Business news from Ukraine

INTEREST OF FARMERS TO WINTER CROPS IN UKRAINE GROWS IN PAST TWO OR THREE YEARS – UCAB

KYIV. March 2 (Interfax-Ukraine) – A trend of expanding areas with planted winter crops was seen in the past two or three years in Ukraine, Director General of the Ukrainian Agribusiness Club (UCAB) Taras Vysotsky has said.

“In the mid-2000s there was a trend of reducing the areas with winter crops in favor of spring crops, but five years ago this trend has been changed. Over the past two years winter crops started to return the lost ground,” UCAB said, citing Vysotsky.

He said that it is primarily due to the changes in climatic conditions, possibility of performing production operations in spring as well as stable profitability of winter crops.

“In the spring there are increasingly unfavorable conditions for sowing spring crops which does not allow completing sowing on time, and as you know, 10-15% of the yield depends on the timing of sowing. If you count the factors of the harvest shortfall, the profits of winter crops are more stable. Currently, we are witnessing the return of 10-15% of the areas with winter crops that were used to be sown with spring crops,” he said.

He also said that the figures of the two previous yields indicate that more and more companies are starting to consider wheat not as a part of the crop rotation and a possibility of paying rent fees to the landowners, but as a marginal crop. Farm businesses set goals to get as a minimum 6 tonnes per ha instead of 4 tonnes per ha.

DEZEGA FIRST TO SUPPLY MINE RESCUE EQUIPMENT TO PERU

KYIV. March 2 (Interfax-Ukraine) – DEZEGA Holding Ukraine, the designer and producer of mine rescue equipment, has signed a contract with Buenaventura mining company (Peru, South America) to supply self-contained self-rescuers for workers of mines, the holding’s press service reported on Wednesday.

“This is the fifth continent where the international holding with Ukrainian roots brings new technologies. These are new frontiers for the national industry of Ukraine and the start of the use of self-rescuers for Peru,” the company said.

The press service said that the contract to supply self-rescuers for Buenaventura is the largest in the history of Peru. Its cost is not disclosed.

The press service told Interfax-Ukraine that a first batch of self-rescuers has been shipped to the customer.

According to the press release, South American countries use less effective filter respiratory protective equipment. Using DEZEGA self-contained self-rescuers, Peru is making significant progress in improving worker health and safety in mines. In contrast to the filtering respiratory protection equipment, the self-contained self-rescues completely isolate users from dangerous irrespirable environments.

“DEZEGA together with its representative in South America were able to prove the advantages of self-contained self-rescuers and won the tender. T holding had to compete in the tender with manufacturers from around the world: America, Germany, Poland and China, which in addition to the self-contained, actively promoted the filter respiratory protective equipment. Also DEZEGA products also use technically superior components while maintaining the best quality-to-price ratio,” the company said.

“This is a serious step for entering the South American market and the beginning of cooperation with leading mining companies in the region,” DEZEGA Board Chairman Anton Sakovych said.

According to DEZEGA Holding Ukraine, its global self-rescuers are used in over 40 countries. The company, headquartered in Kyiv, has official representative offices in five regions.

Buenaventura is engaged in mining and processing, and the development and exploration of gold, silver, coal, lead, zinc and other minerals.

OVER 20,000 UKRAINIAN VISIT INDIA IN 2016 – AMBASSADOR

KYIV. March 1 (Interfax-Ukraine) – Some 21,000 tourists from Ukraine visited India in 2016, Ambassador of India to Ukraine Manoj Kumar Bharti has said.

“According to our information, in 2016, around 21,000 tourists from Ukraine visited India, including 18,000 who visited India under new “visa on arrival” rules. This means that the embassy issued only around 3,000 visas for special cases,” the ambassador said at a press conference at Interfax-Ukraine on Tuesday.

The diplomat said that everyone who wants to visit his country for the period of no more than 30 days are not obliged to come to the embassy and receive visas. It is enough to fill in the form on the website.

“Visa will be issued on the arrival for the period of up to 29 days. I am glad to say that this service will be improved in two months,” Bharti said.

He said that the key tourists’ destinations last year were Goa and Kerala beaches for beach holidays and Varanasi, Rishikesh and Hyderabad for tourists interested in Indian culture, history and philosophy.

He said that Indian tourists do not visit Ukraine due to the complicated visa registration procedure.

“At present, according to my information, there is no tourist from India. Students from India or Indian citizens and members of their families and friends come here. The main problem is the visa. It is hard to receive it. India has introduced the visa on arrival that has been in effect for six months. We would like Ukraine make counter moves,” he said.

Bharti said that Indian tourists could bring around $37 million to the Ukrainian economy.

