Polish parliamentarians will help Ukrainian counterparts, representatives of civil society to prepare a strategy for Ukraine’s transformation. They are not only willing to share their own experience, but also promote the involvement of the European Union in this process. At the end of May, Warsaw will host an Interparliamentary Assembly, which will attract, beside Ukraine and Poland, Lithuania and representatives of the European Union.
This was discussed during a meeting of the delegation of the National Forum “Transformation of Ukraine” represented by ULIE President Anatoliy Kinakh and Coordinator of the Forum Mykhailo Kharkiy with Speaker of the Polish Sejm Marek Kuchciński.
The parties stressed the importance of political and economic partnership – both bilaterally and in the framework of specific programs of cooperation with the EU.
The speaker of the Polish Sejm praised the role of civil society in the development of the state and stressed that the success of reforms, policy of modernization depends on the consolidation of all forces – the government, community, businesses, etc. – around the national interests. Currently, such a communication platform between the Ukrainian government and society is the National Forum “Transformation of Ukraine” that has been developing a comprehensive plan for the country’s development.
The corresponding transformation strategy will be a long-term response to systemic challenges, including the economic crisis. The Copenhagen criteria are used as its benchmarks: the rule of law, developed market economy, competitiveness, and others. The Polish side supports this direction of reforms and is ready to share experience as a country that has passed its European integration path and achieved GDP growth and solvency of the population.
Late in May, Warsaw will host an Interparliamentary Assembly, which will be attended by representatives of Ukraine, Poland, Lithuania, and the EU.
The Assembly will address such issues as the adaptation of Ukrainian legislation to EU standards and regulations, as well as the expansion of the “circle of the friends of Ukraine,” namely Germany, the United States, Canada, and others, ULIE President Anatoliy Kinakh said.
Prior to that, a delegation of the National Forum met with Lithuanian President Dalia Grybauskaitė, representatives of the Lithuanian Seimas and the government in Vilnius. Former Prime Minister of Lithuania, now a member of the Seimas and one of the authors of the so-called “Marshall Plan for Ukraine” Andrius Kubilius supported the initiative of Ukraine’s civil society to draft the Ukrainian development strategy and expressed confidence that the parliaments of other EU countries would support it.
The Ukrainian League of Industrialists and Entrepreneurs (ULIE) and the Spanish Confederation of Employers’ Organizations (CEOE) have signed a cooperation agreement to set up the Spain-Ukraine Business Council.
The press service of the Export Support Center under the ULIE reported this on May 4.
The main goal of the signed agreement is to promote the development of partnership of entrepreneurs of Ukraine and Spain, as well as to expand opportunities for economic cooperation between the two countries’ businesses.
According to the report, the facilitation of trade and investment will be implemented in the form of providing technical assistance in various spheres of partnership, taking into account the professional specifics of the companies of the two countries. Particular attention is given to the exchange of up-to-date information on the current economic situation and regulatory and legal aspects. In addition, business contacts will be supported by the exchange and dissemination of information on business proposals and exports of goods, as well as assistance in finding potential partners.
“The Spanish market is potentially very interesting for Ukrainian entrepreneurs, while the main articles of Ukrainian exports to Spain are farm produce, namely fodder grains and sunflower oil, but in the foreseeable future, our export-oriented commodities can be expanded at the expense of high value-added products,” Coordinator of the Export Support Center under the ULIE Denys Krasnikov said.
According to him, Spanish investors are now interested in investing in the agrarian sector of Ukraine.
KYIV. May 15(Interfax-Ukraine) – PJSC Zhydachiv Pulp and Paper Mill in Lviv region, which stalled in autumn of 2014, has resumed work, Lviv Regional State Administration has said on its website.
“Ukraine has seen fewer examples when, after 2.5 years of idle time, an enterprise has not turned into a heap of scrap metal and has resumed work and launched production. Furthermore, over $1 million has been invested in its equipment,” Lviv Regional Governor Oleh Syniutka said at an official event devoted to the re-launch of the enterprise on Friday.
As of today, the corrugated cardboard and paper enterprise’s personnel numbers 539 people, and in the next four months the factory’s management plans to reach full production capacity, increasing the number of employees to 750 people.
Zhydachiv district administration invited qualified personnel to the enterprise, as some of the factory’s former workers have found new jobs at other enterprises in Lviv region over the 2.5 years of idle time.
Among the problematic issues the enterprise has is the wage backlog estimated at UAH 28 million. Moreover, its tax debts as of May 1, 2017 was UAH 21 million.
KYIV. May 15 (Interfax-Ukraine) – Ukraine intends to raise a $300 million loan from Export-Import Bank of China via China Road and Bridge Company (CRBC) to build a bridge in Kremenchuk.
