Business news from Ukraine

UKRAINE EXPORTS 17.2 MLN TONNES OF GRAIN SINCE EARLY 2016/17 AGRI-YEAR

KYIV. Nov 25 (Interfax-Ukraine) – Ukraine exported 17.18 million tonnes of grain since early 2016/17 agricultural year (July-June) as of November 24, 2016.

Ukraine’s Agricultural Policy and Food Ministry has reported that some 9.65 million tonnes of wheat, 3.95 million tonnes of barley and near 3.52 million tonnes of corn has been exported.

Around 131,500 tonnes of flour was exported as of November 25.

AGROSPETSSERVIS MULLING CONSTRUCTION OF BIOGAS PLANT IN KIROVOHRAD REGION

KYIV. Nov 24 (Interfax-Ukraine) – Agrospetsservis (Kirovohrad region) plans to begin the construction of a biogas plant 3-5 km far from its sugar factory.

“We are working on a biogas plant project now not to throw sugar beet pulp away but use it for biogas production,” group founder and director Serhiy Tarasov told reporters during the Agricultural Olympus 2016 international congress in Kyiv.

According to him, the company is currently conducting technological expertise to build the plant.

He said in the 2016/2017 marketing year (MY, September-August) Agrospetsservis will produce about 40,000 tonnes of sugar, of which 50% will be exported due to favorable world prices for sugar.

Agrospetsservis in the 2016/2017 MY will invest about $1-1.5 million in the modernization of its sugar refinery.

Agrospetsservis group of companies is engaged in cultivation of grains, oilseeds and sugar beets in Kirovohrad region. Its land bank is 41,000 ha.

GOVERNMENT APPROVES SALE OF 71% IN CHERKASYOBLENERGO IN ONE PACKAGE – SPF

KYIV. Nov 24 (Interfax-Ukraine) – The government committee has approved the sale of 71% in PJSC Cherkasyoblenergo in one package, Head of the State Property Fund (SPF) Ihor Bilous has said.

“As for Cherkasyoblenergo, today the governmental committee has decided to merge stakes, i.e. we’ll sell a combined package of 46% and 25% [owned by the State Property Fund and UkrESCO],” he told reporters in Kyiv.

According to him, the State Property Fund plans to resume privatization of regional power companies after the signing of the law on the National Commission on Energy, Housing and Utilities Services Regulation (NCER) and the actual announcement of RAB tariffs. In addition, Bilous said it is inappropriate to hold the privatization tender during Christmas holidays.

GOVERNMENT PERMITS CREATING BATCHES OF GRAIN OF VARIOUS CLASSES AT ELEVATORS FOR EXPORT

KYIV. Nov 24 (Interfax-Ukraine) – The Ukrainian government has approved a resolution permitting the creation of batches of grain of various classes at elevators for export.

“A strange requirement is in effect in Ukraine. When you send grain of various classes for export and when it crosses the territory of Ukraine it should be stored separately to meet Ukrainian quality standards. Instead of putting grain of various classes to one tanker you should store it in several tankers,” First Deputy Economic Development and Trade Minister Maksym Nefyodov said at a government meeting on Wednesday.

He said that the adoption of the resolution would help exporters to save up to 15% on logistics.

Earlier grain market players declared problems with creating grain batches for exports at elevators. A lack of infrastructure for storing grain of various classes is seen.

The European Business Association (EBA) said that these problems surfaced because of non-compliance of old standards and the agency’s rules with the current demands of the market.

EMZA LLC WINS TENDER TO SELL MYHIA HPP PAYING UAH 52.5 MLN

KYIV. Nov 24 (Interfax-Ukraine) – EMZA LLC (Kyiv) has won a privatization tender to sell non-operating Myhia hydroelectric power plant (HPP) on the Southern Bug River paying UAH 52.5 million with the starting price of UAH 10.863 million, Head of Ukraine’s State Property Fund (SPF) Ihor Bilous told reporters after the tender.

He said that 16 companies submitted bids. Some 25 price increments were made and the starting price was increase by five times.

Bilous said that a group of companies that incorporates EMZA is operating four HPPs.

“We are waiting that the sale and purchase agreement with the winner will be signed and hope for fruitful cooperation in the future,” he said.

Marko Kravchenko is the owner of EMZA LLC founded in 2000.

Kravchenko jointly with Dmytro Nikulin own Science Innovation Production that is building a small HPP on the Sluch River in Zhytomyr region.

Nikulin also holds shares in Balford Ukraine LLC (via Chemtrade Estonia) that is building a small HPP on the Stryi River in Lviv region.

Chemtrade Estonia and Balford Chemicals OU (Estonia) sell titanium dioxide, fertilizers and other chemicals made in Ukraine to consumers from Europe and Asia.

GOVERNMENT CUTS RENT RATES FOR MOBILE COMMUNICATIONS TOWERS BY 55%, RELAXES TOWER INSTALLATION RULES

KYIV. Nov 24 (Interfax-Ukraine) – The Ukrainian government has decreased the rent rate for state-owned property where mobile communications equipment will be installed from 40% to 18% and significantly relaxed the procedure for launching mobile communications towers.

“We want to ease the work of mobile operators in two spheres: changing the dissonance for how rent rates for state-owned premises are calculated for mobile towers. Sometimes rental of roofs was calculated as rental of offices. We have facilitated launching of easy-to-assemble towers that could be assembled in three days, while it takes ten times more time to receive permits for them,” First Deputy Economic Development and Trade Minister Maksym Nefyodov said.

He said that the decease of the rates would make rental of state-owned property more attractive and help to additionally raise some UAH 50 million a year. The relaxation of tower launch would shorten time to install them by at least one month. The operators would quicker expand 3G networks in the country.

According to Nefyodov’s presentation, technical telecommunications equipment would be removed from the list of construction facilities for which the preconstruction and construction works are approved in advance.