Business news from Ukraine

UKRAINE, CZECH REPUBLIC AGREE TO HOLD MEETING OF JOINT COMMISSION FOR ECONOMIC COOPERATION

KYIV. Sept 8 (Interfax-Ukraine) – Ukraine and the Czech Republic have agreed to hold a meeting of the joint intergovernmental commission on economic, industrial, scientific and technical cooperation soon.

“When discussing the prospects for deepening economic and trade cooperation, the two sides agreed to resume the work of the Ukrainian-Czech joint intergovernmental commission on economic, industrial, scientific and technical cooperation, and to hold its meetings in Ukraine soon,” the press service of the Ukrainian Cabinet of Ministers reported with reference to the results of the meeting of Ukrainian Prime Minister Volodymyr Groysman and his Czech counterpart Bohuslav Sobotka.

Groysman noted Ukraine’s interest in enhancing cooperation with the Czech Republic, particularly in the areas of infrastructure, business activities and defense.

The Ukrainian prime minister also said that the government decided to raise the level of co-chairs of the commission, the Ukrainian part of which will be headed by Deputy Prime Minister for European and Euro-Atlantic integration Ivanna Klympush-Tsintsadze.

“I think the intergovernmental commission will be a good tool to improve our cooperation,” Groysman said.

POROSHENKO URGES RADA TO OPEN LAND MARKET

KYIV. Sept 6 (Interfax-Ukraine) – The absence of the farmland market in Ukraine hinders investment in agriculture, Ukrainian President Petro Poroshenko has said.

“The absence of the right to freely sell and buy farmland hinders investment into agriculture, narrows and violates rights of farmers and sets artificially low rent rates, drawing the last kopecks out their pockets. This is axiomatic. I know the public opinion in Ukraine on the issue and the position of the majority of parliamentary factions. I appreciate and respect them. This is your competence, dear lawmakers, how to resolve the problem: to hide head in the sand and change nothing or to work on the creation of the land market in Ukraine, but with all possible safeguards from any negative consequences,” he said in his annual address to the Verkhovna Rada in Kyiv on Tuesday.

The president said that the agro-industrial complex remains a key source of currency income to the country.

He said that now the agriculture’s share of total exports reached the highest indicator in the past 25 years.

“The leading role of agriculture in the context of building the innovative economy looks slightly contradictory. It is important until the process of boosting high-tech ‘muscles’ by the economic complex continues,” Poroshenko said.

 

UKRAINIAN CAR MARKET GROWTH ACCELERATES TO 44% IN JAN-AUG

KYIV. Sept 6 (Interfax-Ukraine) – Sales of new passenger cars in Ukraine in January through August 2016 grew by 44% year-over-year, to 37,988 cars, AUTO-Consulting has reported.

“Taking into account active August that was not to show large sales in the previous years, the result of the car market in the first eight months looks good. The growth pace accelerates. This is a good sign before the start of the active autumn season,” the company’s experts said.

They said that despite a decline in business activity, 5,624 cars were sold in August. This was 58% up year-over-year.

Toyota returned its leading position in August (Volkswagen was first in July). Its market share was 12%. Renault was second with 9.9% market share and Ford was third thanks to a large batch of cars supplied for medical institutions in Kyiv (100 cars).

A decline in sales of Volkswagen car was recorded. It was fourth in August. Kia, Hyundai and ZAZ saw a rise in sales.

“Mazda dealers made a breakthrough. The Japanese brand managed to climb by four positions and enter top ten most popular brands,” AUTO-Consulting said.

Mercedes-Benz first this year was first, forcing BMW to the second position.

The Ukrautoprom association published sales statistics on its website. According to the association, the market grew by 63% in August on August 2015 and by 1.5% on July 2016, to 5,630 cars.

Some 15,959 new passenger cars were registered last summer (12,180 cars in summer 2015), the association said.

According to the Ukrautoprom, Toyota sold 678 cars (31% up year-over-year). Renault saw a 75% rise in sales, to 552. Ford posted a 2.5-fold rise in sales, to 423.

KIA Sportage was the most popular car (271).

DEZEGA HOLDING UKRAINE STARTS SUPPLIES OF MINE RESCUE EQUIPMENT TO THAILAND

equipment, has supplied a batch of compact self-contained self-rescuers worn on a belt to Thai Kali Company Limited, the press service of the holding has reported.

