Business news from Ukraine

GOVERNMENT APPROVES STRATEGY FOR REVIVAL OF UKRAINIAN AIRCRAFT INDUSTRY

The government of Ukraine has approved the strategy for the revival of the national aircraft industry for the period until 2022.
The relevant draft resolution of the Cabinet of Ministers, developed by the Ministry of Economic Development and Trade, was adopted at a government meeting on May 9 without discussion. The Ministry of Finance was instructed to finalize the document within three days.
According to the draft document available to Interfax-Ukraine, the main activities of the strategy include expanding opportunities for the industry’s participation in public-private partnership projects through amending the list of state property objects that can be transferred to concession, approved by the Cabinet in 1999; improving the procedure for obtaining by aviation industry enterprises of licensing documents in the field of export control; cheapening of loans of Ukrainian banks for the development of new aircraft models; certification of aircraft engines of Ukrainian production in the EU; carrying out work on substitution of Russian components import; the development and approval of the concept of the state targeted scientific and technical program for the development of the aviation industry for 2018-2022, as well as the state program itself.
Among the main measures of the strategy are also the reorganization of state enterprise Antonov into Antonov holding company; organization of modernization and production of Mi-2MSB and Mi-8MSB helicopters for the needs of the army and law enforcement agencies, as well as for exports; the creation and organization of a multipurpose light helicopter with a take-off mass of 4-5 tonnes within the framework of Korolek MSB-2; the organization of production of a helicopter with a take-off weight of 7-8 tonnes; the organization of production of blades and helicopter gearboxes for the Mi family helicopters.

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STATE PROPERTY FUND ANNOUNCES TENDER TO LEASE PART OF COOLANT SYSTEM OF CHORNOBYL NPP FOR BUILDING SOLAR POWER PLANTS

The State Property Fund of Ukraine (SPF) has announced a tender to lease part of the engineering facilities of the coolant system of facilities of the Chornobyl nuclear power plant (NPP) on the area of 2.5 million square meters for construction of a solar power plant, First Deputy SPF Head Dmytro Parfenenko has said.
“We are accepting bids from May 10 through May 20 inclusively… The tender will be held on May 29,” he wrote on his Facebook page.
The starting price will be the largest sum proposed by the bidders (no lower than UAH 14,170 a month (VAT not included).
The condition for participating in the tender is experience in building and operating solar power plants with a capacity of at least 50 MW.
The site for placing the plant will be leased for 49 years. The capacity of the facility could reach 100 MW, according to the fund’s calculations.
As reported, earlier the Enerparc AG – Rodina Energy Group consortium built a pilot solar power plant with a capacity of 1 MW near the Chornobyl NPP.

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LARGE GAS PROCESSING COMPANY UKRGAZVYDOBUVANNIA SEES 6.4% FALL IN NET PROFIT IN 2018

Public joint-stock company Ukrgazvydobuvannia in January-March 2018 decreased net profit by 6.4% or UAH 504.3 million year-over-year, to UAH 7.324 billion.
According to a company report on its website, net revenue over the period grew by 4% or UAH 721.512 million, to UAH 18.685 billion.
Gross profit fell by 5.9% or UAH 599.587 million, to UAH 9.606 billion.
Ukrgazvydobuvannia, which is wholly owned by NSJC Naftogaz Ukrainy, is a large gas processing company, which accounts for about 75% of total gas output in the country.
It operates Shebelynka gas refinery, Yablunivske department to process gas, Bazylivschyna condensate stabilization unit, and 19 filling stations in Kharkiv region. The latter sells fuel and liquefied gas of its own production. Shebelynka gas refinery started production of petrol and diesel fuel of Euro 5 emission standard in 2018.

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RYANAIR PLANS TO OPEN OWN DATA CENTER IN UKRAINE

The Irish low cost air carrier Ryanair is considering the possibility of opening its own data center in Ukraine, airline executive director Michael O’Leary has said in an interview with the Ukrainian Travel Gazette. “At a meeting with President [of Ukraine] Petro Poroshenko, we discussed the option of establishing our subsidiaries in Ukraine. In particular, we would be interested in the opportunity to create our own data center here. Now a similar center in Poland has more than 100 Ukrainian employees, and we need to expand the staff. It would be logical to create another such center for the collection and processing of information in the territory of Ukraine and employ here about 250 local IT specialists but not take them to Poland,” he said.
In addition, according to the expert, the airline in the long term is also interested in opening a center for aircraft maintenance in Ukraine, for which it is necessary to conduct an examination of the regulation of such activities in our country, including by European bodies.
He also noted that the airline is interested in the employment of Ukrainian pilots and stewards.
“But this is problematic enough, since we are a European airline, and Ukraine is not a member of the European Union. All of your pilots and stewards must verify their licenses under EASA requirements, and this a time consuming process,” he said.
At the same time, he noted that citizens of Ukraine already fly in the crews of the airline, and expressed hope their number will increase in future.

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UKRAINIAN GROUP OF COMPANIES ZAMMLER PLANS TO ATTRACT IKEA AS CUSTOMER

The Ukrainian group of companies ZAMMLER, which provides transport and warehouse logistics services, plans to participate in a tender of the Swedish furniture store chain IKEA in connection with its access to the Ukrainian market, Director of ZAMMLER Group Viktor Shevchenko has said in an interview with Interfax-Ukraine. “Work on expanding the client base continues all the time. It’s probably not a secret that the well-known international brand IKEA is entering Ukraine. For logistics this is a big event and we have very ambitious plans on this matter. We intend to take part in their autumn tender for the election of a logistics operator,” he said.
ZAMMLER provides services in the field of automobile, sea, rail, air transportation, customs brokerage, as well as a full range of warehouse services.
The company includes Zammler Ukraine (Kyiv), Zammler Warehouse (Martusivka, Kyiv region), Zammler Fulfillment LLC (Krasylivka, Kyiv region), MLS Company LLC (Kharkiv), Ningbo Zammler Trading Co LTD (China), and ZAMMLER POLSKA Sp.z o.o. (Poland).

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ON MAY 9 ABOUT 460,000 UKRAINIANS TOOK PART IN CELEBRATIONS

On May 9, 2018, some 460,000 people took part in the events commemorating Victory Day over Nazism in World War II, law enforcement officers registered 16 protocols on administrative violations and opened five criminal proceedings. “On the occasion of the 73rd anniversary of the victory over Nazism in World War II, about 1,600 events took place, more than 460,000 people took part in them, and 27,000 law enforcement officers were on duty,” First Deputy Interior Minister of Ukraine Serhiy Yarovy said.
He noted that during the mass events there were no grave breaches of public security and order. Police said mass events in the capital were peaceful.

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