Business news from Ukraine

Business news from Ukraine

UKRAINE TO ENTER TOP 10 WORLD’S LARGEST EXPORTERS OF DAIRY PRODUCTS IN 2018

Ukraine in 2018 would enter the top ten world’s largest exporters of dairy products, First Deputy Agricultural Policy and Food Minister of Ukraine Maksym Martyniuk has said.
“Livestock breeding has begun to develop in our country. According to preliminary statistics, this year we will enter the world’s top ten exporters of dairy products. Our milking rates are growing. Animal productivity is growing, which is a good trend that needs to be supported next year,” he said at a solemn meeting devoted to the Day of Agricultural Workers in Kyiv on Thursday.
According to him, the ministry in 2019 will keep the system of state support for the agro-industrial complex and take into account the “mistakes made this year.”
“We will change the money delivery mechanisms so that as many entities working in the agrarian business as possible get these funds,” Martyniuk said.
“We are not satisfied with the way how the state support programs for the agro-industrial complex are being implemented today. We need to target this support better. I urge the associations, so that next year we can make better targeted support mechanisms to have more opportunities in the agro-industrial complex, since our the task is to do deep processing [of agricultural products] in Ukraine,” Prime Minister of Ukraine Volodymyr Groysman said at the event.
He recalled that Ukrainian agricultural products are exported to 190 countries, and the government intends to “open new markets.”

,

UKRAINE INCREASES COAL IMPORTS

Ukraine increased imports of coal and anthracite coal (HS code 2701) by 15.5%, or 2.343 million tonnes, in January-October 2018 year-over-year, to 17.426 million tonnes.
Coal shipments over the period under review were estimated at $2.461 billion, which was 14.4% more than in January-October 2017 ($2.151 billion), Ukraine’s State Fiscal Service said.
In particular, coal bought from the Russian Federation (62% of all imports) was estimated at $1.526 billion, from the United States (30.04%) at $739.278 million, Canada (5.16%) at $126.946 million, and other countries (2.8%) at $68.889 million.
In addition, Ukraine in January-October 2018 exported 56,223 tonnes of coal and anthracite to the tune of $8.355 million, including to Russia ($4.597 million), Slovakia ($3.201 million), Moldova ($0.454 million), and other countries ($0.103 million).
As reported, Ukraine plans in 2018 to increase import of steam coal by 11.3% compared to 2017, to 5.669 million tonnes.
In particular, it plans to buy 4.882 million tonnes of coal from Russia (a rise of 29.6% from 2017), 664,000 tonnes from the United States (a rise of 47.7%), and 123,000 tonnes from South Africa (a fall of 83.8%).
In 2011, Ukraine’s coal and anthracite imports totaled $2.761 billion and exports $775.109 million, in 2012: $2.637 billion and $609.392 million, respectively. These indicators in 2013 were $1.974 billion and $737.009 million, respectively, in 2014: $1.773 billion and $521.017 million, in 2015: $1.632 billion and $53.651 million, in 2016: $1.467 billion and $44.762 million, and in 2017: $2.744 billion and $105.494 million, respectively.

,

UKRAINE EXPORTS ELECTRICITY FOR $266 MLN IN JAN-OCT

Ukraine in January-October 2018 exported electricity worth $266.113 million, including $28.728 million in October alone.
Hungary bought electricity worth $154.69 million, Poland $62.684 million, Moldova $42.169 million, other countries $6.57 million, Ukraine’s State Fiscal Service has said.
Exports of Ukrainian electricity in monetary terms in January-October 2018 increased by 27.1% compared to the same period in 2017 ($209.293 million).
Over the period under review, Ukraine imported electricity worth $1.22 million, in particular, electricity imports from the Russian Federation were estimated at $1.156 million, from Belarus at $0.058 million, from Moldova at $0.006 million.
As reported, Ukraine plans in 2018 to increase exports of electricity to the EU and Moldova by 13.3% from 2017 to 5.855 billion kWh. According to the forecast for 2018, deliveries from the Burshtyn TPP energy island to Hungary, Slovakia, Romania will be 3.6 billion kWh, to Poland 1.2 billion kWh, and to Moldova 1.055 billion kWh.