The press service of Ukraine’s Infrastructure Ministry reported that this was discussed during a visit of Deputy Minister for European Integration Viktor Dovhan to Beijing, China, on May 11 through May 13. He discussed three top priority infrastructure projects for Ukraine with the top managers of the Transport Ministry of China: the possible options for the implementation of the Air Express project, a bridge in Kremenchuk and concession of the railway ferry complex at the Chornomorsk seaport.
“The important infrastructure projects were presented to potential Chinese investors – state-owned China Railway Company, which is mulling investment in modernization and production of electric locomotives at production facilities of public joint-stock company Ukrzaliznytsia,” the press service said.
Dovhan also discussed dredging works at the Yuzhny port with China Harbor Engineering Company and parent company China Communication Construction Company, which are interested in cooperation with Ukraine.
The press service of the Economic Development and Trade Ministry reported that Economic Development and Trade Minister Stepan Kubiv who was present at the meeting pointed out the good presentation of a project to build a bridge near Kremenchuk and a project to reconstruct the Shuliavka Bridge in Kyiv. He said that the total cost of the two projects is $400 million. Thus, the total cost of the project to reconstruct the Shuliavka Bridge is $100 million.
“I propose to you to finish preparatory works for the projects no later than September and eventually switch to the signing of loan agreements and an agreement to implement the works with the corporation. A working group will be created to analyze these investment projects. The group would include representatives of the Economic Development and Trade Ministry, Infrastructure Ministry, Finance Ministry and Ukravtodor,” Kubiv said.
He also recalled that under the One Belt, One Road initiative it is important to improve existing and develop new logistics opportunities.
“Aiming at improving the conditions, increasing the capacity and speed and boosting competitiveness of multimodal container transportation on the China-Western Europe-China route and transit across Ukraine, we are ready to make efforts to develop and modernize transport infrastructure on the basis of the public private partnership projects and other modern forms of cooperation,” Kubiv said.
He said that the implementation of some logistics projects in Ukraine would create additional opportunities for transit flows under the One Belt, One Road initiative. This is construction of port terminals, elevators, rolling stock for transportation of agricultural products and storage facilities.
KYIV. May 15 (Interfax-Ukraine) – Fairfax Financial Holdings Limited on May 12, 2017 acquired 7.81% more shares in Astarta agroindustrial holding. Fairfax acquired in total 1,951,583 shares in the company from Aluxes Holding Limited belonged to one of the founders of Astarta Viktor Korotkov.
The holding said in a report on the Warsaw Stock Exchange (WSE) that the purchase price was PLN 60 per share or $30.15 million for the deal.
Taking into account the previous transactions, today Fairfax holds 7.002 million shares in Astarta, representing 28.01% of the total voting rights of the company.
As reported, on August 24, 2016, Fairfax signed the agreement with the companies of the founders of Astarta Viktor Ivanchyk – Albacon Ventures Ltd. – and Korotkov – Aluxes Holding Ltd. Albacon held 37.8% (9.45 million shares) and Aluxes– 25.99% (6.497 million shares) in Astarta.
Fairfax shall acquire 450,000 of shares from Albacon and 2.048 million shares from Aluxes.
Fairfax shall also have the right to acquire from Aluxes an additional 4.449 million shares in Astarta.
Fairfax shall have the right to acquire from Aluxes an additional 2.498 million shares in the company, representing approximately 9.99% of the voting rights in the company which can only be exercised 61 days after the sale of shares (First Tranche Call Option).
Fairfax shall have also the right to acquire from Aluxes a further 1.952 million shares in the company, representing approximately 7.8% of the voting rights in the company, which can only be exercised after the 61st day after acquisition of shares.
Aluxes also has the right to put the above shares to Fairfax should Fairfax not exercise its rights above.
In addition, Albacon has granted a tag along right to Fairfax in case Albacon sells a certain percentage of its shares in the company to a third party.
Furthermore Fairfax has been granted the right to nominate the chairman of the board. In addition, Astarta has agreed that the company shall agree some issues concerning shares with Fairfax.
Astarta is a vertically integrated agro-industrial holding, uniting six regional divisions in Poltava, Vinnytsia, Khmelnytsky, Ternopil, Zhytomyr, and Kharkiv regions. They include nine sugar factories, agricultural farms with a land bank of about 250,000 hectares and dairy farms. The holding also has a plant for processing soybeans in Poltava region (Globyno processing plant).
KYIV. May 15 (Interfax-Ukraine) – Ukrainian President Petro Poroshenko has promised to sign the bill amending the law on banks and banking operations regarding guaranteeing deposits of individuals by the state (No. 5553).
“We have tried to thoroughly calculate possible risks linked to the signing and enacting the bill on guaranteeing deposits at PrivatBank. The bill will be signed. I would not veto it. Nothing is threatening the depositors,” he said at a press conference in Kyiv on Sunday.
