Business news from Ukraine

CARLSBERG UKRAINE SEEKS TO START EXPORTING LVIVSKE BEER TO CHINA

LVIV. Nov 7 (Interfax-Ukraine) – Carlsberg Ukraine brewing company will start supplying Lvivske beer to China, Director Yevhen Shevchenko has said at a press conference at the 16th International Economic Forum.

“We expect to supply over 300,000 liters every quarter,” he said.

He said that before the launch of exports the company is to adapt the product to the Chinese market.

“China needs 0.33 liter bottles. We do not bottle Lvivske in these bottles. In addition, most beers have 2.5% alcohol contet in China. Alcohol content of Lvivske is 4.5%,” he said.

Shevchenko expects that the first batch will be shipped in Q1 2017.

“It is important for us not simply start, but start supplies so that the first batch was not the last,” he said.

Carlsberg Ukraine is incorporated in Carlsberg Group, a leading brewing groups in the world. Carlsberg Group in Ukraine includes three breweries in Zaporizhia, Kyiv, and Lviv.

GERMANY’S BADER GMBH OPENS SECOND CAR LEATHER SEAT PLANT IN LVIV REGION

KYIV. Nov 7 (Interfax-Ukraine) – Germany’s Bader GmbH has opened a new car leather seat plant in Lviv region. This is the second industrial site of Bader Ukraine LLC.

According to a posting on the website of Ukrainian President Petro Poroshenko, during his working trip to Lviv region he took part in the ceremony of opening the plant of Bader Ukraine LLC.

“Despite aggression, Ukraine started to demonstrate economic recovery in 2016. In 2014, many foreigners doubted to invest in Ukraine, but now they ascertained that their decision was correct,” he said.

Poroshenko expressed gratitude to the investors.

“Thank you for producing high-quality goods and glorifying Ukraine in Europe.” According to him, this has become possible due to the Association and DCFTA Agreement with the EU. This means that commodities produced in Ukraine are not subject to taxation on the European market,” he said.

Director of Bader Ukraine Andriy Pavlun and Director of Bader GmbH&Co Bent Dreilich presented the production facilities of the plant to the head of state.

Bader Ukraine LLC, founded in 2006, is a branch of Bader GmbH, a leading global premium car leather manufacturer.

Bader Ukraine produces leather and leather items, leather seats for Audi and BMW.

The first production site is located in Horodok (Lviv region) with up to 1,000 employees. The new site is located in Kozhychi (Yaroriv district, Lviv region).

RAILWAY WAGON PRODUCTION IN UKRAINE COULD CREATE UP TO 50,000 JOBS – PM

KYIV. Nov 7 (Interfax-Ukraine) – Ukrainian Prime Minister Volodymyr Groysman has said that production of railway wagons for the needs of public joint-stock company Ukrzaliznytsia at Ukrainian enterprises could create up to 50,000 jobs.

“We have calculated that with the needs of Ukrzaliznytsia we would provide 50,000 people with jobs if we only start producing them at the facilities of state-run enterprises,” he said on Shuster Live Show late on Friday last week.

The prime minister said that the quality of wagons made in Ukraine is not worse than imported wagons and their price is significantly cheaper.

POROSHENKO ENACTS BILL ANNULLING 5% DUTY ON IMPORTED SCRAP METAL

KYIV. Nov 7 (Interfax-Ukraine) – Ukrainian President Petro Poroshenko has enacted a bill annulling 5% duty on imported scrap ferrous metals. The document amends the law on the customs tariff, according to a posting on the parliament’s website.

The law amending the law on the customs tariff of Ukraine aimed at curbing a shortage of scrap ferrous metal on the domestic market to satisfy the needs of defense industry and restore infrastructure was returned to the parliament with the president’s signature on November 4.

The document passed by the parliament on October 5 sets nil rates for duties on imported scrap ferrous metal instead of 5%.

Chairman of the parliamentary committee for industrial policy and entrepreneurship Viktor Halasiuk said that the revoking of 5% duty on imported scrap metal is the second part of the package to support the country’s mining and metal complex.

“We have made a strategic step after increasing the duty on exported scrap metal from EUR 10 to EUR 30. The law is in effect now. This is actually the second part of the package – to fully lift imports duty on scrap metal,” he said.

USAID TO DESIGN WAY TO MONITOR RESULTS OF ‘WARM LOANS’ PROGRAM BY YEAR END

KYIV. Nov 4 (Interfax-Ukraine) – U.S. Agency for International Development (USAID) seeks to design methods for monitoring results of the implementation of the public program to partially compensate the cost of loans for modernization of heating efficiency and increase of energy efficiency in the Ukrainian housing sector (the ‘warm loans’ program) by the end of 2016.

Manager of the USAID Municipal Energy Reform Project in Ukraine Diana Korsakaite said at the eighth Renewable Energy Forum in Kyiv on November 2 said that these methods would be a basis for assessing any energy efficiency crediting program in the housing area and other areas. They would help to calculate not only expenses, but how much money is returned to the country’s economy for its restoration, she said.

She said that according to a poll of representatives of homeowner associations used the ‘warm loans’ program it was established that energy consumption by them reduced by 38-46% after introduction of energy efficient measures.

The expert said that with comprehensive modernization of heating efficiency in multi-apartment buildings in Ukraine saving of energy could reach 60-77%.

Coordinator of housing and utilities programs of NGO Opora Tetiana Boiko said that as of early November 2016 the Ukrainian government has not extended the ‘warm loans’ program for 2017. The draft 2017 budget did not foresee financing of the program.

Head of the council of chairmen of homeowner associations in Lutsk Roman Bondaruk said that the program should be expanded with the help of joining commercial banks. He said that this could have cut credit rates, making the program more affordable for homeowner associations.

He said that companies that manage multi-apartment buildings and energy servicing companies should have a chance to use this program.

According to Ukraine’s State Agency on Energy Efficiency and Energy Saving, since the start of the program in 2014 as of late October 2016, over 180,000 families became program participants. The total sum of loans raised was over UAH 2.5 billion. Some 452 homeowner associations used the program and took credits worth UAH 57 million.

GOVERNMENT APPROVES DRAFT AGREEMENT ON JOINT FREIGHT TRANSPORTATION WITH TURKEY

KYIV. Nov 4 (Interfax-Ukraine) – Ukraine’s Cabinet of Ministers has approved a draft agreement on joint freight transportation with the Turkish government.

According to government resolution No. 798 dated November 2, the government authorized Infrastructure Minister Volodymyr Omelyan to sign the agreement.

The agreement would help to stir up and develop Ukrainian-Turkish interstate relations in the transport area.