Business news from Ukraine

SAUDI ARABIA STARTS PREPARING INFRASTRUCTURE UNDER AN-132 AIRCRAFT PROGRAM

KYIV. July 14 (Interfax-Ukraine) – Saudi Arabia has started preparations for organizing batch production of new An-132 multipurpose aircraft with a carrying capacity of 9.2 tonnes being designed by Antonov State Enterprise (Kyiv) in cooperation with King Abdulaziz City for Science and Technology (KACST) and Taqnia Aeronautics Co. (both based in Saudi Arabia).

KACST Director Khalid A. Almalki said at the Farnborough International Airshow Trade 2016 said that Saudi Arabia is preparing the required infrastructure under the An-132 aircraft program.

“Today we are focused on building test aircraft An-132 to present it on the market. We are also designing and preparing infrastructure required for it, including composite materials,” he said.

The press service of Antonov Enterprise said on Wednesday that Almalki expressed satisfaction with the level of cooperation and the course of works to produce test aircraft An-132D at the facilities of Antonov Enterprise.

“We intend to start An-132 aircraft’s tests by the end of this year, and we hope to find potential customers for the plane,” Almalki said.

An-132D is the first prototype of a new light transport An-132 aircraft, which will replace An-32 and An-26 in the market. The An-132 program is implemented by Antonov in cooperation with KACST and Taqnia Aeronautics Co.

UKRAINE, AZERBAIJAN TO SEEK BILATERAL TRADE GROWTH – ALIYEV

BAKU. July 14 (Interfax-Ukraine) – Ukrainian President Petro Poroshenko and his Azerbaijani counterpart Ilham Aliyev have called for development of bilateral trade at a meeting in Baku.

“We have given very serious instructions and I have no doubt that their fulfillment will bring our countries closer together and their trade turnover will increase. The current level of trade turnover does not satisfy either Azerbaijan or Ukraine,” Azerbaijani President Ilham Aliyev said after negotiations with his Ukrainian colleague.

Instructions regarding joint investment projects were also given at the negotiations, he said.

“We ordered that the investment potential of both countries be reviewed due to the mutual interest in this matter,” Aliyev said.

The State Oil Company of the Azerbaijani Republic (SOCAR) is doing business in Ukraine and has invested over $200 million in more than 60 filling stations in Ukraine, the Azerbaijani president said.

GENERAL ELECTRIC SOON COULD SUPPLY LOCOMOTIVE FOR TESTING AT UKRAINIAN RAILWAYS – INFRASTRUCTURE MINISTER

KYIV. July 13 (Interfax-Ukraine) – U.S. General Electric Corporation soon could supply own locomotive for its testing at Ukrainian railways, Ukrainian Infrastructure Minister Volodymyr Omelyan has said.

“We are finishing an agreement on the test locomotive. I think that, if not this week, next week we will sign it. Then the locomotive will be shipped to Ukraine and start a six-month test,” the minister told reporters in Kyiv on Monday.

Omelyan added that a memoriam of cooperation with General Electric is being drawn up. It will be similar to the paper signed with Canada’s Bombardier on Monday. Under the document it is planned to create a joint locomotive production facility in Ukraine.

General Electric is a U.S. multi-sector corporation. The company is the ninth in the Forbes Global 2000 list of largest public companies.

BUSINESSMAN YAROSLAVSKY SEEKS TO INVEST SOME UAH 200 MLN IN KHARKIV TRACTOR PLANT

KYIV. July 13 (Interfax-Ukraine) – The owner and president of DCH Group Oleksandr Yaroslavsky who holds a controlling stake in Kharkiv Tractor Plant seeks to invest around UAH 200 million in the enterprise.

“I plan to invest near UAH 200 million in Kharkiv Tractor Plant. The plant could be restored within six months,” he said in an interview with Forbes Ukraine publication.

The businessman said that he sees the plant producing tractors, and if the company receives an order from the state – military equipment that the plant made 20 years ago: multipurpose lightly-armored transporters.

Asked about the possible modernization of the plant, he said that it would be conducted if it suits business plan.

“Modernization is a manmade process. If there were order from the state to make military equipment one can do everything… I bought the asset with a focus on production of tractors. If I need to increase production or change the processes, I will take my old business plan when I was the owner of the plant, dust it off and start implementing. I do not need research institutions and dozen-year work,” he said.

Yaroslavsky said that Ukraine, Russia and even Cuba buy tractors made by Kharkiv Tractor Plant.

Explaining the debt structure to banks, he said that early June a one-year debt rescheduling plan was signed with banks.

“Earlier an amicable agreement with Ukreximbank was signed. It included payments of debts starting from 2035 during 30 years,” he said.

He said that the rest of the plant’s debts are debts to the tax service.

“Taxpayers accrued UAH 400 million, while in fact this is UAH 109 million to be paid in installments, according to all documents and the payment terms agreed earlier,” the businessman said.

CZECH UJV REZ TO DESIGN DATA FOR REVISING FEASIBILITY STUDY TO BUILD REACTORS

KYIV. July 13 (Interfax-Ukraine) – UJV Rez a. s. (the Czech Republic) will design data for revising a feasibility study to build reactors three and four of Khmelnytsky nuclear power plant (NPP). It will concern technical characteristics and reliability indicators for Skoda JS VVER-1000 reactor and the blueprints for safety systems.

According to a report of National Nuclear Generating Company Energoatom in the Visnyk Derzhavnykh Zakupivel public procurements bulletin, the cost of the contract signed on June 30, 2016 is EUR 272,600 (VAT not included).

UJV Rez will also assess safety of the reactor for normal exploitation, project and serious accidents.

The Czech company is to provide the data before November 2016.

Energoatom said that the revised feasibility study would help to make the final decision by Ukraine’s Cabinet of Ministers, new legislation on placing, designing and building reactors three and four of Khmelnytsky NPP.

According to the tender documents, the main option for fuel for Skoda JS VVER-1000 reactors with a projected lifespan of 50 years is Westinghouse fuel assemblies and an alternative fuel is Russia’s TVEL fuel.

Energorisk LLC (Kyiv) with an offer of UAH 9.88 million (VAT included) took part in the tender.

BOGDAN CORPORATION STARTS MAKING KUNG VEHICLES AT CHERKASY PLANT

KYIV. July 13 (Interfax-Ukraine) – Bogdan Corporation has started producing multipurpose KUNG vehicles (standardized military vehicle) at an automobile plant in Cherkasy.

The corporation said in a press release on Tuesday that this would help the company to diversify risks related to the absence of passenger car production at the plant linked to the collapse of the automobile market in Ukraine.

The plant seeks to make a wide range of vehicles for temporary accommodation of people, equipping laboratories, repair shops, mobile kitchens, radio electronic systems, special equipment and first-aid posts.

According to the report, KUNG can be used with chassis made by the plant: Bogdan truck chassis (MAZ) and Hyundai HD, as well as chassis of customers starting from three-meter to 13-meter chassis.

The KUNG vehicle could be equipped with heating system, air ventilation ducts, electric connectors, lighting, protective earthing and household equipment.

Plant Director Viacheslav Sopit said that today the plant can produce 10 vehicles a month. The cost of the vehicle will depend on its components and equipment.