,

DCH COULD INVEST $3 BLN IN MODERNIZATION OF KHARKIV TRACTOR PLANT

The project of modernization of the Kharkiv Tractor Plant, investment in which could be around $2-3 billion, foresees the creation of a multifunctional ecosystem for business on its basis, which will include a potent industrial park, a complex with research, technological and technical base for implementation of innovative projects (a technological park) and other facilities, including logistic, training and research centers, the plant has reported on its website. “We are currently planning a big project for the reconstruction of the Kharkiv Tractor Plant. I think this is an investment of about $2-3 billion. We started yesterday and we will continue several years. It will be very interesting from the point of view of professional use. I always like projects that keep me on my toes,” the owner of the DCH group, which includes the Kharkiv Tractor Plant, Oleksandr Yaroslavsky said.
The project will, in particular, attract students and scientists from Kharkiv. Yaroslavsky said that the medium-term program for the development of the enterprise currently being implemented provides for an investment of DCH in the amount of about UAH 230 million. “We have focused mainly on the modernization of tractors. Almost more than 200 innovations in the model were made. The model has changed in quality both externally and internally, therefore the tractor has become more competitive,” Yaroslavsky said.
He said that about 800 new tractors would be off the line this year, approximately the same volumes are planned for next year: the plant does not work “for storing in a warehouse,” but manufactures products in accordance with the order portfolio. “We end this year and make the same plans, at least. Every year, every time, they create difficulties and problems for me with the Kharkiv Tractor Plant. Previously, it was running hurdles, now swimming in a pool without water. Tit is the more interesting, the more fun. I am responsible for the team. The team should be with a salary, and I will find options for a solution,” the businessman said.
Yaroslavsky recalled that the main market for the plant is Ukraine, and foreign markets are important to a lesser extent. “Taking into account that the markets have been lost, we have to restore. However, this process will take a certain amount of time. We are used to work. The company is interesting, the Kharkiv Tractor Plant is the leader of Ukrainian engineering and will not be left without attention,” Yaroslavsky said.
According to the information on the company’s website, earlier, Kharkiv Tractor Plant Director Andriy Koval reported that this year the plant increased sales of products in Ukraine by 40%.

, , ,

UKRAINE’S LARGEST GAS PRODUCER WANTS TO BUILD 3 MW SOLAR POWER PLANT

JSC Ukrgazvydobuvannia plans to build a solar power plant with a capacity of 3.078 MW in Andriyivka (Kharkiv region) where the Shebelynka gas refinery is located, according to a report in the ProZorro e-procurement system. The expected cost of the construction project is UAH 82.324 million. The tender documents could be submitted before December 6, 2018.
Ukrgazvydobuvannia, fully owned by Naftogaz Ukrainy, is Ukraine’s largest gas producer, which provides about 75% of the total gas output in the country.
As reported, early 2018, another company of Naftogaz Ukrainy – Ukrtransgaz – launched a solar power plant with a capacity of 0.3 MW.

, ,

BLACK SEA TRADE AND DEVELOPMENT BANK MULLING FINANCING OF CONSTRUCTION WIND FARM IN UKRAINE

The Black Sea Trade and Development Bank (BSTDB) is considering a possibility of participation in financing of construction of a wind farm in Kherson region with an installed capacity of 250 MW by SyvashEnergoProm LLC, a subsidiary of Norway’s NBT, the bank has reported on its website.
The sum of financing is not specified.
As reported, early September 2018, an agreement on the implementation of an international investment project to build a complex of wind farms in Kherson region with NBT to play the leading role in the project was signed. The wind farm would allow satisfying almost the half of the needs in electricity in Kherson region. According to the project, by the end of next year 67 wind turbines will be installed along the coast of the Syvash Lake. Total investment under the agreement is almost $450 million.
The European Bank for Reconstruction and Development (EBRD) will consider a loan worth up to EUR 150 million for SyvashEnergoProm LLC for the construction of the wind farm, of which up to EUR 75 million would be funded from the EBRD resources and the remainder would be syndicated in a B-loan structure to eligible institutions.
NBT acquired SyvashEnergoProm in Kherson, Ukraine in April 2018. The plan is to construct a wind farm with installed capacity in the range of 250–330 MW, the company said.
In 2006, Kherson Regional State Administration transferred the unfinished Syvash wind power plant to concession to SyvashEnergoProm until 2055.

, , , ,