KYIV. July 19 (Interfax-Ukraine) – The Verkhovna Rada of Ukraine has adopted a law that provides for the possibility of state Ukrainian aircraft enterprises’ setting up joint ventures (JVs) with foreign partners.
Some 241 MPs voted for relevant draft law No. 4809 on amendments to certain legislative acts of Ukraine regarding the establishment of conditions for international cooperation between aircraft entities and development of the national aircraft industry.
According to the law, the founders and/or members of such joint ventures can be foreign business entities, except for those located or operating in the territory of the state recognized an aggressor or occupant state and/or with respect to which sanctions are applied.
The act also provides for the extension until 2025 of state financial support to the system of sales of domestic aircraft through the mechanism of cheaper loans (partial compensation of interest rates).
It is expected the adoption of the law will allow up to 2020 to bring about UAH 5-10 billion of investment in the industry and increase sales by 20-25%.
KYIV. July 19 (Interfax-Ukraine) – Ukraine’s Ministry of Infrastructure intends to expand cooperation with U.S. Corporation General Electric in various technological fields, Minister of Infrastructure Volodymyr Omelyan has said at a briefing in Kyiv.
“We’ve signed a memorandum with General Electric about testing their locomotive in Ukraine. This is the best design, which is now in the world. We also plan to sign a memorandum on cooperation with General Electric not only in the railway sector but also in aviation and others. This company is known for its electronic solutions, engines. I think we’ll hold consultations in this direction,” the minister said.
As reported, on July 14 General Electric and PJSC Ukrzaliznytsia signed an agreement under which the U.S. company will pass a locomotive to Ukraine to demonstrate its capabilities on the Ukrainian railway.
The locomotive of American production will arrive in Ukraine in the next two weeks. It will be on display on the Ukrainian railways for 120 days. Ukrainian experts will involve it in domestic rail transportation.
KYIV. July 19 (Interfax-Ukraine) – PJSC Ukrgazvydobuvannia in the first quarter of 2016 increased tax payments to the consolidated budget of Ukraine by 6.8 times and topped the rating of the largest taxpayers in the country, the State Fiscal Service reported in the Visnyk Rating edition.
According to its data, Naftogaz Ukrainy, the parent company of Ukrgazvydobuvannia, ranked second, despite the reduction in payments by 8%, while PJSC Philip Morris Ukraine ranked third, it increased tax payments by 75%.
These companies are followed by another representative of the tobacco industry – PJSC B.A.T. – Pryluky, which increased tax payments by 2.3 times, Energomarket with a 62% rise in payments ranked fifth.
The top ten largest taxpayers also included PJSC Ukrnafta (increased payments by 4.7 times), tobacco company PJSC JT International Ukraine (28%), Energoatom (247%), PJSC Naftogazvydobuvannia (90%), and PJSC Ukrtatnafta (two-fold).
KYIV. July 19 (Interfax-Ukraine) – The Ukrainian Finance Ministry next week will start internal reform with support of PricewaterhouseCoopers (PwC). The reform aims at improving business processes in the ministry.
“The project will be fully financed by international donors and it does not require budget funds spending,” the ministry said last week after a meeting of Ukrainian Finance Minister Oleksandr Danyliuk, his deputy Yevhen Kapustin and representatives of PwC.
The ministry said that the reform implies optimization of internal processes, improvement of internal communications, introduction of a project approach, increase of responsibility of employees and introduction of technological changes.
“The improvement of the ministry’s work would considerably increase the level and quality of work. We want that the Finance Ministry as a driver of reforms continue changing inside to become an example for other ministries,” Danyliuk said.
KYIV. July 19 (Interfax-Ukraine) – The e-commerce market in Ukraine in 2016 could grow by 35% in hryvnias and by 10-15% in the U.S. dollars, according to a forecast of the Ukrainian Direct Marketing Association.
“The e-commerce market would show growth of around 35% in 2016. First since the start of the hryvnia devaluation growth in the U.S. dollars is expected. It would not be so large – some 10-15%,” the association told Interfax-Ukraine.
The association said that the most optimistic forecasts are from representatives of the fashion segment.
“In H1 2016 the segment growth could exceed 40%, and this would give chances for key players to return to 2013 figures in the U.S. dollars.
The electronics and household appliances segment are not so optimistic in their forecasts and anticipate growth of up to 10% in hryvnias, the association said.
The association said that the total e-commerce market volume in Ukraine in 2015 was $1.1 billion (B2C sales of only new goods). The e-commerce market in hryvnias grew by 32%, and in the U.S. dollars it fell by 31% compared to $1.6 billion in 2014.
The association also said that according to a study of Factum Group, in 2015 the share of Internet users was 58% of the country’s population. 17% of Internet users (around 3.7 million people) bought goods in online shops. Last year consumers were more active in buying goods using mobile devices. 26% of users did shopping using tablet PCs or smartphones.
“The number of users who buy goods on foreign website grew in 2015. According to MasterCard, the largest number of goods was bought on aliexpress.com, and 47% of Ukrainian buyers made orders on the Chinese marketplace,” the association said.
Factum Group Ukraine is an integral part of the well renowned international research network Factum Group. Factum Group offers a complete, extensive and innovative service for research users looking for high expertise in their day to day challenges and the complexities of the fast developing CEE market.
KYIV. July 19 (Interfax-Ukraine) – Cheese and analogue cheese sales by one of the largest Ukrainian industrial and retail holdings Terra Food grew by 30% in January-June 2016 year-over-year.
The company said in a press release on Monday the growth is linked to the strengthening of positions of its key brands on the market and the active development of distribution.
The company made around 8,500 tonnes of cheese and analogue cheese focusing on the cheese promotion in January-May 2016.
Today Terra Food produces cheese under the Ferma and Vapniarka brands and analogue cheese under the Tulchynka and other regional brands.
“When we only launched packaged cheese under the Ferma brand in 2013, our segment share was less than 1%. Today, the Terra Food’s share of the packaged cheese segment is around 18%,” Marketing Director Iryna Zhyvotova said.
She said that Terra Food produces cheese at three own sites: Kryzhopil cheese factory, Vapniarka cheese factory and Tulchyn butter and cheese factory.
