Business news from Ukraine

ULIE URGES LAWMAKERS NOT TO SUPPORT ELECTRONIC COMMUNICATIONS BILL

The Ukrainian League of Industrialists and Entrepreneurs (ULIE) has urged lawmakers to dismiss bill No. 3549-1 concerning electronic communications that will be put for repeated first reading on January 19 and two other options of the eponymous bill.

The ULIE said in its address to parliamentarians that bill No. 3549-1 is aimed at not harmonizing Ukrainian legislation with the EU, but approaching the national law system with the Russian one.

“The requirements and provisions that are not in line with the Constitution of Ukraine, Ukrainian legislation and EU recommendations restricting Constitutional rights of citizens, not complying with the state policy and creating the conditions for the unlawful seizure of power by a group of persons in regulating the most attractive sector of Ukraine are evidence of this,” the league said.

As reported, on September 20, 2016, the Verkhovna Rada sent for repeated first reading bill No. 3549-1 concerning electronic communications submitted by MP Oleksandr Danchenko. Two other bills – No. 3549 submitted by MP Yuriy Moroko and No. 3549-2 submitted by MP Ruslan Lukyanchuk and Valeriy Babenko – were rejected or failed to have enough supporting votes.

UKRZALIZNYTSIA ANNOUNCES TENDER FOR PURCHASE OF 3,000 high-sided WAGONS FOR UAH 3 BLN

KYIV. Jan 20 (Interfax-Ukraine) –Darnytsia Wagon Repair Plant, a branch of PJSC Ukrzaliznytsia, has announced a number of tenders for the supply of 3,000 freight high-sided wagons.

According to reports in the ProZorro system of public procurement, the company announced eight tenders for a total of UAH 3 billion.

Documents for participation in the tender are accepted until February 20-21. Wagons should be supplied in the first half of 2017. It is agreed one delivery must include 50 units.

These cars will be used by the buyer for transportation of bulk, small-sized, packaged goods across the entire network of railways of Ukraine and member states of the Railway Transport Council with the possibility of unloading bulk cargo through the hatches in the floor and on car dumpers, as well as with the help of grab cranes.

The maximum speed of movement of a fully loaded or empty wagon is 120 km/h, the load capacity is not less than 70 tonnes, the weight (packaging) is no more than 24 tonnes. Its designed speed is 120 km/h.

WOG TO INCREASE NUMBER OF GAS FILLING MODULES BY 67% IN 2017

KYIV. Jan 20 (Interfax-Ukraine) – WOG intends to increase the number of gas filling units at its fuel filling stations by 67% (160), to 400 in the current year, company CEO Serhiy Koretsky has said at a press conference in Kyiv.

“We plan to increase the number of gas units in our network to 400 objects. Today their number is about 240. We see that gas is one of the products, which has been growing in Ukraine for three years,” he said.

According to Koretsky, WOG plans in 2017 to purchase the first mobile laboratory for autogas quality control.

According to the CEO, WOG plans this year to increase the fuel filling station network from 550 to 600 units.

“In 2017 it is planned to open about ten new complexes of new formats – a large complex with an expanded menu WOG Cafe and WOG Market,” he said.

As reported, WOG intends in 2017 to expand the network of chargers for electric vehicles at its fuel stations to 300.

KHARKIV TRACTOR PLANT STARTS PRODUCING TRACTORS, SEEKS TO MAKE 150 UNITS A MONTH BY LATE FEB – OWNER

DAVOS. Jan 20 (Interfax-Ukraine) – Kharkiv Tractor Plant that resumed operations on January 6, 2017 after a many-month idle period, would soon produce the first tractor and by the end of February the plant seeks to produce 150 tractors a month, owner and President of DCH Group Oleksandr Yaroslavsky has said.

“We are making the first tractor soon and reach 100 tractors a month. By the end of February it would be 150 [tractors a month],” he told Interfax-Ukraine on the sidelines of the “Ukrainian Breakfast” in Davos organized the Victor Pinchuk Foundation.

