Business news from Ukraine

AGRICOM GROUP EXPANDS AREAS WITH WINTER CROPS BY 2.5 TIMES

KYIV. Oct 11 (Interfax-Ukraine) – Agricom Group has expanded areas with winter crops for 2017 harvest by 2.5 times, to 17,000 ha.

The company said in a press release that areas with rapeseeds totaled 5,900 ha and with wheat – 11,100 ha.

“Thanks to the use of modern equipment investment in which has exceeded UAH 50 million since the beginning of the year, observation of crop rotation and effective agricultural technologies we have received 100% of sprouts,” Director of the production and agriculture development department at Agricom Group Taras Korniyenko said.

Agricom Group plants 27 hybrids of rapeseeds and five breeds of wheat of Ukraine and foreign selection.

Agricom Group produces and distributes food made of grain at own production base. It unites agricultural, processing and trade enterprises.

UKRAINE’S INFRASTRUCTURE MINISTRY TO HOLD TALKS ON COOPERATION WITH HUTCHISON PORTS

KYIV. Oct 10 (Interfax-Ukraine) – Ukraine’s Infrastructure Ministry is to hold talks with top managers of Hutchison Ports, a leading global port operator owning ports in 25 countries, on October 13, Ukrainian Infrastructure Minister Volodymyr Omelyan has said on Facebook.

He said that on October 13, DP World Chairman and CEO Sultan Ahmed Bin Sulayem will arrive to Ukraine. The group manages 77 logistic terminals (marine and continental) and 50 adjacent companies in 40 countries on six continents. It is a large global port operator.

“We hope that they will soon enter the Ukrainian market,” the minister said.

He also said that he decided jointly with volunteers to popularize electric cars and provide state help to develop them.

P&O Maritime, a subsidiary of DP World, earlier said that the company is ready to invest in development of tugboats of Odesa Maritime Merchandise Port. The issue was discussed at a meeting of Ahmed Bin Sulayem and Omelyan in Dubai.

MHP TO INVEST $500 MLN IN SECOND STAGE OF VINNYTSIA POULTRY FARM

KYIV. Oct 10 (Interfax-Ukraine) – Myronivsky Hliboproduct (MHP) will invest $500 million in the second stage of the Vinnytsia poultry farm, MHP Chairman Yuriy Kosiuk told reporters on the sidelines of the Kyiv International Economic Forum.

“We will build and expand the second stage of the Vinnytsia poultry farm. This is almost another $500 million,” Kosiuk said, referring to the plans for 2017.

According to him, MHP in 2016 managed to realize all the plans.

As reported, with reference to company CFO Viktoria Kapeliushna, MHP intends in 2017 to increase capital investment to $150-180 million from $100-110 million in 2016 due to the start of building second stage of the Vinnytsia poultry farm.

MHP is the largest poultry producer in Ukraine. It also deals with the production of grains, sunflower oil and meat.

GROYSMAN OPENS ALFA CHEMGROUP’S BILA TSERKVA PREPARATIVE FORMS PLANT

BILA TSERKVA. Oct 10 (Interfax-Ukraine) – A large player on the Ukrainian crop protection agents market, Alfa Chemgroup (Kyiv), the key owner of which is Borys Todorov, with the participation of Ukrainian Prime Minister Volodymyr Groysman, First Deputy Prime Minister Stepan Kubiv and Agricultural Policy and Food Minister Taras Kutoviy on October 7, 2016 opened Bila Tserkva preparative forms crop producing micronutrient fertilizers and plant protection agents with an annual capacity of 11,400 tonnes.

Groysman said during his visit that the plant could occupy up to 15% of the Ukrainian crop protection agents market assessed at UAH 6-7 billion. It is mainly formed thanks to imported goods now.

Todorov confirmed that the capacity of the Ukrainian market is around 70,000 tonnes.

At present, the plant can produce 15 preparations and it has a line producing eight types of micronutrients.

Investment in the new production facilities, first lines of which started operating in 2015, was not disclosed during the ribbon-cutting ceremony. Earlier Landlord magazine said that investment reached UAH 110 million.

Todorov holds 88% of Alfa Chemgroup LLC and Vasyl Mykhailin holds 12%.

EU-UKRAINE SUMMIT TO BE HELD IN BRUSSELS ON NOVEMBER 24

KYIV. Oct 10 (Interfax-Ukraine) – The 18th EU-Ukraine summit will be held in Brussels on November 24, the press service for the Council of the European Union said.

“On Thursday 24 November Donald Tusk, President of the European Council, will host the 18th EU-Ukraine summit. He will represent the EU together with Jean-Claude Juncker, the President of the European Commission. President Petro Poroshenko will represent Ukraine,” a report posted on the website of the Council of the European Union on Monday said.

According to the report, the leaders will discuss liberalization of the visa regime between Ukraine and the EU, implementation of the Minsk agreements, and the agenda of reforms and anti-corruption measures in Ukraine.

According to earlier reports, the next annual EU-Ukraine summit was to be held in May 2016, but the parties agreed to reschedule it to fall 2016. The reason for the rescheduling was the two parties’ wish to deliver specific results by this event.

Specifically, the parties expect to be able to make particular statements at the summit regarding the visa-free regime for Ukraine, and also the prospects of further ratification of the association agreement between Ukraine and the EU. In addition, Ukraine was given an opportunity to conduct key reforms within the framework of its cooperation with the IMF, including those that open up the way to macroeconomic assistance from the EU.

Ukraine expects the EU-Ukraine summit to result in the adoption of a joint bilateral document reflecting issues that concern Ukrainian society such as the visa-free regime, the prospects of enactment of the association agreement, the continuation of the sanctions against Russia, the prospects of macro financial assistance from the EU, and also agreements on common airspace.

UKRZALIZNYTSIA HEAD EXPECTS EXPORTS OF 45 MLN TONNES OF GRAIN IN 2016/17 AGRI-YEAR

KYIV. Oct 7 (Interfax-Ukraine) – Ukrzaliznytsia has increased the annual wagon repair plan from 19,370 to 29,970, including for securing the growing exports of grain that could be 5 million tonnes a month by all means of transport by the end of this year.

“The anticipated harvest is 83 million tonnes of grain and 45 million tonnes for exports … five million tonnes every year, until the end of the year, the peak months, plus restrictions for transportation by road. There will be grain and there will be problems with its transportation,” Ukrzaliznytsia Board Chairman Wojciech Balczun said on Facebook after a meeting with the largest agricultural producers, grain traders and the American Chamber of Commerce in Ukraine on October 5.

He said that the number of Ukrzaliznytsia’s grain carriers has not decreased, but the last grain carrier was bought by the company in 1993, and applications for transportation of grain have considerably grown.

“I repeat: we are ahead of the grain transportation target. For our part we are doing everything to meet the needs of grain traders. We reduced the turnover of wagons, introduced special procedures for delay of rolling stock, as well as anticipated personal disciplinary responsibility of heads of services, branches and employees of the central office. All unprofessional actions or sabotage will be strictly punished,” Balczun said.

He added that acute problems with fuel, lubricants and locomotives are being settled, but due to the many-year accumulation of problems this year would be heavy.

“We need your support. Do not blame Ukrzaliznytsia that it fails to cope with the situation. We need some time,” he said, addressing the meeting participants.

He said that grain traders asked to support them in dispute with the Infrastructure Ministry asking the ministry to relax the limits for cargo transported by road during the peak period.