Business news from Ukraine

UKRAINIAN SPECIALISTS WILL BE ABLE TO WORK IN LITHUANIA

Ukrainians will be able to work in Lithuania due to assistance to be provided by specialized services and business organizations of both countries. Currently, Lithuania lacks manpower, while there are more than half a million officially registered unemployed specialists in Ukraine. Recently, a delegation of the Ukrainian League of Industrialists and Entrepreneurs (ULIE), which included representatives of the State Employment Service of Ukraine, met with the Lithuanian Migration Service, the Labor Exchange, and the Lithuanian Confederation of Industrialists in Vilnius to negotiate job opportunities for Ukrainians in the partner country.

Lithuania has thousands of job offerings, including for skilled professionals that remain unmet. Yet, short-term employment of Ukrainians in Lithuania often requires additional advanced training. The first phase can be carried out at training centers in Ukraine, whereas the second can be completed in Lithuania.

“This moment is very important. After return to Ukraine, our specialists will possess the required skills that are endorsed in Lithuania and Europe in general, supported by respective certificates. This is a good chance of re-training our own specialists step-by-step while enhancing their ability to work under EU conditions,” ULIE First Vice President Serhiy Prokhorov said.

Thus, cooperation in the field of human resources is beneficial to both Ukraine and Lithuania. On this occasion, the ULIE and the Lithuanian Confederation of Industrialists signed a supplementary agreement to the existing agreement on cooperation between the organizations. The parties will jointly promote the exchange of requests and offers of employment, training and advanced training, and arrange legal education workshops for industrialists and entrepreneurs on human resources processes.

The employment services of both countries and the Migration Service of Lithuania are engaged in the project, they will coordinate the process; ensure its regulatory and organizational support.

Acting Director of the Employment Center in Kyiv region Denys Darmostuk, who was present at the talks in Vilnius as an authorized representative of the Ukrainian Employment Service, pledged support in the employment of Ukrainian citizens and all necessary assistance.

The ULIE and the State Employment Service plan to sign a memorandum of cooperation in Odesa on July 12.

ULIE CO-FOUNDS INDUSTRIAL AND COMMERCIAL ALLIANCE, UNITING 21 COUNTRIES IN ASIA AND EUROPE

The Ukrainian League of Industrialists and Entrepreneurs (ULIE) has become a co-founder of the Belt & Road Industrial and Commercial Alliance (BRICA) under the slogan “One Belt, One Road.” In total, the project being implemented in the form of a non-governmental international organization has brought together business associations as founding members from 21 countries in Asia and Europe. The official BRICA founding ceremony took place in Beijing, China, in June.

“It is a great honor for the Ukrainian League of Industrialists and Entrepreneurs to take part in this grand initiative, which aims to develop business and cultural ties between peoples. We believe that the establishment of the industrial and commercial alliance will promote peace and strengthen economic cooperation in Asia and Europe, will be conducive to the prosperity of their nations,” ULIE President Anatoliy Kinakh commented on the event.

Taking part in BRICA, the ULIE hopes to continue promoting the interests of Ukrainian businesses, facilitating exports and bringing investors into the country, while establishing cooperation ties.

The name “One Belt, One Road” comes from an initiative of the Chinese government aimed at establishing a new model of international cooperation and development through the strengthening of the existing regional bilateral and multilateral mechanisms that involve China. To implement the strategy and investment projects in the member countries, China has already created a special fund with over $40 billion already injected as share capital.

UKRAINE EXPORTS ELECTRICITY WORTH $85 MLN IN H1, 2016

KYIV. July 12 (Interfax-Ukraine) – Ukraine in January-June 2016 exported electricity worth $85.485 million, in particular in June for $10.46 million.

According to the State Fiscal Service, electricity exports to Hungary cost $63.394 million, Poland $21.736 million, Moldova $347,000, other countries $7,000.

In addition, in January-June 2016 Ukraine imported energy worth $1.129 million from Russia and $320,000 from Belarus.

As reported, Ukraine in 2015 exported electricity for $150.057 million, in particular to Hungary for $144.907 million, Poland for $2.722 million, Moldova for $1.173 million, other countries for $1.255 million.

UIA ADVOCATES LIBERALIZATION OF AVIATION MARKET WITH EASTERN COUNTRIES

KYIV. July 12 (Interfax-Ukraine) – Ukraine International Airlines (UIA, Kyiv), the largest Ukrainian airlines, believes that the aviation market with eastern countries should be liberalized, UIA President Yuriy Miroshnikov has said in an interview with Interfax-Ukraine.

“The European market is enough liberalized. Dear managers of the sector, use your liberalization efforts in the East. There are examples of liberal approach, such as Georgia, Kazakhstan, and tough regulation and resistance – Uzbekistan, Turkmenistan, partially Iran, Jordan and Lebanon,” he said.