Yaroslavsky said that the plant would mainly sell tractors in Iran and Turkey.

As for the plans to produce tractors in 2017, he said that it is planned to make around 2,000 tractors, taking into account 150 a month.

“My dream is to produce 3,500-4,000 tractors a year, but the plant was idle for 10 months. We have $8 million of loss. Everything is destroyed, links are broken and we are restoring everything in 24 hours,” he said.

He said that today over 3,000 people work at the enterprise, but more employees will be hired.

“We are hiring [the staff]. We have money and wages will be paid,” he said.

Yaroslavsky also said that relations with suppliers of spare parts and materials are to be restored. He said that the plant does not intend to look for new suppliers.

“We should simply restore links. These are 2,000 adjacent companies, including many foreign ones,” he said.

Asked about suppliers from Russia, he said that he will act in pursuance to Ukrainian law.

Commenting on the earlier announced possibility of producing goods for the defense and industrial complex, Yaroslavsky said that these products can be made only if there are orders.

“When we have orders, we will produce for the defense and industrial complex,” he said.

COMPANIES FROM NORWAY, POLAND, FRANCE READY TO FIGHT FOR CONCESSION OF KYIV’S HEAT PIPELINES – KYIV MAYOR

DAVOS. Jan 20 (Interfax-Ukraine) – Kyiv City is holding talks with three companies from Norway, Poland and France on the possibility of taking the city’s heat pipelines to concession, Kyiv City Mayor Vitali Klitschko has said.

The management term for the pipelines by Kyivenergo controlled by DTEK private energy holding expires this year.

“We are holding talks with three companies: Norway, Poland and France. They are ready to participate in open tender to take Kyivenergo’s heat pipelines into concession,” he told Interfax-Ukraine on the sidelines of “the Ukrainian Breakfast” organized by the Victor Pinchuk Foundation in Davos on Thursday.

Klitschko said that these are western companies that have submitted bids and have large experience in managing energy companies.

As reported, referring to DTEK’s CEO Maksym Tymchenko, it is likely that the holding jointly with potential western partners will participate in the tender to take Kyiv’s heat pipelines to concession if the regulatory environment improves.

Kyiv is preparing to the tender with participation of the International Finance Corporation (IFC) from the Word Bank Group.

EBRD READY TO HELP KYIV TO BUILD BIG ORBITAL ROAD – KYIV MAYOR

DAVOS. Jan 20 (Interfax-Ukraine) – The European Bank for Reconstruction and Development (EBRD) is ready to help Kyiv City to implement the bid orbital road construction project, Kyiv City Mayor Vitali Klitschko has told reporters, commenting on the results of his meetings at the World Economic Forum in Davos.

“One of the key tasks we see for ourselves is building the orbital road that could lift the environment situation and unload transport infrastructure. Today Kyiv is suffocating over transport. We have understanding with the EBRD in the issue. They are ready [to help],” he said on the sidelines of “the Ukrainian Breakfast” organized by the Victor Pinchuk Foundation in Davos on Thursday.

Klitschko said that the second round of talks with the EBRD on the project would be held soon in Kyiv.

He said that it is early to speak about concrete details of the future big orbital road, in particular, it will pass across the Dnipro River or a tunnel.

“We are looking for options to solve it,” he said.

He also recalled that earlier he made arrangements with German investors regarding the completion of the Podilsko-Voskresensky Bridge. He said that the essential task is to launch the bridge in 2020.

Klitschko said that he will meet President of Azerbaijan’s Socar, a large player on the Kyiv market.

He said that if meetings in Davos in the previous years were mainly of the political character, now two thirds of them are devoted to projects to be realized.

The mayor believes that criticizing him that he went to Davos is unfair. He recalled that two years ago he met the SAP managing director here and in four months Kyiv joined the SmartCity international system.

“Each trip should have a concrete result. I have something to say what I have done. I do not want to run ahead, but this year it will be the same,” he said.

He said the fact that the city managed to halve its foreign debt in two years when up to UAH 2 million every day was sent to service is a positive factor in negotiations.