Business news from Ukraine

AVTOKRAZ TO GET SOME UAH 2 BLN AS STATE ORDER TO MAKE VEHICLES IN 2017 – POLTAVA REGION GOVERNOR

KYIV. Jan 25 (Interfax-Ukraine) – Public joint-stock company AvtoKrAZ (Kremenchuk, Poltava region) will receive around UAH 2 billion as a government order to produce vehicles in 2017, Head of Poltava Regional Administration Valeriy Holovko has said.

“I brought this news from Kyiv where a serious meeting headed by Prime Minister Volodymyr Groysman was held,” he wrote on his Facebook page.

Holovko said that in the past years this is the first meeting where the officials were looking for the ways to support and develop the sector, not simply discussing the problems of engineers.

“As for government orders for PJSC AvtoKrAZ, this is support not only one enterprise, but 7,000 workers of suppliers, and taking into account adjacent sectors these are 100,000 Ukrainians who will receive guaranteed jobs and salaries,” he said.

He recalled that AvtoKrAZ produces not only military vehicles, but also high-quality vehicles for housing and utilities services and specialized vehicles. They can be used to upgrade the fleet of the State Emergency Service of Ukraine, law enforcement agencies and municipal housing maintenance companies.

After the meeting Groysman set a task to draw up a technological map of the needs of state-run agencies in purchase of vehicles and the facilities of producers. It is intended to have economic benefits in saving budget funds and creating new jobs.

UKRENERGO LAUNCHES ‘SINGLE WINDOW’ FOR CONNECTING NEW ‘GREEN’ ENERGY FACILITIES

KYIV. Jan 25 (Interfax-Ukraine) – Ukrenergo is launching a “single window” through which it will be possible to apply for the connection of new “green” energy facilities to the company’s network, company acting director Vsevolod Kovalchuk has said.

“We hope that the principle of “single window” will be applied to regional power companies, which are the operators of distribution systems,” he said at a meeting with market representatives in Kyiv.

The full operation of the “single window” will start on April 1. Now it is running in a test mode. In the same period, Ukrenergo plans to launch an online map with information on the technical capability of connecting “green energy” objects to all substations of the company and the estimated value of such connection.

As reported, Ukrenergo operates the trunk and interstate power grids, as well as the centralized dispatching of the country’s united energy system. The company is state-owned and managed by the Ministry of Energy and Coal Industry.

CABINET EXPECTS RISE IN NUMBER OF FOREIGN TOURISTS TO 21 MLN BY 2020 – MINISTRY

KYIV. Jan 25 (Interfax-Ukraine) – The Cabinet of Ministers of Ukraine expects the number of foreign tourists in Ukraine to rise to 21 million people by 2020, First Deputy Minister of Economic Development and Trade Maksym Nefyodov has said.

“We expect the number of tourists to rise from 14 million to 21 million people,” he said at a round table dedicated to the discussion of the economic issues of the medium term plan of the government’s priority actions until 2020 in Kyiv.

The plan also foresees the increase in the number of domestic tourists from 500,000 to 1.5 million people by 2020.

UKRAINIAN GOVT EXPECTS INCREASE IN NET FDI IN 2017 TO REACH $4.5 BLN

KYIV. Jan 24 (Interfax-Ukraine) – The Ukrainian government expects the increase in the net inflow of foreign direct investment (FDI) in 2017 to reach $4.5 billion, according to First Deputy Minister of Economic Development and Trade Maksym Nefyodov.

“The net inflow of direct investment we expect will grow from about $3.8 billion last year to $4.5 billion in 2017,” he said at a round table to discuss the draft medium-term plan of the government’s priority actions until 2020 in Kyiv.

According to Nefyodov, the government expects the net FDI inflow of $8 billion in 2020.

KYIV, HELSINKI AGREE ON COOPERATION IN ENERGY EFFICIENCY, ‘GREEN ENERGY’ AND ALTERNATIVE FUELS

HELSINKI. Jan 24 (Interfax-Ukraine) – The authorities of Ukraine and Finland have signed a memorandum on cooperation in the areas of energy efficiency, renewable energy (‘green energy’) and alternative fuels.

The document was signed on Tuesday by Ukrainian Deputy Prime Minister Hennadiy Zubko and Minister for Foreign Trade and Development of Finland Kai Mykkanen in the framework of the official visit of President of Ukraine Petro Poroshenko in Helsinki, according to the Kyiv-based Interfax-Ukraine news agency.

OVOSTAR UNION POSTS 24% RISE IN SHELL EGG PRODUCTION IN 2016

KYIV. Jan 24 (Interfax-Ukraine) – Ovostar Union, a leading egg producer in Ukraine, produced 1.479 billion eggs in 2016, and this is 24% more than a year ago.

The company said on its website that egg sales last year rose by 22%, to 1.054 billion. Exports grew by 34%, from 229 million in 2015 to 307 million in 2016.

The company processed 407 million eggs (2015: 347 million eggs). Sales volume of dry egg products increased by 9% to 2,125 tonnes (2015: 1,941 tonnes), while volume of dry egg products exported went up by 45% to 1,320 tonnes. Sales volume of liquid egg products increased by 30% to 8,689 tonnes (2015: 6,692 tonnes), while volume of liquid egg products exported amounted to 2,161 tonnes mostly due to sales to the EU countries.

Average selling price of shell eggs remained mostly the same and amounted to 1.348 UAH/egg compared to 1.374 UAH/egg in 2015. Average selling price of dry egg products increased by 13% year-on-year to 121.44 UAH/kg; average selling price of liquid egg products increased by 10% to 29.56 UAH/kg.

As at December 31, 2016 the total flock increased by 16% to 7.6 mln hens (2015: 6.5 million hens). The laying hens flock reached 6.5 million hens, up by 22% year-on-year from 5.3 million hens.

“In 2016 the company continued to follow its organic growth strategy. We managed to achieve significant growth rates in all operating indicators. I would like to note that the company started to systemically deliver the liquid egg products to the EU countries,” Ovostar Union CEO Borys Bielikov said.