Miroshnikov is confident that without solving the issues in the East it would be difficult to use Ukraine’s transit potential.

 

ESTERLINE CMC ELECTRONICS TO SUPPLY AVIONICS FOR UKRAINIAN MODERNIZED RUSLAN, AN-148/158/178 FAMILY PLANES

KYIV. July 12 (Interfax-Ukraine) – Canada’s Esterline CMC Electronics has signed contracts with Kyiv-based Antonov State Enterprise to supply avionics for promising Ukrainian aircraft: modernized transport An-124-100 Ruslan aircraft of Antonov Airlines and An-148/158/178 multipurpose next generation jets.

Information about the signing of the contracts was published by the Canadian company on Monday at the Farnborough International Airshow Trade 2016 opened near London.

Esterline CMC Electronics said in a press release that under the terms of the first contract, Esterline CMC Electronics will supply its avionics for the upgrade of seven An-124 aircraft and avionics for sixty new An-148/158/178 aircraft for commercial and military use.

According to Antonov’s information presented in June after the signing of the contracts, the Canadian company will supply multi-function displays and flight management systems. The equipment will be delivered by late June 2021.

Under the contract, equipment made by CMC Electronics adapted for Antonov aircraft will be certified by the Canadian company at Transport Canada and will meet western standards and requirements. This is an important factor for the further certification of the aircraft in line with European requirements, Antonov said.

State-run Antonov company, the leading Ukrainian aircraft manufacturer, became part of Ukroboronprom in April 2015 under a government decision.

FREE TRADE BETWEEN UKRAINE AND CANADA WOULD REVOKE DUTIES ON 98% OF UKRAINIAN GOODS, 72% OF CANADIAN GOODS – ECONOMY MINISTRY

KYIV. July 12 (Interfax-Ukraine) – The agreement on a free trade area between Ukraine and Canada since the moment of taking force after its ratification by parliaments of the two countries would reduce imports duties for 98% of Ukrainian imported goods and for 72% of Canadian exports to nil, Ukraine’s Economic Development and Trade Ministry has reported.

“Imports duties on agricultural goods will be lifted at once (apart from 108 tariff lines and the access to them will be opened with quota) and all industrial goods (apart from passengers cars with a seven year transition period for revoking of imports duties),” the ministry said.

The ministry noted that for 22 groups of agricultural goods (108 tariff lines, including wheat, barley, dairy products, poultry and turkey, eggs and egg products, beef, pork and margarine) Ukrainian exporters will be able to supply them at a zero imports duty only as part of Canada’s global quotas.

“The exceptions… are severe. Three wide groups of goods were fully removed from free trade: poultry, eggs and dairy products. Canada does not give us any preferences for them. All possible goods made of milk (cheese, ice cream, for example) are excluded, while the EU opened this market for us,” business envoy at the State Fiscal Service of Ukraine Taras Kachka said.

He said that these groups are sensitive for Canada, as trade with these goods is strictly regulated at the national level. These goods are also removed from the free trade area agreement between Canada and the EU, apart from the additional cheese quota.

The ministry said that the free trade area agreement between Ukraine and Canada foresees gradual elimination of imports duties on Canadian agricultural products: within three years for live poultry and sheep, beef, lamb, nuts, sauces, flour products; within five years – sub-products from pigs, oilseeds, fat, vegetable oil and within seven years – cooled pork and poultry, milk, cream, eggs honey, vegetable and sausages.

The partial liberalization in the form of cutting imports duties will apply to Canadian fat, cheese, margarine and mixtures. For example, imports duties for some goods made of poultry would be decreased only by 20% within seven years.

The tariff quotas for frozen pork and salo, and sugar (eight positions) will be removed from the free trade regime.

As for industrial goods, Canada introduces a seven-year transition period for revoking duties only for some positions of passenger cars, while Ukraine: a three-year period for construction materials, industrial equipment and parts of aircraft, a five-year period for electric equipment, light pipes, motorcycles, trailers, vessels, photo cameras and a seven-year period for cars, tractors and spare parts for them.

“Among key Ukrainian products that would receive advantages from the duty-free access to the Canadian market in the short-term outlook are sunflower oil, sugar, confectionary and chocolate, alcohol and beer, juices, clothes, ceramics, metal products and chemicals. The agreement would promote cooperation in the aircraft building sector,” the ministry said, predicting a 3.5% rise in exports thanks to the removing the duty.

The ministry also pointed out the beneficial access to the participation in public procurement at the governmental level of the two countries, liabilities linked to protection of intellectual property rights and receiving technical assistance from Ottawa for the effective implementation of the free trade area agreement.