Business news from Ukraine

UKRAINE SEES 2% DECLINE IN MILK PRODUCTION

The production of milk in Ukraine (excluding the temporarily occupied Crimea and Sevastopol, part of Donbas) in January-September 2018 declined by 2% compared to the same period in 2017, to 7.908 million tonnes.
At the same time, egg production in the first nine months grew by 3.1% compared to the same period in 2017, to 12.484 billion eggs, the State Statistics Service of Ukraine said.
Production of meat (in live weight) in January-September 2018 grew by 0.3%, to 2.276 million tonnes.
According to earlier statistics reports, milk production in Ukraine in 2017 decreased by 0.5% from 2016, to 10.329 million tonnes, meat (in live weight) by 0.4%, to 3.259 million tonnes. Production of eggs in 2017 rose by 3.2%, to 15.578 billion eggs.

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AIRCRAFT COMPANY ANTONOV INTENDS TO DELIVER TWO REGIONAL AN-158S TO UKRAINE’S FANAIR

Antonov state enterprise (Kyiv) intends to ensure the assembly and delivery of two regional An-158 jets for 97 passengers to the Ukrainian airline Fanair by the end of 2020. An Interfax-Ukraine correspondent said the relevant cooperation plans are enshrined in a memorandum of intent signed by the parties within the framework of the 11th international aerospace show Aviasvit XXI held in Kyiv on October 9-12.
The signing of the memorandum is the basis for signing a firm contract. According to the memorandum, the aircraft are to be delivered within six months after the activation of the contract under the scheme of financial leasing. The approximate delivery time of the aircraft is the end of 2020.
Antonov state enterprise is the leading Ukrainian developer and manufacturer of aircraft equipment, a recognized world leader in the niche of transport aircraft of the widest use. By decision of the government, the company has been part of Ukroboronprom state concern since 2015.

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EU READY TO BEGIN TRADE ARBITRATION WITH UKRAINE TO LIFT MORATORIUM ON TIMBER EXPORTS

The European Union is ready to begin commercial arbitration with Ukraine to lift a moratorium on exports of round timber as the one violating the Ukraine-EU Association Agreement, Deputy Prime Minister for European and Euro-Atlantic Integration Ivanna Klympush-Tsintsadze has said. “Unfortunately, Ukraine really violates the Association Agreement with the introduction of the moratorium on round timber exports. This obligation will be considered as part of commercial arbitration. And the European Union is ready to start this arbitration between Ukraine and the EU,” she said at a briefing in Kyiv. According to the official, the lifting of the moratorium is excluded from the list of conditions for provision of macro-financial assistance by the European Union.
Speaking about the implementation of other provisions of the macro-financial assistance, in particular, the launch of automatic verification of electronic declarations of politicians and officials, the deputy premier said that coordination between various departments is underway to soon come to full ability to conduct automatic checks.
“The only problem that I see at the moment so that this system could work is changes in the legislation. The draft law from the government has been considered by the Verkhovna Rada for a very long time, maybe more than a year, the bill that regulates the automatic connection of the NACP (the National Agency on Corruption Prevention) to different registers,” she added.

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GRAIN COMPANY NIBULON TO INVEST $19 MLN IN RIVER TERMINAL CONSTRUCTION

Nibulon will invest $19 million in construction of a river transshipment terminal in Ternivka (Zaporizhia region).
According to a posting on the company’s website, the launch of the terminal is scheduled for June 2019.
Along with the terminal, the project envisages construction of a berth of over 3 km long and dredging works on the Ploska Osokorivka River.
The company said that the terminal will hire 120 employees and will pay over UAH 2.7 million of taxes to the local budget a year.
The terminal will be third for the company in Zaporizhia region.
Nibulon was established in 1991. It is one of the largest operators in the grain market of the country. Nibulon cultivates 83,000 hectares. It exports agricultural products to more than 60 countries of the world. The annual export volume exceeds 4.5 million tonnes.

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POLAND AND UKRAINE AGREE ON 160,000 LICENSES FOR TRANSPORTATION BY ROAD IN 2019

Ukraine, Poland have agreed on the preliminary exchange of 160,000 licenses for transportation by road in 2019, Ukraine’s Infrastructure Ministry has reported after a meeting of the Ukrainian-Polish mixed commission for international road haulage held on October 10 and October 11.
“The sides will hold a regular meeting of the mixed commission in the first half of 2019, where a decision will be made to establish the final quota,” the Infrastructure Ministry said on Friday.
In particular, there will be universal licenses for of the categories Euro-1, Euro-2 and Euro-5 – 10,000 each, Euro-3 – 50,000, Euro-4 – 20,000, and transit categories of Euro-3 – 25,000 and Euro-5 – 35,000.
According to the report, Ukraine also agreed to obtain from Poland an additional 10,000 licenses (8,000 transit and 2,000 universal) for this year, which will increase their number to 216,500.
The Infrastructure Ministry said that Poland again insists on reducing the 2019 quota to 130,000. However, this does not meet the needs of Ukrainian haulers. “Our position in relation to this proposal was unambiguous – we do not agree to any reduction of the quota!” Director of the Strategic Development Department of the road market and road transport of the Infrastructure Ministry Viktor Sasin said on Facebook.
The ministry said that the meeting on the quota increase for 2019 will be held after evaluating the effectiveness of the use of already issued licenses.

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CATTLE AND PIG NUMBERS DECREASE IN UKRAINE, POULTRY UP

Cattle numbers in Ukraine as of October 1, 2018 amounted to almost 3.862 million animals, which is 4.1% less than on the same date in 2017, the State Statistics Service has reported. At the same time, the number of cows by the specified date decreased by 3.5%, to 2.018 million animals.
According to the state service, on October 1, the number of pigs decreased by 4% compared to the same date last year, to 6.463 million animals, sheep and goats by 3.2%, to 1.516 million.
The number of poultry in the country increased by 2.2% compared with October 1, 2017, amounting to 238.816 million birds.

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