Business news from Ukraine

YATSENIUK TO PROPOSE REPLACING MINISTERS WHO FAIL TO PERFORM THEIR DUTIES IN SEPTEMBER

KYIV. Aug 11 (Interfax-Ukraine) – Ukrainian Prime Minister Arseniy Yatseniuk has promised to organize an inspection of the work of the current members of the government in September, based on the results of which he will suggest that the parliamentary collation replace ministers who fail to perform their duties.

“In September it will be clear what’s been done and what hasn’t. Based on the results of the assessment of actions of every minister, I will suggest new members of the Cabinet of Ministers and new, efficient structure of the Ukrainian government, as well as regional state administrations to the parliamentary coalition,” Yatseniuk said on the air of “Ten Minutes with Premier” program on Espreso TV on Sunday night.

“[The important thing] has to be not the quantity but the quality, not the imitation but the responsibility,” the PM said.

Yatseniuk noted that he had already “heard out the reports of all ministries.” Tasks have been already given to every minster in the respective area, and in September it will be clear what’s been done, and what hasn’t, he added.

According to Yatseniuk, the only indication of changes in the country “isn’t the process, but the results.”

GDP COULD VARY FROM 0.3% FALL TO 2% RISE IN 2016, RISE BY 1-3.5% IN 2017, 3-4% IN 2018-2019 – CABINET

KYIV. Aug 10 (Interfax-Ukraine) – Ukraine’s gross domestic product (GDP) in 2016 according to the optimistic scenario will increase by 2% with inflation (December to December) being 12%, according to the macroeconomic forecast approved by the government of Ukraine.

According to Cabinet resolution No. 558 dated August 5, the macroeconomic forecast includes a pessimistic scenario as well, according to which the decline in GDP in 2016 will amount to 0.3% with inflation being 14.7%.

Under the optimistic scenario, it is assumed that in 2017 economic growth will accelerate to 3.5% while inflation will slow down to 8.1%, and in the next two years will stabilize at 4% with inflation being 5.5-5.2%.

The pessimistic scenario assumes that in 2017 GDP will grow by a mere 1% with inflation being 10.3%, while in 2018-2019 its growth will reach 3% at inflation standing at 7.6-5.8%.

DEMAND FOR NEW COMMERCIAL CARS IN UKRAINE PERKS UP NOTICEABLY IN JULY

KYIV. Aug 10 (Interfax-Ukraine) – New commercial car sales in Ukraine in July increased by 52% compared to June this year, to 448 units, bus sales by 2.3 times, to 50 units.

According to the Ukrautoprom association, in comparison with July 2014 commercial car sales decreased by 8.6%, buses by almost five times.

The leaders of the July sales among commercial cars became GAZ, Renault and FIAT, together occupying 45% of the market.

“All three brands in July managed to demonstrate the increased presence in the Ukrainian market both compared to the previous month and year-over-year,” the association said.

In particular, GAZ sales doubled year-on-year and almost tripled from June this year, to 75 units, Renault – 22% and 40% respectively, to 66 units, FIAT – 3% and 68%, to 62 units.

The leader in the bus segment was RUTA – 16 vehicles against two buses in June this year and 12 in July 2014.

Ukraine’s Etalon and Ataman ranked second, selling ten buses each. ZAZ buses I-VAN ranked third (nine buses sold).

INDUSTRIAL PRICES IN UKRAINE 2% UP IN JULY – STATISTICS

KYIV. Aug 10 (Interfax-Ukraine) – Industrial prices in Ukraine in July 2015 increased by 2% compared to 0.6% in June, the State Statistics Service has reported.

At the same time, in annual terms (compared to the same month last year) the rise in wholesale prices continued to slow down: to 37% from 37.9% in June, 42% in May, and 48.6% in April.

In general, over the first seven months of 2015 industrial prices increased by 25.9%.

As reported, the rise in Ukrainian industrial prices in 2014 accelerated to 31.8% from 1.7% in 2013 and 0.3% in 2012.

The service said the price of goods in mining and quarrying in July increased by 1.6%, particularly extraction of metal ores by 4.6%, stone, sand and clay by 2.8%. At the same time, prices for crude oil production were down by 1.4%.

Prices in processing industry rose by 0.2%, in particular in manufacture of electrical equipment, machinery by 0.9%, rubber and plastic products, other non-metallic mineral products by 0.7%, basic pharmaceuticals by 0.5%.

However, prices in manufacture of coke, chemicals, iron and steel, finished metal products, except for machinery and equipment declined by 0.9-0.5%.

Prices in production of food, beverages and tobacco rose by 0.6%. In particular prices in beverage industry increased by 3.5%, meat production by 2.2%, sugar by 1.8%, dairy products by 1.6%, bread, bakery and pastry products by 0.5%. At the same time, prices in production of cereals declined by 3.2%, fruit and vegetables processing and canning by 1.2%, oil and animal fat by 0.6%.

Tariffs in supply of electricity, gas and conditioned air grew by 7.0% due to the rise in the price of electricity by 7.8%.

UKRAINIAN PRESIDENT SIGNS LAW EXEMPTING PRIVATE SCHOOLS, PRESCHOOLS FROM PROPERTY TAX

KYIV. Aug 10 (Interfax-Ukraine) – Ukrainian President Petro Poroshenko has signed law No. 654-VIII which amends the Tax Code of Ukraine in order to create favorable conditions for the provision of education services by preschool and general education institutions of non-state ownership, the presidential press service reported.

According to the law, preschool and general education institutions irrespective of their form of ownership and their sources of financing, cultural, scientific, educational, healthcare, social protection, sports institutions fully funded by the national or local budgets are exempted from paying company property tax.

Buildings of preschool and general education institutions irrespective of their form of ownership and the source of financing, that are used to provide general educational services are exempted from paying tax on property other than land parcels.

The Verkhovna Rada passed this bill on July 17. The law takes effect from the first day of the month that follows the month when it was published.

UKRAINE INCREASES PORK EXPORTS BY 7.4 TIMES, POULTRY BY 5.6% IN SEVEN MONTHS

KYIV. Aug 10 (Interfax-Ukraine) – Ukraine in January-July 2015 exported 18,620 tonnes of pork, which is 7.4 times more than in the same period in 2014.

According to customs statistics, made public by the State Fiscal Service of Ukraine, in monetary terms exports of these products for the seven months amounted to $38.997 million.

Pork imports for the period amounted to 2,184 tonnes compared to 20,170 tonnes a year earlier. In monetary terms the figure was $5.132 million.

Poultry exports rose by 5.6%, to 90,487 tonnes.

Poultry exports in monetary terms amounted to almost $125.553 million. Imports came to 27,964 tonnes worth $18.626 million, which is 2.1% less than in January-July 2014, when the figure amounted to 28,550 tonnes worth $29.77 million.

As reported, Ukraine in 2014 doubled exports of pork, to 9,400 tonnes, increased poultry shipments abroad by 20%, to 174,700 tonnes. At the same time, pork imports dropped five-fold, to 30,800 tonnes, poultry by 14.2%, to 61,000 tonnes.