Business news from Ukraine

UKRAINE INCREASES STEEL SMELTING BY 11% IN JAN-JUNE, CAST IRON OUTPUT BY 17%, ROLLED STEEL OUTPUT BY 12%

KYIV. July 4 (Interfax-Ukraine) – Ukrainian metal companies tentatively increased steel production by 11% in January through June 2016 year-over-year, to 12.459 million tonnes, the Metallurgprom association of metal companies of Ukraine (Dnipro) has told Interfax-Ukraine.

Rolled steel output grew by 12% in January-June 2016, to 10.909 million tonnes and cast iron output was up by 17%, to 11.949 million tonnes.

Pipe production fell by 7%, to 398,000 tonnes, and coke output increased by 24%, to 6.489 million tonnes.

In June 2016, 1.87 million tonnes of steel, 1.59 million tonnes of rolled steel and 1.79 million tonnes of cast iron were made, as well as 70,000 tonnes of pipes and 910,000 tonnes of coke. In May 2.269 million tonnes of steel, 2.014 million tonnes of rolled steel and 2.2 million tonnes of cast iron, 70,500 tonnes of pipes and 1.125 million tonnes of coke was made.

Late May and early June some enterprises sharply decreased production due to problems with delivery of raw materials and shipment in the Anti-Terrorist Operation (ATO) zone.

UKRAINIAN BUSINESSMEN DISCUSS IMPROVEMENT OF BUSINESS CLIMATE WITH PM

KYIV. July 4 (Interfax-Ukraine) – Representatives of the Union of Ukrainian Businessmen (SUP) have discussed problematic issues hindering development of business with Ukrainian Prime Minister Volodymyr Groysman.

The SUP said in a press release that at a meeting on Friday taxation, currency restrictions, old regulatory requirements, corruption of official and the shadow economy were discussed.

SUP members proposed to introduce the requirement to obligatorily register payment transactions with imported goods in the whole trade chain, adopt a full electronic document turnover between customs agencies and businessmen, open customs statistics to meet international requirements. This would help to hinder the shadow imports.

The simplified taxation system for small business should be improved. The SUP representatives proposed setting tax rates for these companies, taking into account the spheres where they work.

The founder of 3 Bears company and a board member of SUP Dmytro Ushmayev proposed to increase the term to return currency income from 90 to 180 days and eliminate the requirement to obligatory sell 65% of currency income for producers and exporters.

The SUP said in a press release that business representatives said that it is important to create the national export-credit agency. The state would be able to guarantee exports credits and insure them from political and other risks. Groysman said that the government is mulling the possible format of the agency’s operation.

The problems of construction sector were also discussed at the meeting. The co-owner of Midland Development Ukraine and board member of SUP Olena Shuliak said that the main problems of the sector are the absence of town-planning documents, the long land allocation procedure, complicacy of connecting to utility networks, old design requirements, corruption in issuing permits and the necessity of paying fees to towns.

“An agreement to hold a separate meeting of the prime minister with constructors and joint work of the SUP and the government to find mechanisms to re-launch the sector has been reached,” the association said.

According to a posting on the government’s website, this work will include improvement of national construction requirements.

At the meeting Groysman announced the soon reloading of the council of businessmen under auspices of Ukraine’s Cabinet of Ministers. The council should become a real tool for analyzing initiatives, opportunities to reach the government and make proposals. The prime minister announced that the office for accompanying investment would be soon created.

“It is planned to create these offices all over the country. This would help to understand problems of business and quickly react to them,” Groysman said.

He said that the government would not cover up tracks of corruption and seeks to remove pressure of supervision agencies on business.

The Union of Ukrainian Businessmen (SUP) was registered on January 29, 2016. Its board consists of top managers of 18 Ukrainian companies: Nova Poshta, UBC Group, Stekloplast, Softserve, Pharmplanet, IMC Group, Horizon Capital, Baker Tilly Ukraine, Spizhenko Cyberclinic, А7 Group, 3 Bears, Fedoriv, MTI, Rozetka.ua, Midland Development Ukraine, TM Cosmo, Arzinger and TMM. Around 50 companies are official SUP members.

UKRAINE THRESHES 1.5 MLN TONNES OF EARLY GRAIN CROPS AS OF JULY 2

KYIV. July 4 (Interfax-Ukraine) – Ukraine as of July 2 had threshed grain and leguminous crops on 412,000 hectares, harvesting 1.5 million tonnes of grain.

The press service of the Agricultural Policy and Food Ministry reported on Saturday, the yield is 35.6 centners per ha (30 centners per ha in 2015).

Some 178,000 tonnes of wheat was threshed on 47,000 ha or 1% of the target with the yield of 38.1 centners per ha (31.8 centners per ha in 2015).

Some 1.2 million tonnes of wheat was threshed on 354,000 ha or 13% of the target with the yield of 35.4 centners per ha (30.8 centners per ha in 2015).

Around 35,000 tonnes of peas were harvested from 12,000 ha (5%) with the yield of 29.3 centners per ha (18.5 centners per ha in 2015).

Some 42,000 tonnes of winter rapeseeds were threshed on 19,000 ha (3%) with the yield of 22.2 centners per ha (17.2 centners per ha in 2015).

SLOVAKIAN TAXI SERVICE HOPIN ENTERS UKRAINIAN MARKET

KYIV. July 1 (Interfax-Ukraine) – The Hopin taxi service mobile attachment (Slovakia) starts operating in Kyiv from July 1.

Director General Martin Winkler said at a press conference in Kyiv on Wednesday that using the attachment one can learn about the fare, type of a car, warn a taxi driver about a delay and track the approaching of the car.

The minimum order is UAH 40. The cost of one kilometer travelling is UAH 6.

He said that by the end of this year the company seeks to reach 2,000 drivers in Kyiv and 500,000 orders a month.

Cash or bank cards via the attachment could be used to pay for the taxi.

Asked about the lawfulness of the taxi service operation, Marketing Director of the Ukrainian division Vadym Yurik said that the issue has been settled under Ukrainian law. There is a representative office in Ukraine. The taxi market in Ukraine unfortunately is unregulated now. Around 90% of drivers work without any permits, he said.

“We hope that the issue would be settled soon,” he said, not disclosing how tax payment from operations of taxi drivers is settled.

Yurik added that the company has interviews with drivers before hiring them and monitors drivers’ rating in the application.

He said that the company intends to operate in several large cities of Ukraine.

Winkler said that by the end of this year or early next year the company could enter Lviv and Odesa and then Dnipro and Kharkiv.

KHLIBNI INVESTYTSII LAUNCHES NEW BAKERY IN KYIV REGION

KYIV. July 1 (Interfax-Ukraine) – Khlibni Investytsii, one of the largest producers of bread and bakery goods in Ukraine, has launched a new bakery located near First Capital Bakery (Pershy Stolychny Khlibzavod).

According to a report on the website of the holding, the company’s investment amounted to $6 million. It is planned to invest another $6 million in 2016-2017.

Currently, the company has installed a line for producing Ukrainsky bread with a capacity of 30 tonnes per day. It is planned to start a long loaf line in September 2016.

Construction began in late November 2015.

After the launch of new facilities Pershy Stolychny Khlibzavod became the largest plant in Ukraine in terms of its potential.

Khlibni Investytsii Holding plans in 2017 to build a new confectionery factory near Pershy Stolychny Khlibzavod