Business news from Ukraine

LYBID PROJECT SHOULD BE COMPLETED DESPITE ALL DIFFICULTIES – STATE SPACE AGENCY

KYIV. Sept 19 (Interfax-Ukraine) – Head of the State Space Agency of Ukraine Pavlo Dehtiarenko has held a working meeting at Ukrkosmos State Enterprise to discuss the situation with the implementation as part of international cooperation of the project on the creation of a national satellite communications system and the launch of the first Ukrainian telecommunications satellite Lybid, the agency’s press service has reported.
Dehtiarenko said that the Lybid project “should be implemented despite all difficulties.”
He also familiarized himself with Ukrkosmos infrastructure, paying special attention to the Lybid flight control center.
During his visit to the state enterprise, Dehtiarenko also examined the new promising areas of the enterprise’s work, including the project on the creation of a technological platform for regional TV broadcasting Kraina TV, as well as a DTH platform based on the deep modernization of the enterprise’s teleport equipment, the press service said.
As reported, a contract for the construction of a national telecommunications satellite Lybid was signed by the SSAU and Canada’s MacDonald Dettwiler and Associates (MDA) in December 2009. The MDA is the head contractor under this project. The Lybid is based on the Express-1000NT platform, developed by Russia’s Reshetnev ISS.
The Canadian export agency EDS provided a $254.6 million loan under the Ukrainian government guarantees to finance the project in the summer of 2009. Initially it was planned to put the Ukrainian satellite into orbit in 2012, later it was postponed to 2013 and then to April 2014.

EBA HOPES MEDICAL REFORM WILL BE LAUNCHED IN 2018

KYIV. Sept 19 (Interfax-Ukraine) – The European Business Association (EBA) hopes medical reform will be launched in 2018 and Health Ministry officials responsible for the reform will be determined.
“The EBA Health Care Committee supports the need for a health care reform, and we were pleased to hear from President of Ukraine Petro Poroshenko at a business community meeting on September 13, 2017 open support and, most importantly, confidence that the reform will start in 2018,” Executive Director of the EBA Health Care Committee Natalia Serhienko told Interfax-Ukraine.
At the same time, she stressed the need to clearly define officials responsible for the reform.
“At this point, it is not clear exactly how responsibility for the reform will be built, who will be responsible for its phased implementation in the Ministry of Health. We hope that with the launch of the reform the issue of clear definition of responsible officials from the Health Ministry will be resolved and the public will have a full understanding and the opportunity to give feedback on the implementation of the reform stages,” she said.
In addition, the expert noted the EBA “would like to understand the government’s expectations from the pharmaceutical business for the successful implementation of the reform and the potential impact of the reform on the pharmaceutical industry.”

DTEK ENERGO SEES 64% RISE IN CAPITAL INVESTMENT

KYIV. Sept 18 (Interfax-Ukraine) – DTEK Energo in January-June 2017 increased capital investment by 64% year-over-year, to UAH 3.6 billion, DTEK Energo CEO Dmytro Sakharuk has said.
The company said in a press release that in 2017, it is planned to send UAH 8 billion to capital investment. This is 30% more than in 2016 (UAH 6.135 billion).s
“The company focused on investment projects aimed at boosting gas coal and the transfer of units of thermal power plants (TPPs) from anthracite burning to gas coal. Capital investment in H1 2017 was increased by 64%, to UAH 3.6 billion. In general, DTEK Energo seeks to send over UAH 8 billion to production needs,” Sakharuk said.
He said that today the task of thermal power generation is retaining the large share of Ukrainian coal in the balance of fuel that power plants consume.
The press service said that in January-June 2017, DTEK Energo sent UAH 8.2 billion to national and local budgets.

CHINESE MARKET OPENED FOR EXPORTS OF UKRAINIAN SUNFLOWER CAKE, BEET PULP – UKRAINIAN MINISTRY

KYIV. Sept 18 (Interfax-Ukraine) – Ukraine’s Agricultural Policy and Food Ministry and the General Administration of Quality Supervision, Inspection and Quarantine of China (AQSIQ) have signed protocols of sanitary and biosescurity requirements for exports of sunflower cake and beet pulp from Ukraine to China.
“The Chinese market is open for exports of Ukrainian sunflower cake and beet pulp. We are thankful to representatives of AQSIQ for active cooperation with us in expanding the range of goods for exports of Ukrainian agricultural products to the Chinese market,” the ministry said in a press release on Friday, citing Deputy Minister for European Integration Olha Trofimtseva.
She said that this year, thanks to active cooperation between the two countries, Ukrainian producers obtained the eight to export frozen beef to the Chinese market (the final approval of the veterinary certificate is expected in the near future).
In addition, nine Ukrainian enterprises producing dairy goods were permitted to export their goods to the Chinese market this year. A total of 27 Ukrainian dairy producers supply their goods to this market.
The resumption of exports of poultry products to China and speeding up the approval for launching exports of Ukrainian cherries, blueberry, apples and soybean cake were discussed at the meeting.
The ministry said that in January-July 2017, Ukraine exported products for $524.5 million to China (mainly grain, sunflower oil, flour, confectionary and dairy products) and imported food for $63.7 million from China (fish and canned fish, coffee, tea and other food).

EU PROPOSES FIVE-YEAR PROGRAM TO SUPPORT ENERGY EFFICIENCY FUND – UKRAINIAN OFFICIAL

KYIV. Sept 18 (Interfax-Ukraine) – The European Union has proposed the five-year program to support the Energy Efficiency Fund, Deputy Prime Minister, Minister of Regional Development, Construction, Housing and Utilities Services of Ukraine Hennadiy Zubko said at a meeting with European Commission Vice President in Charge of the Energy Union Maros Sefcovic.
“This assistance will be permanently expanded. This is not non-recurring assistance, but long support both technical and financial by the European Union [EU],” the press service of the deputy prime minister reported on Friday.
Earlier the EU confirmed its readiness to provide EUR 100 million to the Energy Efficiency Fund. This will allow the fund to start financing concrete energy efficiency projects.

TOTAL VALUE OF PRIVATE PENSION FUNDS’ ASSETS IN UKRAINE 12.4% UP IN H1 2017 – REGULATOR

KYIV. Sept 18 (Interfax-Ukraine) – Total value of assets of private pension funds in Ukraine as of June 30, 2017 reached UAH 2.249 billion. This is 12.4% more than in H1 2016, according to a posting on the website of the national commission for financial service markets regulation.
The regulator said that total revenue from investment by pension funds grew by 3.8%, to UAH 1.227 billion. Profit from investing assets amounted to UAH 956 million (a 37% rise year-over-year).
The sum of retirement investments grew by 5.3%, to UAH 1.946 billion. Companies invested UAH 1.835 billion (a rise of 4%). Investments from individuals came to UAH 110 million (a rise of 32.5%).
Expenses settled using pension assets grew by 23.4%, reaching UAH 270.8 million for the period of existence of pension funds.
The regulator said that the number of pension contracts signed by administrators of the private pension funds grew by 9.6%, to 66,500 thanks to growth of the number of contracts signed with individuals to 59,000.
The total number of participants of private pension funds was 838,000, including 83,200 (9.9%) receiving pensions.
Pension payments grew by 18.1%, to UAH 682.5 million.