SSAU WORKING ON SOME OPTIONS OF COOPERATION WITH FOREIGN PARTNERS UNDER CYCLONE 4 PROJECT – SSAU HEAD

KYIV. March 1 (Interfax-Ukraine) – The State Space Agency of Ukraine (SSAU) aims at providing for the practical implementation of the project on the creation of the Cyclone 4 medium class rocket launcher with a new foreign partner instead of Brazil which left the project in 2015 at its final stage. The agency is working on several options of partnership under the project, acting Head of SSAU Yuriy Radchenko has said in an exclusive interview with Interfax-Ukraine.

“Recently gossips appeared that the Cyclone 4 is the unpromising rocket. According to our opinion, it has the serious prospect and it is of demand on the international market: today we are working on at least three options of cooperation with foreign partners under the Cyclone 4 project,” Radchenko said.

“I think soon, in March-April, we will have an interim result of the discussion of the prospects of signing contracts with foreign partners under the program,” he said.

He did not specify the cooperation plans, adding that North America and the Middle East countries show their interest to the potential of the Cyclone 4 rocket.

“There are proposals to create the launcher in one of Arab countries. It is a serious proposal. We held negotiations during the international space forum in Abu-Dhabi on February 1 and February 2. There are plans to sign a cooperation agreement in April,” Radchenko said.

Commenting on the possibility of compensation of losses by Brazil over the unilateral termination of 10 year cooperation under the Cyclone 4 project to Ukraine raised in the political circles and Brazilian media, Radchenko said that at present the parties are holding talks on the quick return of Ukrainian equipment supplied under the project. The equipment is on the balance of the Ukrainian-Brazil JV that was realizing the project.

“I think it is early to discuss the compensation of losses until the assets on the balance of the JV are divided legally,” he said.

PORT ELEVATORS OF STATE FOOD-GRAIN CORPORATION HANDLE 1.5 MLN TONNES OF GRAIN SINCE EARLY 2016/17 AGRI-YEAR

KYIV. March 1 (Interfax-Ukraine) – Port elevators of public joint-stock company State Food-Grain Corporation since early 2016/17 agricultural year have handled 1.5 million tonnes of grain, the company’s press service has reported.

The situation with delivery of grain of the corporation from elevators to ports is a problem.

“In February we received only a half of 3,000 wagons declared. On average the supply of grain wagons is 45-50%. This affects handling and exports volumes,” Director of the logistics department Dmytro Shmokarev said.

As reported, the corporation is working on a project to create own fleet of wagons to solve the problem of a lack of grain wagons. The corporation intends to buy up to 500 wagons in 2017.

The government in August 2010 decided to create the State Food and Grain Corporation of Ukraine. The corporation has a chain of branches, comprised of grain storage facilities, flourmills, fodder factories and a cereals factory. The 53 subdivisions of the corporation can store a total of 3.75 million tonnes of grain, which includes the grain handling capacities of Odesa and Mykolaiv ports of some 2.5 million tonnes of grain cargo per year.

CHINA HAISUM ENGINEERING COULD INVEST $515 MLN IN UKRAINIAN GARDENING PROJECTS

KYIV. March 1 (Interfax-Ukraine) – The Ukrsadprom association and state-run China Haisum Engineering Co, Ltd. have signed a memorandum of understanding. Some $515 million of investment into Ukrainian gardening projects is envisaged under the memo.

“With the help of the Chinese corporation Ukrainian gardeners will be able to receive $515 million of investment in coming two years,” Head of Ukrsadprom association Dmytro Kroshka said at a press conference at Interfax-Ukraine on Tuesday.

He said that the planned investment from the partners will be spent in 16 regions of Ukraine.

“All infrastructure projects of our members [the Ukrsadprom association] will be discussed. I hope that most of them will be financed. Today 18 projects have been selected. Investment is from $200,000 to $25 million,” Kroshka said.

He also said that the sides determined the directions for investment in the memo signed on February 28. The memo concerns fruit and berry processing, construction of fruit storage facilities, additional processing facilities and processing of up to 500,000 tonnes of fresh fruit and berries. Some $130 million [could be invested] in fruit storage facilities. The smallest capacity we are to reach is an additional 500,000 tonnes to what we have now. Today we have around 280,000 tonnes of the storage capacity,” he said.

Kroshka said that one of the Ukrainian state-run banks could act as a financial operator of the project.

Manager of the international department of China Haisum Engineering Co. Gong Jun said that it is planned to sign the official general investment document between representatives of Ukraine and China at the forum in Beijing on May 14 and May 15, 2017. One of the projects will be gardening.