an interview with Interfax-Ukraine.
He said according to his calculations, not taking into account direct sales of tickets via websites of airlines, charters and low cost airlines, a total of 2-2.5 million air tickets were sold in 2016 and this is more than in 2015. The share of online sales is 40%.
“Meanwhile, we do not sell tickets as Tickets.ua and Pilot. They are our partners. We give the traffic and redirect to websites that sell tickets. In money terms tickets for some $700 million were sold in Ukraine. Profit from sales was around $30 million. According to our calculation, around 5% of total volumes of air tickets bought online are purchased via our portal. We expect to have 30% by the end of this year. This is our ambitious goal. We must boost sales by six times,” he said.
Asked who the key client of the service is and what clients usually select, he said that these are mainly sightseeing lovers, then beach and exotic place lovers. Sightseeing cities, trips with sightseeing for two-four days prevail.
“We have active users from Ukraine, Russia and some European countries,” Burenok said.
TripMyDream is the service helping online users to find a trip, including air tickets, hotels and other options for accommodation, as well as services linked to trips (insurance, transfers, sightseeing) provided by partners. The founders of the service are Andriy Burenok and Taras Polischuk.

SUMY NPO TO PRODUCE COMPRESSOR CRANKSHAFT FOR RUSTAVI AZOT IN 2017

KYIV. April 19 (Interfax-Ukraine) – Public joint-stock company Sumy Machine-Building Science and Production Association (Sumy NPO) has signed a contract to supply a crankshaft for a reciprocating compressor with Rustavi Azot (Georgia), the press service of the company reported on Tuesday.
According to the contract, which cost is not disclosed, the crankshaft will be made in Q3 2017.
The weight of the billet exceeds 9.5 tonnes, and the finished crankshaft will weigh at least 5.6 tonnes.
According to the press release, Sumy NPO has been cooperating with Rustavi Azot since late 1960s. The Sumy NPO branded compressor equipment has been operating at the chemical plant for 50 years. Sumy machine builders from time to time produce spare parts for them.
Sumy Machine-Building Science and Production Association is one of the biggest producers in Europe of gas re-pumping units and outfitted compressor stations for various uses: centrifugal, vacuum, and chemical pumps, and centrifuges and other equipment for the chemicals gas and oil-refining industries.
Rustavi Azot produces chemical fertilizers.

POROSHENKO URGES BRITISH BUSINESS TO INVEST IN UKRAINE

KYIV. April 19 (Interfax-Ukraine) – During an official visit to the United Kingdom of Great Britain and Northern Ireland, President of Ukraine Petro Poroshenko met with representatives of business circles of the country, the press service of the Ukrainian president has said.
The Ukrainian president spoke about the introduction of reforms in Ukraine over the past three years and the main results that have been achieved up to date. Considerable attention was paid to creating an investment climate, conducting of judicial reform, fighting corruption, reforming of the banking and energy sector. The president also announced the launch of an electronic public VAT refund register since early April 2017.
The president said that he believes in the promising future of the trade and investment Ukrainian-British partnership. According to him, the UK has become one of the largest foreign investors in Ukraine with more than $2 billion, having created tens of thousands of workplaces. Poroshenko noted the successful cooperation of the Ukrainian company Antonov and the British company Dowty Propellers in the creation of the An-132D transport aircraft.
The president also welcomed the interest of British companies in Ukraine, in particular, the international company Unilever, which opened a tea factory in the Kyiv region, and the international company Hutchison Ports, which plans to enter the domestic container shipping market in the short term. “The success of these projects in our country will certainly be a good example for other investors, as well as an important signal of confidence in Ukrainian reforms,” Poroshenko said.
“The president invited the British business to invest in Ukraine,” a report says.

KYIVMETROBUD SIGNS UAH 4 BLN CONTRACT WITH TURKEY’S LIMAK TO COMPLETE METRO IN DNIPRO

KYIV. April 18 (Interfax-Ukraine) – The CEO of PJSC Kyivmetrobud (Kyiv) on March 6, 2017 signed a subcontractor agreement worth UAH 3.962 billion with Turkey’s Limak Insaat Sanayi Ve Ticaret A.S. to complete subway construction in Dnipro.
According to a company report in the information disclosure system of the National Commission on Securities and the Stock Market, the right to sign the agreement arose in accordance with the decision of the shareholders made on April 27, 2016, who previously approved significant transactions – subcontractor agreements with the ceiling amount of such deals up to UAH 20 billion in the period until April 27, 2017.
The shareholders who own a total of 99.99% in Kyivmetrobud voted for this decision.
As reported, subway construction in Dnipro began in 1982. Six stations in the subway instead of the nine planned have been operating since 1995.
Turkey’s Limak on April 13, 2016 won a tender to continue building the subway. The transparency of the procedure was assessed by the financial donors of the project – the European Bank for Reconstruction and Development and the European Investment Bank. Kyivmetrobud acts as a subcontractor of Limak.

AGRICULTURAL TECHNOLOGY COMPANY TO OPEN SOYBEANS PLANT IN KHMELNYTSKY REGION IN 2017

KYIV. April 18 (Interfax-Ukraine) – Agricultural Technology Company plans in 2017 to complete building a plant for deep soybeans processing with a capacity of 1,500 tonnes per day in Khmelnytsky region, Head of the AdamPol Soja project Dmytro Motuzko has said.
“At the first stage the plant will process non-genetically modified soybeans for soybean meal, oil, and lecithin. In future it is planned to produce soybean concentrates and isolates, which are not produced in Ukraine now,” he said at a press conference.
Agricultural Technology Company is a vertically integrated agrarian company for production of seeds, cultivation of grains, oilseeds and vegetables in Ukraine.
The company grows soybeans, corn and potatoes, annually harvests 250,000 tonnes of various grains and oilseeds from an area of 32,000 hectares.
In 2009, the company commissioned a Cimbria Unigrain A/ S seed factory in Denmark.
The company plans to sell products under the AdamPol Soja brand.