Business news from Ukraine

INFRASTRUCTURE MINISTRY HOPES TO START BUILDING LVIV-KHERSON ROAD IN 2017

KYIV. Sept 8 (Interfax-Ukraine) – Ukraine’s Infrastructure Ministry intends to start building the Lviv-Kherson highway in 2017 if the required funds are available, Infrastructure Minister Volodymyr Omelyan has said, adding that this would solve transit issues.

“If we manage to obtain the doubled sum – the prime minister promises it – we would be able to start systemic construction of roads. In particular, this year we are to hold tenders and next year to start building a large European highway that would joint Lviv and Kherson,” he said on Channel 5 TV late on Monday.

He said that these plans suit the situation with transit in Ukraine, in particular, this concerns a ban to transit across Russia.

The minister said that construction of the highway would solve the transportation of cargo between southern ports in Ukraine and the European Union.

“This road is built with this purpose. I think that the project would be a success. We would find good contractors,” he said.

POROSHENKO ADVOCATES SUPPORT FOR UKRAINIAN IT SECTOR

KYIV. Sept 8 (Interfax-Ukraine) – Ukrainian President Petro Poroshenko advocates support for the Ukrainian IT sector and its development.

“We have a huge staff potential and the most dynamic growth in the number of IT specialists. Our task is to support the developing IT sector,” he said in his address to the Ukrainian parliament in Kyiv on Tuesday.

The president said that in 2015 the IT sector became the third sphere in Ukraine in terms of exports, reaching $2.5 billion. This is 3% of Ukrainian GDP.

Poroshenko said that over 2,000 startups have been registered in Ukraine. They show high growth – up to 100% in a year.

“Last year investment reached $132 million, and foreigners invested a half of it. Ten Ukrainian IT companies were included in top 100 of global outsourcing companies,” he added.

UKROBORONPROM REPRESENTS POTENTIAL OF UKRAINIAN DEFENSE INDUSTRY AT MSPO 2016 EXHIBITION IN POLAND

KYIV. Sept 8 (Interfax-Ukraine) – The Ukroboronprom State Concern is representing the potential of the Ukrainian defense and industrial complex at the 24th International Defence Industry Exhibition MSPO 2016 held in Kielce (Poland) on September 6 through September 9.

The concern’s press service reported that 14 Ukroboronprom’s enterprises will be presented in Kielce that would present the potential of the Ukrainian defense and industrial complex in the sphere of designing, modernization and repair of aircraft and armored vehicles, production of artillery weapons, aviation, optical and radar equipment.

Among the enterprises exhibiting their products are Antonov State Enterprise, Konotop Aircraft Repair Plant Aviacon, Izyum Instrument-Making Plant, Lviv State Plant Lorta, Zhytomyr, Mykolaiv and Kyiv armored plants.

The Ukrainian delegation is headed by Ukroboronprom Director General Roman Romanov.

MSPO 2016 is the largest military industry exhibition in Poland and Central Europe. This forum unites potential buyers and suppliers; this is the showcase for military equipment, technologies and products; a platform for display of the customers’ needs and requirements.

UKRAINE, CZECH REPUBLIC AGREE TO HOLD MEETING OF JOINT COMMISSION FOR ECONOMIC COOPERATION

KYIV. Sept 8 (Interfax-Ukraine) – Ukraine and the Czech Republic have agreed to hold a meeting of the joint intergovernmental commission on economic, industrial, scientific and technical cooperation soon.

“When discussing the prospects for deepening economic and trade cooperation, the two sides agreed to resume the work of the Ukrainian-Czech joint intergovernmental commission on economic, industrial, scientific and technical cooperation, and to hold its meetings in Ukraine soon,” the press service of the Ukrainian Cabinet of Ministers reported with reference to the results of the meeting of Ukrainian Prime Minister Volodymyr Groysman and his Czech counterpart Bohuslav Sobotka.

Groysman noted Ukraine’s interest in enhancing cooperation with the Czech Republic, particularly in the areas of infrastructure, business activities and defense.

The Ukrainian prime minister also said that the government decided to raise the level of co-chairs of the commission, the Ukrainian part of which will be headed by Deputy Prime Minister for European and Euro-Atlantic integration Ivanna Klympush-Tsintsadze.

“I think the intergovernmental commission will be a good tool to improve our cooperation,” Groysman said.

POROSHENKO URGES RADA TO OPEN LAND MARKET

KYIV. Sept 6 (Interfax-Ukraine) – The absence of the farmland market in Ukraine hinders investment in agriculture, Ukrainian President Petro Poroshenko has said.

“The absence of the right to freely sell and buy farmland hinders investment into agriculture, narrows and violates rights of farmers and sets artificially low rent rates, drawing the last kopecks out their pockets. This is axiomatic. I know the public opinion in Ukraine on the issue and the position of the majority of parliamentary factions. I appreciate and respect them. This is your competence, dear lawmakers, how to resolve the problem: to hide head in the sand and change nothing or to work on the creation of the land market in Ukraine, but with all possible safeguards from any negative consequences,” he said in his annual address to the Verkhovna Rada in Kyiv on Tuesday.

The president said that the agro-industrial complex remains a key source of currency income to the country.

He said that now the agriculture’s share of total exports reached the highest indicator in the past 25 years.

“The leading role of agriculture in the context of building the innovative economy looks slightly contradictory. It is important until the process of boosting high-tech ‘muscles’ by the economic complex continues,” Poroshenko said.

 

UKRAINIAN CAR MARKET GROWTH ACCELERATES TO 44% IN JAN-AUG

KYIV. Sept 6 (Interfax-Ukraine) – Sales of new passenger cars in Ukraine in January through August 2016 grew by 44% year-over-year, to 37,988 cars, AUTO-Consulting has reported.

“Taking into account active August that was not to show large sales in the previous years, the result of the car market in the first eight months looks good. The growth pace accelerates. This is a good sign before the start of the active autumn season,” the company’s experts said.

They said that despite a decline in business activity, 5,624 cars were sold in August. This was 58% up year-over-year.

Toyota returned its leading position in August (Volkswagen was first in July). Its market share was 12%. Renault was second with 9.9% market share and Ford was third thanks to a large batch of cars supplied for medical institutions in Kyiv (100 cars).

A decline in sales of Volkswagen car was recorded. It was fourth in August. Kia, Hyundai and ZAZ saw a rise in sales.

“Mazda dealers made a breakthrough. The Japanese brand managed to climb by four positions and enter top ten most popular brands,” AUTO-Consulting said.

Mercedes-Benz first this year was first, forcing BMW to the second position.

The Ukrautoprom association published sales statistics on its website. According to the association, the market grew by 63% in August on August 2015 and by 1.5% on July 2016, to 5,630 cars.

Some 15,959 new passenger cars were registered last summer (12,180 cars in summer 2015), the association said.

According to the Ukrautoprom, Toyota sold 678 cars (31% up year-over-year). Renault saw a 75% rise in sales, to 552. Ford posted a 2.5-fold rise in sales, to 423.

KIA Sportage was the most popular car (271).