The press service said that Thailand is the second country in Southeast Asia after Hong Kong and the 19th market in the world where the products of the Ukrainian producer are sold.

The Ukrainian self-rescuers will be used during construction of a new mine in Thailand. The mine will be launched early 2017.

The cost and the size of the batch are not disclosed. It is a pilot batch.

“If positive references are received, the company can have new orders with the mine being launched and the number of workers increased,” the press service said.

The company confirmed that Donetsk Mine Rescue Equipment Company (DZGA) produces equipment.

“The plant in Donetsk is operating under Ukrainian law. It is included in the list of strategic enterprises that have permits to operate, supply products and materials by rail from/to the territory beyond control of the Ukrainian government. DEZEGA Holding has all permits from Ukrainian supervising authorities,” the company said.

The production facilities of the holding are also located in Russia (Ozon company, Orenburg region) and Turkey (Izmir).

The R&D center operates in Cherkasy.

The press service said that today the main markets to sell products are South Africa, CIS countries, India, Turkey and Poland. Starting from 2014, the Ukrainian market’s share of the total order portfolio decreased from 50% to 10%.

“We see a growing interest to our products in Asia where requirements to the quality and reliability of equipment are high. It is important for us to have positive references from Thailand and Hong Kong to expand cooperation with leading global mining consortiums in Asia and other countries,” the press service said, citing Board Chairman of DEZEGA Holding Ukraine Anton Sakovych.

According to DEZEGA Holding Ukraine, its global self-rescuers market share is 40%. The company has official representative offices in six countries.

UKRAINE PREPARING TRANSFER OF CYCLONE 4 LAUNCH OPERATIONS TO NORTH AMERICA

KYIV. Sept 6 (Interfax-Ukraine) – Ukraine is working out plans to establish the Cyclone 4 launch vehicle complex being built jointly with Brazil at Alcantara space center in North America.

SpaceRef portal has reported that Ukraine’s Pivdenne Design Bureau (Dnipro) has been authorized by the State Space Agency of Ukraine to proceed with a new international launch complex and operations in North America based on the existing Cyclone 4 rocket.

The search has begun for business and investment partners to develop the launch infrastructure and conduct sales, marketing, and mission management. On site assessments have already been conducted in Canada and the United States for possible launch complex locations.

According to the bureau’s assessments, the all Ukrainian vehicle will offer highly competitive pricing in this launch class along with reliable launch services, and eliminate the need for US customers to seek waivers for the use of other launch service providers. Operating from North America will provide operational convenience with negligible export control issues for customers, SpaceRef reported.

The Cyclone family of vehicles have launched successfully 221 times.

Cyclone 4 launch service target pricing will be $45 million (all inclusive) for 3,700 kg payloads to sun synchronous orbit.

“The Cyclone 4 launch vehicle design is complete and the first flight vehicle manufacturing is nearly complete and will be ready for launch shortly. It’s estimated that with sufficient and timely funding the launch site construction will take 2.5 years since the ground systems are also designed and partially manufactured,” SpaceRef reported.

In 2003, Ukraine and Brazil signed a long-term cooperation agreement to build the Cyclone-4 launch vehicle to deliver spacecraft to geostationary transfer and low and medium Earth orbit from the Alcantara Launch Center.

In summer 2015, the agreement was denounced by Brazil. The decision took effect in summer 2016.

GEOLOGY SERVICE: U.S. AVELLANA GOLD WILL MINE POLYMETALS IN ZAKARPATTIA

KYIV. Sept 5 (Interfax-Ukraine) – U.S. Avellana Gold has acquired a number of companies holding licenses for production and exploration of polymetallic ores in western Ukraine and is negotiating the practical implementation of a project for extraction of metals, the State Service of Geology and Natural Resources has said.

“Today we are fully aware of the geological and operational risks of the project, the high demands of local communities as for environmental friendliness, as well as the actual inability to attract long-term debt capital to the country with a pre-default rating,” Avellana Gold head and shareholder Brian C Savage said.

According to a press release, the service management has recently held a formal meeting with the company representatives in order to discuss the basic conditions of cooperation and obtaining guarantees of its long-term period.

Savage said Avellana Gold would like to receive a signal from the government that the country really needs a big project for extraction and enrichment of polymetallic ores and guarantees of stability of license conditions and regulatory rules in the sphere of subsoil use.