Business news from Ukraine

UKRGAZVYDOBUVANNIA SEES 8.5% RISE IN CRUDE OIL REFINING IN JAN 2017

KYIV. Feb 20 (Interfax-Ukraine) – Public joint-stock company Ukrgazvydobuvannia in January 2017 saw an 8.5% rise in crude oil refining (by 3,648 tonnes) year-over-year, to 46,528 tonnes, the company has told Interfax-Ukraine.

Light fuel production last month totaled 35,777 tonnes, propane butane output – 15,032 tonnes and other fuel – 4,332 tonnes.

Oil and gas condensate production last month fell by 5.5% or 2,400 tonnes year-over-year, to 40,900 tonnes.

Gas production grew by 0.3% or 3.6 million cubic meters, to 1.262 billion cubic meters (bcm).

Drilling in January 2017 totaled 17,330 meters (23.4% up year-over-year).

As reported, in 2016 Ukrgazvydobuvannia increased crude oil refining by 11.8%, to 515,400 tonnes.

Ukrgazvydobuvannia Commercial Director anticipates that refining in 2017 would grow by 3-7%, to 530,000-550,000 tonnes.

Ukrgazvydobuvannia, which is wholly owned by Naftogaz Ukrainy, is Ukraine’s biggest gas producer, accounting for about 75% of natural gas production.

ECONOMY MINISTRY REGISTERS PAVLOHRAD INDUSTRIAL PARK

KYIV. Feb 20 (Interfax-Ukraine) – The Ministry of Economic Development and Trade on February 14 included Pavlohrad Industrial Park in Dnipropetrovsk region in the register of industrial parks, which became the 18th one in the register.

According to a report on the ministry’s website, a land plot of 250 hectares is limited to the territories of state enterprise Pivdenmash and Pavlohrad factory of processing equipment.

The managing company of Pavlohrad Industrial Park is Investment and Innovation Center, a state-owned enterprise of Dnipropetrovsk Regional State Administration, which is recognized as the winner of the relevant tender conducted on January 18 this year.

As reported, the industrial park will allow creating about 5,000 new jobs, attracting more than $370 million in the development of industry in the region and getting additional revenues to the budgets of all levels.

It is divided into seven sectors in accordance with the production profile, which can be placed there. Engineering got 120 ha, production of construction materials some 50 ha, agricultural products processing some 25 ha, light industry and high tech technology 20 ha.

VEHICLES IMPORTS TO UKRAINE 74% UP IN U.S. DOLLARS IN 2016

KYIV. Feb 20 (Interfax-Ukraine) – Imports of vehicles to Ukraine (new and used ones) grew by one third in 2016 compared to 2015, to 122,954 vehicles, while its value in U.S. dollars grew by 74%, to over $1.9 billion, the Ukrautoprom association has reported.

The association said that passenger cars’ share was a lion’s share of total vehicles imports – 87,776 cars for $1.442 billion, and over half of cars were imported from five countries: Germany (20%), Japan (13%), France (7%), the United States (7%) and Romania (6%).

Imports of passenger cars grew by 41% and average customs price – by $3,200, to $16,400.

The association said that despite liberalization of the conditions for importing used cars, their share of total imports fell from 39% in 2015 to 25% last year.

Around 91% of used cars out of 22,300 were imported from the EU at the average customs price of $7,800.

Imports of new passenger cars soared by 72%, to 65,500 for $1.266 billion.

Leader in supplies of new passenger cars was Japan (11,236). Germany is second with 6,883 cars and the United States is third with 65,699 cars. Romania is fourth with 5,422 cars and Slovakia is fifth with 4,572 cars.

UKRAINIAN TOUR OPERATORS STAKE ON YOUTH AND FAMILY VACATION – EXPERT

KYIV. Feb 20 (Interfax-Ukraine) – Ukrainian outbound tourism operators would stake on youth and family vacation in the summer season of 2017, Director of Tourism Development Center Volodymyr Tsaruk has said.

“A recreation concept focused on active population – youth – has appeared in Ukraine. Today this active category of tourists with their own requirements and wishes,” the expert said.

Among requirements of young tourists is healthy food, sports and beach during the day and noisy parties in clubs at night, as well as high-quality wi-fi for quick sharing own photos in social networks and be always online.

He said that TUI Ukraine would present the youth recreation concept in the 2017 summer season.

“Most of Ukrainian tour operators positioned Turkey only as family recreation until recently, while the high-quality youth recreation segment was vacant,” Tsaruk said.

The expert also said that according to the result of early booking for 2017, beach destinations in Ukraine (Turkey and Bulgaria) are sold 15-20% better than in 2016, and tour operators do not plan to narrow flight programs of 2016.

KLIMKIN, FREELAND DISCUSS DEVELOPMENT OF TRADE BETWEEN UKRAINE AND CANADA

KYIV. Feb 20 (Interfax-Ukraine) – Foreign Minister of Ukraine Pavlo Klimkin and his Canadian counterpart Chrystia Freeland have discussed the prospects of trade between the two countries after the free trade area (FTA) agreement comes into force.

According to the press service of the foreign ministry of Ukraine, the parties in the framework of the Munich Security Conference discussed the issues of Ukrainian-Canadian bilateral cooperation, in particular, the prospects of intensification of Ukrainian-Canadian trade after the entry into force of the FTA agreement between the two countries.

“Chrystia Freeland assured of Canada’s full support for Ukraine in the context of Russia’s aggression against our country,” the press service said.

Klimkin, in turn, informed the interlocutor in detail on the situation in Donbas, in particular, about the recent escalation of violence in Avdiyivka and numerous human rights violations in the territory of Crimea and Sevastopol temporarily occupied by Russia.