Business news from Ukraine

Business news from Ukraine

MILK PRODUCTION IN UKRAINE IN JAN-DEC 2019 DECREASES BY 3.7%

Milk production in Ukraine in January-December 2019 decreased by 3.7% compared to 2018, to 9.69 million tonnes.
According to the State Statistics Service, 3.48 million tonnes of meat (live weight) was produced in 2019, which is 4.8% more than in 2018.
Egg production in January-December increased by 3.4%, to 16.68 billion.
As reported, with reference to statistical data, milk production in Ukraine in 2018 decreased by 1.8% compared to 2017, to 10.1 million tonnes.
Egg production in 2018 increased by 4.1%, to 16.14 billion, meat (in live weight) by 1%, to 3.3 million tonnes.

RUBIZHNE MILL CUTS CORRUGATED CARDBOARD BOXES OUTPUT IN 2019

Rubizhne cardboard packaging mill in Luhansk region, one of Ukraine’s largest cardboard packaging producers, produced 251.07 million square meters of corrugated cardboard boxes in 2019, including goods from its subsidiary, Trypilsky packaging plant in Kyiv region, which was 2.5% down year-over-year.
Since early 2019, the two enterprises demonstrated a slight increase in this indicator compared to the previous period of 2018, though started to decline following the results of the first half of 2019.
The UkrPapir association said that last year the mills reduced production of components of corrugated cardboard (cardboard and fluting) by 26%, to 216,600 tonnes.
The total commodity amount produced by both enterprises in the period in monetary terms decreased almost 21%, to UAH 4.44 billion.
The Rubizhne cardboard packaging mill has been working on the packaging market since 1991. It produces components for corrugated cardboard (cardboard and fluting) and corrugated cardboard boxes. It also produces cardboard for gypsum boards.
Its most important customers are large confectioneries, juice and tobacco producers.
The Rubizhne cardboard packaging mill acquired Trypilsky packaging plant in 2002 and subsequently began producing corrugated cardboard and corrugated packaging.
In 2018, they produced 257.53 million square meters of corrugated cardboard boxes, which was 13.6% up on 2017.

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MARIUPOL SEAPORT INCREASES CARGO HANDLING

Mariupol seaport (Donetsk region) increased cargo transshipment by 10.12% in 2019 compared to 2018, to 6.484 million tonnes.
According to the Ukrainian Sea Ports Authority, the port increased transshipment of exported cargo by 6.81%, to 5.266 million tonnes, imported goods by 33.27%, to 1.209 million tonnes, while significantly reducing transshipment of cabotage cargo, to 8,800 tonnes. The port did not handle transit cargo.
According to the nomenclature of cargo in 2019, Mariupol port increased transshipment of liquid cargo by 5.1 times, to 144,100 tonnes, dry bulk cargo by 47.02%, to 2.512 million tonnes, but reduced transshipment of packaged goods by 7.78%, to 3.828 million tonnes.
As reported, the volume of cargo transshipment in Mariupol seaport in 2018 decreased by 9.62% compared to 2017, to 5.89 million tonnes.

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STATE-RUN OSCHADBANK TO EXTEND UAH 2 BLN LOAN OF NAFTOGAZ FOR FOUR AND HALF YEARS

Oschadbank and NJSC Naftogaz Ukrainy have approved the extension of the term of the loan agreement, the debt on which is UAH 1.97 billion to December 24, 2024, while the loan agreement was to expire on June 9, 2020, according to an explanatory note to the draft government resolution available at Interfax-Ukraine.
The Cabinet of Ministers, which had previously provided government guarantees for this loan, agreed on such a prolongation at a meeting held on Wednesday, MP Oleksiy Honcharenko said in his Telegram channel.
According to the Naftogaz report, as of September 30, 2019, about 98% of its cash and balances in bank accounts, the total amount of which amounted to UAH 24.96 billion, were placed in state-controlled banks. At the same time, these banks accounted for approximately 59% of Naftogaz’s loans with a total volume of UAH 60.79 billion the company has.
At the end of 2018, these indicators amounted to 96% of UAH 14.22 billion and 76% of UAH 56 billion, respectively.
The amount of provided government guarantees for Naftogaz’s obligations for January-September last year decreased from UAH 15.44 billion to UAH 2.91 billion.

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UKRAINIAN PARLIAMENT PASSES BILL ON STATE REGULATION OF GAMBLING BUSINESS AT FIRST READING

The Verkhovna Rada of Ukraine has passed bill No. 2285-d on state regulation of activities of gambling establishments.
An Interfax-Ukraine correspondent reported that 260 parliamentarians voted in favor of the document at a plenary sitting on Thursday morning.
As reported, on December 19, 2019, the Verkhovna Rada decided to rework for its repeat first reading bill No. 2285-d on state regulations on organizing and conducting of gambling activity, which was registered in the parliament on December 18, 2019.
The lawmakers did not support the bill in the first reading, it scored a mere 213 votes with the required number being 226, while 243 parliamentarians supported the decision to send the bill for the repeat first reading.
The Cabinet of Ministers of Ukraine registered in the parliament bill No. 2285 and the parliamentarians also submitted seven alternative bills, including the updated version No. 2285-d by member of the Servant of the People faction Oleksandr Dubinsky.
It is proposed in the bill to limit the number of licenses issued for gambling houses and to introduce mandatory verification of gamblers while receiving bets and registration of wins in the online monitoring system.
The government’s bill proposes to determine gambling areas at five-star hotels for casinos and at three-star hotels for slot machines.
The law on the national budget for 2020 envisages a UAH 4.4 billion revenue from the licensing of gambling businesses. The money will be transferred to the special fund and excess revenues will be spent on subsidies for local budgets for education and public health programs.
As reported, Interior Minister of Ukraine Arsen Avakov said that in pursuance of the government’s decision, law enforcement authorities should end the activities of gambling establishments by 16:00 on December 20, 2019.
The minister said that the issue will be regulated by a special law, which was being considered and would be adopted by parliament.

VOLUME OF HOUSE PROFESSIONAL ALARM SYSTEMS MARKET IN UKRAINE EXPANDS BY 10-15% IN 2019

The volume of the house professional alarm systems market in Ukraine expanded by 10-15% in 2019, to almost $50 million, Sales Director at Ajax Systems in Ukraine Andriy Rusan has told Interfax-Ukraine. “According to our estimates, last year the market for security systems used for domestic purposes, for example, in private houses, apartments, offices, banks, grew by about 10-15%, to $50 million. This does not include large infrastructure projects, for example, airports,” Rusan said.
According to him, in the Ukrainian market, in addition to Ajax Systems, four more major players are now represented.
“There are four more large companies on the market that are known in the professional environment, but less known in domestic use. In addition, we differ by the fact that we are the only ones on the market that are offering wireless systems, the rest offers wired ones,” Rusan said.
As reported, in March 2019, Emerging Europe Growth Fund III (EEGF III) managed by Horizon Capital acquired a minority stake in Ajax Systems, a leading producer of smart security systems in Ukraine, for $10 million. In September 2019, the Antimonopoly Committee of Ukraine considered the acquisition of a controlling stake in Cypriot Ajax Cyprus Holding Ltd. by Cypriot Dealbeta Investments Limited, created by Emerging Europe Growth Fund III (EEGF III), jointly with an individual-citizen of Ukraine.