Business news from Ukraine

UKRAINIAN LARGEST FOOD RETAILERS ASKING AUTHORITIES TO INTRODUCE PARALLEL IMPORTS

Ukraine’s Agricultural Policy and Food Ministry predicts that corn harvest in Ukraine would increase by 19.4% in 2018 compared with 2017, to 29.5 million tonnes.
“We expect the corn harvest this year to be about 29.5 million tonnes, while the export of the crop this agricultural year [2018/2019 agri-year, July-June] will amount to 22 million tonnes,” First Deputy Minister of Agricultural Policy and Food Maksym Martyniuk said at a press conference on Tuesday.
The ministry estimates that the wheat harvest in 2018 may decrease by 7.6%, to 24.2 million tonnes, barley by 13%, to 7.2 million tonnes, rye – by 15%, to 0.38 million tonnes, buckwheat – by 25%, to 0.14 million tonnes, soybean – by 2.6%, to 3.8 million tonnes, and sugar beet – by 10.7%, to 13.3 million tonnes.
The harvest of sunflower can grow by 9.8%, to 13.4 million tonnes, and rapeseed – by 18.2%, to 2.6 million tonnes.
The areas planted with crops for the 2019 harvest will be 8.09 million hectares, in particular 6.2 million hectares with winter wheat, 0.89 million hectares with winter rape, and 0.87 million with winter barley.

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UKRAINIAN LARGEST FOOD RETAILERS ASKING AUTHORITIES TO INTRODUCE PARALLEL IMPORTS

Food retailers Metro C&C, Auchan, Silpo, Novus and Billa have asked Ukrainian Prime Minister Volodymyr Groysman and Chairman of the Verkhovna Rada Andriy Parubiy to support government’s bill No. 4614 introducing parallel imports. According to a letter of the retailers, parallel import foresees import of original goods in parallel with import of products of the right holder and distributors.
“Under the model of parallel import, consumers will have access to lower prices… In this regard, the adoption of bill No. 4614 will improve the level of competition and ensure free trade in the original goods on the customs territory of Ukraine,” CEO of Metro Cash & Carry Ukraine Olivier Langlet said.
According to the explanatory note to the bill posted on the parliament’s website, it is proposed to expand the list of objects of intellectual property rights that are protected after importation into the customs territory of Ukraine, adding the item “brand names.”
In addition, the bill changes the definition of counterfeit goods. In this category, it is proposed to place goods that violate trademark rights and pirated goods (illegal copies of copyrighted goods). The customs clearance of these goods will be suspended at the border.
According to the explanatory note, measures to protect intellectual property rights will not apply to “parallel imports” and to goods moving across the customs border of Ukraine in transit.

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GROSSDORF AGROCHEMICAL COMPANY LAUNCHES SECOND PLANT FOR PRODUCTION OF LIQUID CARBOMIDE-AMMONIUM FERTILIZERS IN ODESA REGION

Grossdorf agrochemical company (Cherkasy region) in Sarata (Odesa region) has launched new production of liquid carbomide-ammonium mixture fertilizers with a capacity of 60,000 tonnes per year. According to a company press release, with the opening of the plant its capacity in the area of liquid fertilizers production rose to 410,000 tonnes per year.
“Grossdorf receives raw materials from Europe and Central Asia, but transportation of these raw materials for production of carbomide-ammonium mixture from the central regions to the southern regions is expensive. Therefore we built a production base and a raw materials storage base in Sarata. The plans for 2019 are to diversify the markets for the supply of raw materials,” the release says.
According to Grossdorf Commercial Director Serhiy Ruban, the capacities launched will allow the company to provide the entire Odesa region with carbomide-ammonium fertilizers, and also consider the possibility of exporting fertilizers from the production unit in Sarata to Moldova.
Grossdorf (Cherkasy) was established in 2016. It is engaged in production, import, transportation of fertilizers, as well as providing services for the introduction of liquid ammonia. The company’s core business is the supply of basic fertilizers for precision farming.

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STATE-OWNED UKRENERGO TO SIGN AGREEMENT WITH MOLDELECTRICA ON SIMULTANEOUS WORK

Ukrenergo plans at the end of 2018 to sign an operational agreement on simultaneous operation in the Ukraine-Moldova control block with Moldelectrica, the press service of the Ukrainian company has reported. “The operational agreement is a contractual basis for the parallel operation of the transmission system operators, which is being worked out in the framework of the action plan for the synchronization of the energy systems of Ukraine and Moldova with ENTSO-E … The final signing of the operation agreement is scheduled for the end of 2018,” the report says.
On September 14 Ukrenergo and Moldelectrica signed three new provisions from the future agreement, and in general 17 provisions are already ready.
“The operating agreement significantly simplifies our contractual base and brings it into full compliance with the European standards. After its final signing, we will be able to cooperate with Moldelectrica according to ENTSO-E rules. To date, the major part of the plan of measures for the development of this important document has already been completed,” Yuriy Kudrenko, the head of the department for ensuring the parallel operation of Ukrenergo’s power systems, said.

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