Business news from Ukraine

CARLSBERG UKRAINE INCREASES SHARE OF UKRAINIAN BEER MARKET TO 29.9% IN 2016

KYIV. Feb 23 (Interfax-Ukraine) – The share of Carlsberg Ukraine, one of the largest producers of beer and soft drinks in Ukraine, of the Ukrainian beer market in 2016 amounted to 29.9% in real terms, which is 0.3 percentage points higher than in 2015.

According to company a press release, with reference to data from Nielsen research company, its share in the kvass market in natural terms is 44.7%.

Last year Carlsberg Ukraine managed to significantly increase its sales in major network supermarkets.

The company estimates that in 2016 the beer market in Ukraine decreased by 7% compared to the previous year. There are several reasons for the fall of the market: the unfavorable economic situation in the country, the national currency devaluation, the reduced purchasing power of the population, as well as the consequences of fundamental changes in the industry regulation and a sharp increase in excise tax in 2016.

“Our company manages to increase its market share and show economically efficient activities, as well as appear in the ranking of the largest taxpayers in the country. I want to underline that the decision made in late 2016 to increase excise tax by the rate of inflation (12%) for the first time in many years demonstrated the fruits of the dialogue between businesses and the government,” Carlsberg Ukraine CEO Yevhen Shevchenko said.

Carlsberg Ukraine is part of Carlsberg Group, one of the leading brewing groups in the world, whose products are sold in more than 150 countries.

GOVT APPROVES DOCUMENTS FOR RAISING EUR 50 MLN FROM HUNGARY FOR BORDER INFRASTRUCTURE

KYIV. Feb 23 (Interfax-Ukraine) – Ukraine’s Cabinet of Ministers on Wednesday approved bills drawn up by the Finance Ministry required for the implementation of the intergovernmental agreement with Hungary on financial cooperation, development of border checkpoints, infrastructure and maintenance of bridges on the joint state border.

According to a posting on the website of the Finance Ministry, the government approved the bill on ratification of the framework agreement between the Ukrainian and Hungarian governments on the provision of a loan as tied aid and the bill amending the bill on Ukraine’s national budget for 2017.

The documents allow receiving the soft-term financing of EUR 50 million to implement investment projects linked to the improvement of roads going to the Ukrainian-Hungarian border.

According to the proposed amendments to the national budget, Ukravtodor would prepare and implement of the relevant agreements, while the loan will be serviced using funds from the Ukrainian budget.

The funds are provided for 18 years and a half. The credit rate is 0%. A grace period of one year and a half is foreseen.

UKRAINE INCREASES STEEL OUTPUT BY 8.5% IN JAN, REMAINS 10TH IN WORLDSTEEL RATING

KYIV. Feb 23 (Interfax-Ukraine) – Ukrainian metallurgical enterprises in January 2017 increased steel production by 8.5% compared with January 2016, to 2.103 million tonnes, remaining on the 10th place in the ranking among 66 countries, the world’s major manufacturers of these products, compiled by the World Steel Association (Worldsteel).

Growth in steel production in December was fixed in all countries from the top ten states.

The top ten steel makers in January looks as follows: China (67.2 million tonnes, a 7.4% rise), Japan (9.002 million tonnes, a 2.7% rise), India (8.4 million tonnes, 12% up), the United States (6.874 million tonnes, a rise of 6.5%), Russia (6.183 million tonnes, an 11.6% rise), South Korea (5.86 million tonnes, a 3.2% rise), Germany (3.649 million tonnes, 1.2% up), Turkey (2.93 million tonnes, 12.8% up), Brazil (2.856 million tonnes, 14.4% up), and Ukraine (2.103 million tonnes, 8.5% up).

In general, 66 countries in January 2017 produced 136.514 million tonnes of steel, which is 7% more than in January 2016.

As reported, in 2016 the top ten steel makers included China (808.37 million tonnes, an increase of 1.2%), Japan (104.772 million tonnes, a drop of 0.3%), India (95.618 million tonnes, an increase of 7.4%), the United States (78.619 million tonnes, a drop of 0.3%), Russia (70.8 million tonnes, a drop of 0.1%), South Korea (68.567 million tonnes, a drop of 1.6%), Germany (42.082 million tonnes, a drop of 1.4%), Turkey (33.163 million tonnes, an increase of 5.2%), Brazil (30.212 million tonnes, a drop of 9.2%), and Ukraine (24.221 million tonnes, an increase of 5.5%).

In general, the 66 countries produced 1.604 billion tonnes of steel in 2016, which was 0.7% up year-over-year.

GEFCO UKRAINE SIGNS THREE-YEAR CONTRACT FOR LOGISTICS SERVICES WITH KONICA MINOLTA UKRAINE

KYIV. Feb 22 (Interfax-Ukraine) – The Ukrainian representative office of GEFCO Group, one of the leaders in the field of international logistics, has signed a contract with a subsidiary of Konica Minolta in Ukraine for providing logistics services for a three-year period.

According to GEFCO, partnership relations between the two companies began in 2016 with a pilot project on warehouse logistics.

“A dialogue between the companies began with the issue of providing storage facilities in Kyiv. Later it turned out that the solution of this problem was considered by the management of Konica Minolta Ukraine as part of the strategy of transforming its supply in the market. The detailed analysis revealed those parts of the supply chain, the improvement of which would enable the company to enhance efficiency in future,” GEFCO Ukraine CEO Oksana Yakovleva said.

GEFCO Group has more than 300 sites in 150 countries with a staff of 12,000 employees. In 2015 the group’s turnover was EUR4.2 billion.

Konica Minolta Ukraine is a subsidiary and an official representative of Konica Minolta Inc., Tokyo, Japan. The company specializes in business consulting, implementation and management of workflow systems.